Commission debates fuel pricing, margins and revenue role in marina upkeep
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Summary
Commissioners and staff reviewed 2024 fuel sales, discussed pricing strategy and whether fuel pricing should cover maintenance, a fuel-line replacement, and other marina capital needs.
Commissioners and harbor staff discussed fuel pricing strategy, profit margins and how fuel revenue should contribute to marina maintenance and capital expenses.
Alyce (first name used in meeting), presenting fuel data, said staff analyzed 2024 fuel sales and found a large portion of fuel purchases were by marina tenants. She said the marina receives fuel at a lower cost through a state contract (available to municipally owned marinas) and applies a markup; that margin and several taxes and fees determine the pump price. Her summary reported the marina’s gasoline at roughly $5.37 per gallon and diesel at about $4.18 per gallon at the time of the meeting, with peer marinas cited for comparison (Port of Edmonds, Everett, Anacortes, La Conner).
Why it matters: commissioners said fuel pricing affects tenant costs, transient boater attraction, and the marina’s ability to cover maintenance such as a previously repaired fuel line. One commissioner said an emergency fuel‑line repair cost had been on the order of $75,000 to $80,000. Staff said 2024 fuel sales generated approximately $190,000 in revenue and that the marina was about $10,266 in the red year-to-date but historically finishes the season with a net profit (staff noted a $42,779 net profit at the end of last summer).
Commission discussion covered competing goals: some commissioners argued for competitively low fuel prices to attract visitors; others said the marina should price fuel to cover labor, maintenance, delivery logistics and a margin to fund capital repairs and the enterprise fund. Staff noted operational complexities: deliveries run on state contract schedules, weekend and holiday deliveries had been an issue with a new distributor, and propane resale was unprofitable for the city when previously attempted.
Staff provided current tank volumes: about 7,500 gallons of diesel and 8,500 gallons of gasoline on hand at the time reported. They said reorder thresholds were around 3,000 gallons. Commissioners requested a multi‑year profit‑and‑loss statement (five‑year P&L) to clarify long‑term profitability and to address public misunderstandings about whether the marina loses money over multi‑year spans.
Staff said they will provide revenue and expense reports (including 2024 year‑end figures) and further detail on labor and maintenance costs to inform any pricing strategy.
