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HomeMy WebLinkAbout04/15/2003, BUS 2 - LAGUNA LAKE GOLF COURSE STATUS REPORT council M.th, j aGEnda 12EpoRt Lis Apri115,200� C I T Y O F S A N L U I S O B I S P O FROM: Paul LeSage,Parks and Recreation Director' ' SUBJECT: LAGUNA LAKE GOLF COURSE STATUS REPORT CAO RECONMIENDATION As recommended by the Parks and Recreation Commission: 1. Review this status report and reaffirm that Laguna Lake Golf Course will remain a City program; and reaffirm that Laguna Lake Golf Course will remain as an Enterprise Fund, with a revenue target equal to direct operating costs. 2. Endorse the staff proposals to increase revenue. REPORT IN BRIEF Constructed in 1964, the City has operated Laguna Lake Golf Course since 1974, and purchased it in 1978. City policy states that the golf course should recover at least its direct operating costs. This has not happened since 1997. Rounds of golf played at the golf course, the primary source of revenue, have decreased since that year. The reasons for this reduction include: a general downturn in the golf industry, a proliferation of golf courses in the area, and fewer rounds played by current golfers. However, while the golf course has never generated enough revenue to cover all expenses, a revenue target equal to operating expenses seems possible. In order to do this several new initiatives will be attempted: 1. Stop the downward spiral of revenue. 2. Continue to maintain the golf course in a manner that attracts patrons. 3. Provide the best customer service. 4. Create better public relations and new programs. 5. Reduce operating costs. 6. Maximize other sources of income. Any discussion of the golf course's future must include the option of its sale. This report does not recommend the sale of the golf course, due to opposition from nearby residents and golf courses users. The Parks and Recreation Commission also oppose the sale. Other possibilities include a sale of surplus land and contracting some golf course operations. Budget reductions, as a part of the 2003-05 Financial Plan will reduce the General Fund subsidy to the golf course. Even though staff is optimistic that revenue can be increased, it cannot be guaranteed. It will take several years to close the gap between revenue and operating expenses. pC— � Laguna Lake Golf Course Status Report Page 2 of 10 DISCUSSION Overview At their December 10, 2002 meeting, the Council discussed the audit report and actual fiscal results for 2001-02 presented in the Comprehensive Annual Financial Report. In this report, the Director of Finance highlighted that the Golf Fund has been requiring an increasingly larger General Fund subsidy over the past several years, with costs exceeding golf revenues by about $250,000. At that meeting, the reasons for this increasing subsidy and some measures to reduce it were promised after a more thorough analysis. The following are the results from that assessment. Background Ray Skinner, a developer of property around the Laguna Lake area, constructed Laguna Lake Golf Course (LLGC) in 1964. The golf course was operated as a private business for a short time and closed in 1965. In 1967, the golf course was leased from the owner - a credit union - and operated for seven years. In both cases, the golf course was not able to generate sufficient revenue to make it profitable. In 1974, based upon the recommendation of a citizens committee, the City began leasing the golf course. In 1978, the City purchased the golf course. The committee also recommended that an adjoining 2.7-acre parcel be purchase for a driving range. The committee noted that driving ranges are an important source of golf course income. Unfortunately, that purchase was not made. The City contracted with a private individual to operate the golf course from 1974 to the early 1980's. At that time, the City directly took over operations and designated the golf course an Enterprise Fund, with the goal of generating sufficient revenues to cover all costs. In 1980, the Council considered other uses for the site,but ultimately decided to leave it as a golf course. The problem at that time, as now, was lack of revenue. For a brief, two-year period from 1991 to 1993, the golf course was operated as a General Fund program. It returned to an enterprise status in 1993 when the City faced budget challenges similar to this year. From the opening of the golf course in 1965 until the early 1980's, LLGC had deteriorated, as maintenance was inadequate or deferred. This was understandable, especially considering the lack of golf course revenue. The lack of play translated to lack of funds for proper maintenance. In early 1974, for example, there were about 1,200 rounds per month played at the golf course. Today, even with a drop off in play, there are more than twice that amount. Green fees have always been an important source of income for the golf course. Upgrading maintenance became a priority for staff. It has literally been a 20-year sustained effort to get the golf course into its current condition. G:\Council Agenda Reports\CAR-04.15.03-LogunaL2keGoILDOC a -� Laguna Lake Golf Course Status Report Page 3 of 10 Financial Plan Policy: Golf Course Cost Recovery Golf courses exist within the public and private sector as stand alone operations. Successful golf courses rely on a variety of income sources: green fees, cart rentals, pro shop sales, driving range,restaurants, and catering. As has been related previously to Council, LLGC lacks many of these amenities, making it difficult to fully recover costs. Council has acknowledged these limitations and tasked LLGC with generating sufficient revenue to at least cover direct operating expenditures, as set forth in the City's Budget and Fiscal Policies: Golf program fees and rates should fully cover direct operating costs. Because of the nine- hole nature of the golf course with its focus on youth and seniors, subsidies from the General Fund to cover indirect costs and capital improvements may be considered by the Council as part of the Financial Plan process. Fiscal Summary Table 1 presents actual and estimated fiscal results for 2001-02 and 2002-03. It shows that for both 2001-02 and 2002-03, revenues overall are about $250,000 less than total costs, which consist of the following three main Table 1. Changes in Golf Fund Working Capital types: 2001-02 2002-03 Actual Estimated 1. Direct Operating Costs. Shown Revenue Green Fees $223,700 $249,000 as "Leisure, Cultural & Social Other Service Charges 47,300 36,700 Services" in Table 1, these Interest Earnings 1,600 1,000 include the "direct" operating Total Revenue 272,600 1 286,700 costs of the golf course such as Evenditures staffing, supplies and utilities for Operating Programs turf maintenance and pro shop Leisure,Cultural&Social Services 368,100 370,400 General Government 113,700 117,100 operations. These totaled Total Operating Programs 481,800 487;500 $368,100 in 2001-02 and are CIP Projects* 40,500 45,000 estimated at $370,400 in 2002- Total Expenditures 522,300 532,500 03. Revenues(Under)Expenditures (249;700) (245,800) Operating Transfer from General Fund 221,600 245,800 Working Capital,Beginning of Year 28,100 2. Indirect Costs. Shown as Working Capital,End of Year $ - $ - "General Government" in Table 1, these include the "indirect" costs related to the golf course such as its "fair share" of accounting, payroll, insurance, human resources, information technology, city clerk and legal services. They also include an allocation of Parks and Recreation administrative costs, such as the Director's time in overseeing this program. The indirect costs for all City operations are determined by a formal Cost Allocation Plan approved by the Council for this purpose. Placing these allocations into perspective, the Golf course accounts for 1.1% of total City direct operating costs; and the 2001-03 Cost Allocation Plan distributes 0.9% of total indirect costs to it. 3. CIP Costs. This includes Capital Improvement Plan (CIP) costs, such as repairing golf course infrastructure like bridges and tees, and replacing equipment. GXomeil Agenda Repom\CAR-04.15.03-t agrod aker ILDOC C� -� Laguna Lake Golf Course Status Report Page 4 of 10 While it is City policy that revenue cover at least direct operating cost, this has not happened since 1996-97. Excluding indirect and CIP costs, revenues of$272,600 in 2001-02 were $95,500 less than direct operating costs of $368,100. As presented in the recent Mid-Year Budget Review, similar results are projected for 2002-03, with revenues less than direct operating costs by$83,700. What Happened? There have been no significant changes in operating expenses,just the normal increases associated with cost of living adjustments. In fact staffing, the major cost of any City operation, has not changed since the City began operating the golf course in 1980. When the City began directly operating the golf course, it was staffed with a golf course manager, two maintenance workers, and temporary employees to work as starters and pro shop attendants. This is the current level of staffing. The problem is on the revenue side. As shown in Table 2, green fees are down from a high of in 1996-97 of$283,700 to $223,700 in 2001-02. Even though they have been regularly adjusted over the last nine years, green fee revenues for 2001-02 are less than they have ever Table 2.Green Fees:Last Nine Years been. For example,they are: $300,000 --- 1. $36,600 less than nine years ago $280,000 (down by 14%). $260,000 2. $60,000 less than their peak 5 years ago in 1996-97 (down by 21%) $240,000 3. $27,400 less than last year(down by $220,000 11%). $200,000 There is no reason to expect any 1994 1995 1996 1997 1998 1999 2000 2001 2002 significant improvements in 2002-03. Fiscal Year Ending Reduced Revenues Reflect Reduced Rounds Played As reflected in Table 3, green fee trends closely mirror rounds played. Simply stated, revenues are down because there are fewer rounds of golf being played at LLGC. For example, 36,000 rounds were played in Table 3.Rounds Played 2001-02 compared with 50,000 in 1996- 52,500 97. There are a number of reasons for the 50,°0° drop off, most of which have been 47.500 previously reported: 45,000 42,500 1. A general downturn in the golf 40,000 indus . Golf industry publications 37,600 report a 20% drop off in rounds played 35,000 32,500 over the past several years. The main 30,000 reason given for this is the state of 1995 1996 1997 1998 1999 2000 2001 2002 economy. Golf can be an expensive Fiscal Year Ending GACowcil Agenda Reports\CAR-04.15.03-LagimaLakeGoICDOC Laguna Lake Golf Course Status Report Page 5 of 10 sport, in tough economic times, people play less golf. At LLGC, the fall off in rounds began in 1998, which was the winter of El Nino. The golf course was closed almost every day for three months. Staff theorizes that some people got out of the habit of playing golf.. 2. Proliferation of golf courses. In 1997, there were seven (7) golf courses within a 30-minute drive of San Luis Obispo. Now there are thirteen (13), including two new short golf courses, LLGC's main competition. The opening of the Dairy Creek Golf Course in 1997 has siphoned off many players. Before this proliferation, the three government-operated golf courses in the county (Laguna Lake Golf Course, Morro Bay, and Chalk Mountain) had 220,000 rounds played annually. This past year, there were 220,000 rounds played on the four public golf courses. In effect, the addition of Dairy Creek has redistributed the existing rounds played. 3. Changing of the guard. Over half of the rounds played at LLGC are by retirees. As time goes on, they play fewer and fewer rounds. While there are youth programs at the golf course, including teen golf activities, there are not enough new golfers being developed. Other Expenses. Under the current cost recovery guidelines at LLGC, the General Fund covers the cost of capital improvements; most of those are anticipated and budgeted for. This includes vehicle and equipment replacement (for two riding mowers, two utility vehicles, and a truck), and structural maintenance. This has included parking lot paving, bridge replacement, and repairs to the pro shop. These expenses have been anticipated and spread out over the budget cycles. What was not anticipated, at least not in 1993 when the Enterprise Fund was established, was the infestation of Pine Pitch Canker, which hit the golf course. There are over 150 Monterey Pines, all of which have been fatally infested. Removal and replacement, which has been in progress for five years, will cost over $100,000 when completed. This expense contributes annually to the General Fund subsidy needed to maintain the Enterprise Fund. The Bottom Line. In the almost forty-year history of LLGC, it has been operated as a private business, contract program, General Fund program, and an Enterprise Fund.. It has never produced enough revenue to cover all of the golf course operations and most likely never will. However, a revenue target equal to expenditures seems attainable. New Initiatives To close the gap between expenses and revenue, several new initiatives will be attempted 1. Stop the bleeding. The most frustrating part of this problem is that it keeps getting worse. However, things may have bottomed out: for the first time in five years, revenues are on the increase, if ever so slightly. Revenue for the first six months of this fiscal year is $5,000 more than the same period last year: Even in the period when revenues were dropping, staff tried to remain optimistic and project an increase in revenue. Consequently, the gap between projected revenue and actual revenue grew. This year's revenue projection will be scaled back to a reasonably attainable level. G:\Co=l Agenda Rqp=%CAR-04.15.03-LagunaLakeGOILDOC a�� c C Laguna Lake Golf Course Status Report Page 6 of 10 2. Play to our strength. The fact that rounds of play increased from 15,000 in the early 1980's to the high of 50,000 in 1996-97 can be directly attributed to golf course conditions. Invariably, people note the fine condition of the golf course as the reason they play there. Fiscally, it would not be wise to make any changes to golf course operations that would translate to less maintenance. To the contrary, staff feels that there are changes that can be made to make the golf course more attractive and therefore produce more rounds of play.. Staff reports from customers that the raised greens on the golf course make scoring more difficult. Over time and within existing resources, staff will rebuild and lower all of the greens. The loss of a bridge on the golf course has created a need to temporarily re-configure the golf course. A temporary "tenth green" was added. In effect then, each existing green could be closed for a while as it was rebuilt. Staff also intends to add a few sand traps that can actually speed up play. Realistically though, the City can no longer just rely on superior golf course conditions to produce more rounds of golf. 3. Provide better customer service. The staff at LLGC is aware that good golf course conditions equate to more play. They are quite protective of the golf course; in fact, they are a little too protective. The public needs to be treated as valued customers. Staff needs to balance the need to preserve the golf course, with the need to bring people back. The Golf Supervisor is in the process of reviewing all golf course use policies, to see how operations can be made more customer-friendly.. 4. Public relations plan/new programs. Using carryover funds, staff has contracted with Barnett Cox and Associates for recommendations on better public relations efforts and programs targeted at likely users. Proposed new initiatives will go forward on a trial basis. Those that prove successful will come back to Council for formal approval during the Annual Fund Review and Rate Setting. This will include reduced fee programs designed to produce additional revenue through increased play, such as: Youth Golf The best way to develop new players is to start them young. This includes a year-round youth golf academy that teaches basic golf skills and golf course etiquette. Academy graduates will be eligible for play at a reduced rate ($4.00 per round). A family rate ($12) on Sunday afternoons will be tried. The family will have to include at least one child. It has also been pointed out that most young golfers in the community are male. San Luis Obispo High School for example does not have a girl's golf team. One reason for this might be the lack of any local female golf instructors. Staff will attempt to recruit one through the Cal Poly Women's Golf Team. Staff is also investigating a caddy program, where youth golfers could earn free rounds by caddying at the golf course. This could be targeted for seniors on the weekend. Most seniors do not play on the weekend, so this added service has the potential to increase rounds. Teens. Many local teens involved in school sports are also golfers. Staff plans to offer a series of tournaments on Saturday or Sunday afternoons for this age group. As the youth golfers become teens, more programs will be offered. College Students. There is a potential to increase play on Friday afternoons with advertising targeted at college students, which would include a reduced rate after 2:00 pm. This would GACumcil Ag=da Reports\CAR-04.15.03-LagmaLakeGolfDOC C O Laguna Lake Golf Course Status Report Page 7 of 10 primarily be through the on campus media, both print and radio. Staff will also attempt to arrange with a local business to offer a barbeque in the group area at the golf course on Fridays. If this is successful, a larger food service concession will be explored. Concessions bring a risk-free source of income to the golf course. Adults. Staff will offer either tournament or league play designed to have more golfers use the golf course on a regular basis. General Promotions. Staff has scheduled a Chamber Mixer for the golf course next June as a way of letting the business community know of the opportunities available. There are some avid golfers in the local media, and staff will attempt to involve them in promoting the golf course. 5. Targeting. To paraphrase a popular saying, "we can try any public relations activity or new program we want, we just cannot try them all." Staff and advertising resources are limited and must be applied to the areas that will produce the most revenue. Staff feels that youth and college age golfers provide the best potential for new golfers and intends to concentrate on those groups. That is not to say that new adult or senior programs will not be tried; they just will not be the emphasis. The question of marketing to tourists comes up a lot. On the surface, this seems like a very good idea. However, this has been tried in the past with little success. In 1995-96, an extensive tourism-marketing program was attempted. Golf course brochures were placed in local hotels and motels. Advertisements were placed through local efforts that promote tourism. Staff enlisted the support of professionals in the tourism industry. The results were negligible, even at a time when golf course play was on the increase, Candidly, LLGC is not able to compete with other local golf courses for tourists. The golfer most likely to use LLGC is retired and traveling in a recreational vehicle. There are several golf courses in the county adjacent to camping areas. RV'ers can park and walk to the golf course. There are also golf courses adjacent to hotels, motels; and rental condominiums in this area. These golf courses also offer driving ranges, golf carts, and a full service restaurant. There might be an opportunity to pursue some shared advertising with the County golf courses, targeted at tourists. In any event, it takes the same effort to attract a tourist who might play one round a year as a local fifth grader who will play 50 times. 6. Reduce direct operating costs. As part of preparing the 2003-05 Financial Plan, the support from the General Fund will be reduced. The reductions will include a $32,500 reduction in CIP costs and $28,000 from operations. The final numbers will be presented to the Council as part of the Preliminary Budget and Enterprise Fund Rate Review in May 2003. 7. Maximize other sources of income. Last year the City was approached about placing a cellular site at the golf course. The original company has found another location, but staff is in contact with another provider who is considering the site. There are G:\Council Agenda Reports\CAR-04.15.03-LagaaaLAkeGol[DOC r� Laguna Lake Golf Course Status Report Page 8 of 10 advertising/sponsorship opportunities on the golf course that could produce revenue. Although this might require changes in policies related to these activities, the opportunities need to be investigated. ALTERNATIVES 1. Sell LLGC and Use the Proceeds for Another City Priority. The sale of LLGC could bring the City$10412 million. That amount could be used for any purpose as determined by the Council. It could be used to acquire open space, build a senior center or a new headquarters police station, or provide affordable housing. Some of that money could be used to acquire land and construct a new golf course that would include amenities such as a driving range. Council could also choose to get out of the golf business entirely. While this might be a good business decision, it is not being recommended at this time for several reasons, including: Opposition from residents in the golf course area. A significant number of people who live in the area choose to do so because of the golf course. For many,the golf course is their back yard. Some are not golfers; they just enjoy the green space provided by the golf course. These residents have expressed opposition to converting the golf course into a location for affordable housing. They note that the Laguna Lake area of the City already has a significant amount of affordable housing. They also note that additional housing in the area, along with other previously approved projects,would adversely impact traffic on Los Osos Valley Road. Opposition from golf course users. While play is down from prior years, the fact is that this golf course provides an active recreational activity to many seniors and youth in the community. Some seniors using the LLGC do so because a full size golf course is too long for them to walk. Although it is not achieving the targeted cost recovery levels, it is nonetheless the City's highest cost recovery recreation program. Issues raised by the sale of parkland. LLGC is a part of the City's park system. The Parks and Recreation Element discourages the sale of parkland in Policy 2.51.6: Lease or sale of City-owned parkland is discouraged unless such an action meets a demonstrated need, which can otherwise not be met. The Element also calls for the replacement of any land sold in Policy 2.51.7: Provisions must be made to replace any parkland sold with an equal amount of land at another location. Parks and Recreation Commission opposition. At the March 5, 2003 meeting, the Parks and Recreation Commission reviewed the matter and strongly supported retaining the Laguna Lake Golf Course as a municipal golf course. Commissioners noted that the value of a golf course extends beyond just those who play. The golf course provides open space, an urban buffer, and reduces pollution, both air and noise. It was also noted that the majority of golf course users are in the City's highest targeted age categories: seniors and youth. While the WCouncaAgenda xcports\cnne-04.15.03-Lige¢Doc O� ^d Laguna Lake Golf Course Status Report Page 9 of 10 golf course does not meet existing revenue targets, it is less expensive to operate than any other active park space in the community. Commissioners consider the golf course an active park. Commissioners also felt that with better marketing, the revenue gap could be closed. A copy of the minutes of the meeting of March 5, 2003 is included as Attachment 1 to this report. 2. Convert LLGC to a General Use Park. In theory, some unmet park needs could be addressed here. Practically speaking, this would be an expensive option. Any organized recreational facilities, such as ball diamonds would require a complete redesign that might be more expensive than starting from undeveloped land. It would also place high use recreational facilities in close proximity to residential neighborhoods. This creates problems in other parts of the City. More fundamentally, this would have a significant general fund impact. The City would be maintaining the same 27 acres at a cost of about $9,500 per acre, without the $280,000 in revenue that is now generated. 3. Sell or Lease Surplus Land. There is slightly more than one acre of land behind the parking lot that is currently unused and could potentially be sold or leased, with the proceeds used to offset golf course operations. This might be a good site for a commercial venture such as a restaurant. It also could be used for housing. While the neighborhood might object to either of these uses, it would be preferable to selling off the entire golf course. Commissioners, while not disagreeing with this strategy expressed concern that any sale of land be carefully considered and done only as a last resort. 4. Contract Operations. Contracting the entire golf course operation is not recommended. As has been previously noted, the golf course lacks the amenities needed to sustain an independent operation. The only way a contractor could hope to make this work would be to reduce maintenance, which would in turn reduce play. It is important to note that contracting has been tried three times in the history of the golf course. On each occasion, it failed, and more importantly, the golf course deteriorated because of reduced and deferred maintenance. What might be considered is the contracting of pro shop operations. A private contractor would be paid a flat annual fee to provide a golf course starter, during all open hours. The starter would collect and then turn over to the City all golf course related fees. In return, the contractor would be allowed to operate a pro shop, sell golf supplies and food items, and teach lessons. The City could achieve an operating savings, if the fee to provide starter services was less than the cost to staff the pro shop with temporary City employees. Two of the county golf courses operate under this arrangement: in these cases, the County retains golf course maintenance. There might be an opportunity to collaborate with the County or their concessionaire. Staff is recommending that this item be studied further prior to any formal recommendations being made to Council. C:�WINDOWSITEMP\CAR-04.1 s.oJ-LagwaLukcGolf.00c Laguna Lake Golf Course Status Report Page 10 of 10 CONCURRENCE The Parks and Recreation Commission reviewed this matter at their March 5, 2003 meeting. The following recommended actions were taken: 1. The Commission strongly supports the retention of Laguna Lake Golf Course as a municipal golf course. 2. The Commission supports the development of a plan of action to increase revenue and offset expenses. 3. The Commission recommends that staff form an adhoc task force to assist in implementing the plan of action. Note: This has already been implemented. FISCAL IMPACT The immediate reduction in the General Fund subsidy will come from the expense reductions that will be implemented as part of the 2003-05 Financial Plan. However, while staff is optimistic that the proposed changes will increase revenue, it cannot be guaranteed. Even in the most optimistic of circumstances, it will take several years to close the gap between revenue and operating expenditures. ATTACHMENT Parks and Recreation Commission Minutes of March 5, 2003. GAComcii Agmda Reports\CAR-04.15.03-LcGolf.DOC �I O ATTACHMENT 1 Parks and Recre4tion Commission MINUTES City-County Library Conference Room Wednesday, March 5, 2003, 7:00 p.m. CALL TO ORDER: Chair Peter Dunan called the meeting to order at 7:00 p.m. ROLL CALL: Chair Pete Dunan, Commissioners Daniel Buckshi, Gary Clay, Teresa Larson, Jim Neville, and Bill Pyper. ABSENT: Debbie Black STAFF: Director Paul LeSage, Todd Bunte, Carolyn Goossens, Todd Bates, and Cindy McDonald. PUBLIC COMMENT PERIOD: Steven Smith would like the gates opened on Royal Way to the Natural Reserve. Paul LeSage will meet with the Natural Resources Manager and Senior Ranger to discuss building a pedestrian entrance to the City owned natural reserve. CONSIDERATION OF MINUTES: The minutes of the December 4, 2002 meeting were approved unanimously. 1. Volunteer of the Month AmeriCorps Mentor of San Luis Obispo County were presented with the Volunteer of the Month certificate. Melinda Montgomery-Ames, Shannon Witt, and Erin Pursell were present. 2. Laguna Lake Golf Course Enterprise Fund Commissioner Pete Dunan started the discussion with the statement that there have not been negotiations for the sale of Laguna Lake Golf Course,the audience responded with applause. Director Paul LeSage introduced the Laguna Lake Golf Supervisor Todd Bunte. LeSage briefed the Commission on Laguna Lake Golf Course's fiscal operation and the revenue history for the past few years. LeSage stated that the reason the City is doing this exercise because revenue is down, and City Council would like the to see a report on the status of the golf course. LeSage went over the main points of the staff report. He then reviewed with the Commission the handout presented at the meeting. Commissioner Pyper asked if the unused 1-1/2 acre could be a proper size driving range. LeSage responded that a full size driving range could not be easily installed. Commissioner Jim Nevelle asked what the recreation staff are doing in terms of programming for the golf course. LeSage responded that Adult Sports and youth program staff are working with golf course staff for programming. Neville also asked if the golf course has enough area for a virtual driving range. LeSage said this was something staff can look into. LeSage read a letter sent to the Parks and Recreation Office from Ted Foster who lives on Carolyn Drive. It stated that Mr. Foster has medical conditions that prevent him from walking an 18-hole golf course but a 9-hole course is "made to order" for him. He is a 53-year City resident and a proponent for keeping the golf course viable,even if it means raising fees. C.•IKYNDOW57TEMPI03.05.03,if#wa obcc:J — I Parks and Recreation Comi.^cion A I TACHM ENT 1 Minutes for March 5, 2003 Page 2 Commissioner Dunan opened public comment. Carolyn Smith —Cucaracha Court. Ms. Smith thanked Commissioners and asked questions about the enterprise fund. She did research on the park system and according to her estimations, the data shows that it costs about $9,600 an acre a year to maintain. She does not believe that the golf course is expensive to maintain. According to Ms. Smith, a lot of families and seniors use the park. The alternative plan of selling the course would be a.detriment to the families of the area. She felt traffic would be horrendous if the City sold the land and allowed houses to be built there. Howard Bentzinger - Royal Court. Mr. Bentzinger complemented staff and Mr. LeSage for a good presentation. Mr. Bentzinger thought that the idea of a citizens committee was a wonderful idea. He added that giving parents and kids who play a break and give favorable rates for the junior high school was a good idea. He added giving high school kids lessons so they can learn the etiquette rules. Mr. Bentzinger said that selling the Laguna Lake Golf Course would put a strain on the neighborhoods who have lived with CCR's and fence heights,conditions that everyone signed on to when they moved here. Joyce Segler—Royal Way. Her home is near the 5th hole. Ms. Segler likes the environment as the golf course acts as air conditioner. She is from a city that has a lot of pollution and she does not want to see the City of San Luis Obispo go in that direction. She spoke of the seniors who need exercise and use the golf course as their exercise routine. Ms. Segler gave the suggestion that to help with the replacement of trees, the City could start a Memorial Tree Planting Program at the golf course. Donors would pay for a tree in memory of a loved one. Mrs. Jecker—Fairway Drive. Mrs.Jecker likes the memorial tree idea. Eve Benson — Fairway drive. Ms. Benson has lived here since 1970, and agrees with the earlier remarks of Ms. Smith. Bob Bishop—Karen Drive. Mr. Bishop suggested that the back of church could be used for additional revenue. Dan Hines — Partridge Drive. Mr. Hines that the expenses are already cut to the bare bones. His suggestion that the tourists should know that there is a golf course and perhaps offer twilight rounds. Jerald Jecker — Fairway Drive. Mr. Jecker suggested seeing what Sea Pines, a Los Osos course, are doing. He also suggested associating with the mobile home park to increase play. Ruth Starr—Casey Drive. Ms. Starr suggested a chipping place. She would also like to see if the use of a couple carts at the course could be allowed; this would allow many more people to play. She also suggested contracting the shop/clothing part of the pro shop out. Phyllis Broden—Royal Way. Ms. Broden works with teens and they get a discount at the Avila Beach course and perhaps Laguna Lake Golf Course could follow that example. Bruce Langford, residence unknown. Mr. Langford said he was approached by a developer and had a few questions as to how much it costs to maintain a baseball field. Sylvia Drucker— Calveir Lane. Ms. Drucker agreed with Ms. Smith's earlier remarks. She does not like the order of the"Alternatives" items in the report and asked that they be in order of the best to the least desirable alternatives. She asked if the pool and tennis courts are going through the same type of budget scrutiny. Ms. Drucker said if the course were in real danger of closing that people would not mind paying a 25 to 50 cents more. She said there should be etiquette classes offered for the youth. C: tI I nfT�,�HMENT 1 Parks and Recreation Comr. cion Minutes for March 5, 2003 Page 3 Joe Silva—Royal Court. Mr. Silva likes the idea of the improvements of elevated greens, sand traps, and driving range. Mike Hess(sp?) — Shell Beach. Mr. Hess said that Mr. LeSage gave a good presentation and even though he does not play or live at the course, he felt that the matter is a solvable one. He said that the course could use the retirement professionals in the audience. He also suggested that at certain times you could bring a friend for 'h price. He said that there is enough "affordable housing" in that area of the City. Howard Drucker—Cavalier. Mr. Drucker agrees with Sylvia Drucker. Paul Marcotte — Cumbre Street. Mr. Marcotte complimented Todd Bunte on a wonderfully maintained facility. Mr. McDougal, residence unknown. Mr. McDougal asked about the Army Reserves replacing the bridge. Mr. LeSage explained the bridge situation to the audience. Hal Gascogne — Royal Court. Mr. Gascoigne enjoys the golfers and the green belts. He said Ms. Smith did a great job in analyzing the golf course expenditures, he suggested that a business plan for this be written. He said to use the retired professionals in the audience and get input from the golfers/seniors; he added these folks are skilled at developing business plans. Mr. Gascogne also mentioned the safety issue of the traffic, he stated that LOVR is a speedway already and any more development will only generate more cars. He felt that if the course is treated it like a business and it is losing a small amount of money it is worth it to the citizens of San Luis Obispo to keep. He felt it is unwise to sell. Charlene (no last name given). She feels there should be more promotion of the golf course. Rich Sanders(sp?) Mr. Sanders felt that the City should have a youth program or have individuals donate old clubs and the youth pay for the regripping fees. He advises against getting outside help. Mr. Sanders suggested a$50 a month golf card that could result in $600 year per person in revenue. Lang Pennington —Cotrida Drive. Mr. Pennington complimented staff for the wonderful job they do policing the grounds, and maintaining the course. He agreed with Mr. Hines that the tourists should know about the Laguna Lake Golf Course. Mark Brazil —Pismo Street. Mr. Brazil complemented the audience on the great ideas they suggested. He thinks of the golf course as a City park, and asked how are the monies recouped at the other parks; he believes that the attendance at this meeting reinforces the need for Laguna Lake Golf Course to stay as a golf course. Dan Velez — Pismo Beach. Mr. Velez suggested a fast food operation in the back of the golf course, something quick for the golfers to grab before or after play. Mike Taniguchi — Golf Course employee. Mr. Taniguchi said that in other City parks, cell sites are installed with a financial return to the City. LeSage said that the City is in the process of looking into the prospect of a cell site located at the golf course for additional revenue. Teresa Vega Iniguez — No residence given. Ms. Iniguez said that she did not see a big budget overview of the all the parks of the city. She wondered how the budgeting or the cutting of the golf course agrees with needs for recreation for the needs of all the citizens. Laguna Lake Mobile Estates, Linda Godard, Resident Manager. Ms. Godard provided a letter and attached 65 signatures who voiced their opposition to the selling of the Laguna Lake Golf Course. C), 15 Parks and Recreation Corm .cion MACHMENT i Minutes for March 5, 2003 Page 4 Original signature list is in the Parks and Recreation Administration office. Frida Murphy—Royal Way. Ms. Murphy has asked mayor about the selling the golf course. Commissioner Dunan closed public comment. Commissioner Dunan complimented LeSage on the report. He asked if the selling of the Golf Course could be deleted from the "Alternatives" in the report. LeSage responded that he would be remiss in his obligation to the City of San Luis Obispo if he did not show all the alternatives to City Council. Dunan thanked the public for their input and commented on the wealth of talent in the audience. He then asked the public for their participation in the April 15th, 2003 City Council meeting. Dunan read from his list he made as each person spoke,the ideas are as follows with LeSage's comment in italics: Create an advisory group: Promotions and marketing would be the first purpose of the advisory group, LeSage asked Bunte to take names at the end of the meeting that want to help with this. Comparison of park facilities —LeSage - the actual cost of a maintaining a park is about the same as the golf course. It is generally accepted that cities maintain parks and expect golf courses to cover their expenses. Commissioner Neville asked about moving the golf course to the general fund and to explain the difference between the general fund and an enterprise fund. LeSage feels that the golf course is in the right fund. Create a Citizens Committee — youth to high school. Staff could recruit someone who is good at advertising, with kids, and programming. Implement a Memorial Tree Program—good idea, staff will look into. Look into a tourism twilight league — staff intends to address solicit interest for a twilight league, perhaps offer discount cards. Install a chipping area—over the next year or two,Bunte to look at the added cost and maintenance. Allowing Carts—staff will look into acquiring two or three (donated?)carts and see how this works. Rearrange the recommendations—staff will re-order of the alternatives.. Use the players to market the golf and to advertise, audience agreed. Start a donation of golf clubs for a youth program. Part of the citizens committee. Eliminate the General Fund idea— better serve as an enterprise fund— does not mean it recovers all the money, better accounting. Allow fast food—hot dog stand concessionaires. Staff feels it might be successful. Question: Has a developer approached the City regarding the land at Laguna Lake Golf Course? Answer no. Each Commissioner Responds: Larson stated that it is clear that the community wants to keep this course and that they brought some good ideas. The citizens advisory committee is an interesting concept. Would like to see that the Teens and Seniors are targeted in the formation of citizens group. Buckshi — agreed with the Commissioners — brought up the budget deficit and wondered what other recreation programs are being sacrificed? Buckshi fully supports BC&A for marketing purposes and C9 ' Parks and Recreation Com�. .aion ATTACHMENT 1 Minutes for March 5, 2003 - Page 5 investigating whether contracting the pro-shop would be a good alternative. Buckshi would be in favor of selling the excess land before cutting other programs and/or selling the golf course. Pyper—Even with the shortfall of funds,there is a need to market the golf course with a brochure to all hotels and motels. Clay — stated that this is tenuous period of economics — many issues are being analyzed that will require difficult decisions ahead of us. The value of the golf course is above the player or the game of golf; it cuts noise pollution, and buffers the neighborhoods. Open space is important to the City of San Luis Obispo. Dunan- tourism issues should be addressed — professionally — cooperating with the Promotional Coordinating Committee and the Downtown Association. Marketing is very critical prior to tourists coming to San Luis Obispo. Dunan spoke to the audience that they need to be the calling card for the golf course. He asked that they come to the Council Meeting on the 15th and let their voice be heard. He said that the golf course is a lovely part of the community and to make it stay, it will take the voice of the community. He encouraged the audience to stay involved. Recommendation: ■ The Commission strongly supports retaining the Laguna Lake Golf Course as a municipal golf course(Dunan/Pyper, unanimous). ■ The development of a plan of action to increase revenue and offset expenses. (Clay/Buckshi, unanimous) ■ The formation of an adhoc task force to assist in the implementation of the plan of action. (Neville/Dunan, unanimous) 3. Donation Offer on corner of Broad and Santa Barbara Streets LeSage briefed the Commission of the donation offer for the corner of Broad and Santa Barbara Streets. Applicant is proposing the leasing of public space for outdoor dining. Dick West, President introduced Terry Lee, landscape architect who then summarized the concept ideas to the Commissioners. The public art piece was shown by Randy Aughburger. Mr. Lee stated that they planned to place the artwork in an area that would be a gathering spot for citizens. LeSage reminded the Commissioners about the landscape parkway entryway. Commissioner Clay noted that the irrigation needs are modest; lawn irrigation would be small, suggested to continue the walkway through the grass. Larson had no comment. Buckshi said the concept plan looks fine, although has questions regarding the naming the park. Pyper believes that lawn is a waster of water. Mr. Lee commented that the public could gather on the grass, and offered to change it to ground cover. Clay said he would rather have a ground cover with native plants — a symbolic gesture. Dunan was favorable but had two concerns; the lease amount, 50/sq foot or 1.00/sq foot, and the naming convention. He is uncomfortable with the parks being named the same of a businesses. Lee said that the area serves as an entry to the "village" (downtown area.) Clay suggested leaving it an unnamed park. Recommendation: 1. Accept the offer of donation to renovate and maintain the demonstration garden property. (Pyper/Buckshi, unanimous). Parks and Recreation Comi`i_ ,ion ATTACHMENT 1 Minutes for March 5, 2003 Page 6 2. Approve the design of the park w/one modification of the walkway through the turf area (Larson/Pyper; unanimous). 3. Lease a portion of the site for outdoor dining(Neville/Pyper,unanimous). 4. Naming the park: accept the name for the park; motion failed 3:2 (Buckshi, Dunan, Neville opposed)0(Clay abstained). 4. Conservation Plan for Irish Hills LeSage introduced Neil Havlik, Natural Resource Manager and Michael Clarke, Biologist to the Commission. Havlik briefed the Commission regarding the Conservation Plan for Irish Hills. Public comments were as follows: John Cutter of Central Coast Concerned Mountain Bicyclists, a local mountain bike club, offered to work with staff on clean up and maintenance trail days. He stated that their group is a responsible group of citizens that enjoy active recreation. Don Dollar endorses the plan and complimented staff on the work they have done. Clarke presented a slide show to the Commissioners. Recommendation: Commissioners endorsed the concept plan. 5. Adjourned The remainder of the agenda was postponed to the next meeting. The meeting adjourned at 10:47 p.m. to the April 2, 2003 meeting. ^ I (- Melissa Ellsworth -Laguna Lake Golf Co,--e& Los Osos Road median _ ® Page 1 1 From: "Snoops" <Snoops@charter.net> To: <mellsworth@slocity.org> Date: 4/15/03 1:55PM Subject: Laguna Lake Golf Course& Los Osos Road median At the risk of being seen as a NIMBY( my house backs up to he golf course), I would like to support the continued use of the Laguna Lake golf course as it is now. While spending money on recreational facilities such as this should be reviewed periodically, so should the benefits to the community. I am not a golfer, but I like to watch the golfers as they go past my house. I see many folks who probably fit the"retired category using this golf course, as well as young people, families, and groups of friends. It seems to be a really positive contribution to the lives of people who play here. This kind of activity—nearby, inexpensive, health-promoting, fun for families, is really needed. I hope you will support its continuing operation in San Luis Obispo. I am aware that more housing is needed, but perhaps a look at multilevel housing, mixing of business and residential, etc would be a better alternative to sprawling out where the golf course is. As for a median in Los Osos Valley Road, I would like to comment that if the maximum speed were lowered and enforced, a median would not be necessary. Thank you for consideration of my comments. Betty Hesters 1586 Cucaracha Ct. San Luis Obispo, Ca 93405 RECEIVED APR 15 2003 SLO CITY CLERK RED FILE MEETING AGENDA DA a3 ITEM # 8i.ls a- `v [YCCUNCI , CDO DIR ,2 CAO ,2 FIN DIR ACAO Z'FIRE.CHIEF 0,ATTCRNEY DPW DIR O"CLERK/ORIG [e"POLICE CHF 130 P HEADS 2'REC DIR 7f SHR DIR Barbara Ehrbar-Ci Web Visitor Com—nts Page 1,l From: <ruthstarr@earthl ink.net> To: <behrbar@slocity.org> RECEIVED Date: 4/11/03 3:54PM Subject: City_Web_Visitor Comments APR j 4= 2003 Today's Date: 4/11/03 3:53:18 PM SLO CITY CLERK ATTN: SLO City Name: Ruth A. Starr Address: 1621 Gathe Dr. City: San Luis Obispo State: ca Zip: 93405 Phone: 805 782 9328 Fax: Message: Please do not entertain the idea of selling Laguna Lake Golf Course. It is a gem here in SLO and serves many young adults and seniors. It is a beautifully kept course and treasured by many many people. Also, it would put the traffic level on LOV to a horrendous amount if this property were made into low cost homes. Surely there are other areas that could be developed for that. I am also opposed to any median strips that would interfere with people being able to turn into the golf course or leaving from it. It is simply put, a bad idea. email–from: ruthstarr@earthlink.net ddut'd ee� ,�r�p 8'COUNCIL TCDD DIR RED FILE ,ICAO 2FIN DIR ZPT ACAO -t, FIRE CHIEF ME 1 G AGEND ZATTORNEY ZPw DIR DA 1 ITEM #_-� 2rCLERK/ORIG Zi POLICE CHF ❑ D , T HEADS ZREC DIR zr Z UTIL DIR HR DIR