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Port of Duuque Marina Fees, Budget and Logo ApprovalMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: 2013 Marina Fees and FY 13 and FY 14 Marina Revenue and Expenditure Budget DATE: May 17, 2013 Dubuque kital All- America City II h/ 2012 Leisure Services Manager Marie Ware is recommending approval of the 2013 marina fees, and Fiscal Year 2013 and Fiscal Year 2014 marina revenue and expenditure budget. The budget is separated into the two parts of the operations of the Marina - -the docks and the c- store. Both operations have a number of initial startup costs that businesses encounter to open their doors. These costs include building inventories, fuel, stocking of supplies to begin the operation, and more. As with most new businesses the first years of operation require investment and this operation is no different. The Fiscal Year 2013 budget contains the fee of the startup consultant which has already been approved at a prior Council meeting using funds saved from staff openings at Leisure Services. The budget of a new operation is based on best estimates for utilities, all c -store expenditures and revenues, fuel sales as well as other line items. The revenues are based on recommended fees and product sales. Fiscal Year 2013 is a short partial year with mainly expenses and limited revenue since the operations will only be open for one month of the fiscal year. The Port of Dubuque Marina operating deficit is estimated to be $112,346 in Fiscal Year 2013 and $148,360 in Fiscal Year 2014 (total estimated deficit $260,706). Budget Director Jennifer Larson is recommending the use of Fiscal Year 2013 Fire Department vacancy savings to fund the estimated deficit I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligan MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Marie Ware, Leisure Services Manager 2 Masterpiece on the Mississippi TO: FROM: SUBJECT: DATE: Michael C. Van Milligen, City Manager Marie Ware, Leisure Services Manager FY 13 and 14 Marina Revenue and Expenditure Budget May 17, 2013 INTRODUCTION Dubuque kital All- America City II h/ 2012 The purpose of this memo is to request City Council approval of Port of Dubuque Marina estimated operating budgets for the docks and the convenience store and amenities building for the remainder of FY 2013 and for FY 2014. DISCUSSION The budget attached has been separated into the two parts of the operations of the Marina, the docks and the c- store. This is similar to our budgeting system for Bunker Hill Golf Course. Both operations have a number of initial startup costs that businesses encounter to open their doors. There are costs that relate to building inventories that will always be a part of the operations. For example, the fuel tanks will be filled and will always contain an ever changing fuel inventory. There is stocking of supplies to begin the operation, for example janitorial supplies and non - capital purchases for items like hoses, buckets, and more. The FY 13 budget contains the fee of the startup consultant which has already been approved at a prior Council meeting using funds saved from staff openings at Leisure Services. The budget of a new operation is based on best estimates for utilities, all c -store expenditures and revenues, fuel sales as well as other line items. There are some expenses for monitoring of systems that start right away and others that are not until early or later in FY 14. Some systems are under a contract or warranty since the facility is new. The revenues are based on fees to be established in another council action item. The c- store operation will have many of the choices and amenities of a typical c -store including beer, wine, cigarettes and lottery ticket sales with additional boat and marine items. The shower suite contains a coin operated laundry facility as well. An ATM will be placed in the c -store as a convenience for marina and Port of Dubuque visitors. FY 13 is a short partial year with mainly expenses and limited revenue since the operations will only be open for one month of the fiscal year. The marina season will be May 1- October 31 depending upon weather and river levels. The budget includes the dock and the c -store hours of Monday — Thursday from 9:00 am -7:00 pm and 8:00 am to 8:00 pm Friday- Sunday. The Marina can be run with two people -one on dock and one in the c- store. At times more will be on staff based on the occupancy of the docks or events of the day. As with most new businesses the first years of operation require investment and this operation is no different. The two budgets are reflective of that. Throughout the year staff will work to exceed revenue projections and hold the line on expenses. Customer service, marketing and word of mouth will be the key as it is to any business. Budget Director Jennifer Larson is recommending the use of Fiscal Year 2013 Fire Suppression employee vacancy savings of $293,071 to fund the Port of Dubuque Marina operating deficit estimated to be $112,346 in Fiscal Year 2013 and $148,360 in Fiscal Year 2014 (total estimated deficit in FY13 and FY14 is $260,706). RECOMMENDATION I respectfully request approval of the FY 2013 and FY 2014 Port of Dubuque Marina estimated operating budgets. MLW:et copy Jenny Larson, Budget Director 2 City of Dubuque POD Marina FY13 FY14 Revenue Dock $ 7,340 $ 52,650 Convenience Store $ 9,790 $ 55,770 Total Revenue $ 17,130 $ 108,420 Expense Dock $ 44,622 $ 104,131 Convenience Store $ 84,854 $ 152,649 Total Expense $ 129,476 $ 256,780 Net Income (Loss) $ (112,346) $ (148,360) 10030550 PORT OF DUBUQUE MARINA C -STORE OPERATION REVENUE FY 2013 FY 2013 BUDGET JUSTIFICATION FY 2014 FY 2014 BUDGET JUSTIFICATION 51955 Other Rents /Concession 20 ATM $1 per transaction 120 ATM $1 per transaction 51959 Beer 3,840 Beer, wine 19,800 Beer, wine 51960 Food 2,000 Ice cream, candy, cony items, chips, food 15,500 Ice cream, candy, cony items, chips, food 51966 Pro Shop Cstore Sale 500 Sale of boat, marina type items 3,500 Sale of boat, marina type items 51967 Beverage /Ice 2,430 Pop, coffee, ice, other beverages 9,550 Pop, coffee, ice, other beverages 53530 Specialized Services 100 Shower fees, washer /dryer revenue 600 Shower fees, washer /dryer revenue 53605 Miscellaneous Revenue 500 Cigarettes 4,500 Deposit change fund at end of season, cigarettes Lottery Sales 400 2,200 9,790 55,770 10030560 PORT OF DUBUQUE MARINA DOCK MAINTENANCE FY 2013 FY 2013 BUDGET JUSTIFICATION FY 2014 FY 2014 BUDGET JUSTIFICATION 51963 Catering Floating plaza catering by others 450 Floating plaza catering by others 51965 Events Revenue Foating plaza rent 200 Floating plaza rent 53530 Specialized Services 100 Pumpout fees 250 Pumpout fees 53605 Miscelaneous Revenue 43243 Camping fees -slip rental 1,800 8,000 Fuel sales 5,440 43,750 7,340 52,650 10030550 PORT OF DUBUQUE MARINA C -STORE OPERATION EXPENSE FY 2013 FY 2013 BUDGET JUSTIFICATION FY 2014 FY 2014 BUDGET JUSTIFICATION 61030 Seasonal Employees 4,543 From Form BP -1A 22,750 From Form BP -1A 61310 IPERS 394 From Form BP -1A 1,972 From Form BP -1A 61320 Social Security 348 From Form BP -1A 1,741 From Form BP -1A 61415 Workmen's Comp. 0 Provided by Finance Department 460 Provided by Finance Department Unemployment 0 Provided by Finance Department 4,000 Provided by Finance Department 62010 Office Supplies 200 General office supplies 100 General office supplies 62011 Uniforms 200 Staff shirt, nametags 200 staff shirts, nametags 62030 Postage & Shipping 50 General mailings 200 General mailings 62062 Janitorial Supplies 3,500 tp, paper towels, cleaning supplies, bulk cleaning systems, mops, buckets for shower suite and public restroom 600 tp, paper towels, cleaning supplies, bulk cleaners, mops, buckets for shower suite and public restroom 62090 Printing & Binding 50 200 62140 Promotion 750 6,500 Quimbys (675), Heartland Boating, Skuttlebutt, travel /boat shows, social media 62190 Dues & Memberships 300 Association of Marina Industries 300 Assn of Marina Industries 62205 Dram Shop Insurance 900 1,000 62206 Property Insurance 316 Provided by Finance Department 2,231 Provided by Finance Department 62208 General Liability Ins. 6,800 Provided by Finance Department UST liab (100 /mo) 7,900 Provided by Finance Department 62210 Sales Tax Sales tax paid to Department of Revenue Sales tax paid to Department of Revenue 62360 Education & Training 100 62411 Utility - Electricity 900 3,300 62412 Utility - Gas 1,700 6,600 62418 Utility - Refuse 150 975 62421 Telephone 563 2/3 of 2 Code blue stations, local and long distance -3 lines, hunting, cable and internet 1,880 2/3 of 2 Code blue stations, local and long distance, Internet, cable 62431 Property Maintenance 50 200 62512 Fuel, Off Road Vehicle 28,400 gas, diesel 22,330 gas, diesel 62611 Mach /Equip Maintenance 100 62643 Beer Products 3,000 Beer products and wine for sale in C -store 15,150 Beer products and wine for sale in C -store 62649 Beverages / Ice 2,200 Non - alcoholic beverages, coffee and ice for sale in C -store 8,600 Non - alcoholic beverages, coffee and ice for sale in C -store food 6,000 Ice cream, candy, conven items, chips, food, napkins 9,000 Ice cream, candy, conven items, chips, food, napkins 62663 Software License Expense 0 200 Point of sale subscription ($100 /mo starts May '14) 62664 License / Permit Fees 660 Alcohol (385), cigarette (125), food (125), lottery applic fee (25) 660 Alcohol (385), cigarette (125), food (125), lottery applic fee (25) 62666 Credit Card Charge 200 Credit card fees 1,650 Credit card fees 62668 Progam Equipment /Supplies 1,650 Start up change fund, laundry supplies 1,800 start up change fund, laundry supplies 62670 Pro shop Merchandise 5,000 Boat and associated marina mdse 2,500 Boat and associated mdse Cash Over/Under 62716 Consultant Services 24,250 Startup consultant 1/2 of $25000, IT Services 11,750 11,750 IT Services by private contractor 62717 Criminal Background Check 120 Required criminal background checks for employees 160 Required criminal background checks for employees 62736 Catering Services 400 Payment of caterer for floating plaza private events 62747 Mach /Equipment Rental 50 lottery ticket sales 1,860 12,090 cigarettes 2,300 3,000 97,354 152,649 10030560 PORT OF DUBUQUE MARINA DOCK MAINTENANCE EXPENSE FY 2013 FY 2013 BUDGET JUSTIFICATION FY 2014 FY 2014 BUDGET JUSTIFICATION 61030 Seasonal Employees 4,333 From Form BP -1A 15,154 From Form BP -1A 61310 IPERS 375 From Form BP -1A 1,313 From Form BP -1A 61320 Social Security 332 From Form BP -1A 1,158 From Form BP -1A 61415 Workmen's Comp. From Form BP -1A From Form BP -1A Unemployment 61640 Safety Equipment 300 first aid kits, safety signs 200 First aid supplies, safety equipment 62011 Uniform Purchases 200 staff shirts, name tags 200 Staff shirts, name tags 62210 Sales Tax 62360 Education & Training 0 200 62411 Utility - Electricity 2,350 8,100 62418 Utility - Refuse 150 975 62421 Telephone 287 1/3 of 2 Code blue stations, local and long distance -3 lines, hunting, cable and internet 941 1/3 of 2 Code blue stations, local and long distance, Internet, cable 62431 Property Maintenance 860 dock parts, repair parts, flowers, soil, mulch 430 dock parts, repair parts, flowers, soil, mulch 62512 Fuel, Off Road Vehicle 28,500 gas, diesel 22,500 gas, diesel 62611 Mach /Equip Maintenance 100 pressure washer, pump out station, fuel pumps 600 62663 Software License Expense 300 security monitoring 800 fire and security monitoring (600), fuel monitoring starting June '14 (200) 62664 License / Permit Fees 0 0 62666 Credit Card Charge 165 1,300 62699 Cash Short and Over 62716 Consultant Services 18,750 Startup consultant 1/2 of $25,000, manager 1.5 mo 50,000 manager 62717 Criminal Background Check 120 160 62747 Mach /Equipment Rental 0 100 57,122 104,131 Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Marie Ware, Leisure Services Manager SUBJECT: 2013 Marina Fees for Approval DATE: May 15, 2013 INTRODUCTION Dubuque kital All- America City II h/ 2012 The purpose of this memo is to request City Council approval of Port of Dubuque Marina fees. DISCUSSION Research was conducted locally as well as up and down the river to determine appropriate marina fees for this recommendation. The attached fees are competitive with the market. The major change for boaters is that the docks prior to the building of the marina facility were courtesy docks and as such there was no usage fee. Boaters used the courtesy docks to park and go to local establishments. The building of the marina and its amenities has changed the nature of the facilities. The new marina dock facility is access controlled requiring a key code or key fob /card. This requires a check -in and staff assistance to check in the boater. A boater may come and exit the dock area but would need the code or key to return to their boat. The goal of the marina would be to fill slips with transients overnight. As we establish ourselves on weekdays and weekends we will have slips available. To facilitate the transition for boaters I am recommending on Monday through Thursday an hourly fee for a three -hour block be free (space permitting) and Friday through Sunday a $10.00 fee be charged for the three -hour block. Other Dubuque marinas do not charge the fee for courtesy docking for a few hours however they also do not have the same access to the number of restaurants, casino and other establishments in easy walking distance. This does not mean that a boater that pulls in to stop at the C -Store for supplies would be charged this fee. This is a common practice and courtesy at marinas. The marina will also be selling a variety of goods. The C -Store will feature many of the products you see in C- Stores throughout the community. It will also have boating related supplies and fuel. These will be priced comparable with other like facilities and for items like fuel subject to the price of the commodity in the world market. Prices will be monitored and set by the Marina Manager and myself and will be reviewed as often as necessary. This is the practice we use for pricing at our concession stands and the Bunker Hill pro shop and snack bar. RECOMMENDATION I respectfully request approval of the 2013 Port of Dubuque Marina Fees prior to the June 1st ribbon cutting and opening. MLW:et copy Jenny Larson, Budget Director Barry Lindahl, City Attorney Maureen Quann, Assistant City Attorney 2 PORT OF DUBUQUE MARINA 450 East 3rd Street, Dubuque, IA 52001 563 - 582 -5524 www.portofdubuquemarina.com 2013 MARINA FEES SLIP RENTAL FEES Daily Dockage $1.251 foot Friday through Sunday $1.00 / foot Monday through Thursday • 2 to 3 day minimum charged for special event or holiday • Daily dockage — 20' minimum charge • Fee includes slip rental, pump -out, water, electricity and shower facilities Hourly (flat rate, 3 -hour block) Free Monday through Thursday $10.00 Friday through Sunday • Fee includes slip rental only OTHER FEES • Pump -out fee $5.00 (free to transient slip renters and fuel purchasers) • Shower only fee $5.00 (per person) ACCEPTED FORMS OF PAYMENT Visa, MasterCard, Discover, cash, or check payable to Port of Dubuque Marina. Payment is due at time of reservation or arrival. PORT OF DUBUQUE MARINA SEASON May 1st through October 31st (weather and river level dependent) REFUNDS Refunds will be granted for daily dockage fees if reservation is canceled 24 hours prior to arrival date. 5 -15 -13 Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Marie Ware, Leisure Services Manager SUBJECT: Port of Dubuque Marina Logo DATE: May 17, 2013 INTRODUCTION Dubuque kital All- America City II h/ 2012 The purpose of this memo is to share the recently developed Port of Dubuque Marina logo. DISCUSSION A logo creates identity for a business. We as a city are lucky to have talented individuals to assist with the development of a logo for the business. Kelli Buchenau and Randy Gehl developed a number of ideas. The iconic bridge and its location related to the Port of Dubuque Marina makes for a great identity for the marina. It will be used in a variety of ways to promote the marina. ACTION REQUESTED This memo is for informational purposes only. MLW:et PORTofDUBUQUE