16 March 1999

You have already heard my argument that it is not fair to further charge the launchers when the launchers are already contributing a disproportionate share of revenue to the marinas. Now I would like to address the business of operating a marina.

Do you honestly think raising launch fees will increase revenue by $14,000 as the City Administration proposes? Well, we all know that will not happen. What do you believe will happen? If you believe less, then why were you told $14,000? I want to believe when the Commission told the City Administration to make the marinas self-sufficient, your intent was for the Administration to determine those marina areas needing attention and then recommend practical solutions. Raising launching fees is not a practical solution. The City Administration forced this idea through the Harbor Advisory Committee and packaged it to the Commission last year with insufficient thought and analysis. Clearly, no one has shown the launch facilities are a problem and therefore, they should not be used as a solution.

• I ask you - what supporting computations were you shown that revenues will increase $14,000 by raising launch fees to $5/$100 despite probable significant decreased usage (no sensible person doubts that usage will decrease significantly at those rates)?
• What other options were provided to you, e.g., a $2/$35 fee with increased usage at virtually no increase in City operating costs? Is that a viable option? I think so. It should at least have been considered and presented to you.
• Were you ever presented with a financial analysis of just the launch facilities to determine where they stood? Probably not, because that would show they were making money and not costing taxpayers anything at the old rates. (That would make it more difficult to suggest a ridiculous fee increase so that probably was not done.)

I hope you heard the Escanaba City representative say on TV6 they kept their rates at $2 and their launch volume was kept high enough to generate sufficient income to operate the launch facilities. I believe they have a relatively new marina and are probably confronted with many similar financial problems as we are. Their marina, and obviously other marinas close to us, is able to charge $2 or less. Why are we going in a different direction than those who are apparently successful? What is this telling us boaters and taxpayers? Raising fees is a better solution, when lowering them might achieve the same results?

There's an old saying, "Don't Fool With Success!" and you are fooling with something quite successful and profitable to the marinas. I request you revert to the successful rates of $2.50 and $45 and turn your attention to marina areas that are not successful. Raising launch fees is bad business.

D. Joseph Buys

Presentation to Marquette City Commission