16 February 2016
Dear Member
Marina Committee Update – to be presented at February 2016 SGM.
The Marina committee was formed after the overwhelming support for the marina expansion project announce back in July 2015 and the goal of the Committee to date has been to scope the project to gain ball park numbers for the members as to the cost of this project.
In addition, to the communication the committee has already sent out to keep members up to date, they have discussed different marina configurations, considered different material in the build to get a suitable configuration to submit for a quote and have also attended meetings with council planners to discuss this project and the documents required then cost out the cost of these various documents.
At the council meeting we received the news that the Pittwater Council Waterways Review had commenced this may result in a delay in submitting our DA, to extend a marina in Pittwater, as during this Review period Councillors would be unlikely to approve such development.
Further discussion resulted in the Council requesting that the PAC make a submission to the Review and if during the Review process the Council believes there is no reason to delay approval of the Marina extension the Council will commence the zoning application* at their cost and encourage the Clubs submission of the DA.
Below you can see sketches of the marina as costed, a photomontage and examples of materials used to build marinas with an aim to reduce the maintenance cost of the marina over the longer term. This photo montage shows within the green boundary the current Permissive Occupancy (PO) approved and the current marina. The pink boundary is where the extended PO would be and the orange marks the shape of the marina as shown on the previous slide.
Returning to the goal of the Marina Committee the total $900,000 cost of this project includes the pontoons, piers, works surveyor, water & power to the marina and surveyor plans. In addition the Committee has applied a 30% contingency, the cost of documents and zoning application (if required*), in this cost, to achieve DA.
Summary of Costs:
Build cost 600K
Contingency 200K
Documents to DA 60K
Zoning Application (if required*) 40K
Total $900K
Quotes for the pontoons were requested for three material types
- As we have today – PVC floats & hardwood timber
- composite decking with aluminium frames and
- concrete decking with moulded flotation.
The most expensive quote has been included in the capital estimate above and the lowest estimate received is approximately $100K less in build cost but higher in ongoing maintenance.
Revenue from these 20 berths (at today’s rate) ranges between $5,800pa and $3,500 giving an average revenue of $4,500 used to calculate the $90,000pa revenue
Cost of the marina once completed are principally the PO licence and interest on borrowings. Noting – the interest on borrowings includes the contingency, the cost of the application for zoning and ignores the fact that not all funds will be borrowed as the club will use available cash before drawing down on the loan facility to minimise interest costs. Adjusting for all this would reduce the cost from $80,000 to $55,000 in year one. These numbers ($90K revenue less $80K costs) show us that this project, with an included 30% contingency, is self-funding from year one and cost neutral to the existing Membership and Facility fee structure and places no stress on the clubs current operational activities.
The Marina Committee has recommended to the Board that the next step be a detailed submission, which would include various surveys and support documents from other authorities with approval in principal, be made to the Council Review.
It is likely the DA would be ready to submit by March 2017. The decision by members to spend the $800K (build cost) will only be made when the DA approval has been received from Council.
I would like to thanks the Marina Committee for the great effort they have put in over the last months to deliver this information to the members.
Thanks in advance for your feedback and any questions you may have.
Regards
Chris Kavanagh
President
