Lake Don Pedro

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Lake Don Pedro LAKE DON PEDRO Rate Comparability Analysis for Private Houseboat Slip and Buoy Mooring Services March 7, 2014 Prepared for: Don Pedro Recreation Agency Turlock Irrigation District Modesto Irrigation City & County of San Francisco Prepared by: Dornbusch Associates Lake Don Pedro – Draft Rate Comparability Analysis Page 1 TABLE OF CONTENTS PURPOSE OF STUDY ................................................................................................................. 1 SPECIFIC AREA OF FOCUS FOR RATE COMPARABILITY ............................................................. 1 TECHNICAL APPROACH ............................................................................................................ 2 In‐Depth Evaluation of Marinas at Lake Don Pedro ................................................................................. 2 Selection of Comparable Marina Operations ........................................................................................... 2 Parameters (Services, Amenities and Features) ....................................................................................... 4 OVERVIEW OF LAKE DON PEDRO ............................................................................................. 5 Lake Don Pedro (LDP) Marina ................................................................................................................... 6 Moccasin Point (MP) Marina .................................................................................................................... 8 OVERVIEW OF COMPARABLE MARINAS ................................................................................ 10 Lake McClure .......................................................................................................................................... 10 New Melones Lake ................................................................................................................................. 16 Lake Camanche ....................................................................................................................................... 20 Lake Shasta ............................................................................................................................................. 25 California Delta ....................................................................................................................................... 30 SUMMARY OF MARINA SERVICES, AMENITIES, FEATURES AND RATES .................................. 33 Services, Amenities and Features Checklist ........................................................................................... 33 Current Rates for Private Houseboat Slips ............................................................................................. 35 Current Rates for Private Houseboat Buoy Moorage ............................................................................. 36 CRITERIA FOR QUALITATIVE PARAMETER SCORING ............................................................... 37 Marina Services ...................................................................................................................................... 37 Parking and Accessibility to Marina ........................................................................................................ 41 Security and Hazard Navigation Safety Features ................................................................................... 42 Marina Facility Characteristics ................................................................................................................ 42 Additional Fees and Permits ................................................................................................................... 43 Demand Considerations ......................................................................................................................... 44 Environmental Considerations ............................................................................................................... 45 COMPARABILITY MATRICES ................................................................................................... 46 ANALYSIS OF TOTAL SCORING TO RATES ............................................................................... 49 Private Houseboat Slips .......................................................................................................................... 49 Private Houseboat Buoy Mooring .......................................................................................................... 51 CONCLUSION ......................................................................................................................... 53 APPENDIX A – PHOTOS OF MARINA OPERATIONS ................................................................. 54 PURPOSE OF STUDY The intent of the following Rate Comparability Study is to compare private houseboat slip and buoy moorage services offered by the Forever Resorts concessionaire at Moccasin Point (MP) Marina and Lake Don Pedro (LDP) Marina at Lake Don Pedro (California) to other marina operations in the regional area. The end‐result of such an analysis is to determine whether the Lake Don Pedro concessionaire’s rates for private houseboat slip and buoy rentals are reasonable and appropriate based on the examination of different marinas that operate under relatively similar conditions (in terms of services, amenities, demand and environmental features). Recommendations were sought for setting rates at the LDP Marina and MP Marina going forward based on these comparative findings and analyses. To ensure an objective and defendable analyses by an outside third party, the Don Pedro Recreation Agency (DPRA), Turlock Irrigation District (TID), Modesto Irrigation District (MID), and the City and County of San Francisco, engaged the services of Dornbusch Associates (Dornbusch). Established in 1971, Dornbusch provides economic and financial analyses assistance for public, non‐profit and private sector clients. Services include market demand assessment, financial and economic feasibility evaluation, rate comparability, socio‐economic impact assessment and enterprise management. Dornbusch’s clients have included public agencies and private developers/operators of freshwater and ocean marinas nationwide and overseas – including the U.S. National Park Service (8 marinas), U.S. Bureau of Reclamation (8 marinas), California Department of Boating and Waterways (6 marinas), Port of Los Angeles (5 marinas), San Mateo County Harbor District (2 Marinas), Pier 39 Marina‐San Francisco, and others in the Sacramento River Delta, Dana Point, Martinez, Vallejo, Shelter Island, Marina del Rey, and Hawaii. SPECIFIC AREA OF FOCUS FOR RATE COMPARABILITY Slip Rental and Buoy Moorage for Private Houseboats Based on client direction, Dornbusch focused analysis strictly on the comparability of rates charged for private houseboat dock slip and buoy moorage rental as detailed below: Moccasin Point Marina o Slips accommodating houseboats < 20 feet in width o Slips accommodating houseboats > 20 feet in width o Mooring buoys for houseboats Lake Don Pedro Marina o Houseboat slips of 26 feet x 56 feet o Mooring buoys for houseboats Lake Don Pedro – Rate Comparability Analysis Page 1 TECHNICAL APPROACH The following outlines the methodology and approach applied in performing the comparability analysis. In‐Depth Evaluation of Marinas at Lake Don Pedro Dornbusch performed a detailed assessment of the Lake Don Pedro (LDP) Marina and Moccasin Point (MP) Marina, which entailed reviewing historical operating data, conducting site visits and interviewing the concession manager and other staff to determine a set of parameters and criteria against which the relative comparability of marinas evaluated would be judged. This included examining the different services and amenities, condition of facilities and grounds, environmental features and demand characteristics at the two marina sites at Lake Don Pedro. Selection of Comparable Marina Operations Dornbusch initially considered over 20 marinas throughout California and Nevada that provide dock wet slips and/or buoy moorage for private houseboats. Eight marinas were selected from this list as they were judged to be most similar to the Lake Don Pedro marinas across a variety of factors, including size of operation, level of competition, location, quality/types of services and amenities offered. Such determination was based on: information provided by the houseboat owners at Lake Don Pedro; meetings with the Lake Don Pedro concessionaire, DPRA representatives and, Dornbusch’s own independent research findings. It is important to emphasize that no marina is an exact match for either of the Lake Don Pedro operations, due to the variations in market characteristics, operating conditions, and level of services and amenities offered by different private operators. Given this understanding, Dornbusch sought to determine the relevant similarities and differences of the marinas as related to Lake Don Pedro over a range of parameters – which are detailed later in this report. Exhibit 1 summarizes the selected eight marinas that are located across four lakes in Central and Northern California (McClure, New Melones, Comanche and Shasta) and the Delta.1 Exhibit 1. Comparable Marinas Selected McClure Lake New Melones Lake Comanche Lake Shasta Delta Barrett McClure Camanche Camanche Shasta Marina Bridge Bay Willow New Melones Cove Point North South Resort Resort Berm Dornbusch conducted preliminary
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