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Home My WebLink About06/06/2000, 4E - GOLF COURSE FUND RATE REVIEW council °' -oc� j acEnaa Repout " 4E CITY OF SAN LUIS OBISPO FROM: �'�Paul LeSage,Director of Parks and Recreation SUBJECT: GOLF COURSE FUND RATE REVIEW CAO RECOMMENDATION 1. Adopt a resolution with the following fees for Laguna Lake Golf Course effective July 1, 2000: Senior/Youth Weekdays $5.75 General Weekdays $7.75 Weekends $8.50 Senior/Youth Weekends $6.50 10-Play Cards: Senior/Youth $52.50 for 10 Rounds of Golf 10-Play Cards: General $62.50 for 10 Rounds of Golf 2. Authorize a General Fund transfer of $177,100 for general government costs and capital improvements. DISCUSSION Background: Laguna Lake Golf Course (LLGC) is the only public golf facility in the City of San Luis Obispo. The course is nine holes and classified as executive length. The players are typical of this type of course — beginning golfers, youth, and seniors. Senior golfers account for half of the rounds played. Golfers of Middle School and High School age are using the course in increasing numbers, primarily because of programs offered at the course in cooperation with the Parks and Recreation Department's Teen Section. LLGC is a cost-effective operation. The course supervisor manages all operations. The 24-acre course is maintained with two full-time workers. The 12-acres-to-one-employee ratio is similar to other maintenance operations in the city. All other staff is part time. The course revenue is targeted to cover operating expenses. However, there is not enough revenue to offset general government and capital improvement costs. For that reason, a General Fund transfer of$177,100 is requested. 4E-1 Council Agenda Report—Golf Course Fund Rate Review Page 2 RATE RFViT.W nR_iF[_TIVFC The objective of the rate review is to establish a fee schedule that maximizes revenue and will accomplish the following: • Ensure continued operation of the course • Establish a rate consistent with other facilities in the area • Create an opportunity for more residents to enjoy golf • Generate sufficient revenue to cover direct operating expenses The key element of the 2000-01 rate structure is a modest fee increase of 25¢per round. LAGUNA LAKE GOLF COURSE FEES Current: Pro sed• Senior/Youth Weekdays: $5.50 $5.75 General Weekdays: $7.50 $7.75 . Senior Youth Weekends: $6.25 $6.50 General Weekends $8.25 $8.50 Senior/Youth 10-Play Card: $50.00 $52.50 General 10-Play Card: $60.00 $62.50 The new rates will not exclude players and will help to reduce the expenditure/revenue gap. Other courses in the area, that are similar in length to Laguna Lake Golf Course, charge fees that are almost identical. They will likely adjust their rates if the Laguna Lake Golf Course rates change. FISCAL DIPACT The golf course is not generating sufficient revenue to operate as a full Enterprise Fund. City fiscal policy states that the Fund needs to generate sufficient revenue to cover direct operating expenses. Capital improvements and course overhead are subsidized by the General Fund. Based upon the current level of play, the fee increase would generate sufficient funds to cover the direct operating costs. As noted, the General Fund subsidy for the Golf Course is projected at $171,000 for the 2000-01 fiscal period. ATTACHMENT 1. Resolution 2. Fees at area courses 3. Change in Fund Balance Sheet aATEDW 4E-2 km en RESOLUTION NO. (2000 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO INCREASING THE FEE STRUCTURE FOR THE LAGUNA LAKE GOLF COURSE AND RESCINDING RESOLUTION NO. 8936 (1999 Series) WHEREAS, it is the policy of the City of San Luis Obispo to review program fees on an ongoing basis; and WHEREAS,those fees are adjusted as required to ensure they remain equitable and adequate to cover the cost of providing services; and WHEREAS, a comprehensive analysis of the Golf Course Fund was performed for fiscal year 2000-01. NOW, THEREFORE,BE IT RESOLVED,by the City Council of the City of San Luis Obispo as follows: SECTION 1. Resolution No. 8936 (1999 Series) is hereby rescinded,effective July 1, 2000. SECTION 2. The following green fees shall be as follows, effective July 1, 2000: Senior/Youth Weekdays $ 5.75 General Weekdays $ 7.75 Senior/Youth Weekends $ 6.50 General Weekends $ 8.50 Senior/Youth 10-Play Card $52.50 General 10-Play Card $62.50 SECTION 3. The fees for the driving range, wholesale goods,lessons, and other special activities shall be set by the Director of Parks and Recreation and the Golf Course Supervisor. 4E-3 R FE u c:Hmen+ 1 - Z Upon motion of_ ;"seconded:by and on the following roll call voter AYES: NOES: ABSENT. the foregoing resolution was adopted this. day of - , 2000. Mayor Allen Settle ATTEST`.: Lee Price, City Clerk ---- - APPROVED AS TO FORM: J or ens ; Ci` Attorney O: ORFMS t S2000C -ljkc TEMOLDM 4F-4 A Oat k nmeaf Z SEA PINES GOLF RESORT-LOS OSOS (Phone: 528-1788) Weekdays (Mon.-Thu.) Weekends (Fri.-Sun.) REGULAR RATES $10.50 9 holes $11.50 9 holes $17.00 18 holes $20.00 18 holes TWILIGHT RATE(4:00 p.m. to close) $6.50 9 holes $8.50 9 holes STUDENTS (with a college ID) $7.00 9 holes No Senior Rate No Children's Rate PISMO STATE BEACH GOLF COURSE—GROVER BEACH(Phone: 481-5215) Weekdays Weekends/Holidays REGULAR RATES (9 holes) $7.50 $8.50 TWILIGHT RATE(3:00 p.m. to close) $7.50 $8.50 SENIOR(62 and over) $5.50 $6.50 CHILDREN 02 and under) $5.50 $6.50 ZACA CREEK GOLF COURSE—BUELLTON (Phone 688-2575) Weekdays Weekends/Holidays REGULAR RATES (9 holes) $10.00 $11.50 REGULAR RATES (18 holes) $15.00 $16.50 TWILIGHT RATE (1:00 p.m. to close) $8.50 $10.00 SENIORS (62 and over) $9.00 9 holes $10.50 $14.00 18 holes $16.50 CHILDREN(15 and under) $6.00 $6.00 cLuonPTS%CA 20=OuxwrESCOWP. 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