PORPOISE BAY GOVERNMENT WHARF - BUSINESS PLAN-

Transcription

1 118 Garden Avenue, North Vancouver, B.C. Canada V7P 3H2 Tel: Fax: PORPOISE BAY GOVERNMENT WHARF - BUSINESS PLAN- April 19, 2010 Prepared For: The District of Sechelt Harbour Authority Prepared By: District of Sechelt 2 nd Floor, 5797 Cowrie Street PO Box 129 Sechelt, BC V0N 3A0 Sea Force Consultants Inc. 118 Garden Avenue, North Vancouver, B.C. V7P 3H2 Attention: David Black, VP Tel: david@seaforce.ca

2 TABLE OF CONTENTS Page 1.0 INTRODUCTION Background Project Goals EXISTING OPERATIONS Description of Existing Infrastructure Surrounding Areas/Businesses Estimated Infrastructure Asset Value and Annual Maintenance SUMMARY AND ANALYSIS OF REVENUE/EXPENSE Parking Moorage Shore Power Boat Launch Boat Grid Derrick Office Space Current Projects Planned Summary of Potential for Improvements to Existing Operations PROPOSED FUTURE OPTIONS Option 1: Increased Base for Year Round Moorage Option 2: Moorage and Services for Transient Travellers Option 3: Dedicated Space and Services for Tenant Moorage Group SUMMARY FUTURE STEPS Next Steps Sources of Funding APPENDICES Appendix A Historical Information Received from the District of Sechelt Appendix B Future Option Layouts Appendix C Public Input from Newspaper Advertisement

3 EXECUTIVE SUMMARY The District of Sechelt Harbour Authority (the District) currently manages the operation of the Porpoise Bay Government Wharf facility located at the south end of Sechelt Inlet, Sechelt B.C. The facility consists of a fixed wharf approach, a gangway and a set of three moorage floats. As a part of managing this facility, the District has consulted Sea Force Consultants Inc. (Sea Force) to prepare a business plan to assess current operations, resources and market conditions. The goal of this report is to recommend improvements that will increase revenue generated by existing operations as well as future developments. Existing Operations Through the course of this study, the following suggestions were made regarding existing harbour operations (Section 3.0): a) Increase base parking rate. b) Charge higher rate for trailer parking based on extra area occupied, or replace trailer parking in favour of an estimated six additional regular parking stalls. c) Lease parking area(s) to subtenants via tendered lease agreements. d) Consider dedicated parking for shuttle/taxi service in future. e) Increase recreational moorage rates to reflect surrounding averages. f) Consider charging a General Harbour Amenity fee to cover general harbour services. g) Negotiate premium moorage rate with interested parties for exclusive permanent or seasonal assigned moorage. h) Suggest that a monitoring study be devised to monitor shore power usage with a focus toward reducing shore power expenses. i) Charge direct fee for use of boat launch or recover boat ramp fees via a higher parking rate for trailer vehicles. j) Decide on whether assets such as the boat grid and derrick are worth maintaining as essential harbour services relative to higher revenue opportunities such as leasing of space on the wharf head. k) Find private tenant for rental of office area.

4 Future Options Three future options were presented in Section 4.0 to outline different markets that could be pursued in future developments at Porpoise Bay Harbour (see Appendix B for Concept Drawings). 1) Development of an Increase Base for Year Round Moorage: Takes advantage of anticipated demand for permanent vessel moorage from the Vancouver area. Increases number of permanently moored vessels by 6 for a total of 23 vessels. Estimated net annual revenue is approximately 13K. See Drawing for details. 2) Moorage and Services for Transient Travellers: Considers market opportunity for transient travellers to discover the inside waterway of Sechelt Inlet. Accommodates 6 permanent vessels and a further 4 transient vessels for a total of 27 vessels. Estimated net annual revenue is approximately 17K. See Drawing for details. 3) Dedicated Space for Tenant Moorage Group: Pursues expanding facilities to benefit from tenant moorage group arrangement with ocean-based club/organization in the form of a yacht club outstation. Accommodates 5 additional permanent and transient vessels while supplying a dedicated line of float for use by a tenant moorage group. Moorage for m yachts is envisaged for a total of 34 vessels. Estimated net annual revenue is approximately 65K. See Drawing for details. Section 6.0 proposes the next steps to be taken in pursuing suggestions to existing operations as well as considering development into these future markets.

5 1.0 INTRODUCTION 1.1 Background The District of Sechelt (The District) holds a lease with Fisheries and Oceans Canada Small Craft Harbours Branch to manage the Porpoise Bay Government Wharf Facility. The lease comprises an area of approximately 1.55 ha on water lot 6374, group 1, New Westminster District and is located at the south tip of Sechelt Inlet, 72km north of northwest of Vancouver, BC. The facilities include a fixed wharf approach, gangway and a set of moorage floats with shore power. The harbour also has an upland parking lot and boat launch facilities. The District operates the Government Wharf with an annual budget of approximately $100, An additional approximate amount of $50,000 has been set aside as operating reserves. Revenues are derived by way of fees charged for moorage, parking and shore power. There is no permanent staff person on site, a District staff person acts as Wharfinger in conjunction with other assigned responsibilities. Over the course of this study, Sea Force has been in communication with the District of Sechelt, in order to review existing financial information for the site and establish project goals. Revenue/expense/budget records over the past 5 years have been provided as a basis for analysis of the existing viability of the harbour. 1.2 Project Goals The scope of the project has been organized to address the following business planning goals as follows: Assess existing operations including review of historical revenue and expenditures. Identify areas for improvement to existing operations (changes not involving a major capital expense). Suggest improvements to existing that can be implemented in short term. Consider future markets to increase revenue generation. Analyze future changes that will have to occur to support increased revenue. 1

6 2.0 EXISTING OPERATIONS 2.1 Description of Existing Infrastructure The Existing harbour infrastructure consists of the following (see Figure 1): 1) Parking Area 2) Wharf Approach 3) Moorage Floats 4) Shore Power Electrical System 5) Boat Launch 6) Boat Grid 7) Derrick 8) Harbour Office/Shed Figure 1: Existing Harbour Infrastructure Over the past 5 years, the harbour has been receiving revenue through fees collected from moorage (including shore power), parking and use of the boat grid Parking The municipal parking area adjacent to the wharf provides parking for 20 regular car spaces, 4 disabled car spaces and 13 vehicle-trailer spaces with a combined area of approximately 2,000 m 2. Parking revenue is collected at a flat rate of $2.00/day per vehicle regardless of size. The rate has not changed since fee collection began in 2006 for this service. The parking lot surface and curbs have been refurbished within the last 10 years. 2

7 2.1.2 Approach and Wharf Head The original piling and foundation for the approach and wharf head is comprised of creosote timber, much of which is approximately 40 years old. Various repairs have been completed over the years with the most significant consisting of replacement of the original timber deck with a concrete composite deck along with replacement of a number of piles and cross braces. This structure covers an approximate area of 685 m 2 and provides area for a small office building, operation of a derrick and access to the moorage floats via a 12.2m (40ft) long steel frame gangway Moorage Floats The harbour currently provides approximately 280 lineal metres (920 ft) of berthage and a total float area of approximately 370 m 2 (4,000 ft 2 ) by way of 3 fingers extending from a header float (see Appendix B Drawing for the existing layout). The floats are approximately 35 years old and are moored with creosote pile dolphins. A 15.2m (50ft) extension was added to Float A, moored with anchor chains. Moorage is charged at 2 different daily or monthly rates depending on whether vessels are classified for commercial fishing or pleasure craft/other. Appendix A provides a detailed list of current and historical rates Shore Power Shore power is available to vessel users in the form of 15A and 30A receptacles. Power is charged at either a daily or monthly rate depending on the service. The current electrical system is approximately 30 years old. The harbour is undergoing a project to expand power capacity to include 20A, 30A and 50A service (see Section 3.8). See Appendix C for current shore power rates Boat Launch The existing boat launch offers deployment capability to small vessel users. Pedestrian access to launched vessels is provided via a small 3.8m x 14.5m (12ft x 50ft) float and gangway. The District has reported that vessels are only able to launch at a mid-tide and above due to lack of clearance at the base of the ramp. The overall width of the ramp was increased approximately 2 years ago through a project funded by the municipality. The boat launch facility is currently not a source of revenue for the harbour Boat Grid Vessel hull repair capability is provided to users via the timber boat grid on the west side of the wharf approach. The grid is almost 40 years old and consists of 7 pile supported creosote timber caps. Grid use is currently charged at a rate of $25 per day. 3

8 2.1.7 Derrick A hand operated derrick winch is located on the northeast corner of the wharf head. This standard type of derrick has a typical rated capacity of 3 tonnes Harbour Office Shed A small office/storage shed 6.0m x 3.8m (20ft x 12ft) is situated on the west side of the wharf head. The shed currently houses the main electrical distribution panel for the harbour and provides for storage of the harbour spill kit and a small office desk space. It is reported that this space is not used for more than a few minutes a day on average. 2.2 Surrounding Areas/Businesses There are several marina facilities in close proximity to Porpoise Bay Harbour. For the purpose of this report, facilities within short walking distance are considered to be close proximity Lighthouse Pub Restaurant and Marina The Lighthouse Pub and Marina is located immediately east of Porpoise Bay Harbour and provides approximately 32 slips for vessels ranging from 4.9m (16 ) to 20.7m (68 ) Moorage is charged at a rate of between $ $9.38 per foot per month for assigned moorage (size dependent) and $8.00 per foot for unassigned moorage. A line of seaplane floats is rented to West Coast Air for operation of its terminal adjacent to the pub. While this facility primarily caters to recreational boaters, the District has reported that it serves as an overflow when moorage is unavailable at Porpoise Bay Harbour. Through an informal arrangement with the District, the Lighthouse Pub provides washrooms, day showers and laundry facilities to vessel users at Porpoise Bay Harbour. In discussions with the two parties, this appears to be a long-term private/public arrangement West Coast Air West Coast Air Operates flights from Vancouver and Nanaimo to Sechelt 2-3 times a day via its terminal mentioned above Halfmoon Sea Kayaks Halfmoon Sea Kayaks operates a kayak rental station on the property located immediately west of Porpoise Bay Harbour through a tenant agreement with the Lighthouse Pub and Marina, the owner of this lot. Kayaks are deployed from a small float and gangway which provides moorage for approximately 4-9.1m (30ft) long boats. 4

9 2.3 Estimated Infrastructure Asset Value and Annual Maintenance The following table provides an estimated value and annual maintenance cost for the structures described previously. Asset value estimates are based on a typical replacement cost for these structures (based on size). The proposed annual maintenance cost shown is a representation of the average annual cost to maintain the asset throughout its expected lifespan as a percentage of replacement cost; this does not take into account consideration for replacement of initial capital outlay. Actual maintenance costs will not be linear over the lifecycle of an asset and further analysis would be required to generate individual maintenance cost profile(s) for each asset. Table 1: Estimated Annual Maintenance Costs for Existing Infrastructure Structure Description Estimated Value (K) Estimated Average Annual Maintenance ($) MOORAGE ASSETS Float A (Header) Timber Float 75 $2, Float B (West) Timber Float 85 $2, Float C (Mid) Timber Float 65 $1, Float D (Landing) Timber Float 75 $2, Gangway Standard 20 $ Wharf Concrete Q-Deck 300 $1, Wharf Timber Piling and Structure 400 $8, Wharf Handrails and Other 30 $ Float Pile Moorings Timber Pile Dolphin 90 $2, Office/Shed Office/Shed on Wharf Head 5 $ SHORE POWER ASSETS Electrical System (Past) Electrical System (15A / 30A) 150 $4, Electrical System (New) Electrical System (20A / 30A / 50A) 200 $6, PARKING ASSETS Parking Area Asphalt Surface, Curbs, Painting 80 $1, OTHER ASSETS Boat Grid Timber Boat Grid, Piles and Caps 120 $3, Launching Ramp Concrete Boat Launch and Float 93 $1, Derrick Derrick 10 $1, Subtotal Moorage Assets $22, Subtotal Shore Power Assets (Current) $6, Subtotal Parking Assets $1, Subtotal Other Assets $6, Subtotal All Assets $37, Other Miscellaneous Maint. (5% of total) $1, Total $38,

10 3.0 SUMMARY AND ANALYSIS OF REVENUE/EXPENSE The District of Sechelt provided existing documentation in the form of harbour revenue and expense records from for Porpoise Bay Harbour (See Appendix A). The values from these records have been separated and displayed graphically in each of the following sections according to the individual sources of revenue currently employed. The current rates for parking, moorage and shore power and other services at Porpoise Bay were compared to an average of rates from other Small Craft Harbour sites including Gibsons Harbour, Powell River, Pender Harbour and French Creek. Due to the differences between harbour sites, rate structures and user requirements, this comparison is used only as a relative indication. 3.1 Parking Past Numbers Figure 2: Historical Parking Revenue/Expense Analysis Figure 2 shows that net income from parking has steadily increased since fees were first collected in Expenses have been kept at a minimum and net income has increased as high as $18,000 in As stated previously, the parking rate (metered) has remained at $2.00 per vehicle per day since The maximum possible revenue based on 37 total stalls is $27, based on all stalls occupied everyday. This implies that the parking area is achieving approximately 2/3 of its maximum potential revenue at the given rate. 6

11 3.1.3 Potential Areas for Improvement The following suggestions to increase revenue are based on changes that can be made to existing operations without requiring major capital expenditure. Not all suggestions are necessarily independent. a) Many other harbours have a daily parking rate greater than $2.00/day. For example, French Creek harbour posts a rate of $3.00 for daily parking as does the local Provincial Porpoise Bay Campground Parking Area. An increase to the base rate for parking could be considered. b) Trailer vehicles take up as much as 100% more space than single vehicle parking but are charged the same base rate as regular vehicles. If parking fees were based on area occupied, the fee might be $3.50/day instead of $2.00/day, or $5.25/day if the base parking rate was increased to $3.00/day. c) The combination of increasing the base parking rate as well as increasing the rate for boat trailers as suggested could increase the total annual revenue to over 34K based on 2/3 total maximum use of the parking area (see Section 3.1.2). d) In lieu of charging higher parking fees for trailers, the lot could be reconfigured to free up additional regular parking stalls using the extra space previously occupied by the larger stalls. This is estimated to create an additional 6 regular parking stalls for an additional approximate 4K annually based on a base rate of $3.00/day and 2/3 maximum use. e) This situation may also be addressed by having a component of fees collected for use of the ramp apply to parking revenue (include the additional cost of trailer parking in ramp fees.) f) Consider leasing parking area to sub-tenants: Based on the maximum revenue from 2008 above, of the area designated for parking, the annual revenue per sq. m. is $ Depending on the nature of the business conducted by the tenant, a rental agreement could be arranged that results in more revenue per sq. m. Revenue could be further increased if tenant is located in an area that does not disrupt current parking capacity. (ie. adding tenant rental spaces in areas occupied by boat trailers that are not currently generating revenue). Type of sub-tenant considered would be a function of local demand by harbour users and would change depending on the percentage of permanent boaters/transient recreational vessels/other users. 7

12 g) Consider the future leasing of a dedicated parking space to a local taxi company for a shuttle service. This service would allow transient boaters access to downtown Sechelt for groceries, supplies etc. Resulting in a secondary benefit to the community. Dedicated parking space can be charged at a premium relative to other parking areas. 3.2 Moorage Past Numbers Figure 3: Historical Moorage Revenue/Expense Analysis Figure 3 shows that the net income from moorage fees has been slowly dropping over the past 5 years as expenses have been increasing. Moorage revenue has remained relatively steady since Moorage rates were increase in 2007 and again in 2008 (See Appendix A for a detailed list of current and historical rates). The estimated average annual maintenance cost for this asset from Section 2.3 is approximately $22K/year, which is on the order of the average incurred expenses. The results indicate that in order to improve the future viability of this asset, revenues must be increased and expenses monitored to ensure that maintenance money is being spent on areas that support the generation of this revenue. According to the District, moorage over the past 5 years has been on a permanent basis. There is an average of 17 permanent vessels moored at the harbour. Analysis of recent aerial photographs (including Figure 1) has confirmed 17 vessels moored that are greater than 3m (10ft) in length (ie. more than a small punt or dinghy). Using this aerial photograph as a reference, an approximate vessel size distribution is as follows: 8

13 5 vessels < 9.1m (30ft) in length, 8 vessels 9.1m 13.7m (30ft 45ft) in length, and 6 vessels 13.7m 18.3m (45ft 60ft) in length. The moorage revenue for 2009 was $31,157; if a current moorage rate of $3.25/ft/month (based on 66% commercial fishing vessels, 33% pleasure/other) is applied to the above boat distribution, the result is $2,644 per month, or approximately 32K annually. This shows that the above distribution is a reasonable approximation for describing the reported 17 permanent vessels moored on average at the site. This distribution will be used as a basis for analysis of existing and future moorage scenarios Potential Areas for Improvement The following suggestions to increase revenue are based on changes that can be made to existing operations without requiring major capital expenditure. Not all suggestions are necessarily independent. a) Based on other Small Craft Harbour sites, monthly commercial fishing vessel moorage fees range between $1.83/ft/month - $2.41/ft/month compared to $3.00/ft.month at Porpoise Bay; recreational/other moorage fees are between $3.72/ft/month - $6.41/ft/month compared to $4.00/ft/month. It appears that the moorage fees for recreation/other moorage have more room to be increased relative to commercial fees. b) Consider charging a General Harbour Amenity Fee (A small fee such as $10.00 per month to cover general harbour services (ie. garbage removal), would result in additional 2K per year based on current number of vessels in harbour.) c) Offer dedicated assigned moorage to local business operators at a premium rate. d) Consider leasing the following wharf head space to sub-tenants: o Office space on wharf (see Section 3.7). o Other wharf head space, such as area used in the operation of the derrick (see Section 3.6 and Appendix B Drawing ). 9

14 3.3 Shore Power Past Numbers Figure 4: Historical Shore Power Revenue/Expense Analysis Figure 4 shows that the net income from shore power fees has been increasing since Expenses have remained relatively constant at approximately 8K per year, while revenues have increased. Prior to July 2008, hydro rates were charged at a seasonal daily/monthly rate of $2.00/$45.00 in the summer and $3.00/$60.00 in the winter respectively. After July 2008, rates were increased to daily/monthly rates of $2.50/$60.00 for 15A and $5.00/$90.00 for 30A service (season independent). This increase in rates has appeared to produce a jump in revenue of approximately 25% in one year. At the current level, revenue is balancing electrical expenses, which include other public benefits such as flood lighting etc. Other Small Craft sites have shown monthly shore power rates between $ $50.95 for 15A service and between $ $75.00 for 30A service. Relative to these levels, Porpoise Bay is charging at a higher rate than other harbours. Figure 4 shows that last years revenues have covered expenses without much additional income. It appears that focus should be made toward reducing expenses related to shore power, rather than increasing rates. A detailed analysis in the field of how power is being consumed would allow for the implications of restructuring the rates to be identified. 10

15 3.3.3 Areas for Improvement The following suggestions to increase revenue are based on changes that can be made to existing operations without requiring major capital expenditure. Not all suggestions are necessarily independent. a) Devise a study to monitor shore power usage. Based on the results, it would be possible to determine whether a new rate structure will be effective. b) Focus on reducing shore power expenses. This could include investigating whether a power factor premium is being charged for electrical supply and determining the cost to eliminate. 3.4 Boat Launch Existing Use The boat launch is currently used by boaters free of charge. As mentioned in Section 3.1.3, those who have boat trailers are occupying up to 100% more parking space for the same price as regular vehicles. Records of annual expenditure against this specific asset were not available at the time of writing this report; however, if revenue is not collected to cover annual maintenance and future repairs/changes to the boat launch, it will not be viable on its own Areas for Improvement Other harbours charge between $ $10.00 per launch ramp use; parking is often not provided as close to the launching ramp as it is here. Considering a fee of $5.00 per use of the launching ramp and an average of 8 uses per day (Based on 2/3 of the 13 trailer stalls for 6 months out of the year), the resulting annual revenue would be over 7K. Referring back to Section 3.1.3, the additional area occupied by trailers is worth an approximate 3K per year if used for extra parking stalls at the current base rate. If the launching ramp is not charged for directly, then in order to make this a viable asset, the cost of annual maintenance would have to be covered by revenue from parking fees, which is eventually limited by the amount of available parking area. 3.5 Boat Grid Existing Use The District has reported that the boat grid is used approximately 4-5 times per year. Based on this and a fee of $25.00 per day, the total annual revenue is probably less than $500. The grid provides a structure for boat owners to perform hull repairs and a safety measure against sinking vessels. 11

16 3.5.2 Areas for Improvement Given that an average estimated annual maintenance cost is much more than the current annual revenue, it is not practical for the boat grid to be viable on its own. Most harbours do not charge more than $50/use. It is recommended that the District decide whether the grid is worth maintaining over the long term as an essential harbour service at a potential loss. 3.6 Derrick Existing Use As a part of the current Harbour Electrical Reconstruction project, the District has made plans to upgrade the derrick to an electric power winch. Use of the new winch will be charged at a flat rate of $10 per use (under supervision by the Harbour Authority) Areas for Improvement The approximate space taken up for derrick operation is 80 m2 (taking into account loading/unloading areas). Based on a rate of $10/use and an estimate of 1 use per day, the derrick can be expected to generate approximately 3K-4K per year (not including maintenance expense). If the space was occupied by a tenant at an agreed $120/m2/year, the area could be worth over 10K annually. The District could consider the cost of maintaining the derrick as a required harbour service, relative to a possible higher revenue potential for this area by a private tenant agreement. 3.7 Office Space Existing Use As stated previously, the shed currently houses the main electrical panel and provides for storage of the harbour spill kit and a small office desk space. The office space is not used for extended periods of time throughout the day Areas for Improvement The office takes up approximately 24 m2, again based on $120/m2/year this area could bring in almost 3K per year. As with the derrick, a tendering process for exclusive use of leased areas by private users would explore the revenue potential for the wharf head area(s). 12

17 3.8 Current Projects Planned New Shore Power System The District is currently in the process of upgrading the existing electrical system to replace cabinets and provide 24 x 20A outlets, 8 x 30A outlets and a 50A service. Included in the system is provision for connection of a further 2 receptacle cabinets containing 2 x 30A and 6 x 20A outlets each. Upgrade of the derrick winch to electric power is also included. This project is under way at the time of writing this report. 3.9 Summary of Potential For Improvements to Existing Operations The following Table 2 summarizes the potential areas to improve the revenue generating capabilities of existing operations as discussed in Section 3. Not all suggestions are necessarily independent. Table 2: Summary of Considerations for Improvement to Existing Revenue Source Consideration for Improving Revenue Generation Increase base parking rate to reflect surrounding parking rates. Charge higher rate for trailer parking based on extra area occupied. Parking Area Replace trailer parking in favour of an estimated six additional regular parking stalls. Lease parking area(s) to subtenants via tendered lease agreements. Consider dedicated parking for shuttle/taxi service in future. Increase recreational moorage rates to reflect surrounding averages. Moorage Floats Shore Power Boat Launch Boat Grid Derrick Office General Harbour Amenity fee to cover general harbour services. Negotiate for the exclusive permanent or seasonal use of assigned moorage at a premium rate with interested parties. Suggest that a monitoring study be devised to monitor usage. Focus on reducing shore power expenses. Charge fee directly for use of boat launch comparable to other harbour rates. Recover boat ramp fees through higher parking rate for trailer vehicles. Decide on whether boat grid worth maintaining as essential harbour service at a potential loss. Consider value of leasing wharf head area for higher revenue potential versus maintaining derrick as an essential harbour service. Find private tenant for rental of office area. 13

18 4.0 PROPOSED FUTURE OPTIONS The location of Porpoise Bay Harbour has advantages and disadvantages. One drawback of the site is its location at the end of Sechelt Inlet as opposed to being on the way to other facilities. Therefore, the site must be promoted as its own unique destination. The following markets could be pursued in future developments at the harbour. 1) Development of an Increased Base for Year Round Moorage. 2) Moorage and Services for Transient Travellers 3) Dedicated Space for Tenant Moorage Group For the purpose of comparing options to the existing moorage layout, a vessel distribution has been proposed based on existing year-round vessels, aerial photographs and other available information. See Appendix B Drawing for the existing layout. This distribution will provide a simplified basis on which to build the modified layouts included in each of the following proposed options. The future options have been laid in order to show the possibility of transitioning from one scheme to the next more developed scheme. It is proposed that either may be entertained exclusively or follow a progression like what has been outlined here. Where appropriate, each option may also adopt suggested improvements to existing operations outlined in Section 3.9. The following schemes are recommended as a minimum amount of development to be considered over the next 5 years. 4.1 Option 1: Increased Base for Year Round Moorage Description A trend in many urban areas including Vancouver is to reconstruct existing facilities with a fewer number of berths. This results in an increasing number of vessels in the category of >8m (>26ft) pleasure craft having no permanent moorage. Without taking into account additional boat sales over the next 5 years, an increased demand from the Vancouver area is likely to exceed 300 vessels. Sechelt s proximity to Vancouver makes it a likely contender for at least some of these vessels. If even 5% would consider mooring at Porpoise Bay this would result in 15 permanent berths, only 1% would still be 3 berths. Given this likelihood for an increased future demand, an option that considers expanding the existing facility for additional year-round moorage is reasonable. See Appendix B Drawing for a layout of proposed Option 1. 14

19 This option proposes to extend available moorage on Floats C and D by installing two new float sections, while improving available channel width between Floats B and C by redriving the existing mooring dolphin at the end of Float C. The result is that a further m (45 ft) long vessels can be accommodated. Reconfiguring the existing boat layout has allowed for 82.3m (270ft) of new berthage by installing only 32.5m (100ft) of new floats. The total number of vessels in the harbour increases from 17 to 23. This number does not yet exceed the number of electrical receptacles for the harbour (based on recent reconstruction plans), therefore every vessel should theoretically be able to connect to a minimum of 20A shore power Estimated Costs The following Table 3 provides a rough estimate of construction cost for Option 1. (Estimates are preliminary and are only to be used as a basis of comparison between proposed options.) Table 3 Option 1 Construction Cost Estimate Item Description Estimated Cost (K) Comments 1 Build and Install 2-2.7m x 15.2m Float Sections 62K 2 Redrive Mooring Dolphin 15K Based on reusing piling. 3 Install Anchored Mooring Includes connection with existing 14K System(s) float. Subtotal 91K Engineering 9K Based on 10% of subtotal. Permitting 5K Based on 5% of subtotal. Total 105K Estimated Additional Revenue As per the scope of work for Option 1, the estimated net annual revenue can be determined based on the following: Increased moorage for m permanent vessels (assume a minimum of 50% pleasure craft at $4.50/ft/month and 50% commercial fishing vessels at $3.00/ft/month). Revenue from shore power for 6 extra vessels (15A minimum service for 6 months/year). Leasing of wharf head office/shed space (assume $10/sq.m/month). 15

20 Taking into account above revenue sources and an estimated annual maintenance/operation cost for additional infrastructure, the result is a net annual income of approximately $13K. This has not taken into account any indirect or secondary benefits to other revenue sources in the harbour or community Other Opportunities The following additional opportunities include suggestions tabled through liaison with the District. Bryce Christie, of Sunshine Coast Tours has shown interest in operating a boat tour company at Porpoise Bay. He has offered to negotiate tenancy of the office/shed building located on the wharf head as well as moorage for a 9.1m (30 ft) vessel used in business operations. Jeff Rhodes, of Coastal Craft was suggested as a business owner to contact regarding potential interest in business operations at Porpoise Bay. Sea Force spoke with Mr. Rhodes. The suggestion was made to install a vessel pump-out station at the end of each float finger. Investment into wind power generators to the tops of float mooring dolphins was suggested. Installation of a metering system that would allow for combined payment of parking and ramp use was suggested. 4.2 Option 2: Moorage and Services for Transient Travellers Description There are thousands of pleasure craft that pass Sechelt via Georgia Straight every year. In the spirit of improving Porpoise Bay s image as a transient destination, these pleasure craft boaters need to be coaxed to the inside waterway. The celebrity of the Skookumchuck rapids has helped to create awareness of Sechelt Inlet among the general public as well as the boating community, however some may have reservations about navigating through the narrows. Given that the beauty of the inside waterway is not well known, this new discovery could become the basis of promotion. Transient travellers would also appreciate the adjacent facilities in Porpoise Bay (pub/telephone etc.) and access to groceries and supplies. From a planning perspective we would suggest that revenue in July and August could be considered for an average of 6 vessels. As the demands of the transient traveller are typically greater, harbour moorage and services will have to be developed to provide the standard of accommodation found at other sites. 16

21 Other harbours have demonstrated that a focus toward attracting longer transient vessels increases the amount of indirect or secondary benefit to the community. See Appendix B Drawing for a layout of proposed Option 2. This option continues from the previous Option 1 by installing a further 24.3m (80ft) of moorage floats in two sections on Floats B and D. Vessels have been rearranged to allow for single-wide berthage of 4 transient vessels in both 13.7m (45ft) and 18.3m (60ft) lengths. Float C remains the same as in Option 1. Included is the extension of shore power and water services to an additional 2 receptacle cabinets on Floats B and D to accommodate a total of 27 vessels in the harbour Estimated Costs The following Table 4 provides a rough estimate of construction cost for Option 2. (Estimates are preliminary and are only to be used as a basis of comparison between proposed options.) Table 4 Option 2 Construction Cost Estimate Item Description Estimated Cost (K) Build and Install 2-2.7m 1 x 15.2m Sections to Floats B/C and 1 2.7m x 111K 24.3m Section to Float D 2 Install 2 new Receptacle Cabinets 15K 3 Extend water and other services 4K Comments As per additional capacity built into new electrical system. 4 Redrive Mooring Dolphin 15K Based on reusing piling. 5 Install Anchored Mooring Includes connection with existing 22K System(s) float(s). Subtotal 167K Engineering 17K Based on 10% of subtotal. Permitting 8K Based on 5% of subtotal. Total 192K Estimated Additional Revenue As per the scope of work for Option 2, the estimated net annual revenue can be determined based on the following: Increased moorage for m permanent vessels (50% pleasure boats at $4.50/ft/month and 50% commercial boats at $3.00/ft/month). Increased moorage for m and m transient vessels (assume 100% pleasure craft at $4.50/ft/month) Revenue from shore power for 10 extra vessels (15A service 6 months/year). 17

22 Leasing of office/shed space and other wharf head area(s) (assume $10/sq.m/month) Taking into account above revenue sources and an estimated annual maintenance/operation cost for additional infrastructure, the result is a net annual income of approximately $17K. This has not taken into account any indirect or secondary benefits to other revenue sources in the harbour or community Other Opportunities Leasing of wharf head areas for business tenants. Rental of prime business moorage at a premium rate. Leasing of parking areas for business tenants in lieu of vehicle parking, these tenants could form business around providing the amenities that the transient sector is looking for. Lighthouse Pub owner Dale Schweighardt was contacted to discuss the potential to accommodate transient vessels in Porpoise Bay Harbour. He commented that provision for 6 vessels from the transient sector would be a modest number considering that the Lighthouse Pub marina is often full during the summer months and he is forced to turn vessels away. 4.3 Option 3: Dedicated Space for Tenant Moorage Group Description Many Small Craft Harbour facilities have benefited from a successful relationship with a tenant moorage group including various ocean-based clubs such as sailing, kayaking or yachting. These groups are willing to pay a premium in exchange for dedicated moorage and facilities in remote locations. Urban Yacht Clubs such as Royal Vancouver, Burrard, West Vancouver and the Seattle Yacht Club, all own or lease outstations for their members to visit. This represents an opportunity for both clientele and funding to be pursued in expanding facilities at Porpoise Bay. For example, the Royal Vancouver Yacht Club has 11 remote sites they visit away from their base at Jericho Beach. Given the exploratory nature of the yachting community and an aim to make Porpoise Bay a destination facility, it would be easy to envisage a future section of the harbour being allocated to this use. See Appendix B Drawing for a layout of proposed Option 3. This option further extends Float D by 6m (20 ft) for a total of m (50ft) float sections added. The number of additional permanent and transient berths has been reduced to provide space on Float B for m (30ft) yachts. Float B has been fitted with a security gate and electrical and water services have been extended as per Option 2 to support a total harbour vessel count of

23 4.3.2 Estimated Costs The following Table 5 provides a rough estimate of construction cost for Option 3. (Estimates are preliminary and are only to be used as a basis of comparison between proposed options.) Table 5 Option 3 Construction Cost Estimate Item Description Estimated Cost (K) Build and Install 4-2.7m x m Sections to Floats B, 123K C and D. 2 Install 2 new Receptacle Cabinets 15K 3 Extend water and other services 5K 4 Install Security Gate 2K Estimated Additional Revenue Comments As per additional capacity built into new electrical system. 5 Redrive Mooring Dolphin 15K Based on reusing piling. 6 Install Anchored Mooring Includes connection with 22K System(s) existing float(s). Subtotal 182K Engineering 18K Based on 10% of subtotal. Permitting 9K Based on 5% of subtotal. Total 209K As per the scope of work for Option 3, the estimated net annual revenue can be determined based on the following: Increased moorage for m (45ft) permanent vessels (assume a minimum of 50% pleasure craft at $4.50/ft/month and 50% commercial fishing vessels at $3.00/ft/month). Increased moorage for m (45ft) and m (60ft) transient vessels (assume 100% pleasure craft at $4.50/ft/month) Dedicated moorage on Float B for m (30ft) yachts, each paying an annual fee of 4K/berth. Revenue from shore power for 17 extra vessels (15A minimum service for 6 months/year) Leasing of office space and other wharf area(s) (assume $10/sq.m/month) Taking into account above revenue sources and an estimated annual maintenance/operation cost for additional infrastructure, the result is a net annual income of approximately $65K. 19

24 5.0 SUMMARY The following summarizes the recommendations made regarding existing harbour operations and future options for development. Existing Operations Increase base parking rate. Charge higher rate for trailer parking based on extra area occupied, or replace trailer parking in favour of an estimated six additional regular parking stalls. Lease parking area(s) to subtenants via tendered lease agreements. Consider dedicated parking for shuttle/taxi service in future. Increase recreational moorage rates to reflect surrounding averages. Consider charging a General Harbour Amenity fee to cover general harbour services. Negotiate premium moorage rate with interested parties for exclusive permanent or seasonal assigned moorage. Devised a study to monitor shore power usage with a focus toward reducing power expenses. Charge direct fee for use of boat launch or recover boat ramp fees via a higher parking rate for trailer vehicles. Decide on whether assets such as the boat grid and derrick are worth maintaining as essential harbour services relative to higher revenue opportunities such as leasing of space on the wharf head. Find private tenant for rental of office area. Future Options 1) Develop an Increase Base for Year Round Moorage: Takes advantage of anticipated demand for permanent vessel moorage from the Vancouver area. Increases number of permanently moored vessels by 6 for a total of 23 vessels. Estimated net annual revenue is approximately 13K. See Drawing for details. 20

25 2) Moorage and Services for Transient Travellers: Considers market opportunity for transient travellers to discover the inside waterway of Sechelt Inlet. Accommodates a further 4 transient vessels for a total of 27 vessels. Estimated net annual revenue is approximately 17K. See Drawing for details. 3) Dedicated Space for Tenant Moorage Group: Pursues expanding facilities to benefit from tenant moorage group arrangement with ocean-based club/organization in the form of a yacht club outstation. Accommodates 5 additional permanent and transient vessels while supplying a dedicated line of float for use by a tenant moorage group. Moorage for m yachts is envisaged. Estimated net annual revenue is approximately 65K. See Drawing for details. 6.0 FUTURE RECOMMENDATIONS 6.1 Next Steps The following steps are to be considered by the District in pursuing future plans at Porpoise Bay. Study electrical usage by users. Consider policy to increase recreational moorage rates. Consider policy for parking. Consider policy to charge for launching ramp use, to continue as is or to abandon the service. Pursue application for water lot expansion. Consider preparation of tender documents for exclusive use of lease areas by private users to explore revenue possibilities. Find interested parties and negotiate for the exclusive permanent or seasonal use of assigned moorage. Pursue sources of external funding for future projects. Consider a marketing program to attract transient users. 21

26 6.2 Sources of Funding The following organizations have been recognized as sources of external funding for development projects at Small Craft Harbour sites. Island Coast Economic Trust: ( West Coast Community Adjustment Program: ( Western Economic Diversification ( Community Futures ( Small Craft Harbours Branch ( Applications to specific agencies may require the specific proposal areas to be studied further or presented in a different format in order meet requirements. 22

27 APPENDIX A

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42 APPENDIX B

43

44

45

46

47 APPENDIX C

48 Summary of Porpoise Bay Government Wharf Questionnaire Responses Approximately how often do you use the Government Wharf or Municipal Boat Launch facilities? Frequently 10 On occasion 5 Do you support improvements to any of the following services at the Wharf? Parking Greater than 30A power Vessel moorage Gangway slope Boat Launch facilities Other Services General comments? Long term parking should be discouraged Parking fee should be included in moorage fee Cars should not block trailer spots Better landscaping Re-paint lines to indicate where to park Needed for bigger boats More moorage, additional float Mooring buoys, extend dinghy wharf, fueling station Keep spots open for commercial boats at discount rates No liveaboards Extra float for visitor mooring under a day and for float planes Could be made safer Add another tie up float for more space at low tide Wider and deeper A float Tie up time longer than 30 min., up to several hours Floats next to the boat launch for someone to hang onto the boat Washrooms, phone, potable water, laundry Boat/sailing schools, boat rentals, tours Tide grid Use of boat ways at least once a year if you pay moorage Get crane running Use wharf for looking at boats-love going down there Needs to stay Public-no restricted access Is the only public boat water access in Sechelt Keep out the non-payers and derelict boats Develop and maintain; continued investment and improvement Make it a tourist destination Local businesses for seasonal trips, purchase fish, artisan stands Protocols for double tying