Marina Advisory Commission

M A R I N A A DV I S O RY C OMMITTEE February 7, 2022 Marina Advisory Committee Meeting 02.7.2022 Master Page 1 of 16  Marina Advisory Committee February 7, 2022 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)419-1505, Meeting ID: 030 400 086 (NOTE: Audio Only, No Comments - For Comments, Email csublet@oakharbor.org) 1. Public Comment 2. Review of the January 10, 2022, meeting notes 3. 2022 Marina Rate Increase - Discussion 4. Dredging Project Update - Discussion 5. General Marina Update 6. Marina Advisory Committee Comments 7. Next Meeting – March 7, 2022 8. Adjourn Marina Advisory Committee Meeting 02.7.2022 Master Page 2 of 16  REVIEW OF M EETING N OTES F RO M JA N UA RY 1 0 , 2022 Marina Advisory Committee Meeting 02.7.2022 Master Page 3 of 16  City of Oak Harbor January 10, 2022 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. Chris Sublet Public: Mr. Byron Skubi 1. Public Comment: • None 2. Review of the December 6, 2021, Meeting Minutes: • Approved as written 3. 2022 MAC meeting Agenda Items – Discussion Mr. Hulett introduced the agenda item and Mr. Sublet explained that the purpose of this item was to identify the agenda topics that may need to be discussed and when. He continued to explain that this was just a starting point and that if any of MAC members wanted to add or delete something to let him know. Discussion The MAC discussed the agenda items on the list and determined that they were appropriate. The MAC also discussed adding a few other topics and having summer meetings. They determined that they did not want to add anything at this time and that we should use the scheduled topics as a template for the upcoming meetings. Action No action was taken. 4. Salmon Rearing Program and Non-Profit Organizations Estimated Annual Costs - Discussion Mr. Hulett introduced the agenda item and explained that this was an informational update. He also explained that the costs are not really costs since the marina has the slips open and staff is present. Mr. Sublet explained that it should not be considered as “costs” but “values”. He said that the space is open and that the only way to make an even comparison was to evaluate all of the non-profits and the fish pens by the amount of space taken up and staff time. He reiterated that this is just information. Mr. Skubi explained that he did not think that the comparison was fair and that it was not costing the marina anything for the non-profits to be in the marina and utilize space and staff time. He also said that he was concerned that the memo would create the perception that OHYS is getting a lot of services for free. Mr. Sublet explained again that this was just information and that maybe the “cost” column should be perceived as “value.” He concluded by reiterating that the information was just provided as an informational update. Marina Advisory Committee Meeting 02.7.2022 Master Page 4 of 16  Discussion The MAC discussed the non-profit clubs and their presence in the marina and how important they are to the community. They also determined that the memo was just informational and that the costs on the memo were not necessarily costs and that this was a fair comparison. Action No action was taken. 5. General Update • Mr. Sublet gave an update on the following: o Breakwater repair o Winter projects o Yacht club invitations 6. MAC Comments • Mr. Jones asked if it would be possible for staff to provide an update to the MAC in the spring on the groups visiting and summer events. 7. Executive Session - per RCW 42.30.110(1) (b) : “(b) To consider the selection of a site or the acquisition of real estate by lease or purchase when public knowledge regarding such consideration would cause a likelihood of increased price;” 8. Next regular meeting— February 7, 2021 9. Adjourn Marina Advisory Committee Meeting 02.7.2022 Master Page 5 of 16 2 0 2 2 M A R I N A R AT E I N C R E A S E Discussion Marina Advisory Committee Meeting 02.7.2022 Master Page 6 of 16  City of Oak Harbor Oak Harbor Marina Memo To: Marina Advisory Committee From: Chris Sublet, Harbormaster CC: Date: 02/07/2022 Re: 2022 Marina Rate Increase - Discussion The Marina Advisory Committee spent several meetings in 2016, 2017, 2018 and 2019 discussing and analyzing the Marina rates and fees. At the January 7, 2019 meeting the Marina Advisory Committee meeting, the MAC adopted the following recommendation, which passed 3-1. “Increase rates by 3% with exception of the tenant electrical rates and allow marina tenants free use of the ramp and to increase the daily ramp use fee for non-marina tenants to $10 for recreation users and $15 for commercial users, in addition to the 3% moorage rate increase the 50’ – 60’ categories to 80% of the surveyed average with the increase spread out over the next 2 years and to set the rates as per the recommended rate schedule for the subsequent 3 years (2020 – 2022).” On March 18, 2019, the City Council approved Resolution 18-10 which increased the marina rates on April 1, 2019, and then again on April 1st for the next three years (2020 – 2022). Due to the COVID crisis, the scheduled April 1, 2020 rate increase was postponed until July. The rates were increased on April 1, 2021, as planned. The next rate increase is scheduled to go into effect on April 1, 2022. It should be noted that the revenue from the 2022, 3% rate increase is included in the 2022 marina budget. Staff is presenting this information along with a rate comparison spreadsheet (attachment A), to Marina Advisory Committee to make them aware of the April 1, 2022, rate increase, no action is necessary. If you have any questions, please do not hesitate to contact Chris Sublet at (360) 279-4576. Attachments A. 2022 Marina Rate Comparison Spreadsheet 1 Marina Advisory Committee Meeting 02.7.2022 Master Page 7 of 16  A. 2022 Marina Rate Comparison Spreadsheet MOORAGE RATES COMPARISON 2022 Monthly Rates Proposed Monthly Rates - Includes all taxes and fees including a $7.97Env Compliance Fee 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 57' Cap Sante $264.23 $270.61 $445.05 $512.17 $690.69 $1,124.00 Everett $250.19 $288.56 $383.34 $363.03 $525.52 $446.54 $669.96 $539.06 $781.67 $1,035.56 $810.00 30' 30' 35' 35' La Conner $269.00 $339.00 $336.00 $517.00 $644.00 $549.00 $850.00 $750.00 very limited $11 per ft South Whidbey $264.00 $308.00 $352.00 62' Des Moines $195.36 $249.60 $255.08 $327.88 $320.32 $414.72 $381.96 $531.72 $453.60 $641.00 $906.00 $798.00 Anacortes $415.00 $615.00 $655.00 $905.00 $1,370.00 $1,775.00 Best Average $236.52 $249.60 $276.97 $350.07 $344.19 $518.41 $402.39 $572.89 $560.77 $713.47 $1,040.39 $1,051.40 OH existing $200.79 $258.71 $248.13 $316.10 $287.01 $378.41 $329.08 $467.37 $371.02 $507.29 $751.14 $629.75 Difference -35.73 9.11 -28.84 -33.97 -57.18 -140.00 -73.31 -105.52 -189.75 -206.18 -289.25 -421.65 % of Average 84.9% 103.6% 89.6% 90.3% 83.4% 73.0% 81.8% 81.6% 66.2% 71.1% 72.2% 59.9% Proposed 2022 Rates with 3% Increase Best Average 236.52 249.60 276.97 350.07 344.19 518.41 402.39 572.89 560.77 713.47 1040.39 1051.40 OH 206.81 266.47 255.57 325.58 295.62 389.76 338.95 481.39 382.15 522.51 773.67 648.64 Difference -29.70 16.87 -21.40 -24.49 -48.57 -128.65 -63.44 -91.50 -178.62 -190.96 -266.72 -402.76 % of Average 87.4% 106.8% 92.3% 93.0% 85.9% 75.2% 84.2% 84.0% 68.1% 73.2% 74.4% 61.7% Marina Advisory Committee Meeting 02.7.2022 Master Page 8 of 16  A. 2022 Marina Rate Comparison Spreadsheet 2021/2022 Marina Rate and Fee Comparision Seasonal Guest Moorage Rate - Per slip OHMC 6.36.023.2 - reservation Between 6/1 and 9/1 deposit of each year, the Environmental credited to extended guest Electricity - Electricity - Compliance (for guest Guest Moorage Price moorage rate will be Marina Electricity - Electricity - Marina Non - recycling, oil moorage fee. Per Foot - Boating Guest Moorage Price per the master fee Dry Storage Tenant Marina Tenant Live Aboard Marina absorbants, & Non Dinghy Hourly Season Per Foot - Off Season schedule Diesel Gasoline Storage Sheds 10' X 40' Live aboard Metered Unmetered Unmetered Tenant etc.) Refundable Storage Gate Cards Labor Rate Towing Late Fee/Charge Current Best Average $1.49 $1.02 N/A N/A N/A .76 sq ft $70.71 $79.89 N/A N/A N/A $9.11 $15.00 $26.95 N/A N/A N/A $147.30 or .59 2.0 times the normal per square foot montly rate Year = Includes $11.74 + <30' = $11.74 1st night of round for stays Invoice Cost + .60 X Invoice Cost + .60 + $5.00 Env .131 Per >30' =$18.07 <37' = $48.18 >36' guest 6% / $49.17 Current Rates $1.15 $1.15 between 7 -14 days. 1.89= Retail Price .03 = Retail Price Comp Fee $57.09 $67.52 KWH >36'+ $26.51 =$63.85 $5.50 $7.97 moorage $26.95 $10.30 $81.96 $163.92 after 60 days Difference $0.34 -$0.13 .17 sq ft. $13.62 $12.37 $1.14 % of Average Current Rates 77% $1.00 112% $1.00 2.0 times the normal Invoice Cost + .45 X Invoice Cost + .45 + 78% $130 or .52 per 81% $52.24 85% $61.80 $11.07 + <30' = $11.07 <37' = $45.42 >36' $4.00 87% $5.00 1st night of $26.95 $10.00 $75.00 3% / $45.00 Proposed 2022 Rates Best Average $1.49 $1.02 N/A N/A N/A .76 sq ft $72.83 $81.89 N/A N/A N/A N/A $9.11 $15.00 $26.95 N/A N/A N/A N/A $1.51.72 or .61 2.0 times the normal per square foot montly rate Year = Includes $12.09 + <30' = $12.09 1st night of round for stays Invoice Cost + .62 X Invoice Cost + .62 + $5.15 Env .123 Per >30' =$18.61 <37' = $49.63 >36' guest 7% / $50.65 OH $1.20 $1.20 between 7 -14 days. 1.89= Retail Price .03 = Retail Price Comp Fee $58.80 $69.55 KWH >36'+ $27.31 =$65.77 $5.75 $8.21 moorage $26.95 $10.61 $84.42 $168.84 after 60 days Difference $0.15 $14.03 $12.34 $0.90 % of Average 81% 118% 80% 81% 85% 90% Attachment A Marina Advisory Committee Meeting 02.7.2022 Master Page 9 of 16 D R E D G I N G P RO J E C T U P DAT E Discussion Marina Advisory Committee Meeting 02.7.2022 Master Page 10 of 16  City of Oak Harbor Oak Harbor Marina Memo To: Marina Advisory Committee From: Chris Sublet, Harbormaster CC: Date: 02/07/2022 Re: 2022 Dredge Project Update - Discussion The Oak Harbor Marina has traditionally been dredged every 10-15 years and was last dredged in 2010/2011. Only half of the marina was dredged during this effort and the marina is now silting in, making parts of the marina unusable at low tides. The next dredge project feasibility study is budgeted for 2024 however with the amount of silting in that is occurring it makes more sense to start the project in 2022. Once a Marine Engineering company is hired, it will likely be several years before actual dredging occurs. The major milestones of the dredge project, are: 1. The Marina Advisory Committee makes a formal recommendation to begin the dredge project. a. The MAC made this recommendation at the September 13, 2021, meeting. 2. Staff makes a dredge project presentation to the City Council at a workshop. a. This was completed on October 27, 2021, however due to the recent addition of 4 new Councilors, staff will be representing the dredging information at the March 23, 2022, workshop. 3. Staff seeks a formal recommendation to begin the dredge project from the City Council at a City Council meeting. 4. Staff seeks financing for the dredge project. 5. Staff creates a bid packet for project engineering. a. Staff has met with Moffat & Nichol to discuss potential costs, permits and timing. Moffat & Nichol is gathering information and will provide it to us soon. Moffat & Nichol is currently working on the breakwater storm damage repair project. 6. Staff opens bids and selects the most qualified engineering firm. 7. Staff seeks formal approval to award the project engineering contract from the City Council at a City Council meeting. 8. The engineering firm creates a project timeline, scope of work, determines probable costs, drafts a bid packet, and starts the permit process. 9. All permits are issued. 10. Staff opens bids and selects the most qualified dredging firm. 1 Marina Advisory Committee Meeting 02.7.2022 Master Page 11 of 16  11. Staff seeks formal approval to award the bid from the City Council at a City Council meeting. 12. Staff and the engineering firm have preconstruction meetings with the dredge company. 13. Dredging starts. Staff is estimating that this dredge project will cost approximately $4,000,000 - $5,000,000 and it is likely that the marina will have to pay for it with a bond. This may result in significantly higher rates for marina tenants. Since the marina is open to the public and used and enjoyed boaters and non-boaters alike, it is likely that the City will be asked to contribute some funds for the project. Staff has also requested $200,000 in ARPA funds for the pre-dredging phase and is exploring some possible grant options. It should be noted that one of the conditions of the marina lease with DNR, is remove the sunken barges on the south side of the marina that were once used as a breakwater. Since it takes the same type of equipment to remove the barges as it does to dredge it is likely, that we will have them removed as part of this project. The estimated removal cost for removal of the barges is approximately $116,000.00. Staff will be making a presentation at the March 23, 2022 workshop, (the February 23rd workshop will be utilized to select a new Councilor to fill the vacant position), to introduce the dredging project to the new City Council members. Following the workshop, staff will then make a presentation at a City Council meeting to seek authorization to move forward with selecting a marine engineering firm. If you have any questions, please do not hesitate to contact Chris Sublet at (360) 279-4576. ⚫ Page 2 Marina Advisory Committee Meeting 02.7.2022 Master Page 12 of 16 G E N E R A L M A R I N A U P DAT E Discussion Marina Advisory Committee Meeting 02.7.2022 Master Page 13 of 16  City Administrator's Report February 2022 Marina Reporting Period January 1 - January 31, 2022 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 41 44 48% E 71 57 14 80% F 52 43 9 83% G 15 13 2 87% S 8 8 0 100% Totals 421 342 79 81% 85% Dec-21 Total Slips Total Total Vacant Percent Occupied Totals 421 344 77 82% Jan-21 Total Slips Total Total Vacant Percent Occupied Totals 421 344 77 82% Summary *There are the 2 more vacancies in January than in December 2021. *The overall occupancy of the docks was 81% * -0.5% Compared to December * 0% loss Compared to January 2021 *The average percentage of occupancy on each dock was 85% in January * -0.5% Compared to December * 0% loss compared to January 2021 Marina Monthly Revenue SLS Moorage $59,719.61 Storage Unit $11,236.68 Fence line Storage $1,831.36 Gasoline $1,762.49 (426.484 Gallons) Diesel $9,135.75 (2877.162 Gallons) Total $83,685.89 Marina Advisory Committee Meeting 02.7.2022 Master Page 14 of 16 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 02.7.2022 Master Page 15 of 16 N E X T M E E T I N G — M A RC H 7 , 2 0 2 2 Adjourn Marina Advisory Committee Meeting 02.7.2022 Master Page 16 of 16