Industry Articles

Industry Articles - 1999

Marina Dock Age, November 1999

The Clean Marina Program:
Public Recognition for Environmentally Proactive Marinas
by Ron Brazda

It may not be long before marinas that voluntarily follow recommended best management practices for clean waters will be officially recognized and publicly commended for their efforts. At the Annual Conference of the States Organization for Boating Access (SOBA) in Little Rock, Ark., October 6, 1999, delegates voted to authorize the group’s Clean Vessel Act Committee to develop a model Clean Marina Program. In the program, states would sanction marinas that take the pledge to be environmentally responsible to hoist a distinctive, nationally recognized flag proclaiming them as clean water promoters and practitioners.

This concept has been evolving for the past several years. Even before the 1992 Federal Clean Vessel Act gave private marinas the incentive to install boat sewage pump-out stations with grants in aid, forward-thinking marina operators were taking steps beyond regulatory requirements. They did that because they recognized that providing a clean environment is important to customer satisfaction and community acceptance and is therefore good for business.

Believing that the many unsung heroes of the marina industry deserved some sort of recognition, the National Marine Manufacturers Association (NMMA) in 1993 inaugurated its Recreational Boating Facilities Environmental Responsibility Award. Though this awards program has generated considerable nationwide publicity, calling favorable public attention to the positive role of marinas in the campaign for clean waters, NMMA came to realize that it was limited by the number of marinas and boatyards it was able to honor as outstanding examples. Casting about for ways of publicizing the countless other worthy facilities, they came across the Blue Flag Program widely used in Europe to certify and credit clean marinas and beaches.

In 1996, the European Blue Flag Coordinator was invited to the United States to consult with NMMA about adapting the Program for use on American waters. This consultation led to a decision that the Marine Environmental Education Foundation (MEEF), which is a national non-profit broad-based consortium of industry, government, and conservation groups, was probably the best vehicle for credibly judging and awarding marinas as voluntary practitioners and promoters of clean waters. Thus, in 1998, MEEF launched efforts to initiate a National Environmental

Excellence Awards program, featuring the presentation of a distinctive Clean Boating Flag bearing the MEEF logo, as the linchpin of the continuation of its highly acclaimed National Clean Boating Campaign. Unfortunately, that initiative foundered due to cutbacks in available federal grants.

Meanwhile, state governments, aware of the importance of marinas to promoting tourism and bolstering local economies and their highly visible profile as role models for clean waters, were individually starting Clean Marina Programs. By the late 1990s, the Florida Department of Environmental Protection and the Maryland Department of Natural Resources were already well into it, and the subject was under active consideration in South Carolina.

Why not follow the lead of states that have demonstrated a willingness to encourage their marinas to voluntarily follow recommended best management practices for clean waters? Because the government stands behind marinas that they have judged to be clean water practitioners according to their criteria, there is a higher degree of credibility than the recreational marine manufacturing industry or even a national non-profit marine environmental education foundation can provide through their respective award programs.

For optimum public understanding and appreciation, however, it is preferable that whatever the states do be as uniform as possible. Because boating is highly mobile by nature, it is key to the success of the program that boaters be able to recognize what the clean boating flag represents—no matter which state they’re in.

To this end, SOBA proposes that the Florida and Maryland examples be used as a template for fashioning a model Clean Marina Program.

These two state initiatives, though conceived independently, are the same in concept. They are partnerships between state government and the marina industry whereby the state provides marina operators, free of charge, with the educational tools they need to help maintain their facilities in harmony with the environment. It is completely voluntary. There is nothing compelling marinas to sign up for instruction. Rather, participation is incentive-based. Marinas that opt to take advantage of state-run Clean Marina workshops or literature, and that ultimately sign a pledge, of their own volition, to practice clean water management, will be duly rewarded.

Following state certification that a marina has followed every recommended environmental safeguard on the state’s standard checklist, that marina will be officially designated by the state as a Clean Marina. Rewards for such designation include authorization for the marina to use the state Oean Marina logo on its letterhead and in its advertising, and to fly a flag emblazoned with the state Clean Marina logo calling public attention to the marina as an officially recognized environmentally responsible facility.

The Clean Marina program works to the benefit of marinas in many ways.

In voluntarily learning how to comply with recommended environmental best management practices as well as regulations, marinas learn how to reduce costs associated with waste disposal and avoid the penalties and the stigma of non-compliance. Typically, information furnished by the state covers siting considerations for new and expanded marinas, environmentally attuned marina design and maintenance, stormwater management, vessel maintenance and repair, petroleum control, sewage handling, waste contamination and disposal, marina management, and laws and regulations.

As a designated Clean Marina, a marina gains free publicity as a facility that practices clean boating. Because boat owners generally take enormous pride in keeping their equipment clean and shipshape, they are likely to be drawn to a marina that ensures them a clean environment. A clean marina enhances the enjoyment of the recreational boating experience.

Therefore, being a state designated Clean Marina makes good business sense. It can generate new revenues and gain the trust and respect of the community that the marina is a center for clean water.

It is significant to note that the Clean Marina programs in both Florida and Maryland were designed with active input by local marine trade associations with an eye for what works for marinas and is therefore conducive to marina participation.

In both states, instruction is designed around showing marinas how to improve their cost efficiency and how to attract and keep customers.

Being designated a Clean Marina is not a one-time thing. In Florida, local workshops are conducted periodically by the state to assist marina operators to stay in compliance with the checklist of operations or recommended practices. In Maryland, marinas maintain their status by annually confirming in writing to the state that they continue to meet the award standards described on the Clean Marina Award Checklist. At least every third year, a Clean Marina agent for the state will visit participating marinas for a first-hand inspection to reaffirm Clean Marina status.

“The boating industry applauds these trailblazing state government efforts to help marinas do their part for clean waters,” said Jim Frye, director of NMMA’s Marinas and Boating Access Division. Since NMMA, the Marina Operators Association of America, and other environmentally proactive members of the industry are active in the States Organization for Boating Access, it is more than likely that industry’s counsel will be solicited in adopting a model Clean Marina program for use in other states.

Interested in leaning more about the Florida and Maryland programs? Contact the Florida Department of Environmental Protection at (850) 488-5757, ext. 139, and the Maryland Department of Natural Resources at (410) 260-8770.

Ron Stone is a senior advisor with the National Marine Manufacturers Association and chairman of the ICOMIA Boating Facilities Committee. He served as NMMA’s director of facilities and government relations for more than four decades. He is the founder of the States Organization for Boating Access.

Marina Dock Age, November 1999

To Fight or Not To Fight - Is That the Question?
by Gene Spinazola

The question “Should marina staff be proactive in a fire situation?” It’s been asked several times recently and here’s the answer: “It depends.”

There are so many variables to that question that it is hard to nail down even one shoe to the floor. Every marina is different and every management style if different. Staff training, and the commitment to training, also differ at each marina. Training staff, however, is a key element to every marina’s operation and is an integral part to the success of the season.

What is your philosophy for a fire in your marina? Have you really thought it through? Remember, you have a lot invested in this marina and you need to give equal time to all the issues.

And safety is one of those issues. Back to the question: “If you have a fire at your marina, should the marina staff try to put it out?” It’s easy to say yes. The real answer is still: “It depends.”

Kenny Rogers said it best: “You got to know when to hold, know when to fold, know when to walk away, know when to RUN.” Now, if you have trained your staff and they all can sing that song, and know what it means, then you have solved the problem.

This is a short list of things to consider when you ask yourself this question: “If we have a fire in our marina, what do I expect the staff to do?”

Nothing; it’s not their responsibility
Call the fire department
Take care of all the life safety issues
Evacuate all boaters and guests from the docks
Direct incoming emergency personnel to the right location
Move adjacent boats away from the fire area
Shut off all electrical power to the fire area
Shut down the fuel dock
Move any vehicles that may obstruct the fire fighting operations
Bring the marina fire pump to the dock and attack the fire
Secure the burning boat to the dock so that it will not drift away to another part of the marina.

This list is, in no way, complete. It is only intended to give you something to think about for the purpose of this discussion. Whatever it is that you expect your staff to do, it can not be a secret. No matter how basic or detailed your plan is, it must be in writing, shared with the staff, and you must make certain that you have training exercises that practice “the plan.”

If the fire department is right next door to your marina, you may want to take an indirect approach to a fire at your property. There are many things that the staff can do that are indirect means of dealing with a fire situation. Making the call to the fire department, moving people away from the fire area, directing emergency personnel to the right location, shutting off the electrical power to the fire area—these are all indirect activities that the staff can do.

What if your fire department is 20 minutes from your marina—on a good day? Well, in this situation, you may want to be more active in dealing with a fire in your marina. The options are there for the taking. But understand that, along with the options, come more responsibilities. If you expect your staff to pick up a fire extinguisher and attempt to put out a boat fire, it had better not be the first time they have ever used a fire extinguisher. If they were to get hurt, well, you know those lawyers.

What about fire pumps, fire boats, foam equipment, wheeled carts… Yes, they all work and can be a part of “the plan” and, of course, must be a part of the training program. This is proactive intervention and carries with it the responsibility to conduct staff training and to keep good training records. Remember, you can be very proactive just as long as you have properly trained the appropriate staff members in your response plan.

Let’s talk for a minute about fire pumps. A fire pump is a very special purpose pump with internal components that have close tolerances. These pumps are not for pumping out sinking boats or other salvage work around the marina. Generally, the minimum horsepower required for a portable fire pump will be around 10 to 12 horsepower in order to get the required amount of pressure and an appropriate amount of volume in gallons per minute. A trash pump, on the other hand, will pump lots of water but, in general, will not develop sufficient pressure to be used for fire fighting purposes. There is a very significant difference, also, in the cost of these pumps. If you want your staff to squirt the wet stuff on the red stuff, then buy them a fire pump, not a trash pump.

So, your assignment is to take a good look at your present approach to a fire in your marina. Decide if you want active intervention or passive intervention. Then evaluate your existing circumstances to see just what’s needed to meet your plan.

Gene Spinazola specializes in marina fire and safety issues, and he welcomes calls: (207) 326-9147. He is president of Gene Spinazola P.E. & Associates Inc., in Casane, Maine.

www.marinafires.com

Marina Dock Age, November 1999

Would You Go Fishing Without Bait?
by Dennis P. Kissman

Recently we were preparing next year’s operating budget and reviewing this year’s financial statement with an absentee owner of a marina that we manage. As we were gong over this year’s numbers line by line—the owner was pleased with the bottom line increase from when we took over at the beginning of last year. It was interesting to hear the questions that came up on the various line items, but one item really stood out. I’m sure many of you feel the same way this owner does.

When we got to the marketing and advertising expenses, his first comment was, “This is too much money. Couldn’t we cut it down?” He went on to say, “I wouldn’t spend this much in five years.”

For whatever reason, often times when I look at financial statements, I can not even find a line item for marketing and advertising. For some reason our industry feels that spending money on advertising and promoting marinas is a waste—especially when times are tough. Talk about sticking your head in the sand—one sure doesn’t have to look far to see how wrong they are. I would venture to say that not a day goes by without some form of advertising influencing your life in some way.

Getting back to this particular situation: This owner would spend an average of less than one half of I percent of his annual gross receipts on advertising. That added up to about $13,000 annually based on revenues of 2.8 million. I might add that this marina is a saltwater marina and is located in the south. It’s only profit centers include dockage and utilities plus commercial rent and a fuel dock.

One of the conditions when we took control was to establish a marketing plan. The plan we came up with required an advertising and promotion budget of $60,000, which we spent every penny of in 1998. The question is: What did we get for our money? Let’s begin by saying that dockage rates are up 57 percent over the previous year and the marina is completely booked with deposits for the coming winter season. Also revenues are up more than 15 percent while operating profits rose 55 percent even after taking into account our management fee.

The irony of this whole scenario is that in spite of the additional income, the owner can not correlate any of that increase to the money being spent on promoting his marina. His only thought is that if he hadn’t spent the additional $47,000 on advertising, it would have been additional income. Unfortunately, that is not how it works. But it is the way most marina owners look at it.

ADVERTISING IS LIKE FISHING

I can understand why this line of reasoning exists because I thought this way myself. Until I began to make a game out of marketing a marina, that is. Think of marketing like fishing. In order to catch fish you need some form of bait, and the type of bait, time of day, and where you fish will determine what you catch Now, think of your customer as that fish. Through the type of marketing you do, you can actually profile your customer base.

Lets look at the three things you need to catch a fish. First, consider the type of bait. To determine this you probably did some kind of research as to what that particular species of fish is attracted to. Now relate that to advertising. Your customer has likes and dislikes as well, so do some research into what the customer likes and develop your program around that. Just a word of caution here: It is not what you like, it is what your customer likes and these two may not be the same.

The next factor is the time of day you go fishing. Timing is so important. You want your marketing program to reach the customer when he is going to make a decision that requires your services. For example, if it’s customary in your market for boaters to make their upcoming season dockage commitments by December 15, you don’t want that advertising to begin in January.

Finally, you need to know where to go fishing. With a little astute observation, you should be able to identify the media that your customer profile identifies with. It's like going back to the same fishing hole that you are familiar with every time. Here is where a little complacency can create big problems. Just like that fishing hole on the lake, chances are there are more than one, so sometimes you just need to take a chance with one of those other fishing holes as well.

There are a few simple points to follow when developing a marketing program. First, it is very easy to throw a lot of money into a marketing program without understanding the results of that program. You always want a way to measure the results of your program. Another thing to keep in mind is that quality is better than size. This applies whether you are thinking of a promotional giveaway or placing an ad in a publication. When considering advertising, for example, opt for a smaller ad placed consistently rather than a single larger ad if you’re working on a limited budget.

The third thing to keep in mind is that less is more and more is less. One of the quickest ways to lose creditability with your customers is to advertise something such as a new service and then not come through. Promote your strengths, and your weaknesses will be overshadowed by your strengths.

This saying, unfortunately, fits our industry to a tee: “You can't read the label when you’re inside the bottle.” Many of us are in that bottle. Don’t wait until it’s too late to realize it.

Marina Dock Age, September/October 1999

Fight Depreciation with Three Simple Words
by Dennis P. Kissman

Depreciation. We’ve all heard the term, but few marina owners seem to really understand it. If you look up the word in the dictionary you’ll see that there are two meanings for the word. One is a financial term used by accountants when preparing tax returns, and the other is what happens in the real world. Unfortunately, the definition most marina owners are familiar with is the one their accountants use: “an allowance made for a loss in value of property.” To make matters worse, many marina owners put their own spin on the accountants’ version, which goes something like this: “a legal way to reduce an income tax liability.” Then this definition is further interpreted as a method of putting more cash in one’s own pocket.

Wake up, marina owners. The definition of depreciation that applies to a marina is the second one found in the dictionary: “a decrease or loss in value because of age, wear or market conditions.” This is what is really going on in your marina: it’s losing value. Several years ago I remember seeing a commercial on television for an auto transmission company that said, “You can pay me now, or you can pay me later.” This really applies to a marina, and the bottom line is, one way or the other, it will cost you money in the end.

A synonym for the word “depreciation” as it relates to a marina is our old nemesis “deferred maintenance,” and you know that the longer you ignore deferred maintenance the more it will cost you in the end. If you are willing to spend a little money along the way on maintenance issues, your total cash outlay over time will be less than if you ignore them.

There are three things you can do at your marina that cost very little for the amount of value you get in return. These can be summed up in three words: paint, adjust and lubricate. I like to use the acronym “PAL” to get the message across because “pal” means friend. If you follow your friend’s advice, he will only increase the value of your marina.

PAINT

Because marinas are located on the water, they are surrounded by a harsh environment. The best protection against the elements is a good coat of paint. When you think of paint, think of it in the broadest sense of a protective coating. For example, the electrical grade of silicone sprays or liquid electrical tape is great for protecting those dock pedestal connections and keeping them from corroding. The next question is: When is the right time to repaint or reapply the coating? The one rule of certainty is that you should not wait until the old coating is completely worn off the surface. Even though the protective coating may not look that bad, the protective properties originally in the product, such as inhibitors for ultraviolet protection, have long been depleted. The time to repaint is before this happens.

ADJUST

When it comes to making adjustments, pay particular attention to dock structures and anything else that interacts with the water. Docks have forces acting on them constantly whether they’re from the movement of a moored vessel or the flow of current or waves hitting the docks. The best tools you have for correcting these problems are common sense, a good pair of eyes, a hammer and a wrench.

We’ve all seen what happens when a bolt is allowed to become loose. Before long a round hole for the bolt becomes elongated, and the next thing you know, other bolts have become loose due to the added stress. A simple tightening of a bolt when it first becomes loose could prevent the possibility of your having to replace a section of the dock or, in the worst case scenario, replace the entire dock prematurely. Failing to address the problem when it is first noticed could easily turn it into a deferred maintenance issue. This has particular consequences when you’re considering whether to refinance or planning to sell the property. To better understand the impact of a decision “to ignore the problem” and its effect on the value of the property, consider this: Every $1,000 of repair costs will easily reduce your marina’s value or selling price by $8,000 to $13,000.

LUBRICATE

One of the best mottoes for lubricating something is, “If it rubs together, lubricate it.” I cannot remember the number of times I have walked down ramps to docks only to see rollers that weren’t turning and were flat on one side. Somebody did not lubricate the shaft the rollers were mounted on, and they slid, instead of turning, as the water level fluctuated. Ten cents worth of grease and five minutes of someone’s time three times a year is a lot cheaper than $60 to $100 worth of rollers and two hours of labor.

Spending a little time and money on preventive maintenance can have big rewards down the road. This is particularly true when you consider that you most likely paid for the labor to do these small jobs anyway; you just didn’t get your money’s worth at the time.

Inside Self-Storage, August 1999

Self-Storage is Not a Marina. Be What You Are, Offer What You Can
by Dennis P. Kissman

If you believe your self-storage facility can take the place of a local marina for storing boats, then you don’t fully understand a boater’s persona. First, we must understand what each of these facilities is perceived to provide for its customers. According to the American Heritage Dictionary, the definition of a marina is “a boat basin that has docks, moorings, supplies and other facilities for small boats.” A self-storage facility is defined as “a place with assigned spaces for storing portable personal property.”

Marinas also provide boaters a platform for a few other important items that are not mentioned in the dictionary but have become key to a marina’s success. First, marinas are gathering spots for boaters to share their common interest. Second, boats have a tendency to help inflate their owners’ egos beyond the means of their checkbook, making it important that the boating experience be witnessed by others. Third, boats are designed to look their best when in the water. It is in these areas that a marina distinguishes itself from a self-storage facility.

Therefore, do not try to be something you are not. Now that I have told you what the self-storage owner can’t be, let’s look at what he can do to capture lucrative boat-storage income.

Attracting the Prey

First, the self-storage operator must target market the boater who does not fit the normal boater profile, which can be summed up in two words: ego-driven. You will find that the non-ego-driven boater is usually a person who has many other leisure-time activities and acquired his boat on a whim or who, because of his budget, is willing to sacrifice convenience in order to save money. This person recognizes that he has a substantial investment in his boat in relation to his total asset value, but he is very price-conscious. In other words, this type of boat owner is not willing to pay for the services he expects. Because this type of boat owner is so price-conscious, he will not seek out your facility without some external force pushing him to do so, such as zoning restrictions or space limitations where he lives.

From what we know of this type of boat owner, your marketing effort should be somewhat passive and focus on the boat owner’s “hot buttons”: price and security. This is based on his being price-conscious as well as the value of the boat in relation to his total assets. Remember, this boat owner is looking for your facility because something else motivated him to do so. To earn the greatest economic rewards, make your advertising clear and concise, focusing on the two items just mentioned, rather than using a fancy, high-priced advertising campaign to sell all the other benefits your facility has to offer. With this type of customer, more services have dollar signs attached to them—just the opposite of what they want and you are trying to convey.

Once you get the boater to call or visit your facility, the next question is: What kinds of storage do you offer—indoor, outdoor open or outdoor covered? Everyone will want indoor storage, but most will not be willing to pay the price. These boats will be on trailers, adding to the total space required to store them. This is often the difference in storage cost that will cause the boater to opt for a less expensive form of storage. His second choice will be covered outdoor storage, which is an easier sell for the self-storage operator than indoor storage.

This is particularly true if your pricing structure shows a large difference between indoor storage and covered outdoor storage, with a lesser difference between outdoor covered storage and outdoor open storage.

Safe and Secure

Once you overcome price barriers, the next issue is security. When we talk about security in this context, we are not referring to a persons’ security, but rather the boat’s. Being that self-storage facilities usually provide a secure environment, the boater is not as much concerned about his boat being stolen as he is about having things stolen off of the boat or the boat being damaged. Marina owners have found that most thefts of items off boats in a marina are not from outsiders, but from other boaters in the marina. Some boaters feel that if your equipment is better than theirs, there is no reason not to permanently borrow it. To minimize this problem, a number of marinas limit access to individual docks to those who have boats moored there. You, as a self-storage operator, could provide a similar form of security by constructing a series of fenced in areas or compounds that hold a limited number of boats.

Unless a boat is stored inside, it is very difficult to secure everything on that boat. Therefore, the more dissimilar boats you store in a particular area, the less chance of items making their way from one boat to another. I would like to share with you a true story a friend of mine told me about storing his boat at a self-storage facility.

This friend has a 17-foot outboard sport boat on a trailer that he kept at a self-storage facility close to where he lived. He was very meticulous about his boat and, at least twice a year, he would find his good propeller exchanged for a damaged one. Interestingly enough, there were several similarly powered boats stored in the same area. My friend inconspicuously marked one of his good propellers and, sure enough, one day found it on one of his neighbors’ motors. The next day, after taking back his original propeller, he moved his boat.

To this day I do not think the self-storage operator understands why his boat-storage business is only about a quarter of what it was just two years ago. The moral of this story is two-fold: 1) boaters are a very close-knit group; and 2) pay attention to changes in your customer base, particularly if you store boats.

At first, it may sound as if boaters put great demands on your facility. In reality, you just have to understand your customer’s needs and address their “hot buttons.” They are not a problem and could become a very good revenue source. As more and more municipalities place restrictions on where a person can keep his boat when not in a marina, the self-storage operator has the edge to capture this market with very little additional investment.

Marina Dock Age, July/August 1999

The Financial Impact of Severe Weather
by Dennis P. Kissman

Typically a hurricane is the first thing that comes to mind when we think of weather damaging a marina. In reality, more damage is caused annually at marinas by other forms of severe weather than by hurricanes. Granted, hurricanes get all the press, but marina owners who have seen their marinas get washed down a river on a spring flood or their docks turned into toothpicks after a tornado dropped in for a visit know that all severe weather can be as devastating as hurricanes.

Unfortunately, natural disasters are a way of life at marinas, no matter where your marina is located. It’s just a matter of time. Now the question is: If you know something will eventually happen, what can you do to minimize the financial impact on your marina?

One of the responses regarding hurricanes I hear most often from marina owners is: “That’s what I have insurance for.” If that’s your attitude, you have lost sight of why you are in business. I have never seen a marina be financially successful through an insurance settlement. Granted, there have been a few unscrupulous owners who have enjoyed cash windfalls through an insurance loss, but in the end, the marina always suffers.

It is difficult to foresee natural disasters other than hurricanes, so it is best to be prepared at all times. One of the best ways to minimize damage from a natural disaster is to minimize your deferred maintenance. A marina facility is like a house of cards: The weakest link gives way when additional strain is put on the rest of the structure, often causing it to fail. The key is not to have your marina fail in the first place.

Since most of these disasters occur without warning and because marina owners in some states, like Florida, are restricted from requiring boats to leave the marina when a hurricane is imminent, your marina will more than likely have boats in it when natural disaster strikes. Just as additional strain is put on your marina during these times, the boats in your marina are subject to these same forces, placing additional load on your structures.

Remember, you are in the service business, and if your marina is closed pending an insurance settlement or awaiting repair, you are not doing anybody any good. I would like to pass along a situation that happened on St. Thomas in the U.S. Virgin Islands in 1995 when Hurricane Marilyn passed directly over the island, causing severe damage to everything in its path, including the three principal marinas on the island. Only one marina, Crown Bay Marina, was prepared structurally and was staff-trained to open the day after the hurricane. Because of its auxiliary power, backup potable water supply and fuel reserves, it was able to help the entire community recover. For several days it was the only place on the island selling fuel, which was necessary to keep the cleanup equipment operating since the public utilities were all out of service and most businesses on the island were closed.

To this day, the other two marinas have not been rebuilt and are sitting in disrepair primarily because their insurance carriers were overextended and unable to pay on their claims. Both marinas eventually went into foreclosure and are now owned by the banks that held their mortgages. This why you shouldn’t rely on your insurance carrier to bail you out.

Today most lenders require mortgages to put up a capital replacement reserve equal to about 2 percent of total revenues. If you have such an arrangement with your lender and you believe this is your fall-back position, you should read your agreement again. Most often the capital replacement reserve is used to assure the lender that, if the property has to be taken back in the event of a foreclosure, there are funds to cover any deferred maintenance on the property. About the only way that reserve would be used in the event of a natural disaster is if you walked away from the property and turned it over to the lender.

Although there is no way to predict the extent of damage or the cost of repair, there are a few things you can do to minimize the financial impact on your operation. First and foremost, continually invest in maintaining the first-class condition of your facility. The stronger the facility, the more punishment it can withstand without incurring major damage. Second, train your staff on what to do in the event of a natural disaster. Don’t just talk about an emergency procedure or write it down and put it on a shelf to collect dust; role play with your staff, and test your emergency equipment regularly. Third, look at your license agreements to see what rights you have and those your customers have. If you are not on firm legal ground, one of your customers may end up owning your marina.

Remember, the key to minimizing your financial impact is to open for business as soon as possible after the disaster strikes. Time is money, and if you get tied up in insurance settlement negotiations or lawsuits, no matter what the final outcome, you will be the loser. In these situations, you must take control and not rely on someone else to make things right.

Marina Dock Age, July/August 1999

Getting the Right Help the First Time
by Gene Spinazola

In the last Marina Safety article, I wrote about crowd control, and one of the statements was, “If you have one, they will come.” Who’s “they”? The crowd, of course, and it arrives prior to the big red fire trucks, police or medics. The first thing you want is the emergency responders, but the first thing you get is the crowd.

QUIZ YOURSELF

Question 1: When you are calling for emergency services for a fire at your marina, what is the response going to be?

A) Mini pumper (less than half a big fire truck)

B) Mini pumper and a Class A pumper (1 1/2 big fire trucks)

C) Two Class A pumpers (forget the mini pumper)

D) Three big Class A pumpers

The following is an excerpt from the incident summary of an actual response to a fire call from a marina here in the United States. You may want to read this before you answer the quiz question above.

“The City Fire Department was dispatched to Ready Road and Lake Boulevard at 16:45. [4:45 p.m. I interjected that so you would know it was in the afternoon.] Engine 4 was dispatched to the scene. En route, Engine 4 called for an upgrade of the alarm due to a large column of smoke.” Oops. Important to emphasize here that Engine 4 is en route and calls back to the station for an upgrade in the alarm.

“On arrival, Engine 4 again requests the alarm be upgraded, [but now] to a Heavy Box Alarm [more trucks], and reports boats and docks on fire with impingement on a two-story condo. The upgraded alarm was dispatched at 16:51. Engine 4 called for the second in responding company to lay in a 5-inch line. Engine 4 pulled two racklines [hoses]; one for exposures and one for fire attack. The extreme thermal output [hot fire] from the boats and spilled fuel was being directed by a metal roof toward the buildings, and it required that both lines be used to protect the buildings.” So much for the boat, huh?

“While en route, Battalion 1 upgraded the alarm to a full second alarm at 16:54, and shortly thereafter, upgraded it to a third alarm at 16:57.” (Most of you don’t have this many trucks in your county, let alone in your town.) “By this time the fire had extended from the first dock to the dock to the south due to the wind from the north at approximately 15 to 20 mph and the water current.”

So what’s the point? The fire department responded with one truck. En route, it said, “Oops, send more trucks.” The issue of how much is enough is important, but the response must be planned, and it must match the potential size of the fire. In defense of the fire department in the above report, it was responding to a boat fire. The size of the truck and the manpower that is on the truck may be appropriate for one boat fire. En route Engine 4 noted the amount of heavy black smoke and called for more trucks. This fire consumed 35 boats, 1 1/2 boathouses and damaged the adjacent condominiums.

PREPARE BEFORE HAND

Your assignment this month is to establish an automatic response from your fire service that will bring the right stuff to your marina at the beginning of the fire. Playing catch-up does not work, trust me.

At a minimum, you want an automatic commercial response. You will need to go to your community dispatching provider and work through the details, but don’t give up until you get what you want. Try to get, in writing, what response the provider intends to supply for a fire at your marina.

This response might be called a Run Card or Automatic Mutual Aid. This also might vary in different parts of the country, but getting at least three big fire trucks responding is a beginning. It isn’t just getting the trucks to the fire, it’s getting the firefighters to the fire too. Manpower is critical; each truck should have a crew of three or four firefighters.

Laying long runs of hoses down your docks will take time and manpower. Establishing an adequate fire-fighting water supply will also take time. I know, there’s a lot of water at your marina, but getting to it isn’t always easy.

Phase II of this automatic response is police or medical support. In most areas with which I’m familiar, police and medical support are an integral part of a commercial response, but do your homework now and don’t leave any of this response up to chance.

We can show you reports, time after time, where the little red truck showed up to the big red fire. Don’t let that happen at your marina; you won’t be happy. Oh, by the way, how did you do on the quiz?

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Gene Spinazola specializes in marina fire and safety issues, and he welcomes calls: (207) 326-9147. He is president of Gene Spinazola P.E. & Associates Inc., in Casane, Maine.

www.marinafires.com

Marina Dock Age, May/June 1999

Dockominimums: One Marina Owner’s Dream is Another’s Nightmare
by Dennis P. Kissman

Are you considering selling your marina by condo-ing docks? Though this has recently become a trend among marina owners, before you join in, I strongly suggest you do your homework first and study the examples of marina owners who attempted this concept in the late 1980s. Look beyond the few marinas that were successful in the 1980s if you expect to succeed in today’s market. Your best bet is to learn from past mistakes made by failed marina conversions. The following reasons help explain why the dock-ominium concept didn’t take off.

It was perceived that the demand was greater than the available supply of slips. In reality there was no shortage of slips except in a few isolated situations. These few isolated situations were used to promote the dockominium concept nationwide.
Tax advantages that enticed slip purchasers into buying a slip were discontinued.
The per-foot monthly maintenance fee assessment was as high, and in some cases higher, than the monthly per-foot dockage rates at competing marinas.
In the early 1980s when boating became much more affordable, it attracted a less affluent boat owner. This was good for the industry, but these boaters did not have the discretionary income available or the desire to invest in owning slips. This condition still exists today.

In addition to these obstacles, the underlying problem with the dockominium concept is that it is contradictory to the very reason a person buys a boat. It was that way in the 1980s, and it remains so today. Basically the reason a person buys a boat is to have mobility on the water. Granted, in reality boaters rarely venture beyond their local boating area, but you are not dealing with reality. Boaters want their freedom to pick up and go. I would venture to say that anyone who has ever owned a boat has dreamed of cutting the dock lines and sailing off into the sunset. Though very few boaters ever do, the dream lives on as long as they are into boating. Once boaters buy a slip, they obligate themselves to a single location. Slip owners might be better off to buy a cottage on the beach or a cabin in the mountains.

Many marina conversion attempts failed because they just didn’t make economic sense. When the monthly per-foot assessment fee approaches or exceeds slip fees charged at commercial marinas, it is difficult to entice someone to buy a slip. Once this became known, it should have been obvious that the concept was doomed to fail. Looking at the rates a lot of marinas currently charge, I think the same problem exists today that existed in the 1980s. Let’s use this as a wake-up call and get dockage rates up to a level that will give you a decent return on your investment. The dockominium concept will then have a good chance of succeeding on a much broader front.

I am sure that we have all either heard the saying or have said it ourselves: "No two marinas are alike." Have you ever given any thought to why this saying is so prevalent in our industry? Simply put, you are in the service business, and service is very individualized. You may have a large capital investment to support, but your customer is indifferent to your investment and your costs. This is where size can often work against success. At a capital-intensive marina, in order to get the required return on investment, owners often have to choose between servicing debt or servicing customers. Most often they opt for servicing debt. What most owners don’t realize is that this approach leads to a downward turn in business and a negative impact on income.

As a boater, what I am willing to pay on a monthly basis to keep my boat in a marina is directly proportionate to the level of service I receive from the marina. Since employees, who are directly responsible for the quality of service, are usually the largest single cost of operating a marina, it’s important to balance employee costs with the return on investment.

To put this concept into perspective let’s say, for example, your labor and benefit costs represent 18 percent of your revenues and that by increasing payroll to provide more services, you can raise your rates and maintain the 18-percent labor and benefit costs to revenue. What this means is that every increased dollar in revenue you bring in gives an additional $0.82 toward increasing the return on your investment. To illustrate the point, let’s say revenues increase by $20,000. Let’s further suppose a small marina has an $800,000 investment, while the large marina’s investment is $2,400,000, or three times as great. Again, keep in mind our labor and benefit costs are 18 percent of revenues. In this illustration the increased revenues, net labor costs, would be $16,400 ($20,000 x [100 percent - 18 percent]). Assuming there are no other costs associated with this revenue, our increase on the return for the smaller marina is 2.05 percent ($16,400 / $800,000), while for the larger investment it’s 0.68 percent ($16,400 / $2,400,000).

When it comes to return on investment, a well-managed small marina that focuses on customer service and controls labor costs can, in most cases, out-perform a large marina. The main reason for this is that in a small marina, the customer base is smaller and easier to focus on. In a large marina, even though there is potential to generate greater total revenues, the percentage of labor required to provide a high level of service over that broader base is usually higher. I believe that if you are operating a smaller marina, there is a bright future for you if you take advantage of your situation.

Marina Dock Age, March/April 1999

Bigger Does Not Always Mean Better
by Dennis P. Kissman

We are still seeing a lot of press about the consolidation of marinas and how the industry is changing. There is concern among many marina owners, particularly those with smaller marinas, that the industry is going to go the way that corner hardware stores or office supply stores have gone in the past few years when faced with consolidation. A few years ago I also thought that was the trend, but today I am convinced that we aren’t going to see that big of a change in marinas or the way they are operated in the foreseeable future.

There are several reasons I believe this is true. First, marinas aren’t the typical one-on-every corner business. Marinas require a specific type of location, namely a waterfront location in a desirable boating area with a navigable waterway to the site.

Existing marinas also have a couple of strange allies in the form of environmentalists and governmental regulatory agencies. Even though we often think of these groups as our enemies—and rightly so—they really help curb the competition. For the most part, owners of existing marinas don’t have to lose any sleep over having someone build a marina next door tomorrow and compete for their business.

It’s estimated that of the 11,000 marinas in the United States, only about 2,500 could be considered "privately owned, investment-grade properties" that consolidators are interested in acquiring. That leaves a place in the industry for about 8,500 marinas, or 77 percent of all the marinas. My guess is that it will be business as usual at these 8,500 marinas.

When you read articles about groups wanting to consolidate the marina industry, there are two things that are always mentioned or implied. First, the marina has to be in a location that has sex appeal and name recognition to the investment community. Once that criteria is met, the second important item is that the marina must be "big" in size—that is to say, it has to have a large number of wet slips.

Marina Dock Age, March/April 1999

Can Marinas be Designed Without Slips?
by Ronald E. Stroud, Sr., CMM

Early in 1998 1 did a market feasibility study along the West Coast of Florida for a potential new marina. One of the places that I visited was a yacht club that had torn out its old docks and was putting in new ones with more beam in the slips. Its members kept buying larger boats until they were forced to make a change. This reminded me of a time in 1983 when we at Pier 66, another Fort Lauderdale marina, were forced to make the same change. Being in season, most of the other facilities that I visited were reasonably full, but I would always see a group of slips that were empty. Upon inquiring why, I was told, “We don’t have any boats coming in that will fit in those slips.”

Undoubtedly we have many marinas that are going to need retrofitting. You can move finger piers and put more beam in the slips, but you can not necessarily adjust for longer boats. This is restricted by the size of your turning basin. So you can see, to retrofit a marina for larger boats could involve tearing out main piers and going to considerable expense. Consultants can do a feasibility study by visiting existing marinas and determine, to a degree, what their market is going to be, but there is no exact science to determine how many slips to build at which sizes. Marina operators end up tailoring their markets to the slip sizes they have available.

It was a long, lonely drive back to the southeast coast of Florida from the northwest coast. I kept thinking there had to be a better way. Again my experiences at Pier 66 came to mind. There, the most sought-after dockage was on the out-side of Dock A, on the face piers and along the bulkhead. Why? Some felt that it was easier to dock. Others liked the fact that they could clean and do maintenance along the whole side of the boat. Many thought it was more private not having boats so close to either side. Like most other marinas, we charged more for these side-tie locations. During the winter season when we had large boats, we would layout a relatively small number of berths; but during the summer when the boats were smaller; we could lay out a bunch of berths. What flexibility!

Why not have a series of main piers with side ties? To give it a name, let’s call it parallel docking! Okay, but now we need a new formula for the turning basin. What other way is there to arrive at one than to have lunch with a variety of captains and boat owners? The question: “If there are boats docked on either side of the turning basin and you are coming down the middle, how much space do you need on either side of the boat?” This raised another question: “Will this space allow you enough room to spring out from the dock and get headed down the middle?” The results were rather interesting. The larger boats, twin screw, many with bow and stern thrusters, required less space than the single-engine sailboat with an offset propeller. (Again, as every consultant will tell you, each marina is site-specific.) Another obvious problem was electric and other utilities. If we were going to have flexibility, we needed a variety of services at various locations. This is especially true of electrical service. Bob Waddle of Miami Power and I have worked on several similar problems and believe that we have found a solution by putting transformers on the docks where we can tap off different configurations. (We have a client whose yacht requires 480V 400A.)

We have been making a survey of the different yacht manufacturers, and one of the things we’ve learned is that some of the larger boats have a very high freeboard. If your fixed dock is 5.6 feet above the mean low-water level, the fender piles will have to go up at least another 8 feet and should be placed approximately 15 feet apart. This would look like a forest! What about floating docks? They would have fewer piles, and it would be beautiful if telescoping piles were used to moor the dock. But what about that 18-foot freeboard on most floating docks? So we have initiated a discussion with several floating dock manufacturers, but we found them reluctant to accept higher freeboards and some of the other ideas we have. Stay tuned!

South Seas Plantation has put in two long main piers for the same reasons we did. During another feasibility study in the Bahamas, High-borne Cay in the Exumas found their long fuel dock so convenient that when they expanded, they put in a long main pier. (Transient marinas need flexibility.) Reinforced with this information, we bravely designed two new marinas using the parallel docking principal.

Then we did the third and were put through a long exercise that at first seemed aggravating but turned out to be very educational. Our client had a neighbor who was in the marine business and showed him our design. “That’s no marina!” said the neighbor and proceeded to design one with conventional slips. This triggered a series of meetings to discuss the pros and cons, and we were asked to take the neighbor’s design and put in the proper dimensions for beams, turning basins, etc. Our client was a great believer in having focus group meetings before starting a project, and he decided to do likewise in this case. So we met with a marina operator, a boat owner, several captains, a yacht broker and of course the clients. After a long meeting, a vote was taken with the two designs laid out on the table. All but three voted for our design. Those three were the client, the neighbor and the boat owner. Reasons? Our design wasn’t pretty. It didn’t look like a marina. Conventional slips were chummier because you could talk across to your neighbor. But some valuable points were brought up. For instance, with the boarding ladders on the dock, could an electric scooter service the boats? Also there was no turnaround for the scooter. As far as the boarding ladders were concerned, we took the client to Marina Bay that had 12-foot-wide main piers like ours. (They have been taking finger piers off to provide more parallel dockage.) They had large boats docked on both sides; some with six-step ladders and others with eight steps and a scooter that might have to weave in and out but could make it. Our design was accepted!

Is the cost more for one design than the other? We don’t know that yet, but surprisingly the lineal feet of dockage and the square footage of the docks were fairly close between the two designs. We were designing for larger boats and had a restricted area within which to do it. Would the square footage be equal if you were designing for smaller boats and could have whatever space you required? (You can’t really compare the number of slips. Both designs would have to have an equal amount of linear feet of dockage for a fair comparison.)

Do we have all the answers? No! Has one been built and operated? Not yet! But unless someone can convince us otherwise, we believe that we have designed our last marina with conventional boat slips.

Marina Dock Age, March/April 1999

Containing Crowds During Emergencies
by Gene Spinazola

Several years ago in an article, I said something like this: “If you have a fire at your marina, crowd control will be an issue. Little fires will bring big crowds of people, and big fires will bring bigger crowds.”

This concept varies with different types of emergencies. There will always be the hard-core, show-up-at-any-disaster type of crowd. You can count on this group to show up and be underfoot at fires, medical emergencies and even police shoot-outs.

There are good crowds and not-so-good crowds. However, a crowd and even a crowd’s temperament can be anticipated, and that’s really the point of this article. For any event at your marina, you can predict who will show up: the good crowd, the bad crowd and even the ugly crowd.

For example, if you’re hosting a black-tie charity event or an all-you-can-drink-for-$5 beer fest, you’re asking for two different crowds. You may need crowd control with each event, but the type of control may be very different. At the planning stage for each event, shouldn’t the question of crowd control be asked, examined and addressed and the responsibility assigned to someone?

If you have a fire on a boat in a slip, the first issue is that of life safety. Any training program that you conduct for your staff must emphasize life safety as the number one issue, and the first priority is “self.” Your employees need to know that their own safety is priority one and that the second issue is that of helping someone else. Too many times we assume that everyone understands this rule, but it needs to be repeated over and over again. Remember, repetition, to a point, is good.

During a boat fire, the crowd will most often be there before you and your staff. Your crowd control, however, should start before you arrive at the burning boat because your plan should incorporate into your 911 call the concept of asking for the right kind of police and medical support in addition to the fire service. Second, a staff member wearing an orange vest should direct the incoming emergency vehicles into the right location in the marina and may also redirect unnecessary traffic away from the incident.

The third step is to manage the crowd. If you have your act together and respond in a logical manner, the crowd will relinquish control, step back and let you manage the scene. But not everyone. There will be some people you will need to assure that you have control of the situation and that emergency personnel are on their way.

Taking control of people who have panicked is another issue. More often than not, people who are panic-stricken don’t hear what you say and, in some cases, don’t even know that you are talking to them. An “in your face” approach may work, but you may also just be in their way. Don’t be too surprised if you end up with footprints on your chest. The good thing in this situation is that their tendency is to go away from the confrontational situation and clear out of the area.

Part of taking control is looking and acting like you’re in control. Have you ever been to a professional football game and noticed what happens when there is a fight in the stands? There are a number of police officers in uniform, plus what surely must be more than 100 men in bright yellow jackets who swarm to the area where the fight is taking place. They respond with so many people in these uniforms that fans are stunned and tend not to get involved in the confrontation. If you’re sitting in the sky box seats, you may not have noticed this phenomenon. But if you’re down where I am, well, this is firsthand experience.

What things look like control? A radio or cell phone is good for the image. (Note: Batteries should be charged, in case you really need to use it.) Uniforms always look good, not yellow mind you, but a good-looking clean uniform does add to the image and lets everyone know you are some sort of authority. Visible staff training programs are also good for the image. Yes, well-run training exercises like portable fire pump sessions and fire extinguisher training do show customers you are prepared, have trained your staff to respond and know what you're doing.

OK, here’s the punch line. If you are serious about staff training programs and spend the appropriate amount of time developing your response to the various emergency situations that can happen at your marina, your crises management program will provide some measure of control. The “we did that last year” attitude will get you in deep trouble, and it undermines the very concept of control that you are trying to establish.

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Gene Spinazola specializes in marina fire and safety issues, and he welcomes calls: (207) 326-9147. He is president of Gene Spinazola P.E. & Associates Inc., in Casane, Maine.

www.marinafires.com

Marina Dock Age, January/February 1999

Computer Systems: Work-Makers or Time-Savers?
by Dennis P. Kissman

Through years of consulting with many marinas, I have had the opportunity to observe a variety of manual and computer systems used to track and record the operations of a marina. I would estimate that nearly 50 percent of the information gathered, particularly with computer systems, has little relevance to measuring business performance. What I find particularly disturbing is that many of the people utilizing these systems don’t have a clue about what the information is that they are looking at, let alone if it is right.

When it comes to business applications, you should be more interested in the system’s efficiency in gathering, storing and retrieving information in a meaningful way. Most of all, you want the software to adapt to your particular needs.

I am not in a position to recommend one computer software package over another. I am one of those people who knows just enough to be dangerous. What I would like to do is pass along a few tips if you are considering purchasing new software for your marina.

Do not make your choice of software based on a demonstration disk. Insist that actual data from your marina be used in a demonstration, and make sure the information the new software puts out is comparable to your existing system, less time-consuming and more user-friendly.

You should have a clear understanding of the cost and timing involved if modifications have to be made to the software to fit your needs. You should also try to anticipate your future needs and what may be involved if the software has to be modified. For example, if you add a dry stack facility to your operation, how would that be handled?

Even though the software vendor says your machine has sufficient capacity to run the software, it may not in reality. Determine whether the new software will work on your existing hardware or whether you will have to invest in new equipment. Try the software out with real data on your equipment and with enough records to see if there is an impact on the processing speed as the number of records increases. The other applications you have on your hardware may also seriously impact the performance of the new software.

Do not rely on telephone technical support to be your only means of solving problems. My experience has been that problems always happen five minutes after the technical support lines close on Friday night. Evaluate how clear the documentation that comes with the software is and how updates to the software are addressed by the vendor.

Some software companies offer free technical support and training when the software is first installed. In my opinion, this is not worth a lot, particularly when the person you had just trained quits a week later. I am also always leery of a software company that charges for technical support. This indicates to me that the documentation is not as clear as it should be or that the application is not as common as they lead you to believe.

Ask for a complete list of marina users of the particular version of software you are acquiring, and contact those users. I stress marina users. I have noticed that some software companies imply that they have hundreds of these same applications in use, when in reality you may be the first marina user. Non-marina users may rave about the software company and the support it provides, but unless these users are in the marina business, they cannot tell you how the software will work for your application. And the person selling it to you is the last person you should rely on for an opinion of the software’s marina compatibility. Remember, his or her motivation is sales, usually at any cost.

If you are planning to buy software for a particular application, such as dock management, make sure it interfaces with your existing software. The best way to do this is to check with the providers of your existing software. I have seen many systems where the output from one software package has to be manually entered into another system. This creates two major problems.

The first is the time required to input the data. The second is that the more times the same data is handled, the greater the chance of error and the smaller the chance of catching that error.

Consider the total cost of your investment, including the staff required to maintain the system. Sometimes the cost of the software is only a minor part of the total cost of implementing and maintaining a new system.

Last but not least, do not be taken in by fancy graphics. You have a business to run, and important business decisions need to be made based on the information your software provides. Go for functionality and simplicity. Remember, sometimes less is better, and this is definitely one of those times.

Your decision to purchase new software should not be taken lightly or made in haste. Always keep in mind that if you don't choose the right software package for your marina, you will end up with a work-maker and not the time-saver you were hoping to get.

consultants to the trade