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HomeMy WebLinkAboutItem 7a - Laguna Lake Golf Course Program Study Session Item 7a Department: Parks and Recreation Cost Center: 7007 For Agenda of: 2/3/2026 Placement: Study Session Estimated Time: 90 Minutes FROM: Greg Avakian, Parks & Recreation Director Prepared By: Business Analyst, Lily Honer-Hollstien; Recreation Manager, Devin Hyfield SUBJECT: LAGUNA LAKE GOLF COURSE PROGRAM OPERATIONS AND MAINTENANCE OVERVIEW STUDY SESSION RECOMMENDATION 1. Receive presentation on the Laguna Lake Golf Course Operations and Maintenance. 2. Provide feedback and direction on program and revenue expectations. Direct staff on any future program and facility recommendations. 3. Provide staff direction on continuing the two significant project needs related to the Pro Shop renovation and the pedestrian/cart bridge replacement project timelines. REPORT-IN-BRIEF During the review of the draft 2025-2027 Financial Plan at the April 15, 2025 Council meeting, Council inquired about obtaining more information on the operations and financial analysis of the Laguna Lake Golf Course, as well as potential reuse options for the property. Work Plan item 5.f. was added to the Cultural Vitality, Economic Resilience, and Fiscal Sustainability Major City Goal: 5.f. Complete a fiscal analysis of the golf operations at the Laguna Lake Golf Course and conduct a Council Study Session to evaluate fiscal impacts, capital needs, and potential reuse options prior to major infrastructure investments. This report presents an overview of the Laguna Lake Golf Course programs, operations, and facility maintenance. This study session report provides historical background of the original golf course facility, which the City took over in 1978 after it opened in 1964, identifies the current community and partnership programming, provides data on user demographics, identifies current facility and capital improvement challenges and opportunities, and provides a financial analysis, which includes local golf course comparisons, along with financial comparisons to similar City recreational facilities such as the SLO Swim Center and Damon-Garcia Sports Complex. Lastly, it concludes with a brief overview of potential other uses for the parcel. POLICY CONTEXT Page 139 of 185 Item 7a During the April 15, 2025 Council meeting for the review of the FY 2025-27 Financial Plan, Council inquired about obtaining more information on the operations and financial analysis of the Laguna Lake Golf Course programs and service offerings. Staff were directed to provide Council a study session on the program operations , fiscal analysis, and maintenance needs of the Laguna Lake Golf Course (LLGC), as well as determine the priority of two current CIP related projects: Pro Shop facility renovation and the pedestrian/cart creek bridge replacement project. The Parks and Recreation General Element and Master Plan (Parks and Recreation Blueprint for the Future: 2021-2041, “Blueprint”) lists the golf course as one of the City’s nine group outdoor gathering areas and categorizes the course as a Recreation Center/Special Feature. During the community outreach and surveys conducted for the Blueprint, support for managing and preserving the golf course arose as a theme during small group sessions with interest groups (p. 66), and survey results indicated 77% of respondents were very satisfied or satisfied with the golf course as a facility, however, only 5% of respondents ranked golf course improvements in their top four priorities for improving, repurposing, or expanding city parks and facilities (pp. 76-77). Chapter 4 of the Blueprint identifies a number of goals and policies for the City’s Parks & Recreation system, including a goal to “Meet the Changing Needs of the Community” and a policy specific to the golf course: 2.6 Accessing and Evaluating the Golf Course. Continue to manage the golf course for its primary use while exploring opportunities for broader community use, potentially including a fully immersed golfing experience including mini-golf, disc golf, and foot golf, a walking loop, community space, redevelopment of the pro-shop, as well as more revenue capture opportunities. Consider alternative programming such as community use of the golf course for gatherings for specified days and hours. (p. 90.) Section 5 of the Blueprint provides recommendations for improvement and implementation priorities for key parks and facilities . The Laguna Lake Golf Course is identified within the chapter (p. 133) and provides recommendations for short-term and long-term improvements, specifically with expansion of community events, financial operational assessment, exploring alternate and complementary programs (disc golf, foot golf, other active and passive uses), as well as investing in the rehabilitation of the pro shop clubhouse, irrigation, and creek restorations. DISCUSSION Background The Laguna Lake Golf Course (LLGC or “Course”), owned and operated by the City of San Luis Obispo, is a 26-acre, 10-hole, executive length golf course located at 11175 Los Osos Valley Road. The LLGC is operated and maintained by the City Parks and Recreation Department Golf Division, which is made up of one full-time Golf Supervisor, Page 140 of 185 Item 7a one full-time Recreation Coordinator, two full-time maintenance workers, and various part-time temporary positions. The current LLGC operations include management of the Pro Shop operations, coordination of all community partnership contracts, instructional lessons and clinics, youth, adult, and senior group uses, coordination of all program support supplies, and staff training and management. The current maintenance of the course includes all turf and irrigation maintenance, driving range and visitor area upkeep, maintenance of equipment and facilities such as restroom s, offices, maintenance workshop, and parking area, as well as staff training and management associated with safe operations of equipment and handling of chemicals and fertilizers. Historical Background In 1964, in conjunction with a housing development project (Ranchos Canada De Los Osos and La Laguna - Laguna Lake Company), the developer constructed the Laguna Lake Golf Course (LLGC) as a 9-hole executive class amenity for the housing development and operated the Course for a short-term through 1965. From 1967-1973, a lessee operated the course under a receivership controlled by a credit union. In 1978, Page 141 of 185 Item 7a the City was approached by community members to take over operations of the course, and the City purchased the 29-acre parcel, including the 26-acre LLGC property. The LLFC is comprised of three Assessor’s Parcel Numbers (APNs): 053-111-055, 053- 111-058, and 053-111-062, which together form the current, combined property configuration. Although the site is operated as a single facility today, the parcels were historically acquired separately and are subject to differing deed restrictions. APN 053-111-055 is supported by two grant deeds recorded on October 29, 1979 (Attachment A), which reflect acquisition under the Nejedly-Hart State, Urban, and Coastal Park Bond Act of 1976, as documented in the Resolution Approving the Application for Federal Land and Water Conservation Fund Grant -In-Aid Program funding for the Laguna Lake Golf Course and Driving Range Acquisition Project (Attachment B). These deeds restrict use of the parcel to outdoor park and recreation purposes. The two deeds correspond to the parcel’s configuration as separate parcels prior to consolidation; both deeds remain applicable parcel identified as APN 053-111-055. APN 053-111-058 was acquired by deed recorded on November 20, 1978 (Attachment Page 142 of 185 Item 7a C) and is not subject to the Nejedly-Hart Bond Act restriction. APN 053-111-062 was acquired later, by deed recorded on April 26, 1999 (Attachment D), and likewise does not contain Bond Act use restrictions. Based on review of the recorded deed s and available acquisition documentation, no records have been identified indicating that federal acquisition funds were used to purchase the property or that federal use restrictions apply. Following the City’s acquisition of the course in 1978, the prior lessee continued to operate the course until the early 1980s; however, the exact date the City assumed operations has not been identified in the available records. During that time period, the course continued to not meet financial expectations and much of the necessary maintenance of the facility and property was deferred. For a two-year period, in 1991-1993, LLGC was supported as a part of the City’s General Fund. From 1993 to 2011, the LLGC was reclassified to operate as an enterprise fund. Parks and Recreation Staff conducted two Laguna Lake Golf Course Fund Rate Reviews, the first being on June 11, 2009 and subsequently on June 1, 2010. In both Council Agenda Reports, staff’s recommendation was to subsidize the LLGC with General Fund support. During the Strategic Budget Meeting for the 2011-13 City Financial Plan on April 12, 2011, staff requested Council direction regarding the future structure of the Golf Fund, including consideration of establishing a special revenue fund (page 14). Based on the direction provided during the April 12, 2011 meeting, as reflected in the meeting minutes and public testimony received at that time, LLGC was formally removed from enterprise fund status through adoption of the 2011-13 City Financial Plan. Effective July 21, 2011, all LLGC operations were transferred to the Parks and Recreation Department and ceased to be classified as an enterprise fund. Consistent with the 2013-15 Financial Plan and Major City Goal to Sustain Essential Services, Infrastructure, and Fiscal Health, the Parks and Recreation Department conducted an extensive review of the Laguna Lake Golf Course operations. The Department evaluated various operational models to determine the most sustainable and effective method to manage the golf course operations and property. Different program models were considered, including contracting out golf course operations, golf course maintenance, or both golf course operations and maintenance as an operatio nal model needing further evaluation, including discussion to create requests for proposals for contract course operations. Staff presented this option to City Council on December 2, 2014. Based on the direction provided during the December 2, 2014 meeting, as reflected in the meeting minutes, it was determined that the LLGC operations and maintenance was to remain a general fund supported recreational program operated by the Parks and Recreation Department. During the creation and implementation for the updated Parks and Recreation General Element and Master Plan (Parks and Recreation Blueprint for the Future: 2021 -2041) process, which occurred between 2018–2021, the Laguna Lake Golf Course was identified as a low-cost and accessible recreational facility supporting a variety of local Page 143 of 185 Item 7a community groups. The LLGC is classified as a special facility (e.g., aquatic centers, skate parks, dog parks, community gardens) within the Blueprint and is recognized within the Park Amenity Standards (Table 4-2, p. 84) as meeting the recommended national standard of one 9-hole golf course facility per 50,000 residents. The 26-acre LLGC is also noted as a significant contributor to the City-wide park acreage, which totals 206 acres (Table 2-2, p. 30). For decades, the City has pursued ambitious park service goals, including providing 10 acres of parkland per 1,000 residents and ensuring that parks are accessible within a ½ mile, or a 10-minute walk, from residential neighborhoods. Since 2020, the LLGC facility has experienced a variety of setbacks including a 4 -month closure in early 2020 due to the COVID-19 pandemic and subsequent restrictions to general operations to support health guidelines, the closure of the Pro Shop/snack shop due to flooding in December 2021 (which has not yet been repaired), and the closure of the cart/walking bridge access connecting both sides of the course over Prefumo Creek at Hole #2 due to the 2023 Winter Storm events. Between January and March 2023, the golf course was closed for a total of 72 days due to the significant rain events that impacted the course turf saturation and access across the creek to the other side of the course due to the closure of the bridge. As of March 2022, the golf course business opera tions have been conducted out of a temporary office trailer located in the parking lot. The trailer serves as business operations for customers and offices for the Golf Supervisor, Recreation Coordinator, and the Pro Shop service desk. The Pro Shop offers golf supplies (clubs, balls, hats, gloves, etc.), golf club rentals, and limited food and drink options. The maintenance pathway that crosses the creek to access the course property has been utilized by golfers to access both sides of the course for the past 2.5 years. However, that area is closed routinely when the creek exceeds its traditional water level during winter months, necessitating the closure of the golf course during those periods. The project to repair and replace the bridge is funded in the adopted Capital Improvement Program (CIP) to commence in Summer 2026. A consultant has been identified for the Pro Shop redesign and staff will commence with an RFP for interior design pending the result of the Council Study Session being conducted on February 3, 2026. The bridge project is approved and funded at $600,000 and the Pro Shop project funding of approximately $250,000 is contingent on the current insurance claim and the pending final interior redesign phase. Golf Operations The Laguna Lake Golf Course is a year-round facility operating on a 357 day per year, weather dependent model. The course operates daily from 8:00 am to 5:30 pm from November – March and closes at 7:00 pm from April – October. Golf carts are available for rental, and the driving range is open until one hour prior to course closure. The Pro Shop service desk is staffed by Recreation Cashiers throughout the day, split into three shifts. The cashiers manage the check-in and transaction for customers and report directly to the Recreation Coordinator, who is available Monday – Friday to provide support to the temporary staff and customers and reconcile the daily transactions from play reservations and merchandise sales. The Golf Supervisor and Recreation Manager serve as on-call support for the Recreation Cashiers for any weekend needs related to Page 144 of 185 Item 7a course issues or customer needs. LLGC offers tee reservations through the Lightspeed Golf software system, allowing participants to reserve tee times 7-days in advance. Golf Cart inventory was updated and expanded in August 2023 through a contract service provider, offering more opportunities for use throughout the day and expanding the Spectator program that allows a non -golfer to ride along and not participate. The Spectator program saw a 50% increase in FY 2024- 25 with the updated golf cart inventory which resulted in consistent availability. The temporary Pro Shop offers golf clubs for rent or purchase (new and used) and a basic supply of golf equipment, including hats, gloves, balls (new and used), tees and markers. The Driving Range area was enhanced in 2025 with new mats for the 10 bays and an automated ball distribution system which utilizes tokens and has seen an increase in usage from the previous year by 41% in FY 2024-25. LLGC has expanded community partnerships over the years to include Cal Poly Kinesiology, San Luis and Morro Bay High Schools, Laguna Mid dle School, SLO Classical Academy, Special Olympics, and the youth First Tee Program. The First Tee of Central Coast Program is a free program which the City has partnered with since 2004, that offers youth the opportunity to learn about the game of golf along with life-enhancing values that can be used on the greens and off. A PGA professional golf instructor provides the LLGC with beginning and advanced instruction, holds monthly golf clin ics, and facilitates quarterly youth tournaments at the course. Prior to the Pro Shop closure due to rainwater flooding in December 2021, the “11th Hole Grill” concessionaire was operated by Achievement House , Inc. and provided food and beverage service to the LLGC patrons for over a decade. Operations ceased in July 2021, with the Achievement House ending the concessionaire lease to pursue alternate avenues of fundraising and job opportunities for their members. The City conducted a RFP process for a new concessionaire in Fall 2021 and after selection and the closure of the Pro Shop, the concessionaire operated a mobile food truck in the parking lot until Fall 2024. Unfortunately, the volume of sales was determined inadequate by the vendor as a food truck option. The temporary food truck concessionaire lease provided an additional $300 per month in revenue. With a fully operational Pro Shop, staff anticipate a monthly concessionaire lease to range between $600 to $700 per month, resulting in $7,200 - $8,400 per year of additional revenue. The City has chosen not to select a new concessionaire until the construction of the Pro Shop is completed. Instead, LLGC provides limited pre-packaged food and drink options within the temporary Pro Shop. Along with traditional golf operations, the LLGC property continues to be a community asset for non-golf related activities and events. For the last 10-years in September, the Parks and Recreation Department has hosted the popular September Scramble, a 1-mile obstacle course that attracts over 600 community participants from the SLO county community. SLO High School hosts the SLO Cross Country Championships that brings together athletes from Central California and SLO County every November to the city, from grades 6th – 12th. Over the years, the LLGC has hosted multiple special events including family movie nights, local musicians, weddings and private, non -profit events. Page 145 of 185 Item 7a There has been a significant decrease in alternative events over the past three years due to the closure of the Pro Shop facility during the renovation process. Staff anticipate a return of more community events and rentals when the Pro Shop facility renovation is completed and is re-opened. Golf Fees and Revenue With the adoption of the FY 2017-19 Financial Plan, the City Council modified the user fee cost recovery policy for the golf course from the high range (60%–100%) to the mid- range (30%–60%) based on user fees being comparable to other local golf courses, reflecting a policy emphasis on maintaining accessible and affordable recreational programs and service fees for the community. This approach prioritizes accessible and broad participation in youth and senior programs by maintaining lower cost recovery where there is a clear community benefit, while allowing higher recovery levels only for services comparable to those offered by the private sector. This fis cal philosophy aligns with the operations of many of the programs and services managed by the Parks and Recreation Department, including operations at the SLO Swim Center, Senior Center, and activities hosted at the Damon-Garcia Sports Complex. Below is a comparison of the LLGC’s current fees and fees charged by local comparable golf facilities within SLO county. The following table (Table 1) compares LLGC’s current green fees and related charges to those of comparable regional courses across common rate categories. LLGC fees reflect the adopted 2023 User Fee Study, which was presented to City Council on February 20, 2024, and formally adopted on July 2, 2024, with annual CPI adjustments applied thereafter. Comparable facility fees are current as of January 2026. Table 1: Comparable Fee Schedules Round Types LLGC Current Fee 1,361 yds Pismo Beach 1,465 yds Sea Pines 2,002 yds Dairy Creek 3,004 yds Monday-Thursday (Regular) $16.25 $20.00 $25.00 $30.00 Monday-Thursday (Senior/Youth/Student/Military) $12.25 $15.00 25 $5-$21 Friday-Sunday (Regular) $17.00 $20.00 $25.00 $30.00 Friday-Sunday (Senior/Youth/Student/Military) $13.25 $15.00 $25.00 $5-$21 Twilight (after 3 PM) $12.25 N/A $19.00 $20.00 Family Rate (4 people) $35.00 N/A N/A N/A Super Twilight (last 2 hrs) $9.25 N/A N/A N/A Cart Rental $12.25 $13.00 $20.00 $15.00 Pull Carts $5.25 $4.00 $6.00 $5.00 Club Rentals (Regular) $10.25 $20.00 $30.00 $40.00 Page 146 of 185 Item 7a A review of green fees and related charges shows that the LLGC is priced lower than comparable regional courses, including Pismo Beach, Sea Pines, and Dairy Creek. Although these courses are longer in yardage and offer different amenities such as expanded pro shop operations, restaurants, and event spaces , LLGC’s rates are consistently lower across most categories, including weekday and weekend play, discounted rates, and twilight options. The fiscal philosophy for these fees is directly related in the LLGC providing accessible programs and services (low barrier) to the community, similar to the operations of the SLO Swim Center and a variety of Parks and Recreation Department programs and services. Additionally, the financial models for the comparable courses differ as Sea Pines is privately operated and consists of both large event spaces and hospitality rentals, Pismo Beach is State funded and operated by a lessee, and Dairy Creek is operated and maintained by SLO County Parks Department which also oversees two other golf facilities within the County. The LLGC fees were assessed and increased during the 2023-24 User Fee Study and incorporated in Fall 2024. Since the implementation of the fees in 2024, the LLGC fees have been increased based on annual CPI. If desired by Council, staff have an opportunity to reassess fees to be more competitive with the comparable courses based on the recent 2026 comparables, requiring staff to conduct an in-depth fee assessment and return to Council with revised recommended increases. The LLGC financial model and program operations also offers several reduced -rate options, such as family and super-twilight play, that are not available at all comparison courses. LLGC Golf cart, pull cart, and club rental fees are similarly lower than those at comparable facilities, which helps provide context for the course’s current pricing structure and how it compares within the regional market. The following table (Table 2) presents adopted golf course revenue budgets compared to actual revenues by fiscal year, illustrating performance trends and variances. Table 4, below, provides a summary of operating expenses for the golf course compared to revenue . Table 2: Golf Course Revenue, Budget vs. Actual Category 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Budget $288,121 $177,681 $260,543 $298,987 $264,000 $270,000 Actuals $165,233 $248,101 $220,128 $213,002 $287,557 $375,077 Variance -$122,888 $70,419 -$40,414 -$85,984 $23,557 $105,077 Actual revenues in FY 2019–20 were lower than budgeted due to the COVID-19 related facility closure (4-months) and modified program operations related to the State’s COVID- 19 restrictions. Similarly, FY 2021–22 revenues fell short of budget expectations due to the impacts and closure of the Pro Shop facility related to the December 2021 flooding. Revenue continued to not meet expectations in FY 2022 -23 due to the significant rain events and flooding which occurred in January and March 2023 resulting in 72 days of closure, including the access bridge being closed for safety concerns. Revenue performance strengthened in FY 2024–25, exceeding budgeted expectations. In the first two quarters of FY 2025–26, the actual revenues are $166,464, representing 56% of the annual revenue budget of $297,000. Revenue performance in the first two quarters of FY 2025-26 has surpassed mid-year performance compared to prior years, indicating a Page 147 of 185 Item 7a strong start and continued positive trend leading into quarter 3 and quarter 4 despite both the Pro Shop and bridge projects currently scheduled for FY 2026 -27. Staff credit the steady increase in play and revenue through the efforts of maintaining and adding community partnership agreements with the local schools, as well as providing enhanced maintenance to the course resulting in consistent play conditions. Maintenance staff have been creative in managing watering practices, tee and green repairs, and mitigating irrigation leeks with new equipment which the public have provided in-person feedback to both the Pro Shop and maintenance staff. As the course improvements continue to be a significant focus, the opportunity to increase player satisfaction and more amenities with the bridge repair and Pro Shop repair will contribute to growing participation and revenue. To provide a complete view of financial performance, Figure A illustrates Laguna Lake Golf Course’s total revenues and expenses from FY 2019–20 through FY 2024–25. Figure A: Total Revenues vs. Expenses, FY 2019–20 to FY 2024–25 Over this period, expenses have consistently exceeded revenues, reflecting the ongoing need for General Fund support to maintain operations. Expenses ranged from approximately $595,000 to $829,000 annually, while revenues increased from $166,919 in FY 2019–20 to $375,077 in FY 2024–25. The variance between revenues and expenses highlights both the investment required to maintain course operations and the positive trend in revenue generation resulting from updated fee structures, comm unity partnerships, and consistent course maintenance. While Figure A illustrates overall financial performance by comparing total revenues to total expenses, a deeper look at how revenue is generated across specific operational categories provides insight into the drivers of this performance. To further illustrate this, the following graphic (Figure B) shows golf course revenue by type, including rounds, rentals, driving range, and merchandise, across fiscal years. $0.00 $100,000.00 $200,000.00 $300,000.00 $400,000.00 $500,000.00 $600,000.00 $700,000.00 $800,000.00 $900,000.00 FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 Figure A: Total Revenues vs. Expenses, FY 2019–20 to FY 2024–25 Expenses Revenues Page 148 of 185 Item 7a Figure B: Golf Course Revenue by Type As shown in Figure B, the reservation and sale of golf rounds consistently represent the largest share of revenue across all fiscal years, reinforcing that green fees remain the primary driver of course revenue. Changes in rounds revenue therefore have a greater impact on overall financial performance than other operational fee -based categories. With the upgraded driving range amenities and rental equipment inventory, the rental revenue has grown in recent years, indicating increased use of carts, clubs, and related amenities alongside play. Driving range revenue remains a smaller but steady component of total revenue, reflecting its role as a supplemental offering rather than a primary revenue source, while merchandise revenue fluctuates year to year and represents a relatively minor portion of total revenue compared to rounds and rentals. To provide additional context for these revenue trends, golf activity volumes were analyzed across multiple fiscal years. The following table (Table 3) summarizes golf activity volumes by type, including rounds played, play pass sales, and rental activity, across fiscal years. Table 3: Golf Activity Volume by Type Usage by Type FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 Total Rounds 16,428 23,463 17,991 16,392 20,858 24,494 Play Pass Sales 294 344 369 515 611 681 Cart Rentals 2,138 1,415 1,278 2,083 2,731 3,859 Driving Range 1,813 2,835 1,729 2,342 2,981 4,216 Push Carts 1,010 1,314 722 613 805 1,033 Club Rentals 370 401 202 279 338 354 $- $50,000.00 $100,000.00 $150,000.00 $200,000.00 $250,000.00 $300,000.00 FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 Figure B: Golf Course Revenue by Type Rounds Rentals Driving Range Merch Page 149 of 185 Item 7a Table 3 shows that total rounds represent the largest and most consistent category of golf activity. Play Pass sales have also increased gradually over the six-year period, indicating growing interest in multi-round packages. It is important to note that Play Pass sales shown in Table 3 reflect the number of passes sold rather than the total number of rounds redeemed through those passes. Each Play Pass represents a bundle of 10 rounds of golf, and because utilization varies by customer and fiscal year, the pass count understates the total volume of rounds played through this program; those rounds are captured within the total rounds category rather than reflected separately. Cart rentals and driving range activity exhibit similar usage patterns, with declines during weather impacted years followed by strong recovery. Cart rentals now exceed pre - pandemic levels, while driving range activity has nearly doubled compared to FY 2019– 20 usage. Pushcart and club rentals remain smaller in scale, reflecting their role as supplemental amenities rather than primary drivers of participation. To provide a snapshot of current-year performance, the following figure (Figure C) presents the percentage breakdown of total golf course revenue by category for the first two quarters of FY 2025–26. Figure C: Revenue by Type Q1 and Q2 FY 2025-26 To examine how participation is distributed across primary golf activities, the following figure (Figure D) illustrates the proportion of total primary golf activity accounted for by rounds, Play Pass sales, and driving range usage over the past six fiscal years. 74% 16% 5% 5% Figure C: Revenue by Type Q1 and Q2 FY 2025-26 Rounds Rentals Driving Range Merch Page 150 of 185 Item 7a Figure D: Primary Activity Share by Fiscal Year Figure D shows the share of total primary golf activity accounted for by rounds, play pass sales, and driving range usage from FY 2019–20 through FY 2024–25. Total rounds consistently make up the largest portion of activity, ranging from 83% to 90%, and remain the primary driver of golf course revenue. Driving range usage has gradually increased as a share of total activity, rising from 10% in FY 2019–20 to 14% in FY 2024–25, representing an additional source of revenue linked directly to course participation. Play pass sales (10-play passes) account for a small portion of total activity, between 1% and 3%, but support revenue by encouraging multi-round purchases. This visualization highlights that revenue is largely driven by rounds played, while driving range and play pass sales provide modest but growing contributions to overall course revenue. Finally, to illustrate trends in supplemental revenue directly tied to golf participation, the following figure (Figure E) presents cart, pushcart, and club rental activity by fiscal year. Figure E: Total Rentals by Type 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 Figure D: Primary Activity Share by Fiscal Year Total Rounds Play Pass Sales Driving Range 0 500 1000 1500 2000 2500 3000 3500 4000 FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 Figure E: Total Rentals by Type Cart Rentals Push Cart Rentals Club Rentals Page 151 of 185 Item 7a Cart, pushcart, and club rentals are supplemental revenue streams that are directly tied to the purchase of green fees or play passes and occur only when golfers are actively playing. Rental activity declined in FY 2020–21 due to COVID-19 related facility closures and operational restrictions. Since that period, rental volumes have generally rebounded alongside increased rounds played, with cart rentals showing notable growth in FY 2024– 25. This trend reflects that rental revenues are add-on purchases dependent on golf participation rather than stand-alone revenue sources. Cost Recovery and Financial Models The Parks and Recreation Department provides accessible and low-cost programs and services to the community of all ages and abilities at a variety of parks and facilities. The Parks and Recreation Departments divisions operate under an approved financial Cost Recovery Model which consists of Low Range: 0 -30%, Mid-Range: 30-60%, and High Range: 60-100% cost recovery categories. As such, the business operations model for the LLGC are comparable to similar City recreational facilities which support equitable and accessible community programs, such as the SLO Swim Center and the Damon- Garcia Sport Complex. The SLO Swim Center, as an example, is classified under Low- Range Cost Recovery model (0%-30%). The LLGC programs and fees are listed within the City’s Financial Plan under “should be comparable to other communities.” Based on the local comparison golf facilities, the Department budget goals have utilized the Mid - Range model of 30%-60% cost recovery for the LLGC for the past two Financial Plans (2023-25 and 2025-27). Table 4: City Facility Maintenance & Programming Comparison Activity Golf Course SLO Swim Center Damon-Garcia Maintenance Responsibility Parks and Recreation Public Works Public Works Programming Responsibility Parks and Recreation Parks and Recreation Parks and Recreation Public Works Staffing None 1 Maintenance Technician .5 Temporary Employees 2 Parks Maintenance Specialist .6 Temporary Employees Parks and Recreation Staffing 1 Golf Supervisor 1 Coordinator 2 Maintenance 2.76 Temp. Staff 1 Coordinator 11.48 Temporary Employees 0.25 Temporary Employees Total FTE 6.76 13.98 2.85 Annual Availability (days per year) 357 345 245 2024-25 Operating Budget PW Expenditures $0.00 $538,208 $219,273 PW Staffing $0.00 $167,515 $237,161 Public Works Total $0.00 $705,724 $456,434 P&R Expenditures $305,856 $66,625 $15,000 Page 152 of 185 Item 7a P&R Staffing $528,361 $645,782 $9,088 Parks and Rec Total $834,218 $712,408 $24,088 TOTAL $834,218 $1,418,132 $480,522 Revenues (actuals) $375,077 $393,267 $162,540 Difference $459,140 $1,024,865 $317,982 Cost Recovery 45% 28% 34% Comparing City facility maintenance and programming highlights the differences in staffing, budget allocations, and cost recovery across comparable recreational facilities. The LLGC maintains a staffing model with 6.76 total FTEs, combining Parks and Recreation and temporary personnel, and annual availability of 357 days,10 -12 hours per day. The Damon-Garcia Sports Complex has minimal staffing at 2.85 FTE, while the SLO Swim Center has the highest staffing level at 13.98 FTE, reflecting the facility’s larger maintenance and operational demands. The standard FTE ratio for parks maintenance is based on a 1 FTE per 7-10 acres pending the type of special amenities (e.g., ball fields or golf courses may require more staff per acre vs. general park turf area). Budget allocations follow a similar pattern: the LLGC total expenditures are $834,218, while SLO Swim Center expenditures total $1.42 millio n and Damon-Garcia operates at $480,522. When compared to revenues, cost recovery is highest at the LLGC (45%), followed by Damon-Garcia (34%) and lowest at SLO Swim Center (28%). Table 5: Golf Course Expenses by Category, Budget vs. Actual Fiscal Year 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Staffing Budget $387,457 $402,700 $514,442 $513,362 $520,899 $538,387 Staffing Actual $394,711 $402,895 $518,234 $481,885 $469,460 $510,246 Utilities Budget $127,634 $117,634 $127,913 $119,895 $149,086 $151,023 Utilities Actual $95,329 $98,558 $154,331 $134,946 $140,582 $162,008 Other Operating Budget $131,335 $144,253 $163,482 $139,063 $147,141 $145,723 Other Operating Actual $105,019 $98,034 $156,682 $107,724 $125,705 $154,895 Total Budget $646,426 $664,588 $805,837 $772,320 $817,126 $835,133 Total Actual $595,059 $599,488 $829,247 $724,556 $735,747 $827,150 Total expenses at the LLGC, including staffing, utilities, and other operating costs, have steadily increased from $646,427 in FY 2019–20 to $827,151 in FY 2024–25. For clarity, “other operating costs” reflect expenditures in the department’s operating budget outside of staffing and utilities, including maintenance supplies, small equipment, and service contracts. Over this six-year period, the overall increase in expenses has been driven primarily by higher staff wages and utility costs, with water utility costs notably impacted by irrigation leaks. Staff have proactively managed maintenance and other operating line items, and actual expenses have generally remained below total budgeted amounts, e ven when individual categories exceeded projections. The exception was FY 2021 –22, when total expenses of $829,248 slightly exceeded the budget of $805,838, primarily due to Page 153 of 185 Item 7a higher-than-expected staffing and utility costs. Staffing expenses have remained close to budget each year, while utilities and other operating costs have shown more variability, reflecting fluctuations in course usage and operational needs. Overall, LLGC has maintained a pattern of careful expense management, with most years staying un der budget and variations tied to changing operational demands. Course Demographics In line with the mission of the Parks and Recreation Department, the LLGC strives to provide affordable access to recreational opportunities for the community. The City has seen an increase in use by young adult and college students’ demographics. Staff associate this increase due to a variety of influences: addition of more Cal Poly Kinesiology and high school age programming. Through the Lightspeed registration system, staff are able to track the type of customers by age range during reservations, as well as through Play Pass Sales (10-play cards). Depending on the day of the week, time of day or age of the participant, the correct bracket of golfer is selected wit hin the Lightspeed system. Golfer demographics, such as age (based on fee classification), are tracked in a monthly report that generates monthly and annual demographics that has been utilized to track golfer demographics since 2018. The Adult category use increased by 37%, while college age use (non-Cal Poly Kinesiology classes) increased by 78% between FY 2022-23 and FY 2024-25. Round totals overall are rebounding to pre- pandemic levels with round play just under 25,000 in FY 2024-25. LLGC services an average of 5,000 unique golfers on an annual basis, not accounting for speciality uses including school district users, or non-golf related special events held at the course. Table 6: User Composition by Fiscal Year User Demographics FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 Less Than 18 1,601 2,191 1,968 3,152 4,365 7,770 18-55 8,907 13,985 9,783 8,789 11,891 11,272 55+ 5,777 5,867 4,179 4,341 4,345 4,937 Total Rounds1 16,285 22,043 15,930 16,282 20,601 23,979 Total rounds have increased steadily over the last six years, growing from 16,285 in FY 2019–20 to 23,979 in FY 2024–25. The growth is largely driven by youth under 18, whose participation rose from 1,601 to 7,770, reflecting strong engagement of younger golfers which staff contribute to the partnerships with the local schools and First Tee program . The 18–55 age group remains the largest cohort in most years, though its numbers fluctuate. Participation among those 55 and older has been relatively stable, representing a consistent but smaller portion of total users. The closure of the Pro Shop and the access bridge have been concerns for the 55+ age group and may be a factor in the reduction of use since 2021. Overall, these trends highlight both steady growth in total participation and the increasing impact of youth and young adult engagement on overall course activity. 1 Total rounds reflect the number of rounds played and do not represent unique golfers. A single golfer may be counted multiple times if they play multiple rounds or use play passes. Page 154 of 185 Item 7a Golf Operational Improvements The Golf Division staff value input from community users and conduct customer experience questionnaires and informal customer interactions to implement program and course enhancements to improve user experience and staff efficiency. As the temporary Pro Shop trailer is the current home of the service desk and office for the Golf Supervisor and Operations Coordinator, staff have incorporated the core program related merchandise items necessary to provide the best experience to its users by offering a variety of merchandise, as well as pre-packaged food and beverage options. The inclusion of a new driving range shed in 2024 supports the operations of the instructional area of the driving range. This upgrade enhances accessibility to range balls for the users and provides staff workspace improvements through the installation of a new ball washer and dispensing machine to clean and restock the golf balls throughout the day. In addition to the new range shed, range mats are now replaced annually providing a better hitting surface for practice. The inventory of rental clubs for adults and youth, in both right- and left-handed options for those who are new to the golf game are continuously assessed and upgraded to improve the experience for new and younger golfers. Through a 3rd party contract provider, the golf carts are upgraded every five years with new carts and are serviced regularly to ensure that the course maintains a full stock of carts throughout the year. Customers have shared the closure of the permanent Pro Shop and access bridge as the main deterrent of consistent play and concerns for organizing events and/or tournaments. Both of these facility projects will benefit the Golf Division’s ability to increase round play, accessibility for golfers of all ages and abilities, provide a better venue to host tournaments and special events, as well as maintain and rebuild the sens e of community as the Pro Shop facility provides a social environment, as well as a community meeting space. Golf Maintenance LLGC Maintenance staff is responsible for the comprehensive care of the 26-acre property including: greens, tees, fairways, roughs and all foliage and trees, as well as structural facilities (driving range, pathways, parking lot, pro shop and maintenance shop) within the property. The maintenance staff consists of the Golf Supervisor, 2.00 FTE Maintenance Workers, and temporary seasonal maintenance workers. The maintenance of the course uses an environmental stewardship and resource management mindset which includes selecting and applying products to the golf course that are as sustainable and least environmentally impactful as possible. Maintenance focuses on daily, weekly, monthly and annual maintenance tasks to ensure the seasonal course conditions are optimal at all times. Maintenance is responsible for upholding an aging irrigation infrastructure and maintaining golf centric equipment outside of the City’s fleet system. LLGC has invested in speciality equipment that helps maintain the course by reducing the downtime for water shut off and staff hours needed to repair issues on the course, as well as products and irrigation upgrades to reduce water use throughout the year. Maintenance staff assists other divisions within the City for irrigation repairs to help maintain other park assets. Page 155 of 185 Item 7a Since the adoption of the City’s climate action goals, the LLGC has been working to do its part to meet the goal of being carbon neutral by 2035. The course received an electric course mower in April 2025 through the Noble Saw/SLO County APCD Lawn and Garden Electrification Program where the City provided gas powered equipment to SLO County Air Pollution Control District and received a voucher to purchase an electric replacement unit. In addition to the mower, the course also utilizes electric weed whackers, leaf blowers, chainsaw, edgers and power tools. Any new maintenance equipment purchased by the division will continue to be electric, furthering the City’s sustainability goals. Golf Maintenance works closely with the City’s Natural Resources division, specifically the City Biologist, in maintaining the sensitive Prefumo Creek area that flows through the course property. Additionally, staff collaborate with the City Arborist with tree maintenance and planting, including the recent successful planting of 60 trees within the LLGC in support of the City’s 10,000 tree initiative and partnership with ECOSLO in FY 2024-25. Golf Irrigation System With the LLGC property being an original build in 1964, the irrigation systems are aging, and staff navigate repairs of outdated and often incorrect previous maintenance and irrigation maps. The LLGC utilizes City recycled water for its main source (70%) of irrigation. The course has two wells onsite that are used strategically throughout the year to supplement the use of the reclaimed water in order to flush the greens and fairways (applying water to wash out accumulated salts and minerals from the turf areas due to the use of recycled water). The wells serve as a supplemental on -site irrigation water source and provide 30% of irrigation for the course. Staff anticipate lower use of the well water with the recent completion of t he upgraded WRRF systems that have lowered the percentages of solids contained in the reclaimed wastewater supplies. Between 2018 and 2025, the focus of the LLGC maintenance staff transitioned from a reactive irrigation leak repair model to a proactive m odel. Previous methods required irrigation water shut off for daily durations to repair older irrigation needs. This resulted in high leak frequency due to pressure build-up within the pipes, multiple day course closures, external contractor dependence, reactive resource allocation and suboptimal course conditions. Overall, the course has experienced between 10 and 15 major irrigation leaks between 2018 and 2025 that resulted in multiday irrigation shutdowns (1 - 3 days, 10-30 hours staff time each) to address the incidents with most of the fixes completed internally by the golf maintenance staff. In the past two years, staff implemented a coordinated modernization plan to upgrade wiring rebuilds for the irrigation controller converters that operate the different automated irrigation devices throughout the course (similar to street light atomization), revised and updated safety training, data logging collaboration with other local golf courses, and the acquisition of modern excavation equipment. Further LLGC irrigation benefits will come from pressure monitoring deployment (flow sensors connected to Central Irrigation systems) and phased lateral lines (irrigation “branches” that drive water to the sprinkler heads) and mainline renewal planning. Page 156 of 185 Item 7a As part of the FY21-23 Financial Plan, an annual $20,000 was funded through the Capital Improvement Plan (CIP) for the golf course to assist with irrigation repairs to address high impacted areas and the acquisition of excavation equipment that would expose leaks quickly and reduce staff time, leading to minimal downtime for the course water supply, as well as prevent long-term leaks and water waste. In 2021, maintenance staff collaborated with both Public Works and Utilities to determine the best course of action to address the aging infrastructure and frequent leaks that continued to occur on the course. The purchase and utilization of the hydro-excavator has been a key asset for staff to address irrigation leaks and improvement of course conditions. By reducing the time frame that the irrigation system is turned off at the course to accommodate repairs, staff have maintained a more consistent and efficient watering schedule and ability to address multiple leaks at one time, resulting in better use of staff resources and increasing the customer experience. With the success of the hydro-excavator at the golf course, the equipment has become a Citywide asset assisting Public Works and Utilities Department in water line and irrigation leak response at other City managed properties to help with the exposure of other water leaks within the City’s park system including: Sinsheimer Stadium, Damon-Garcia Sports Complex, Meadow and Santa Rosa Parks. Overall, the LLGC has seven irrigation controllers that manage 216 sprinklers and approximately 3 miles of irrigation piping within the 26-acres of the course. Golf staff have continued to update sections of the irrigation control system to better regulate the courses system over the years. Starting in 2021, staff replaced outdated irrigation controller systems, replacing with a more modern controller system and completed, with existing resources and staff, a new wiring system for hole #1, connecting 44 sprinklers heads that covered around 3-acres. This systematic approach has been rolled out with a phased approach throughout the course, rewiring sections of the course for a more reliable irrigation system and more efficient watering schedule when time and resources allow. Future Laguna Lake Golf Course Improvements Staff continuously assess and forecast ways to diversify the course to attract different clientele and support community interest while maintaining the current offerings to the golf community. The recent updates and expansion of the driving range, addition to the chipping area, and upgrades to the event/BBQ area have all assisted in enhancing the user experience over the last couple of years. The Parks and Recreation Department will continue to review trends in the industry to improve the course and operational opportunities at the LLGC. Staff are planning to incorporate a spring customer experience survey to obtain feedback on current programming and ideas for alternate programming and activities. Additionally, the Golf Supervisor had the opportunity to attend a special training at the Torrey Pines Golf Course in the San Diego area (host of the United States Open) to learn more about the latest methods in sustainable maintenance practices, as well as newer trends and programs in the golf industry. Page 157 of 185 Item 7a Current Planned Improvements: The below examples showcase program improvements that are forecast to increase revenue through alterative play and use of the facility. Night Golf, a popular program that occurred prior to the closure of the Pro Shop, is an opportunity to provide alternative night use at the course during the shorter days occurring during October – March. Night Golf utilizes a ‘glow in the dark’ golf ball and pro vides a creative and different experience for the user during the seasonal time change. This was a popular program originally introduced in the late 2010’s but was suspended during the pandemic and with the current closure of the Pro Shop facility. Potential annual revenue for evening alternate play is estimated at $7,800. The BBQ and outdoor table area has been utilized for community rentals to host birthday parties, community group events, and internal City staff events over the past couple of years. This area continues to be a focus by golf staff to be enhanced to offer community groups an additional rentable programmable event space. Anticipated annual revenue from event rentals is estimated at $2000. When the Pro Shop project is completed, the area can be utilized as a community meeting room that is currently lacking on the west side of the City. During the update for the Parks and Recreation Blueprint for the Future, this geographical area of the City was identified as lacking indoor community gathering spaces. The Pro Shop space can be used for community meetings, small events, senior functions (e.g., Bridge or Mahjong groups), and serve as a support space for hosting large-scale events including tournaments and races. The addition of a food vendor will also help provide lease revenue generation opportunities for the City. Table 7: Estimated Annual Revenue from Alternative Sources Alternative Revenue Sources Estimated Annual Revenue Meeting/Room Rentals $2,000 Private Rental Events $3,600 Food/Beverage Concessionaire $7,800 Night Golf Program $7,800 BBQ/Event Area $2,000 Full-Course Tournaments $4,200 Weddings/Cross Country Tournament $5,000 Planned CIP Projects – Pro Shop and Bridge In addition to ongoing program improvements, two critical Capital Improvement Projects (CIPs) at the Laguna Lake Golf Course are planned but pending final direction from City Council. These projects are foundational to restoring full operations and supporting revenue-generating activities.  Bridge Replacement (CIP 2001071) – Planned for FY 2026–27 with a budget of $600,000, the bridge replacement is a storm response and recovery project. Completion of this project will restore safe access to the course, which is essential for hosting tournaments, regular play, and alternative revenue programs such as Night Golf. Funding for this project is authorized through the current CIP fund Page 158 of 185 Item 7a supported by General Funds.  Pro Shop Flood Damage Repair (CIP 2000568) – Planned for FY 2026–27 with a budget of $250,000, this project will repair flood damage to the Pro Shop facility. Reopening the Pro Shop will allow for merchandise sales, rental equipment operations, and support for community events, including meeting space for seniors and community groups. These two CIP projects are on hold until Council provides direction on timing and scope, as they directly enable revenue-generating activities outlined in Table 7. Other CIP projects at the course, such as routine maintenance, fleet replacement, parking lot resurfacing, and irrigation improvements, remain scheduled for future years according to the City’s CIP plan and are shown in Table 9. Additional Potential Facility Enhancements Requiring New Capital Investments Along with the currently funded CIP plans for t he LLGC, the Golf staff have met with the local disc golf club, SLO Throwers, and have preliminary designs for an 18-hole disc golf course within the current LLGC property layout. The disc golf course layout is intentionally designed to not interfere with current greens and tees, as well as incorporate involving natural obstacles currently present at the course. The addition of a disc golf course will allow for single and multi-day course tournaments, as well as create an additional opportunity of play for the disc golf community and once installed, require minimal maintenance cost for upkeep. This partnership has been successful at current park locations within Sinsheimer Park and Laguna Lake Park. Estimated new investment funds is approximately $45,000-$50,000 with a potential installation timeline of 6 months. Another opportunity to attract new users and expand the value of the LLGC functions is the installation of a miniature golf, putting experience. This family-friendly programming would complement the current golf range and the inclusion of a putting green to assist providing skill development, First Tee program collaboration, as well as an alternative to traditional golf activity to provide a fun golf experience for a variety of ages and abilities. Staff have identified the current event space located adjacent to the Driving Range that could be developed to support this facility enhancement. Staff would need to contract with a consultant to obtain potential project costs and develop a business model for a future CIP investment. As the City currently has a lack of lighted sport fields to support youth and adult sports, the current enclosed driving range could be remodeled to have multi -use capabilities. At scheduled times of the day or week, the area could transition to a small turf field to support soccer and football practices, and/or clinics and provide turf access for the residents on this side of the City. Lighting would need to be added to the current poles to allow for after-hours utilization of the range bringing in a new community opportunity to the course. This upgraded option to a multi-use facility would not impact the general golf course fairways and greens as it is a stand-alone amenity. A more significant future CIP project that is recommended by Staff is for the course irrigation infrastructure to be assessed for replacement in order to reduce the irrigation malfunctions and leaks throughout the property. As noted, these irrigation impacts cause Page 159 of 185 Item 7a delays with the mowing of the course, aerifying the greens, and impact the course play and customer satisfaction, as well as water waste. An updated irrigation system will result in more efficient watering schedule, reduce turf loss, and dependence on external contractors, as well as reduce water waste. In conjunction with an irrigation replacement, the course fairways could be modified with simple redesign providing an opportunity to reduce the amount of irrigated turf and add more drought tolerant plantings along the edges and non-playing areas, including adding designated cart paths and walkable pathways between each hole that allow for better accommodation and access for the golf community and walking groups. This Capital Improvement Project could range between $1.5 million to $2 million in new CIP funding. Additional Potential Uses of the Golf Course Property At the April 15, 2025 Council meeting, in providing direction to staff to comprise information on the Golf Course, councilmembers discussed potential other uses of the property, including affordable housing. The section below includes information about what it would take to make the land available and ready for affordable housing and also discusses the option of turning the Golf Course into a community park. Pursuit of either of these or other reuse options would involve a major work plan effort with participation from multiple City departments. Housing The entire Laguna Lake Golf Course parcel is approximately 29-acres in area and currently zoned Public Facility (PF). This total 29-acre site is made up of three parcels (APNs) conveyed through multiple deeds (Attachments A, C, and D), which include the parkland property (26-acres) and the supporting properties that make up the parking lot and maintenance area, and the adjacent portion of the property where the Pro Shop and restroom facility is located. APN 053-111-055 is subject to a deed restriction related to acquisition under the Nejedly-Hart State, Urban, and Coastal Park Bond Act of 1976 (Attachment B), which limits its use to park and recreation purposes. The Public Facility zone is generally for park and recreation uses, utility facilities, schools, government offices/buildings, and allows only minimal housing uses (such as caretaker’s quarters and transitional and supportive housing). If the site was rezoned to High Density Residential (R-4), it would have a maximum of 24 dwelling units per net acre , plus any available density bonuses pursuant to State law. With confirmation from the City’s Community Development Department, the Net Lot Area is determined by Municipal Code Section 17.70.110(B). By way of example, if approximately 20 net acres of the 29 -acre parcel were used to calculate density, the site could theoretically have a density of approximately 480 two-bedroom dwelling units. More information about allowed and prohibited uses can be found in Table 2-1 of Chapter 17 of the Municipal Code. Development of the Laguna Lake Golf Course for housing or any other large development project would require construction of new frontage improvements along Los Osos Valley Road and internal roadway improvements. A signal modification/upgrade could be required at the intersection of Laguna Lane and Los Osos Valley Road and the limited site frontage on Los Osos Valley Road may make it challenging to provide two points of access to the internal street network for a project site, which could present circulation and Page 160 of 185 Item 7a emergency response limitations. New water, sewer, and storm drain mainline extensions would be required to facilitate development of the site. Prefumo Creek navigates through the property site and part of the site adjacent to the creek is within a FEMA 100-year flood zone. Development affecting the portions of the site within the flood zone would require approvals from FEMA. To comply with Regional Water Quality Control Board Post-Construction Stormwater Regulations and the City’s Waterways Management Plan, it is likely that stormwater detention facilities would be required to mitigate peak flows from the development which could limit the potential residential use of the site in order to properly size and site the required stormwater detention facilities. Portions of the site are also within the Very High, High, and Moderate Fires Hazard Severity Zones with the majority of the site located in a Fire Hazard Severity Zone. Currently, City codes do not allow for subdivisions within the Very High Fire Hazard Severity Zone and building hardening and defensible space requirements will apply to any project at this location. Page 161 of 185 Item 7a Lastly, it is likely that an affordable housing developer would need to partner with a market rate developer to make a housing project feasible on th is type and size of property (significant land acquisition and infrastructure costs, coupled with natural hazard risks). To make the property available for development, the City would also need to follow the lengthy and complex Surplus Land Act process. It should be noted that APN 053-111- 055, which represents only a portion of the full Laguna Lake Golf Course site, is subject to a deed restriction associated with acquisition under the Nejedly-Hart State, Urban, and Coastal Park Bond Act of 1976 (Attachment B). This restriction limits the use of that parcel to park and recreation purposes, and any potential housing development would need to carefully evaluate its impact on site design, allowable uses, and feasibility. Community Park The accessible 26-acre property could be converted to a community park, requiring decommissioning the golf course amenities of tee boxes, greens, and golf related signage within the property. The current restroom facility, parking lot, BBQ/seating area and maintenance shop could remain to support community users and operations with some potential upgrades for accessibility and safety. Page 162 of 185 Item 7a The property would require a safety/risk assessment and incorporate appropriate mapping and inclusion of walking paths and safety walkway lighting. Should this alternative be pursued, staff would recommend completing the project to replace the pedestrian/cart bridge over Prefumo Creek in order to provide safe access across the property. Staff would also recommend pursuing th e disc-golf course inclusion, which would requiring modest up-front funding and ongoing maintenance of the 18 -hole amenity. The current uninhabitable Pro Shop would either need to be removed and the area assessed for future use/incorporation into the revised use of the park. Or continue with the planned renovation project and utilize the space as a community room/activity space. Estimated maintenance and operational costs of a passive park space, plus disc-golf and a potential community room space, would be similar to the maintenance operations at Damon-Garcia Sports Complex. Based on the recent maintenance staffing study that was presented to Council on January 14, 2025, Staff estimate approximately 1.75 – 2.0 FTE positions to maintain the 26-acre property. This would include, but not limited to, mowing, tree and shrub management, utility costs, and managing the irrigation system (which would still be recommended for upgrades). Anticipated maintenance operational expenditures, including staffing, could range between $425,000 to $450,000 annually. Comparing the similar facility operational models in Table 4, this forecasted expenditure cost is similar to the variance between Parks and Recreation operations and revenues at LLGC with an estimated $459,000 annual subsidy. External Contract Service for Operations The opportunity to pursue an outside contract service to take over all golf operations and maintenance of the property was explored by the City on December 2, 2014, resulting in the recommendation to maintain oversight and operations by the Parks and Recreation Department. Staff remain concerned that the current facility issues outlined in this report would be a strong deterrent for an outside/private service to be interested in operating the course. The aging irrigation, lack of a Pro Shop, and the inability to utilize the pedestrian/cart bridge are deterrents to advertise and secure a reputable golf service contract. An additional concern would be in maintaining the current City and community partnership agreements the City provides to youth and recreational community groups such as the local school programs, Special Olympics, and Cal Poly Kinesiology courses. The accessible and low-barrier pricing model established by the City would also be a significant concern if an external service provider took over the operations and maintenance. The market rate of the comparable sized golf courses in Table 1 could financially constrain the potential contractor. Previous Council or Advisory Body Action The following summarizes key meetings, reports, and Council action s related to the Laguna Lake Golf Course. These provide context for operational decisions, fee studies, and potential alternative uses of the property:  June 11, 2009 – Laguna Lake Golf Course Fund Rate Reviews  June 1, 2010 – Laguna Lake Golf Course Fund Rate Reviews Page 163 of 185 Item 7a  April 12, 2011 – Strategic Budget Meeting for 2011-13 City Financial Plan  July 21, 2011 - 2011-13 City Financial Plan  June 17, 2023 - 2013–15 Financial Plan / Major City Goals  December 2, 2014 – Council Study on Operational Models  2018–2021 – Parks and Recreation Blueprint for the Future (2021 –2041)  June 20, 2017 - FY 2017–19 Financial Plan  December 2, 2014 – RFP For Laguna Lake Golf Course  January 14, 2025 – Maintenance Staffing Study  April 15, 2025 – Strategic Budget Meeting 2025–27 Financial Plan Review Public Engagement With the Council Study Session request on April 15, 2025, staff informed the Parks and Recreation Commission of the opportunity for the LLGC to be discussed during a Council Study Session. Additionally, users of the LLGC reached out to Parks and Recreation Department and the Golf Division staff for additional information. Staff met with a community group referring to themselves as “Friends of Laguna Lake Golf Course,” providing requested information. A meeting was held with four members of the “Friends of Laguna Lake Golf Course” and Parks and Recreation management on November 13, 2025, to describe what a Council Study Session entails, including the creation of a comprehensive operational assessment by Staff and the opportunity for the community to provide public comment in person at the meeting or via written correspondence. CONCURRENCE This report has been prepared by staff from the Parks and Recreation Departmen t, in support by staff from Public Works and Utilities Department, and Community Development Department. ENVIRONMENTAL REVIEW The Study Session is not subject to environmental review as this presentation is not a “project” under Section 15378 of the CEQA Guidelines. FISCAL IMPACT Budgeted: Yes Budget Year: 2025-26 Funding Identified: Yes Fiscal Analysis: There is no fiscal impact associated with receiving and filing the study session report; the discussion below provides context on the current, FY 2025-26, budget and the General Fund support required to operate the Laguna Lake Golf Course. Page 164 of 185 Item 7a Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $0 $0 $0 $0 State Federal Fees Other: Total $0 $0 $0 $0 For FY 2025–26, the Laguna Lake Golf Course is budgeted to generate $297,000 in revenue. Total expenditures, including staffing, utilities, and other operating costs, are projected at $834,218, resulting in a cost recovery rate of 36%. This places the cour se within the mid-range cost recovery goal of 30%–60%, indicating that revenues cover slightly more than one-third of total operating costs, with the remainder funded through the General Fund. Table 8 below provides a detailed breakdown of the budgeted revenues, expenditures, and cost recovery for the 2025–26 fiscal year. Table 8: Budget for 2025-26 Account Budget Revenue $297,000 Staffing $528,362 Utilities $156,686 Other Operating $149,171 Total Expenditures $834,218 Cost Recovery 36% General Fund Subsidization 64% In addition to ongoing operational expenses, several Capital Improvement Program (CIP) projects have been planned for the Laguna Lake Golf Course to maintain and enhance the facility. These projects include routine maintenance, fleet replacement, facility repairs, and infrastructure improvements, such as irrigation upgrades and bridge replacement. Table 9 below provides a summary of projects within the 10-year CIP, including project numbers, descriptions, fiscal years, and budgeted amounts, highlighting both near-term and longer-term investments in the course. Page 165 of 185 Item 7a Table 9 – Laguna Lake Golf Course CIP Projects, Budget and Fiscal Year CIP No. Project Name Description / Notes Fiscal Year Budget Amount 2000030 Golf Course Maintenance Routine maintenance 2026–27 $10,000 2000519 Fleet Replacement Golf course truck 2026–27 $69,000 2000568 Pro Shop Flood Damage Repair Facility repair from past flood 2026–27 $250,000 2001071 Bridge Replacement Storm response and recovery 2026–27 $600,000 2000519 Fleet Replacement Golf course mower 2027–28 $90,000 2001031 Irrigation Improvements System upgrades 2030–31 $300,000 2000031 Parking Lot Maintenance Resurfacing/repairs 2031–32 $50,000 2000520 Fleet Replacement – Public Works Golf course mower 2031–32 $90,000 2001031 Irrigation Improvements System upgrades 2031–32 $1,700,000 2000031 Parking Lot Maintenance Resurfacing/repairs 2032–33 $400,000 2000519 Fleet Replacement Golf course cart spray applicator 2032–33 $30,000 2000519 Fleet Replacement Golf course diesel UTV w/ dump bed 2032–33 $30,000 2000519 Fleet Replacement Golf course utility car 2032–33 $40,000 2000520 Fleet Replacement – Public Works Golf course reel mower 2032–33 $90,000 Total $$3,749,000 The figure below illustrates total CIP funding for the Laguna Lake Golf Course by fiscal year, combining all individual projects from Table 9. This figure (Figure E) highlights the timing and scale of planned investments, with peak funding years occurring in FY 2026 – 27 and FY 2031–32. Page 166 of 185 Item 7a Figure E: CIP Funding by Fiscal Year ALTERNATIVES 1. Council could choose to provide direction to staff to research alternative (non- golf activities) and/or assess the current fees related to the Golf Division and Parks and Recreation Departments community programming specific to the use Laguna Lake Golf Course property. This strategy may require realignment of the current financial philosophy related to cost recovery policies, and program accessibility for the community. Staff resources will be required to conduct a user fee survey and assess the threshold of the variety and types of multi-use programs. This would also include assessing the physical impacts to the course conditions, and current or revised times of course use for traditional golf activities which support a variety of community partners. 2. Council may choose to direct staff to pursue classifying the Golf Course Operations as an enterprise fund program. This would entail staff conducting a comprehensive fund analysis of all user fees, including daily use fees and rental/reservation fees, as well as review community partnership agreements, to increase fees to meet the current subsidy delta point. The estimated revenue increase would need to increase by 50-64% which could result in pricing out community users, as well as limit the accessibility of a significant portion of the com munity population who utilize the programs at the LLGC. 3. Council could choose to provide direction to staff to pursue the costs and benefits of decommissioning the golf program and converting the property to a community park. This option would require muti-department staff resources from $0.00 $200,000.00 $400,000.00 $600,000.00 $800,000.00 $1,000,000.00 $1,200,000.00 $1,400,000.00 $1,600,000.00 $1,800,000.00 $2,000,000.00 2026–27 2027–28 2030–31 2031–32 2032–33 CIP Funding by Fiscal Year Page 167 of 185 Item 7a Parks and Recreation, Public Works and Utilities, and City Attorney’s Office, to develop the process and conversion of an active recreational area to a passive recreational area, including property deed review, infrastructure assessments for ADA pathways, environmental impacts for Prefumo Creek, and safety/risk assessments of the 26-acre property, including concerns and mitigation of unauthorized after -hours park use. The conversion would also have impacts such as loss of program revenue and golf-specific recreational opportunities for a variety of community partners and community members. 4. Council could choose to provide direction to staff to investigate alternative usage regarding the Laguna Lake Golf Course 26-acre property related to housing. This option would require staff support from Community Development, City Attorney’s Office, Parks and Recreation, Administration, Finance, and Public Works & Utilities Departments, as well as potential need for contract or consu ltant support. Potential areas of significance for staff research and review may be related to property deeds and environmental property reviews, assessment of current required park acreage related to the City’s adopted general elements for both the Parks and Recreation and Housing elements, review of the re -zoning process for any property use changes, and neighborhood wellness impacts. ATTACHMENTS A - Grant Deeds for APN 053-111-055 B - Resolution Approving the Application for Federal Land and Water Conservation Fund Grant-In-Aid Program funding for the Laguna Lake Golf Course and Driving Range Acquisition Project C - Grant Deed for APN 053-111-058 D - Grant Deed for APN 053-111-062 Page 168 of 185 Description: San Luis Obispo,CA Document-Book.Page 2197.370 Page: 1 of 4 Order: 11 Comment: Page 169 of 185 Description: San Luis Obispo,CA Document-Book.Page 2197.370 Page: 2 of 4 Order: 11 Comment: Page 170 of 185 Description: San Luis Obispo,CA Document-Book.Page 2197.370 Page: 3 of 4 Order: 11 Comment: Page 171 of 185 Description: San Luis Obispo,CA Document-Book.Page 2197.370 Page: 4 of 4 Order: 11 Comment: Page 172 of 185 Description: San Luis Obispo,CA Document-Book.Page 2197.366 Page: 1 of 4 Order: 11 Comment: Page 173 of 185 Description: San Luis Obispo,CA Document-Book.Page 2197.366 Page: 2 of 4 Order: 11 Comment: Page 174 of 185 Description: San Luis Obispo,CA Document-Book.Page 2197.366 Page: 3 of 4 Order: 11 Comment: Page 175 of 185 Description: San Luis Obispo,CA Document-Book.Page 2197.366 Page: 4 of 4 Order: 11 Comment: Page 176 of 185 Page 177 of 185 Page 178 of 185 Page 179 of 185 Page 180 of 185 Page 181 of 185 Page 182 of 185 M RECORDING REQUESTEI Y CIAICAGO TITLE CONS_ ..qY ANU WHEN RECORDED MAIL TO CITY OF SAN LUIS OBISPO Attn. Paul LeSage 1341 Nipomo Street San Luis Obispo, Ca Doc No: 1999-042194 Official Records San Luis Obispo Co. 93401 Julie L. Rodewald Recorder Jun 11, 1999 Time: 11:11 Rpt No: 00052566 UN 22.00 NF -1 0.00 1i L r 1 Escrow No. 250421 - So L 31 TOTAL 22.00 Order NO 250421 - NN SPACE ABOVE THIS LINE FOR RECORDER'S USE t nr_ utNULMIGNED GRANTOR(S) DEC DOCUMENTARY TRANSFER TAX unincorporated area GRANT DEED Assessor's Parcel No: 053,111,058 portion LARE(S 2 00 /I IT FW PAID ExEmPT OUT OF is STATE City of computed on the full value of the interest or property conveyed, or is computed on the full value less the value of liens or encumbrances remaining at time of sale, and FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, THE CONGREGATIONAL CHURCH - UNITED CHURCH OF CHRIST hereby GRANT(S) to THE CITY OF SAN LUIS OBISPO , a charter municipal corporation of the State of California tfie following described real property in the County of SAN LUIS OBISPO State of California: LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF BY REFERENCE Dated April 14, 1999 STATE OF CALIFORNIA COUNTYQF SAN LUISLUIS OBISPO } SS. On 1 "Lt_X , before me, the un ersigned a Notary Public in and for said County and State, personally appeared U IvAam personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is /are subscribed to the within instrument and acknowledged to me that he /she /they executed the same in his /her /their authorized capacity(ies), and that by his /her /their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. THE CONGREGATIONAL CHURCH - UNITED,GiYMCH OF CHRIS //T BY: UE ZAKARIA Comm. fr`113048, ELO Nota ry Public California AN LUIS OBISPtJ COUNTY M' Comet. C-91re3 br. 20 2801 WITNE my hand and official seal. 3 _g) -01 gnat a of Notary Date My Commission Expires FOR NOTARY SEAL OR STAMP MAIL TAX STWTEdENTS TO PARTY SHOWN ON FOLLOWING LINE: IF NO PARTY SO SHOWN, MAIL AS DIRECTED ABOVE same as return address shown above Name Street Address City, State & Zip GD1 -- 05/30/97bk T , uI p] I - I q e computed on the full value of the interest or property conveyed, or is computed on the full value less the value of liens or encumbrances remaining at time of sale, and FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, THE CONGREGATIONAL CHURCH - UNITED CHURCH OF CHRIST hereby GRANT(S) to THE CITY OF SAN LUIS OBISPO , a charter municipal corporation of the State of California tfie following described real property in the County of SAN LUIS OBISPO State of California: LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF BY REFERENCE Dated April 14, 1999 STATE OF CALIFORNIA COUNTYQF SAN LUISLUIS OBISPO } SS. On 1 "Lt_X , before me, the un ersigned a Notary Public in and for said County and State, personally appeared U IvAam personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is /are subscribed to the within instrument and acknowledged to me that he /she /they executed the same in his /her /their authorized capacity(ies), and that by his /her /their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. THE CONGREGATIONAL CHURCH - UNITED,GiYMCH OF CHRIS //T BY: UE ZAKARIA Comm. fr`113048, ELO Nota ry Public California AN LUIS OBISPtJ COUNTY M' Comet. C-91re3 br. 20 2801 WITNE my hand and official seal. 3 _g) -01 gnat a of Notary Date My Commission Expires FOR NOTARY SEAL OR STAMP MAIL TAX STWTEdENTS TO PARTY SHOWN ON FOLLOWING LINE: IF NO PARTY SO SHOWN, MAIL AS DIRECTED ABOVE same as return address shown above Name Street Address City, State & Zip GD1 -- 05/30/97bk T , uI p] I - I q ePage 183 of 185 V 1 Pagc 1 Escrow No. 250421 -SO LEGAL DESCRIPTION EXHIBIT That portion of Lot 59 of Stratton's Subdivision of the Ranchos Canada de Los Osos and La Laguna, in the County of San Luis Obispo, State of California, as shown in Book A of Record Maps at pages 83 and 84, recorded in the office of the San Luis Obispo County Recorder, described as follows: Beginning at a 1 1/2" iron pipe and tag, L.S. 3982, on the Southwesterly line and distant 49 ft. from the Westerly corner of Parcel A, as shown in Book 20 of Parcel Maps at page 71, being THE TRUE POINT OF BEGINNING; thence, at right angles to the said Southwesterly line, South 45 degrees 59 minutes 25 seconds West, a distance of 65 ft.; thence, along a line parallel to and 65 ft. Southwesterly of the Southwesterly line of Parcel A, South 44 degrees 00 minutes 35 seconds East, a distance of 130 ft.; thence, along a line at right angles to the Southwesterly line of Parcel A, North 45 degrees 59 minutes 25 seconds East, a distance of 65 ft.; thence, Northwesterly along the Southwesterly line of Parcel A, North 44 degrees 00 minutes 35 seconds West, a distance of 130 ft. to the TRUE POINT OF BEGINNING. DEEDLEGL- 08/09/94bk Page 184 of 185 I I CERTIFICATE OFACCEPTANCE THIS IS TO CERTIFY that the interest in real property conveyed by the Grant Deed dated April 6. 1999 from Congregational Church - United Church of Christ to the CITY OF SAN LUIS OBISPO, a Political Corporation, is hereby accepted by the undersigned officer on behalf of the City Council pursuant to authority conferred by Resolution No. 5370 (1984 Series) recorded June 15, 1984 in Volume 2604, Official Records, Page 878, San Luis Obispo County, California and the Grantee consents to recordation thereof by its duly authorized officer or his agent. Date: June 10, 1999 ATTEST: Lee Price C.M. City Clerk C CITY OF SAN LUIS OBISPO" Y w Allen K. Settle, Mayor END OF DOCUMENTPage 185 of 185 1 Laguna Lake Golf Course – Council Study Session February 3, 2026 Item 7a: Laguna Lake Golf Course Program Operations and Maintenance Overview 2 Presentation Outline 1.Study Session Recommendations 2.History of the Laguna Lake Golf Course 3.Golf Division Program Overview 4.Financial Assessment 5.Golf Maintenance Overview 6.Golf Course Impacts and Challenges 7.Golf Course Planned and Potential Improvements 8.Golf Course Alternative Uses 9.Council Discussion and Recommendations 3 Study Session – Recommendations 1.Receive presentation on the Laguna Lake Golf Course Operations and Maintenance. 2.Provide feedback and direction on program and revenue expectations. Direct staff on any future program and facility recommendations. 3.Provide staff direction on continuing the two significant project needs related to the Pro Shop renovation and the pedestrian/cart bridge replacement project timelines. 4 Municipal 10- Hole Course •26 maintained acres •1,361 yards Par 3 Course •Constructed in 1964 •Private Developer City Owned since 1978 •Operated as Enterprise and General Fund 5 Golf Division Overview Director Recreation Manager Golf Supervisor Maintenance Worker (2) Recreation Coordinator Temporary Staff Course Amenities -Driving Range -Putting/Chipping Green -Merchandise Sales -Concessions -Golf Equipment Rentals -Event/BBQ Area 6 Golf Course Overview & Current Pricing Open 7 days per week Closures •Thanksgiving, Christmas Eve & Day, Seasonal Weather Events and Maintenance days Seasonal Hours •March – October: 8:00 AM – 7:00 PM •October –March: 8:00 AM –5:30 PM 7 SLO County Courses Pricing Comparison Laguna Lake Golf Course 1,361 yds LLGC Current Rate Pismo Beach 1,465 yds Sea Pines 2,002 yds Dairy Creek 3,004 yds Rounds Monday-Thursday (Regular)$16.25 $20.00 $25.00 $30.00 Monday-Thursday (Snr/Yth/Stu/Mil) $12.25 $15.00 $25.00 $5-$21 Friday-Sunday (Regular)$17.00 $20.00 $25.00 $30.00 Friday-Sunday (Snr/Yth/Stu/Mil)$13.25 $15.00 $25.00 $5-$21 Twilight (after 3 PM)$12.25 N/A $19.00 $20.00 Family Rate (4 people)$35.00 N/A N/A N/A Super Twilight (last 2 hrs)$9.25 N/A N/A N/A Cart Rental $12.25 $13.00 $20.00 $15.00 Pull Carts $5.25 $4.00 $6.00 $5.00 Club Rentals (Regular)$10.25 $20.00 $30.00 $40.00 8 Golf Division Partnerships 9 Golf Division Overview – User Age Demographics User Composition by Fiscal Year User Demographics FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 Less Than 18 1,601 2,191 1,968 3,152 4,365 7,770 18 - 55 8,907 13,985 9,783 8,789 11,891 11,272 55+5,777 5,867 4,179 4,341 4,345 4,937 Total 16,285 22,043 15,930 16,282 20,601 23,979 Unique Users (annual): ~5,000 10 Golf Round Demographic Breakdown – FY24-25 15.32% 8.10% 0.60% 16.21% 1.66%19.56% 31.65% 0.55% 3.59% 0.44% 1.87% 0.46% Regular Twilight Replay Super Twilight Spectator Senior Stu/MIL Tournament Off Peak Family Comp Promo Overall Total 24,494 Total Rounds 17,126 69.92% Total Play Pass 6,798 27.75% Total Comp 457 1.87% Total Promo 113 0.46% Total Weekday AM 4,487 18.32% Total Weekday PM 9,376 38.28% Total Weekend AM 3,951 16.13% Total Weekend PM 6,680 27.27% 11 Golf Financial Usage & Non-Round Revenue Golf Activity Volume by Type Usage by Type FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 Total Rounds 16,428 23,463 17,991 16,392 20,858 24,494 Play Pass Sales 294 344 369 515 611 681 Cart Rentals 2,138 1,415 1,278 2,083 2,731 3,859 Driving Range 1,813 2,835 1,729 2,342 2,981 4,216 Push Carts 1,010 1,314 722 613 805 1,033 Club Rentals 370 401 202 279 338 354 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Golf Course Usage by Type as a Percent of Total Activity Total Rounds Play Pass Sales Cart Rentals Driving Range Push Carts Club Rentals Non-Round Balls Gloves Tees Headwear Clubs Food/Bev Lessons Totals $ 8,337.53 $ 2,017.33 $ 690.08 $ 681.81 $ 1,819.42 $ 3,753.61 $ 1,248.00 Retail Sales Revenue: 12 Golf Financial Overview – Operating Budget vs Actual Golf Course Expenses by Category, Budget vs. Actual Fiscal Year 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Staffing Budget $387,457.00 $402,700.59 $514,442.57 $513,362.85 $520,899.72 $538,387.10 Staffing Actual $394,711.31 $402,895.96 $518,234.37 $481,885.54 $469,460.05 $510,246.23 Utilities Budget $127,634.00 $117,634.00 $127,913.00 $119,895.00 $149,086.00 $151,023.00 Utilities Actual $95,329.08 $98,558.57 $154,331.17 $134,946.67 $140,582.40 $162,008.43 Operating Budget $131,335.99 $144,253.52 $163,482.39 $139,063.00 $147,141.00 $145,723.00 Operating Actual $105,019.34 $98,034.35 $156,682.20 $107,724.25 $125,705.38 $154,895.94 Total Budget $646,426.99 $664,588.11 $805,837.96 $772,320.85 $817,126.72 $835,133.10 Total Actual $595,059.73 $599,488.88 $829,247.74 $724,556.46 $735,747.83 $827,150.60 13 Golf Operating Expenses 14 Golf Revenue 15 Golf Financial Overview – Revenue & Subsidies $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 Annual Revenues and Subsidies by Fiscal Year Revenues Subsidy Fiscal Year Actual Revenues Actual Expenses Subsidy Percent Subsidized 2011-12 $297,600 $517,375 $219,775 42% 2012-13 $291,700 $523,237 $231,537 44% 2013-14 $336,700 $516,018 $179,318 35% 2014-15 $328,383 $550,409 $222,026 40% 2015-16 $263,870 $576,352 $312,482 54% 2016-17 $234,897 $616,852 $381,955 62% 2017-18 $250,433 $604,534 $354,101 59% 2018-19 $227,602 $621,659 $394,057 63% 2019-20 $166,919 $595,060 $428,141 72% 2020-21 $248,101 $599,489 $351,388 59% 2021-22 $220,129 $829,248 $609,119 73% 2022-23 $213,003 $724,556 $511,554 71% 2023-24 $287,577 $735,748 $448,171 61% 2024-25 $375,077 $827,151 $452,073 55% 16 Golf Maintenance Overview Staff -Golf Supervisor -(2) FTE Maintenance Workers -Seasonal Maintenance Workers Maintenance Goals •Completion of daily, weekly, monthly and annual maintenance practices to consistently offer a well-maintained golf course. •Maintenance of greens, tees, and fairways are the top priorities. Provide the least amount of interference and inconsistencies as possible. •Environmental stewardship and resource management will impact selecting and applying products to the golf course. 17 Golf Maintenance General Course Tasks Maintenan ce Tasks Daily Weekly Monthly Annual Greens Prep Mow 3x (6 hrs) Trimming, Dethatching (4-6hrs) Sand, Aeration, Flushing, Herbicide Application (2 days) Tees Prep Mow 3x, Rotate Tee Markers (14 hrs) Trimming, Dethatching, Fertilization (4-6hrs) Sand, Aeration, Flushing, Herbicide Application (2 days) Fairways Mow 2x (8-12 hrs) Trimming, Fertilization (4-6hrs) Aeration, Herbicide Application (2 days) Roughs Mow 1x (16 hrs)Fertilization Herbicide Application (4 hrs) 18 Golf Maintenance Facility & Equipment Upgrades Driving Range Machine Range Balls & Mats Aerator Unit Electric Mower Electric Equipment DitchWitch 19 Golf Maintenance - Unique Challenges Rain Frost Flooding Netting Erosion 20 Golf Maintenance Challenges – Pro-Shop 21 Golf Maintenance Challenges – Bridge (Hole #2) Storm/Flood Events – January 8-13, 2023 Bridge Closure – January 26, 2023 FEMA Outreach – Summer 2023 Initial Replacement - October 11, 2023 Rescheduled – Summer 2025 (hold as of April 2025) Rescheduled – Summer 2026 22 Golf Maintenance Challenges - Irrigation 23 LLGC Current Improvements Pro-shop Construction (2026-27) Bridge Replacement (Summer 2026) Additional Tree Planting Driving Range Netting 24 LLGC Future Improvement Considerations Disc Golf Course Miniature Golf Course Lighted Turf Field at Driving Range 25 Parks+Recreation Blueprint for the Future: 2021-2041 Section 2 – Meet the Changing Needs of the Community System Wide Goals •2.6 Accessing and Evaluating the Golf Course (Pg 90) •Continue to manage the golf course for its primary use while exploring opportunities for broader community use, potentially including a fully immersed golfing experience including mini-golf, disc golf, and foot golf, a walking loop, community space, redevelopment of the pro-shop, as well as more revenue capture opportunities. Consider alternative programming such as community use of the course for gatherings for specified days and hours. 26 Property Use Options 1. Conversion of Property for Housing 2. Conversion of Property to Park 3.RFP for Golf Operations and Maintenance 27 Housing Opportunities •Zoning considerations •Currently zoned as “Public Facility” •Rezoning required to accommodate housing 28 Housing Opportunities •Restriction on use for the highlighted parcel 29 Housing Opportunities •Minimal infrastructure available on the site 30 Housing Opportunities •Flood and fire zone considerations 31 Affordable Housing Opportunities •Factors taken into consideration by affordable housing developers •Parcel size and price •Infrastructure •Tax credit competitiveness 32 Community Park Option Factors to consider: •Incorporate Walking Paths (ADA) •Safety Lighting •Operational & Maintenance Cost •Anticipated $425,000 - $450,000 •Open Space/Creek Control •Irrigation Upgrades/Modifications •Neighborhood Privacy/Security •Off Hours Security Concerns 33 Contract Service Operator •Staff explored RFP in 2014, resulting in City maintaining operations •Maintaining accessible and affordable community programming (low barrier fees) •Maintaining the support for local community organizations and schools •Facility upgrades remain a concern and deterrent for contract operations •Pro Shop •Bridge •Irrigation 34 Presentation Recommendations- 7a: Study Session 1.Receive presentation on the Laguna Lake Golf Course Operations and Maintenance. 2.Provide feedback and direction on program and revenue expectations. Direct staff on any future program and facility recommendations. 3.Provide staff direction on continuing the two significant project needs related to the Pro Shop renovation and the pedestrian/cart bridge replacement project timelines. 35 Alternative Opportunities 1.Council could choose to provide direction to staff to research alternative (non- golf activities) and/or assess the current fees related to the Golf Division and Parks and Recreation Departments community programming specific to the use Laguna Lake Golf Course property. 2.Council may choose to direct staff to pursue classifying the Golf Course Operations as an enterprise fund program. 3.Council could choose to provide direction to staff to pursue the costs and benefits of decommissioning the golf program and converting the property to a community park. 4.Council could choose to provide direction to staff to investigate alternative usage regarding the Laguna Lake Golf Course 26-acre property related to housing. 36 Alternatives 1 of 4 1.Council could choose to provide direction to staff to research alternative (non golf activities) and/or assess the current fees related to the Golf Division and Parks and Recreation Departments community programming specific to the use Laguna Lake Golf Course property. This strategy may require realignment of the current financial philosophy related to cost recovery policies, and program accessibility for the community. Staff resources will be required to conduct a user fee survey and assess the threshold of the variety and types of multi-use programs. This would also include assessing the physical impacts to the course conditions, and current or revised times of course use for traditional golf activities which support a variety of community partners. 37 Alternatives 2 of 4 2. Council may choose to direct staff to pursue classifying the Golf Course Operations as an enterprise fund program. This would entail staff conducting a comprehensive fund analysis of all user fees, including daily use fees and rental/reservation fees, as well as review community partnership agreements, to increase fees to meet the current subsidy delta point. The estimated revenue increase would need to increase by 50-64% which could result in pricing out community users, as well as limit the accessibility of a significant portion of the community population who utilize the programs at the LLGC. 38 Alternatives 3 of 4 3. Council could choose to provide direction to staff to pursue the costs and benefits of decommissioning the golf program and converting the property to a community park. This option would require muti-department staff resources from Parks and Recreation, Public Works and Utilities, and City Attorney’s Office, to develop the process and conversion of an active recreational area to a passive recreational area, including property deed review, infrastructure assessments for ADA pathways, environmental impacts for Prefumo Creek, and safety/risk assessments of the 26-acre property, including concerns and mitigation of unauthorized after-hours park use. The conversion would also have impacts such as loss of program revenue and golf-specific recreational opportunities for a variety of community partners and community members. 39 Alternatives 4 of 4 4. Council could choose to provide direction to staff to investigate alternative usage regarding the Laguna Lake Golf Course 26-acre property related to housing. This option would require staff support from Community Development, City Attorney’s Office, Parks and Recreation, Administration, Finance, and Public Works & Utilities Departments, as well as potential need for contract or consultant support. Potential areas of significance for staff research and review may be related to property deeds and environmental property reviews, assessment of current required park acreage related to the City’s adopted general elements for both the Parks and Recreation and Housing elements, review of the re-zoning process for any property use changes, and neighborhood wellness impacts. 40 Discussion Questions and Consideration