Marina Advisory Commission

M A R I N A A DV I S O RY C OMMITTEE December 12, 2022 Marina Advisory Committee Meeting 1 of 13 12/12/2022  Marina Advisory Committee December 12, 2022 at 6:00 p.m. City Hall or Remote Committee Members Ken Hulett, Chairman J.J. Jones, Vice-Chairman Ryan Bradley Curtis Adams Byron Skubi We will be meeting in person and the public is welcome to attend. If you prefer to remotely listen to the live meeting, please call 1(650)242-4929, Meeting ID: 540 416 2643 (NOTE: Audio Only, No Comments - For Comments, Email csublet@oakharbor.org) 1. Mr. Brian Smith, City of Oak Harbor Parks & Recreation Director - Introduction 2. Public Comment 3. Review of the November 7, 2022, meeting notes 4. Marina Business Plan Questions & Answers with Paul Sorenson BST Associates - Discussion 5. Mariners Haven Business Plan Scope Overview from Paul Sorenson BST Associates - Update 6. General Marina Update 7. Marina Advisory Committee Comments 8. Next Meeting – January 9, 2023 9. Adjourn Marina Advisory Committee Meeting 2 of 13 12/12/2022  REVIEW OF M EETING N OTES November 7, 2022 Marina Advisory Committee Meeting 3 of 13 12/12/2022  City of Oak Harbor November 7, 2022 Marina Advisory Committee 6:00 p.m. Regular Meeting Agenda In Person & Virtual Meeting Roll Call: Mr. K. Hulett __X__ Mr. J. Jones __X__ Byron Skubi __X__ Mr. Ryan Bradley_ _X___ Mr. Curtis Adams __X__ Staff: Mr. Blaine Oborn & Mr. Chris Sublet Public: Mr. Paul Sorenson, BST & Associates 1. Public Comment: • No public comments. 2. Review of the November 7, 2022, Meeting Minutes: • Approved as written 3. Marina Business Plan Financial & Rate Comps from Paul Sorenson BST Associates - Update Mr. Hulett introduced the agenda item and Mr. Sorenson gave a presentation on marina revenue, rates and ability to fund capital improvement projects. He explained that the marina is not generating enough “net income” to fund capital improvement projects. Mr. Sorenson also compared the OHM rates to other marinas and explained that in most cases the OHM rates are 30% - 40% lower. He concluded by showing images of other marinas that have come up with creative ways to manage their marinas which has increased the net income. Discussion The MAC discussed the presentation and some of the findings. They also discussed options for generating more net income as well as some reconfiguration options. The MAC concluded by discussing other marina management options. Action No action was taken 4. Mariners Haven Business Plan Scope Overview from Paul Sorenson BST Associates - Update This was tabled until the December 12, 2022 meeting Discussion Action 5. General Update • None given. 6. MAC Comments • There were not any comments. 7. Next regular meeting—December 12, 2022 Marina Advisory Committee Meeting 4 of 13 12/12/2022  M A R I N A BUSINESS P L A N QUESTIONS & ANSWERS WITH P A U L S O R E N S O N BST ASSOCIATES Discussion Marina Advisory Committee Meeting 5 of 13 12/12/2022  City of Oak Harbor Oak Harbor Marina Memo To: Marina Advisory Committee From: Chris Sublet, Harbormaster CC: Date: 12/12/2022 Re: Marina Business Plan – Questions & Answers In October Mr. Paul Sorenson from BST Associates presented market trends for the Oak Harbor Marina and Puget Sound area. In November he presented Oak Harbor Marina Finance/Options. In both presentations he presented in depth, detailed information about the marina trends and finances. Now that the MAC has had time to analyze and review the information as well as speak with Mr. Sorenson, it may be prudent for there to be a question & answer session. It may also be helpful for each MAC member to give a recap of their individual discussions with Mr. Sorenson. Please contact Chris Sublet at 360.279.4576 if you have any questions. Marina Advisory Committee Meeting 6 of 13 12/12/2022  M A R I NERS HAVEN BUSINESS PLAN SCOPE OVERVIEW WITH PAUL SORENSON BST ASSOCIATES Update Marina Advisory Committee Meeting 7 of 13 12/12/2022  City of Oak Harbor Oak Harbor Marina Memo To: Marina Advisory Committee From: Chris Sublet, Harbormaster CC: Date: 12/12/2022 Re: Mariners Haven Business Plan – Scope Overview Update Mr. Paul Sorenson from BST Associates will present an overview of the scope of the Mariners Haven business plan. Please contact Chris Sublet at 360.279.4576 if you have any questions. Attachments A. Oak Harbor Mariners Haven BST Associates Scope of Work Marina Advisory Committee Meeting 8 of 13 12/12/2022  EXHIBIT A Oak Harbor Assessment of Purchase of Mariners Haven The scope of work for the business plan includes the following elements: Analysis/Outreach  Review Mariners Haven site/operations o Site visit, gather relevant data  Demand assessment o Define demand for marina-related uses of the site (storage, boatyard, other). o Describe competition from other facilities (storage, boatyard, other). o Evaluate likely use patterns (seasonal and annual). o Define market capture rates of uses.  Outreach o Meet with selected City staff, officials, and stakeholders, o Survey marina tenants using SurveyMonkey (could be included with marina plan), o Meet with key marina stakeholders (Advisory Committee, businesses serving the marina, et al.), o Conduct SWOT analysis (strengths, weaknesses, opportunities and threats).  Evaluate financial performance o Historic trends and future projected revenues/expenses,  Evaluate financials provided by the owner as well as other sources of information (publicly owned boatyards etc.). o Evaluate capital improvement plan, o Describe sources of funding (bonds, grants etc.), o Recommendations on improving financial performance and financing needed improvements:  Evaluate potential opportunities to increase net operating income:  Revenue enhancement (rates, other revenue sources, etc.)  Opportunities to reduce expenses. Report/Presentation  Prepare draft report: o Market status and opportunities, BST Associates Page 5 10/24/22 City of Harbor Marina Advisory Committee Meeting 9 of 13 12/12/2022  o Operations review, o Financial performance, o Recommendations.  Present findings to staff, stakeholders and City Council.  Final report - Revise draft with input from staff and stakeholders Budget & Schedule The budget for this project is $20,380, and it can be completed by mid-February 2023 if notice to proceed occurs by the beginning of November. Table 1 – Project Budget Task Budget Analysis/Outreach Review Port operations $720 Demand assessment $5,400 Outreach $3,600 Evaluate financial performance $5,400 subtotal $15,120 Report/presentation Prepare draft report, $2,700 Present findings $1,260 Prepare final report $1,300 subtotal $5,260 Total $20,380 BST Associates Page 6 10/24/22 City of Harbor Marina Advisory Committee Meeting 10 of 13 12/12/2022  G E N E R A L U P DAT E Discussion November Occupancy Report Marina Advisory Committee Meeting 11 of 13 12/12/2022  City Administrator's Report December 2021 Marina Reporting Period November 1 - November 30, 2021 Occupancy Dock Total Slips Total Total Vacant Percent Occupied Occupied A 53 53 0 100% B 82 76 6 93% C 55 52 3 95% D 85 43 42 51% E 71 59 12 83% F 52 43 9 83% G 15 14 1 93% S 8 8 0 100% Totals 421 348 73 83% 87% Oct-21 Total Slips Total Total Vacant Percent Occupied Totals 421 365 56 87% Nov-20 Total Slips Total Total Vacant Percent Occupied Totals 421 353 68 84% Summary *There are the 17 more vacancies in November than in October 2021. *The overall occupancy of the docks was 83% * -4.0% Compared to October * -1% loss Compared to November 2020 *The average percentage of occupancy on each dock was 87% in November * -4.0% Compared to October * -1% loss compared to November 2020 Marina Monthly Revenue SLS Moorage $59,906.22 Storage Unit $11,076.16 Fence line Storage $1,838.58 Gasoline $1,155.86 (291.278 Gallons) Diesel $7,082.51 (2248.637 Gallons) Total $81,059.33 Marina Advisory Committee Meeting 12 of 13 12/12/2022  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 13 of 13 12/12/2022