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Port of Dubuque Marina Annual ReportMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Port of Dubuque Marina - Annual Report DATE: November 26, 2013 Dubuque band AI- America City IIIii! 2007 • 2012 • 2013 Leisure Services Manager Marie Ware has submitted a status report for the Port of Dubuque Marina project. In Fiscal Year 2013 and Fiscal Year 2014 combined, the City was projected to have a $260,706 operational loss. With seven months left in Fiscal Year 2014, the amount of loss is $100,894. The current projection is that the City will not reach the projected $260,706 loss level by the end of Fiscal Year 2014, June 30, 2014. This is provided for your information. Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Marie Ware, Leisure Services Manager Gus Psihoyos, City Engineer Bob Schiesl, Assistant City Engineer THE CITY OF DUB E Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Marie L. Ware, Leisure Services Manager SUBJECT: Port of Dubuque Marina Annual Report for 2013 Season DATE: November 26, 2013 INTRODUCTION Dubuque kratil All - America City 11 lir 2007 • 2012 •2013 The purpose of this memorandum is to provide the Port of Dubuque Marina Annual Report for the 2013 Season. DISCUSSION June 1, 2013 was the ribbon cutting for the Port of Dubuque Marina. The Marina enjoyed a successful first season as you will see in the report. The season ended October 31, 2013. The attached report shares the information and highlights of the season. We are already working on making season two another great season for the Marina. ACTION REQUESTED This report is provided as a summary to you and the City Council. Cc: Dan Kroger, Recreation Division Manager Steve Fehsal, Park Division Manager Ben Alden, Marina Manager 11 II! III PORTaDUBUQUE •••••• MARINA •••••• ANNUAL REPORT 2013 SEASON Vii•^ - ,• 4111Iuo���llll�lllll Nlt THE CITY OF Dui Masterpiece on the Mississippi Dubuque All-America City IIIJr 2007 • 2012 • 2013 Report Prepared By: Marie Ware, Leisure Services Mgr Steve Fehsal, Park Division Mgr Dan Kroger, Rec Division Mgr Ben Alden, Marina Mgr 11 -25 -13 OVERVIEW The Port of Dubuque Marina opened for business on Monday, June 7th. Even though the flood gates were closed for the opening day, the June 1st Marina ribbon cutting started a new era for another business in the Port of Dubuque. During the first month of operation, the docks were heavily utilized during the America's River Festival. During this event, staff was able to develop a rapport with the local boaters and created positive "word of mouth" marketing that was later seen through many repeat customers. An online survey was also created and sent to the boaters who utilized the Marina during this event. The information received was used to improve upon the experience that boaters will have when utilizing the marina. The flood gates were closed twice in the month of June which did not allow boaters access to the Marina for the ribbon cutting ceremony on June 1st as well as a negative effect on fuel sales and dock reservations at the end of the month of June. The flood gates reopened on July 2nd, just in time to allow for 45 boaters to come and utilize the slips for the firework celebration. There were also two other events held down on the docks in July. The Rock the Dock festival hosted by the Mississippi River Museum along the visit of the Nina and Pinta. These events brought a heavy load of foot traffic to the facility in addition to boat traffic. Port of Dubuque Marina Winner of the 2013 Dubuque Main Street Best New Development Award Starting with the Taste of Dubuque and ending with the start of Labor Day "You and your team did an absolutely AWESOME job on the Marina. It is absolutely beautiful! We had 16 people this year and all agreed that we could just come back to Dubuque every year!" weekend, the Marina had its highest monthly gross in c -store sales and rental usage in the month of August. The final event of the season was the Marina's Inaugural Chili Dump on October 5th. This partnership between Marina staff and the Dubuque Yacht Club hosted 9 boaters who chose to spend the weekend even through the rainy weekend and had a great time. MARKETING In an effort to reach the "boater," the majority of marketing dollars were spent placing ads in boating publications. These publications like Big River Magazine were either specific to the Mississippi and/or provided river specific articles. The Marina was featured in the July /August issue of Marina Dock Age. Quimby's in one of the leading publications for boaters who cruise the Mississippi River. Below is copy of the current ad. PORTofDUBUQUE MARINA Located in Dubuque, Iowa, on the beautiful Mississippi River where Iowa, Illinois, and Wisconsin meet. Rxs tdEw public marina provides visiting boaters accommodations comparable to a !acme r hotel, Iran May 1 trvough October 31.1110 located near remmerous attraction: and amenities within walking distance, including dining, lodging, a casino, shopping, entertainment and night life, and the Mississippi bier Museum & Aquarium. Mile 579.4 on the Upper Mississippi River between the Julien Dubuque Bridge (Hwy 20) and train bridge _ rt Mm RE FEATURES • 46 trxrty -foot slips • 201aty- footsilos • 4fifty- lootslips • slip accommodations up to 90' • sanitary pump -out facilibe:, • fuel dock • watw and electrical hook -ups • ADA- compliant access gangway • handicap accessibility • dockside srawer suites • ornate boater resbooms and laundry laaht+ • ship store offering marine- related supplies and accessories, convenience store goods, Informational kiosk, and local attraction information. Pert of Dubuque h 1•,:.o:www.porrofd„bugw «rim.<em .. <e115635825524 �, D•b„a•• a•,:.,o.u.,.W.I ela•b„g•e.<e...<.n ei)we.08t4 DCTBUSjVC atrp..raxr.gpv "The staff at the office were wonderful to work with." "Could you reserve our same slip for the first weekend in Oct. 2014 next year ?" "You all made our visit very special." Staff has also found that the word of mouth has become a powerful marketing tool. More then half of the boaters that visited the docks either for fuel or to stay the night, heard about the marina from other boaters. This interenal form of marketing starts with the state of the art facilities, loaction of the protected harbor, unifomed and approachable staff, and the proximatey to food and entertainment. The First Transient Customers! The Fredericks & Schollmeyer's MARINA MANAGEMENT AND STAFFING Four seasonal staff were budgeted for the operation of the Marina. Two seasonal were classified as marina cashiers while the other two were classified as dock attendants. There was always two staff working at the same time in order to be able to cover the c -store and the docks. The staff was cross - trained to work at both the c -store and the on docks. This allowed for easy scheduling of staff. These seasonal staff were city employees. They were also responsible for keeping the entire facility clean. This not only included the docks and c- store, but the shower/ restroom and laundry facility as well as the exterior restrooms attached to the marina. Exceptional service was a goal for the new marina staff this season. Seasonal staff were managed by the Marina Manager, Ben Alden. The City of Dubuque contracted with Westrec Marinas of Chicago for the marina manager's services. Ben Alden was the Marina Manger hired through Westrec to become the Port of Dubuque Marina Manager for its first season. Seasonal city staff were managed by Ben Alden. The entire marina operation was a city operation except for the Manager through Westrec. Ben brought a great deal of expertise in marina operations to Dubuque. In the Leisure Services Department the marina operations were overseen by Marie Ware, Leisure Services Manager, Dan Kroger, Recreation Division Manager and Steve Fehsal, Park Division Manager. Each person watched over areas in their expertise. The staff for the 2013 boating season was tremendous. Many compliments were given to the marina staff. They were all very friendly and accommodating to the needs of the public and the marina users. C -STORE The c -store is very similar to a such as: ice, beer, cigarettes, soda and water, energy drinks, convenience store. It includes items candy and gum, chips, ice cream, bottled and snacks. Fresh coffee is available as well as specialty coffee and hot chocolate. Fountain soda and slushies are also available. Local wines have been selected to sell at the c- store. Lottery tickets and scratch -offs are available at the counter. "In late June, I visited the new Port of Dubuque Marina facility and was highly impressed with one of the staff members there. Her name was Lindsey and she went above and beyond the level of customer service I would have ever expected at such a facility. Not only was she extremely knowledgeable about such a new amenity, but she was outgoing and appeared as being very dedicated and passionate about her employment there. I spend a lot of time visiting similar businesses throughout thetri -state area and it is rare to come across someone who is such a consummate professional." Batteries, foam coolers, sunglasses, band -aids and other small convenience items are also on the shelf. The c -store also has a corner that is dedicated to the boat owners. Items that are on the shelf include: oil, gas cans, life jackets, toilet paper, water hoses, and numerous other supplies that a boater may have forgotten or need. Requests for others supplies a boater may need have been taken and the inventory on the shelves will increase in 2014. The top convenience store sellers were lottery tickets and scratch -offs. Ice, water, coffee and slushies rounded out the top five most often purchased items, while beer, water, cigarettes and soda rounded out the top earners. C -store revenue totalled $13,187 for its first year. AM ENI TIES Many compliments were received throughout the season regarding the shower /restroom facilities available to the Marina guests. They appreciated the quality of these areas as well as the laundry facilities. Additionally, the addition of the outdoor restrooms was also a welcome addition to the Port of Dubuque. DOCKAGE The chart below provides a snap shot of the entire season of dock rentals which accounted for $19,490 of revenue. 577 slips were rented over the season. 411 of these boaters stayed for at least one night. The week of August 1St through the 7th showed the facilities greatest usage with 91 total slip rentals. Many of these users utilized the docks during the Taste of Dubuque. Free dockage was also available during the weekdays for up to 2 hours per stay. Ko 70 GO 50 a0 30 20 10 0 Season Dockage Use • I__ ■ _ _ Ii__ I -.• 'in I11_ 11■1 Id. k . •••• h_ 1�■. 1.._ __•- ■-• -•- 49 �. �° d0 ti° N �' P� `may Nti �° �b .' �,° �' �ti °k °b �� A 9 �9 A b9 A '. >O� �O �O �� ^��' �N e °� 0�� °(5 a� 9� °�� $ . ;z °p' lama • WEEKEND DAILY ■WEEKDAY DAILY ■ WEE KENO HOURLY • WEEKDAY HOURLY FUEL Fuel sales for the season were higher than initially projected with over 13,000 gallons of fuel sold and a season revenue for fuel sales of $62,521. As shown in the below chart, the concentration of sales were around weekend days (Fridays & Saturdays). The total for diesel sales was limited. The spike shown in late July was due to the visit of the Nina and Pinta, which filled up their large fuel tanks prior to leaving the port. Diesel sales accounted for 15% of the total gallons of fuel sold for the season. 600 500 400 300 200 100 0 Season Fuel Sales �►� 1i., 1...1 J i i , ... Vi C3\ '3\ �\�`�Oti3 \�\ti0 6\�\,10 6\��\�o��\�\tioti�\��\tio� \�O\�0� \��\�Oti3 \ \ �O. y3�\ yO\�Oti��\ryy�\�d\�Oti�y\Oti3 \^\1Oti�CP' �y\O ��\O�' y`�O O\1�\�OtiOtiOti3 -FUEL SOLD IN GALLONS UNLEADED -FUEL SOLD IN GALLONS DIESEL FIRST SEASON FINANCIALS The City Council approved the FY 13 and FY 14 budget in May of 2013. Budgets had not been set earlier as it was expected the Marina would be managed by a management company. The budgets were approved with a deficit of $285,706 combined total for the fiscal years. There are two budgets within the marina operations. One budget relates to the operations of the dock area and the other budget relates to the c -store operations. The first column shows the budget and actual of the first fiscal year (FY 13). Expenses for the marina began in January of 2013 and went through June 30, 2013. The budgeted loss was $137, 346 and the actual loss was $37,859. There were many start -up costs that are in the FY 13 actuals. The second column shows the budget and actual for the current fiscal year (FY 14). As of 11- 25-13 the budgeted loss was $148,360 and our actual loss is $63,035 with 7 months remaining in the fiscal year. We see no problem with ending the fiscal year better than the budget projection. The last column shows the loss for the 2013 calendar year season was $100,894 for the time period of 1 -1 -2013 thru 11 -25 -2013. It shows that our actual revenue from the dock operations is significantly over our budgeted revenue for the two fiscal year's combined by $22,675 and we still have several months in the new 2014 season to go. Increasing revenue in the c -store will be a focus as we move forward. This is attributed to better than budgeted fuel sales and dock rentals. The Marina staff worked very hard to control costs and generate revenue in its first season of operation. The revenues were affected by the flood gates being closed and that will continue to be a possibility as that is an unpredictable event. All staff will continue to focus on improving the bottom line of the operations throughout the season and off season as we continue to build the business. 1 -1 -13 thru 6 -30 -13 (FY 13) Dock -560 Combined Net I $ (148,360) $ (63,035) Budget Actual Revenue $ 7,340 $ 7,168 Expense $ 57,122 $ 14,171 Net $ (49,782) $ (7,003) Ship Store -550 Combined Net I $ (148,360) $ (63,035) Budget Actual Revenue $ 9,790 $ 1,248 Expense $ 97,354 $ 32,104 Net $ (87,564) $ (30,856) FY 13 Combined Net $ (137,346) $ (37,859) GOALS FOR SEASON TWO 7-1-13 thur 11-25-13 (partial FY 14) Dock -560 Combined Net I $ (148,360) $ (63,035) Budget Actual Revenue $ 52,650 $ 75,497 Expense $ 104,131 $ 87,150 Net $ (51,481) $ (11,653) Ship Store -550 Combined Net I $ (148,360) $ (63,035) Budget Actual Revenue $ 55,770 $ 12,037 Expense $ 152,649 $ 63,419 Net $ (96,879) $ (51,382) FY 14 - thru mid October Combined Net I $ (148,360) $ (63,035) 2013 Season 1 -1 -13 thru 11 -25 -13 Dock -560 Combined Net I $ (285,706 ) $ (100,894) Budget Actual Revenue $ 59,990 $ 82,665 Expense $ 161,253 $ 101,321 Net $ (101,263) $ (18,656) Ship Store -550 Combined Net I $ (285,706 ) $ (100,894) Budget Actual Revenue $ 65,560 $ 13,285 Expense $ 250,003 $ 95,523 Net $ (184,443) $ (82,238) FY 2013 and FY14 thru mid October Combined Net I $ (285,706 ) $ (100,894) Council approved $260,706 total deficit for FY 13 and FY 14. This number includes marina setup consultant as it is included in the budget but was approved using staff vacancy funds. Those costs are included in actuals budget and actuals shown here. • Work through the Clean Marina Certification process to become certified. • Obtain Class A/B Underground Storage Tank Operator certification. • Install large window signage to increase awareness to Port patrons. • Install Bulletin /Message boards at City boat ramps to promote the Marina and provide information. • Host special events to draw people to the Marina and Port of Dubuque. • Develop programs and information around boating rules of conduct and safety. • Promote use of the lower deck for parties and events. • Promote the c -store to Port patrons. • Continue to build the business to become more self sustaining each and every day. The Clean Marinas program is an ongoing endeavor, by a marina industry alliance, determined to provide environmentally clean facilities and protect the states' coastal and inland waters from pollution through compliance of best management practices. Only 120 marinas in the country have this certification currently and the vast majority is in Florida and California. To our knowledge no one in Iowa has the certification. With our focus on sustainability and our focus on protection of the Mississippi River this certification is very important. WINTER AND SPRING PROJECTS TO PREPARE FOR SEASON TWO Over the winter and spring months leading up to next season staff will be working the following list to improve operations and marketing efforts: • Marketing plan for the next calendar year • Website development -we have a presence but need to add a lot of more information that will aid our customers in knowing what a great place we have. We will also focus the website working well for smart phone and tablet applications. • Marina operations manual completed • Marina policies well documented • Events developed for the next season which would include public events and lower deck plan • Reservation software researched and put in place so people can reserve 24 hours a day • Food establishment plan completed • Focus on c -store increased with a revenue and marketing plan • Reapplication of all permits and licenses • Marina tour up and down the River to establish relationships with other Marinas — referral program • Attend off season boat shows to promote the Marina. • Create a small information card to give to boaters that has important visitor information. • Completion of promotional short video with assistance from Cable TV. • Look into a bicycle rental program out of the marina that would provide additional revenue and traffic. RECOMMENDATION As we are completing this first season we have seen the value of an on -site manager for the facility. This position was contracted the first season. We would recommend hiring a full time city position to supervise the marina facility in addition to other duties. The advantage to hiring a full time staff person vs. a contract employee is significant. A year round staff person can complete all the necessary items that are required for seasonal shut down and start-up of the marina. They can continue to promote the marina throughout the winter, and begin planning for upcoming events. They can also be incorporated in to assist with the many programs and services that are provided. Additionally they can be networked in to all city systems. It has been challenging to have a manager that is not an employee as then it requires additional assistance from other employees to access financial reports, process bills and work within the city's systems for things such as the website updates. A formal recommendation will be completed separate from this report. OUR THANKS We would not have had such a successful first season had it not been for the efforts of many. In any city project there are numerous departments that step up to assist in whatever way is necessary to get the job done. Bob Schiesl and Chris Lyons of the Engineering Department worked tirelessly to oversee the building of the Marina and all the punch lists necessary to complete the project. Without them we would not have the facility that we have today. The Public Information Office assisted with the logo design as well as the ribbon cutting ceremonies, marketing ads and new promotional flyers throughout the year. The Finance Department was involved in the setup of the many new accounts and systems at the Marina. The Legal Department reviewed many new agreements and contacts for the Marina. The Health Department assisted with our food permits and sanitation requirements. The Fire and Housing Department were involved in the inspections necessary for the Marina to open for business. Information services assisted in the technical aspects of the operations. Cable TV filmed the trainings and orientations. We thank all of these departments and others in the city that helped us in so many ways prior to opening and throughout the season. It truly is a team effort. We would be remiss if we did not thank the many employees in the Leisure Services Department. Incorporating a new facility requires a lot of flexibility and assistance from everyone. Without all of them we could not have done this. roc PORT OF DUBUQUE MARINA May 1 through October 31 (weather and rive level dependent) nlsgwppl kiwi 'mile hell, Iuu NNW AWN. 111 Weiq era Pp POKTotllUBUQUE MARINA SLIP RENTEAL FEES BMDO KAGE 5125,let //day mums &dsy 11,00,5eu Me.da,tlyh lNMav • Deily lekMe -20 muirvm nage • Y e Odad. .Sp rota, pump.e4 none Nrinmu cad ie.erfrJmn H OURLY n.m RNe. 3-140115 (LOCK) $1000 toy swap Slot /M MMd.Y *vogi MNen • r«.eiet Sp mans My ACCEPRO FORMS OF PAYMENT O r et sand nomm en at antral • Donor • Colt • COS pyfam Pan S Wegw/Aine eelllr05 Wog .m be premed /r doer d«kega +me d momma, a emoted Su porn prow ft ardN data OTHER FEES PUMP -alli Fee NW as resins so 'men s4 feel pohwn SHOWER ONLY FEE NU to Norval. Yp town 450 East 3rd Street Dubuque. IA 52001 563 -582 -5524 inlo@portold ubu quern anna.co m www.portoldubuquemarina.com LOCATED IN DUBUQUE, IOWA, RIVER WHERE IOWA, ILLINOIS, ON THE BEAUTIFUL MISSISSIPPI AND WISCONSIN MEET Tat ouble ma ina pin, des. t'ng boaters aaess to num aaamq a casino, shapamq entertainment, and the Nml wows s and amenities. within wolk'ng dinanm Including d'^Ng, oral M'sslssippi Riser Museum & Purism and the new Nvlaro Rae Centel, FEATURES 46 trinny boet slips 20 forty-foot dips d fity-toot dips Aorw,moanon for boats ,m to 90' toty pump -out fad in Os lad dock water and electrical hookups ADA`ompliant 00e0 gmewoy dockside shower subs tearooms laundry foaly e offering avmereloted seweoe onrr convenience store mnmmexa stare goody informational kiosk, and local attraction Information kA ,DI OS (MAY 1 - OCTOBER 31) CONVcnI nnICF ITO°r. HOURS: Monday -Thum day, friday- Smdayr CONVENIENCE STORE ITEMS AVAILABLE: lae Water Soda Beer Wine Coffee gluten Snacks Candy e Cream Cibareres Grlllirg supplies Batteries Oil ATM Lottery First Aid And much morel Trolley buses operate seasonally an a FREE looped-shuttle service between the Port of Dubuque and key downtown locations. For routes and schedules, visit www.luletransitorg. Tri -fold brochure developed to promote the Marina.