Kelowna boat launch fees could cost companies thousands

Companies that rent boats in Kelowna could pay $2,000 per boat per year if new fees going to city council on Monday are adopted. Currently they pay nothing to launch, but city staff has proposed they pay 25% of the cost of maintaining the launches since they create 25% of the traffic....

Kelowna boat launch fees could cost companies thousands

Companies that rent boats in Kelowna could pay $2,000 per boat per year if new fees going to city council on Monday are adopted.

Currently they pay nothing to launch, but city staff has proposed they pay 25% of the cost of maintaining the launches since they create 25% of the traffic.

“Businesses benefitting from the use of the boat launches are ones whose income is reliant on them and without boat launches, they would not be able to operate,” says the report going to council on Monday, Feb. 28.

A Power Point presentation shows a number of rental fees companies charge, ranging from $800 per day to $1,500 per day.

Since the companies vary in size, staff are recommending a charge per boat rather than a set fee per company.

The recommended fee for those renting boats either as a company or boat club is $2,000 per season. Each personal watercraft would be $1,000. Valet companies would be charged $200 per watercraft.

“For valet companies, staff proposes a fee of 10% of the per boat fee, recognizing the valet business model is derived from launching a third party’s boat, who could be a resident of Kelowna, and there is no fee for residents launching their own boats,” the report says.

There are also three tour operators who now pay a nominal fee but will be asked to fork over $2,000 for each boat.

“Staff are proposing to increase the existing nominal fee to align with the newly proposed fees and ensure that tour operators are also contributing to the cost recovery of the marine facilities,” the report says.

In all, staff expect to collect $106,200 from commercial boat companies this summer.

Annual maintenance and operating costs for the boat launches (Cook Road, Water Street and Sutherland Bay) is estimated at $150,000.

The city also wants to collect 10% per year towards the $1.5 million cost of improving the facilities for a total annual cost of $365,000. The commercial operators share would be $91,250 so the proposed fee structure, if projections are correct, would collect more than that.

At least one rental firm has said it will reduce the number of boats it rents this summer because of the fees.

Staff is also proposing that the companies face $500 fines if they launch boats or pick up passengers without a licence or permit.

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