Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Sarah Birkeland, Acting Parks Director
Subject: Amend the Coyote Point Marina Fee Schedule
RECOMMENDATION:
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Adopt a resolution authorizing an amendment to the Coyote Point Marina Fee Schedule to increase certain fees by 4% to 16% to be effective January 1, 2018.
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BACKGROUND:
The Coyote Point Marina (Marina) is a public marina located along the San Francisco Bay and accessed by land through the Coyote Point Recreation Area. The Marina operates as an enterprise fund and receives no general funds from the County.
The Marina recently conducted an annual Berth Rate Survey for 2017. Forty-two marinas participated in the survey this year. Of the 42 surveyed, 26 were private marinas and 16 were public marinas resulting in an average berth rental rate of $9.34 per foot. The private marinas’ average rate was $9.81 per foot and the public marinas’ average rate was $8.55 per foot. The Marina currently has an average rate of $7.94 per foot, well below the public and combined averages.
The Marina has entered into several loan and grant agreements with the California Division of Boating and Waterways over the years for needed capital improvements. These survey findings are always provided to the Division of Boating and Waterways to demonstrate that the berth rental fees are reasonable and not exorbitant. The Marina’s operating revenue primarily consists of fees collected for the use of Marina facilities and services. In 2015, County Parks engaged the services of CHM Government Services (CHMGS) to undertake financial and investment analysis related to management structure options for the Marina. CHMGS found that berth rental rates for most of the Marina’s berths were somewhat below market, ranging from three to twelve percent below market. CHMGS believes that given the preferable location, weather pattern, and setting enjoyed by the Marina, the berth rent could be increased by at least five percent over current levels.
The last berth rental fee increase of 3% was approved August 4, 2015 by Board of Supervisors Resolution No. 073985.
The Boat Launch Ramp fee has not been raised for a number of years. Users of the Boat Launch Ramp include fishermen, recreational motor-boaters, sail boaters, and non-motorized boaters including outriggers and sea kayakers. By raising the daily fee from $5 to $6 and Annual Pass from $50.00 to $60.00, the Marina is still a bargain compared to many nearby operations.
The Marina operates a Gate Card entry system with plastic gate arms opened by individually issued gate cards via a card reader machine. Gate cards are issued to Marina berthers at a fee of $7 per card and have a refundable deposit. The Gate Cards now cost the County $7.50 per card. The County incurs additional administrative costs by receiving deposits and refunding deposits often years later for gate cards that are no longer usable. In addition, the plastic gate arms costing $105 each are replaced monthly as berthers regularly drive through the gate arms. Previously we produced pine gate arms which broke when hit by automobiles and damaged the vehicles. A recommended fee increase to $20 to cover those expenses is still reasonable compared to other local facilities.
The Marina operates a key machine to produce numbered Gate Keys for each dock. Every issued key is tracked as security is a very high priority. Gate keys are issued to berthers at $3 per key with a refundable deposit. The entire Marina needs to be re-keyed periodically as keys are misplaced or aren’t returned. To cover operational costs, we recommend a fee increase to $10 with no deposit.
DISCUSSION:
Based on the berth rental fee survey conducted this year and recommendations from CHMGS, Marina staff proposes certain fee increases to be effective January 1, 2018.
Staff met with Marina tenants on May 24, 2017 to discuss the proposed fee increases. Most tenants were supportive of the modest berth rental fee increases.
The County’s Parks and Recreation Commission reviewed the proposed fee increases at its August 3, 2017 meeting and recommended approval of these fee increases to the Board of Supervisors.
The current and proposed fees are attached as Exhibit A to the Resolution.
County Counsel has reviewed and approved the resolution as to form.
Approval of this action will contribute to the Shared Vision 2025 outcome of Livable Community by ensuring that equitable and competitive fees are established to allow the Coyote Point Marina to have adequate funding to operate safely and efficiently.
FISCAL IMPACT:
The 4% to 16% Marina fee increases are estimated to increase Marina revenue annually by an estimated $50,000. The Coyote Point Marina is an enterprise fund and does not use any County general funds.