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Home My WebLink About06/02/2005, 1 - LAGUNA LAKE GOLF COURSE FUND RATE REVIEW counat M� 1�2,z,zoos j acEnba wpont �Numb. C I T Y O F SAN L U I S O B I S P O FROM: Paul LeSage, Director of Parks and Recreation SUBJECT: LAGUNA LAKE GOLF COURSE FUND RATE REVIEW CAO RECOMMENDATION 1. Review and discuss golf course programs, project and fees for 2005-07. 2. Authorize General Fund operating transfers of$259,900 for 2005-06 and $207;500 for 2006- 07. DISCUSSION Background The golf industry on the Central Coast continues to be in a downturn. Many courses are experiencing financial difficulties leading to a-variety of special and low cost packages designed to increase play. In 2003-04, the City began using a variety of promotions and new course services such as golf carts and rental fees from a cellular site lease to bolster revenues at Laguna Lake Golf Course. With the state of the golf industry at this time, raising fees will decrease play and revenue, as such, no fee changes are recommended at this time. Rate Review Objectives The objective of the rate review is to establish a revenue program that ensures a safe, attractive and reasonably priced golf course with an emphasis on senior and youth users and recovers a high level of(but not total) costs. LAGUNA LAKE GOLF COURSE FEES Current Current Rates 2nd 9-holes Senior/Youth/Student Weekdays: $6.50 $4.50 General Weekdays: $8.50 $4.50 SeniorNouth/Student Weekends: $7.25 $4.50 General Weekends: $9.25 $4.50. _ Senior/Youth/Student 10-Play Card: $60:00 General 10-Play Card: $70.00 Twilight Rate: $5.00 As noted above, no changes in rates are recommended at this time. CIBudget FO/ber50.Flnanda/Pba 12005-07Hnandat A/inlEnWrprls.REWSIWAgeetla Rg=r5.22-05.00C I Goff Fund Rate Review Page 2 Status of the New Initiatives Aimed At Increasing Revenue Staff continues to offer programs aimed at increasing the diversity of players at the course. First Tee is in its second year with each class filled to a capacity of 60 youth golfers who will continue to play, thus increasing play over the next few years. Specials such as reduced rates for a second nine holes, twilight rates, and family.discounts as well as the addition of a third rental golf cart are keeping the course competitive with others in the area. Golf course staff has also hosted a Chamber of Commerce Mixer and a Public Open House to promote the course. Furthermore, the cellular site guarantees revenue of$25,000 for at least five years. Attendance this reporting year is 40,521, down from last year's 41,731. Considering the extreme rainy conditions from this winter, these are very good numbers. CONCURRENCES The Parks and Recreation Commission reviewed and approved this item at its May 25, .2005 meeting. FISCAL IMPACT The following are the proposed operating transfers from the General Fund for 2005-2006 and 2006-2007, compared to the current year: 2004-2005 $206,700 2005-2006 $259,900 2006-2007_ $207,500_ The significant increase for the 2005-2006 year is due to the needed replacement of a lawn mower ($45,000) and a utility scooter ($12,500). Both items are well past their replacement dates-arid are no longer repairable. ATTACHMENTS 1. Parks and Recreation Commission draft Minutes of May 25, 2005. 2. Changes in Working Capital C.\DOCUME-PuloweALOCALS-N'emp\CAR 6205 LLGC Rate Review 200500C ATTACHMENT Parks and Recreation Commission NUNUTES City Council Chambers, 990 Palm Street Wednesday, May 25, 2005 12:30 p.m. CALL TO ORDER: Chair Peter Dunan called the meeting to order at 12:39 p.m. ROLL CALL: Chair Pete Dunan, Commissioners: Gary Clay, Bill Pyper, Don Dollar, Jill Lemieux and John Knight. ABSENT: Ty Griffin STAFF: Director Paul LeSage and Ashley Blake. CONSIDERATION OF MINUTES: The minutes of the May 4,2005 meetings were approved with corrections. 1. Laguna Lake Golf Course Rate Review Director LeSage presented this staff report.. Commission discussed the item. Recommendation: Recommend to the City Council to approve a resolution continuing the current golf course fees and authorize a General Fund operating transfer of $260,600 for 2005-2006. (Pyper/Lemieux, 3:2:1 Dollar abstained). Commission re-discussed item. Recommendation: Recommend to the City Council to have a $0.25 increase to the current golf course fees and authorize a General Fund operating transfer of $260,600 for 2005-2006. (Knight/Clay, 2:4:0 Dollar, Pyper, Dunan and Lemieux,opposed). Commission re-discussed item. Recommendation: Recommend to the City Council to approve a resolution continuing the current golf course fees and authorize a General Fund operating transfer of $260,600 for 2005-2006. (Knight/Pyper, 4:0:;2 Clay and Dunan, abstained). 2. Nanning of Batting Cages in Sinsheimer Park Director Lesage presented this staff report and introduced Ron Regier from the Youth Sports Association. Recommendation: Recommend to the City Council that the batting cages in Sinsheimer Park be named the Maino Family Batting Cages. (Knight/Pyper). 01DOCUME—IIsla"rlLOGL51ITempI057505+1.DOC /�3 Parks and Recreation Com.__ ,sion Minutes for May 25, 2005 Page 2 3. Joint Use Agreement Director Paul Le-Sage presented this staff report. Commission discussed the item. Recommendation: Recommend to the City Council that Addendum No. 1 to the Joint Use Agreement between the City and the San Luis Coastal School District be adopted. (Dollar/Knight). 4. Communications -Grand Opening of the Damon-Garcia Sports Field will be May 27-29. 5. Adjoumed The meeting adjourned at 1:28pm to the Parks and Recreation Department BBQ on June 8,2005. /-7 O b S S O S.- O pp O O O S S O O 140 O 1\�� 67 C,4 !� O b N M h N 0 .fir v1 to N N p O O O O O O O O C O O O O. R O N aR -- vi rl- 0 e` O V O\ 00 r- tz -. 0o M N •y, N N In N M -� in kni N v N a C? g Q g a cc w g o' S o C 00o S M n u o o d O d N d' C' m ,civ � N b VO 06 N .N •� N kn V1 N N a n 0 o SSSo o S S o tn in NQQ � M S N = N N O N M to N N .... S Q o S o S S o S a Q S .. N N a o o0 -- k1 M r- O\ 'v O\ M O ri Oi V7 R N a N N M V h h N v N Z ♦LL tnd. 0 0 0 O LU PC O O p O O BOS O o � ON p� O ON n N h N N �d (:5 v1 14 `O04 06 �OA 7 V N M 7 -+. 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