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HomeMy WebLinkAboutREDkiserb1council mEmonanbu m -COUNCIL CDD DI R [11-.eqe 5-FIN DI R E-Ae a'ccrlNeol.5-FIRE CHIE F l3 -ATTORNEY fi PW DI R ' I3CLERK/ORIQ [:I--POLICE CH F I]DUI HEADS C REC DI R ~C 'UTIL DI R zHf DI R A`/+7116 L Council Members Request for Clarification and Additional Information 50-we``r`t '- Regarding the Golf Course Rate Review 3~ Staff was asked by Councilmember Marx to provide clarification on several of the alternative s provided in the Golf Course Rate Review . In addition, Councilmember Ashbaugh also requeste d additional information regarding questions he assembled for the review . Please see response s below : Councilmember Marx's concerns : 1.With regard to converting the golf course to a park provide, clarification on staffin g comparisons and if the $400,000 estimate to maintain a park was in addition to the cos t of maintaining this site as a golf course ? Public Works estimates it would take 2 to 2 .5 full time equivalent staff members t o maintain the area as a park . Currently, the golf course has 2 maintenance worker full tim e equivalents and a golf course supervisor, who oversees the operation of the course . So , full time equivalents look very comparable . The $400,000 estimate for park maintenanc e is not in addition to the cost of maintaining this site as a golf course, rather it would tak e the place of these costs . By comparison, the direct operating and maintenance cost for th e golf course in FY 2010-11 is $525,400 (page B-12 of the agenda report). Considerin g that the Public Works cost of $400,000 is just for maintenance, while the golf course cos t of $525,400 includes maintenance and operations, the cost comparisons seem reasonable . So, why is it less expensive to operate as a golf course, when costs are $125,000 highe r than operating it as a park ($525,400 vs $400,000)? Because there are $425,700 i n offsetting revenues as a golf course and there would be no similar offsets as a park . 2.Shouldn 't the alternatives include selling the land or using it for affordable housing ? We could consider non-park uses for the golf course, but before doing that work, w e would need Council direction to do so, because depending on what Council would like t o see, it could be a major work effort . Such direction would best be tied to the development of the 2011-13 Financial Plan . RED FIL E MEETING AGENDA DATE/'/?O ITEM #5C _ TO : VIA : FROM : SUBJECT : City Counci l Katie Lichtig, C M Betsy Kiser, Parks a d Recrea ion Director Councilmember Ashbaugh's questions : 3.Are there any courses – anywhere - that feature a "bad weather discount?" If so, ho w does it work? Could we, for example, provide a discounted rate on any date when Joh n Lindsay is forecasting high temperatures less than, say 60, and/or wind speeds greate r than 25 ? Currently, staff knows of one golf course that offers a "rainy day" discount . Recently, Avila Bay Golf Course began providing a "rain check" program whereby if it is rainin g hard enough to effect play or business, an individual can call in for a "rain check". Th e discount includes four (4) rounds of non-transferrable golf for the individual requestin g the "rain check" for $70 .00, or a 75% discount . Other local course managers hav e discussed this type of program, but Avila Bay is the only course to have implemented i t thus far. 4.Is the forthcoming agreement with Achievement House going to include an on-sale bee r and wine license? Will Achievement House provide staff for the food and beverage concession? What in general is included in the potential $30,000 improvements to th e Club House ? Yes, beer and wine sales are included in the agreement, pending approval from th e Alcohol Control Board . Achievement House will provide an onsite skilled food servic e job coach and all food service staff for the operation of their concession . Site improvements include flooring, installation of four (4) required sinks, exhaust hood, lighting adjustments, FRP to walls, electrical upgrades and painting. Appliances include : ANSI refrigerator, microwave, griddle/oven, fryer, popcorn machine, and a refrigerate d beverage container . 5.If I am reading it correctly, last year we experienced a 14% decrease in green fee s (projected at $259,000 v. budget estimate of $300, 000). This decrease is a result of th e 17.5% reduction in rounds mitigated by the higher per-round fee for most rounds . All other course revenues (cart rentals, driving range, etc) are basically a function of tha t critical index of total rounds played, and experienced similar declines . What assuranc e can we have that another 10% rise in the green fees would not result in even fewe r rounds played? I'm concerned about that possibility, and personally I'd rather we defe r at least six months another raise in the green fees – at least until we have experience d another six months of mostly good-weather play, to see if there is evidence of a return t o a higher level of play . There is no assurance that another 10% rise in the green fees would not result in eve n fewer rounds played ; however, the reduction in rounds played can be attributed to a number of factors in addition to the increased fee (i .e . poor green conditions , exceptionally rainy winter, economic downturn, competition from other courses, etc .). The extent that each of these played in last year's "perfect storm" is hard to measure . 6.Alternatively, we might consider a smaller, "gentler" increase in fees . I know it 's ou r current resolution to increase the green fees to the rate schedule shown on p . B1-7 and 8, but if we do decide to go forward with a July 1 increase, I would like us to consider a smaller rise in these fees, say along the following lines : Current Rate Adopted Rate Possible "Gentler " Option Senior/Youth/Student/Weekday s (Monday through Thursday) $9 .00 $10 .00 *(no change ) General Weekday s (Monday through Thursday) $11 .00 $12 .00 $12 (same) Senior/Youth/Student Weeken d (Friday through Sunday) $10 .00 $11 .00 *(no change) General Weeken d (Friday through Sunday) $12 .00 $13 .00 $12 .5 0 Off-Peak Regular Weekda y (Monday-Thursday 12-3pm) $10 .00 $11 .00 *(no change ) Twilight Rate (after 3 :00pm)$8 .25 $9 .25 $9 Second 10 holes $6 .75 $7 .75 $7 Senior/Youth/Student 10 Play Card $82 .50 $92 .50 $9 0 General 10 Play Card _ $97 .50 $107 .50 $100 Note that the above suggestions (right-hand column) would maintain the rates for seniors , students, and youth, and for off-peak M-Th 12-3 p .m . golfers . It would also "round off ' the costs for the 10-play card . Council could certainly consider either not implementing the fee increase approved las t year, or some hybrid of the proposed rate increase . Again, as stated above, the reductio n in rounds played was not the result of fee increases alone, rather the result of man y factors . If any one of these factors changes in the coming year, we could see rounds retur n to regular numbers (40,000/year). However, if the fee increase is not implemented an d rounds only increase this next year by the conservative prediction of 2000 rounds,a higher General Fund subsidy will be needed to balance the golf course budget .