A consultant from BST Associates warned Oak Harbor City Council members last week that they may need to raise rates and fees at the city marina in order to keep the facility operational.

Paul Sorenson shared the results of a rate study with the council at a workshop meeting June 28. According to Sorenson, moorage rates at the Oak Harbor Marina are far below those of other Salish Sea marinas.

“Marina rates haven’t been sustainable for some time,” he said.

The study found that Oak Harbor’s rates for 35 to 38 foot open slips are 41% lower than the area average and 32% lower than the area median. For 50 to 59 foot open slips, Oak Harbor’s rates are 50% lower than the average and 37% lower than the median.

If the marina doesn’t increase its rates, Sorenson said, it will not be able to keep up with the maintenance the aging facility requires.

“You’re kind of in an existential position right now with respect to the marina,” he said.

BST Associates recommended the council approve moorage rate increases that would bring the rate up to the 2023 median identified in the study within the next three years, followed by 5% increases for another two years.

For boats 27 to 30 feet, this would be a 10% increase each year for three years for covered slips or a 7% increase for three years for an open slip. For larger boats in covered and open slips, the increase would be 10-15% each year for the first three years.

Sorenson also recommended increasing electric fees, transient moorage rates, storage shed rental rates, liveaboard fees and other fees; establishing kayak and dinghy storage fees; and reducing fuel sale and annual rate discounts.

Between all the proposed rate and fee increases, the owner of a 24 foot boat would pay an additional $15.43 per month in 2023, another $16.58 in 2024 and $17.84 in 2025 for an open slip, for a total monthly payment of $255.29 in 2025.

A 32 foot boat owner would pay another $32.07, $35.56 and $39.44 for an open slip, respectively over the same years, with a total monthly payment of $401.27 in 2025.

The owner of a 50 foot boat in an open slip would pay another $65.04 in 2023, $73.16 in 2024 and $82.30 in 2025, for a total monthly payment of $740.80 by the end of the three years.

Marina staff advised the council to move forward with Sorenson’s recommendation. According to Harbormaster Chris Sublet, this rate increase schedule would maximize moorage revenue while still keeping Oak Harbor’s rates below average in the Puget Sound.

The Marina Advisory Committee, which comprises five boat owners who dock at the Oak Harbor Marina, recommended a different rate increase schedule proposed by one of its members, Ryan Bradley. Under Bradley’s proposal, rate increases would be distributed more evenly among large and small boats, as opposed to the BST Associates recommendation, which sees higher increases among large boats than among small boats and brings all boats up to the 2023 median rates.

The owner of a 24 foot boat would end up paying a monthly rate of $271.35 for an open slip under Bradley’s proposal, a 32 foot boat owner would pay a total monthly rate of $401.27 by 2025, and a 50 foot boat owner would pay a total of $711.53 by 2025.

Several council members expressed concern about raising rates to catch up with other area marinas without offering amenities of a similar caliber.

The Oak Harbor Marina is around 50 years old. Many of the floats and whalers are due for replacement, and the marina needs to be dredged as well, a project expected to cost more than $5 million. Downtown Oak Harbor is located a half-mile walk away from the marina, and there are a limited number of restrooms and showers available onsite. Other more expensive marinas in the area have more on-shore facilities and businesses.

“You’re raising the rates, but we’re so behind in little amenities,” said Councilmember Beth Munns, adding that perhaps money from the city’s general fund could supplement some upgrades.

Mayor Pro Tempore Tara Hizon called the predicament “a chicken and egg situation, because we can’t enhance our services until we have the money to do so, and vice versa.”

Councilmember Eric Marshall also lamented the prospect of trying to charge rates comparable to other marinas without offering similar services, but Sublet maintained that rate increases at the Oak Harbor Marina are necessary just to maintain the existing facilities.

The marina is revenue positive right now, but its revenue will drop off in the coming years as the facility’s expenses continue to increase.

For some boaters who dock in Oak Harbor, amenities aren’t a concern; Oak Harbor residents Jackie and Jeffrey Baraban said the low prices are what attract them to the marina, and they are satisfied with the services the marina offers.

“I really can’t think of anything that would help my attitude towards paying more, because it’s really not that bad now,” Jeffrey Baraban said.

He added that it is difficult to navigate in and out of Deception Pass, and significant rate increases might drive them to keep their boat at a more convenient location.

Kirkland resident Dan Hartman, who has moored full-time in Oak Harbor for four years, was similarly concerned about paying more to continue mooring at such an inconvenient location. The low rate keeps him in Oak Harbor for now, but if rates were to increase by $100 a month or more, he said, he would relocate to a marina that doesn’t require a trip through Deception Pass.

“If they were to raise their rates to where they’re competitive with some of the upper scale marinas, I’d move,” he said.

Others who keep their boats at the marina are more accepting of potential rate increases. Ken Hulett, a member of the Marina Advisory Committee, said in an interview that keeping up with ongoing maintenance costs is critical, and the materials for necessary maintenance projects are increasing.

“It’s not an option of, ‘Do you want a first-class marina or a second-class marina?’” he said. “We just want a marina, and keeping it in existence is important to us.”

Neil Ketchum, a retired marina employee, has been living on his boat in the Oak Harbor Marina for almost eight years. He said he is familiar with the necessity for rate increases and is not opposed to them; if the marina infrastructure deteriorates, he stands to lose the place he has called home for nearly a decade.

“For me, it’s my community,” he said.