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
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(weather and rive level dependent)
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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
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(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.