HomeMy WebLinkAbout05/20/2008, PH 4E - LAGUNA LAKE GOLF COURSE FUND RATE REVIEW J
council 5-20-08
j acEnaa Repoin „®N
CITY O F SAN LUIS 0 B I S P O
FROM: Betsy Kiser,Parks&Recreation Director
Prepared By: Linda Fitzgerald,Recreation Manager
SUBJECT: LAGUNA LAKE GOLF COURSE FUND RATE REVIEW
CAO RECOMMENDATION
As recommended by the Parks &Recreation Commission:
1. Review and discuss the 2007-08 annual golf fund financial and rate review.
2. Authorize additional General Fund transfers of$2,700 for 2007-08 and$1,300 for 2008-09.
3. Approve the Capital Improvement Plan request of $55,000 for barrier netting and pole
replacement along Hole#5.
4. Adopt a resolution approving green fee increases of 25 cents per round effective July 1, 2008.
REPORT-IN-BRIEF
Annually, the Golf Fund is brought before Council to analyze the previous year's activities at
Laguna Lake Golf Course (LLGC); make projections for the next five years; present any significant
operating program changes or Capital Improvement Plan (CIP) projects for approval; review
revenue requirements; and consider rate increases as needed.
The following is a summary of key findings and recommendations:
1. Rounds Played Are Down. There has been a decline in the number of rounds played in 2007-
08. Staff compared the numbers with other golf courses in the county and found the decline to
be consistent with other public golf courses. Reduced play can also be attributed to construction
work at LLGC and effects of weather on course use.
2. Proposed Rate Increase. A rate increase of $.25/round is being proposed and will assist in
reducing the subsidy from the General Fund. The new rate is comparable to other 9-hole golf
courses in the County. It should be noted that no "per round" rate increases were made last
year: other than a minor restructuring of the Friday rate, this is the first rate increase in two
years.
3. CIP Request: Hole #5 Barrier Netting. As a result of winter storms, the barrier netting and
support poles were damaged along Hole#5. A capital improvement project request for$55,000
is being submitted for approval by Council. $20,000 of this cost will come from funds
remaining from the Irrigation Control System Replacement project; a supplemental
appropriation of$35,000 will be needed for this work.
4. General Fund Support. The Council approved a 2007-08 subsidy of$509,200 at mid-year; an
additional $2,700 is being requested to cover additional costs associated with Hole #3 and
Laguna Lake Golf Course Fund Rate Review Page 2
revenue shortfalls which will be primarily offset by budget savings. Also at the mid-year
review, a subsidy for 2008-09 was approved by Council for$308,000. An additional subsidy of
$1,300 is being requested to cover the cost of the barrier netting CTP project along with adjusted
revenue projections.
DISCUSSION
Background
The LLGC is a 9-hole executive length course, open 364 days a year to the general public, and is the
only golf course within the City limits. The course is well maintained and operated by three regular
employees while several part-time workers and volunteers serve as staff for the pro shop and act as
course marshals.
Seven days a week, the golf course staff is active in maintaining the greens and fairways to sustain
an optimum level of play; feedback from the users frequently brings high praise to the excellent
condition of the course. Both the men's and ladies' club regularly meet at the course and have often
assisted in obtaining improvements for the facility, such as electric golf carts and a flag pole.
The pro shop operation is very basic in nature. Staff handles daily transactions for rental of golf
clubs, push carts and electric carts, green fee collections, general golf product sales and a moderate
amount of packaged food and beverages, and driving range use. Additionally, the staff also
schedules and serves as starter for tee times throughout the day and assists with the daily
maintenance needed for the eight electric golf carts.
A golf pro teaches lessons on a part-time, contractual basis. LLGC also is home to the First Tee
program,a program for youth whose mission is to develop character and life-enhancing values.
Over the years, the course has received little in the way of regular equipment replacement;
infrastructure issues in the pro shop and on the course have become more apparent over the past
four years as a result of budget reductions. It was just recently that the mowers and other
maintenance equipment have been placed on a replacement schedule with the final group to be
replaced in 2008-09. General infrastructure repairs, such as replacing the pro shop furnace and two
well pumps, have occurred within budget allocations. Lastly, we are in the process of converting
course irrigation from a manual operation to an automated,telemetry-based system
Assumptions
The Golf Fund financial and rate review(see Attachment 1) is based on the following assumptions:
1. Golf play throughout the Central Coast remains below normal, and LLGC is not an
exception to this trend: rounds played are projected to decline by 9% in 2007-08.
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Laguna Lake Goff Course Fund Rate Review Page 3
Annual Number of Rounds Played
Fiscal Year Rounds Percent
E!9ed Change
2004-05 40,700
2005-06 42,600 4.5%
2006-07 (actual) 45,600 6.6%
2007-08 (projected) 41,500 (9.1%)-
2008-09(projected) 1 42,700 3.0%
As reflected below, rounds played at the three public 18-hole courses run by San Luis
Obispo County are also down:
Rounds Played Com arison with Count Golf Courses
Chalk
LLGC Morro Bay Dairy Creek Mountain
(9 holes) (18 holes) (18 holes) (18 holes)
2005-06 +4.46% +2.18% +2.84% -1.37%
2006-07 +6.58% -0.67% +2.27% +10.41%
2007-08(projected) -9.10% -2.55% -3.09% +0.54%
Along with region-wide reductions in rounds played, the decline in rounds played at LLGC
is attributed to several other factors:
a. The reconstruction of Hole #3 required a.temporary restructuring of the golf course. A
temporary hole was constructed to continue to allow for 9 hole play; timing on the
construction project occurred sooner than anticipated so only 8 holes were available
during a two week period until the temporary hole was ready. Staff pro-rated the fee
during that time period, which included the Thanksgiving holiday, traditionally one of
the busiest days at the golf course. Hole #3 will be placed back into play around July
2008;three months later than originally anticipated.
b. Rainy weather in 2008 was more prevalent than in 2007 as evidenced by several days
with little or no play occurring on the course this winter.
c. All levels of rounds played are down this fiscal year with the most significant drop in
rounds by youth(down 42.3%)and twilight(down 21.36%)players. The loss of rounds
played may be attributable to reduced marketing efforts as golf course staff resources
were diverted to other tasks for several months as a result of a position vacancy and less
leisure dollars spent by the public during tight economic times.
2. Long awaited equipment and infrastructure needs were addressed this fiscal year, which
increased the capital project funding at the course:
a. Two new greens mowers and a Cushman utility can were purchased.
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Laguna Lake Gott Course Fund Rate Review Page 4
b. Amenities in the pro shop were improved with new tables and chairs for customers and
interior paint.
c. The irrigation system upgrades were purchased and will be completed before the end of
June allowing staff to operate the satellites from wireless units on the course or from the
golf course supervisor's office. Before this, the Golf Course Supervisor would have to
monitor the weather, assess the evapotranspiration levels on a gauge and attend to each
of the 15 satellite units on the course to adjust the irrigation system accordingly, a
process that takes 45 minutes each day. Additionally, if there was a change in the
weather pattern on the weekend, the Golf Course Supervisor would have to come in to
San Luis Obispo on his own time to adjust the settings for the projected weather
conditions. The new irrigation system allows the Supervisor to monitor the weather
settings and irrigation system from a computer that serves as the central controller and
can be adjusted from any computer with Internet access.
d. The golf cart fleet has been upgraded with 8 new carts, which will be leased for a five
year period.
3. The anticipated Cingular cell tower lease is not expected to occur until late 2008 at the
earliest due to AT&T restructuring, therefore the $10,000 contribution for the pro shop roof
replacement is now planned for 2008-09. An additional lease by ClearWire will add another
vendor to the cell tower. New revenues for the golf course as a result of the two new cell
tower leases is expected to be over$58,000.
4. Overall, there is an anticipated revenue loss of $18,100 due to the combination of loss of
green fees collected due to reduced number in rounds played and the delay in the
contribution for the pro shop roof by Cingular. An expenditure savings of $31,400 is
expected as the result of a vacant maintenance worker position for four months, overall
salary savings, reduced merchandise inventory, and fewer than anticipated payments made
for golf cart leases.
5. Limitations on Revenue Potential: As stated earlier, Laguna Lake Golf Course has basic
amenities to offer its customers.*
a. LLGC lacks a full-size driving range so golfers are limited in adequate practice
space. Courses with full-size driving ranges rely heavily on the driving range
revenues, which can be equal to revenues from rounds played.
b. Most golf courses retain customers after rounds are played with a restaurant and/or
bar; LLGC only has a small amount of pre-packaged food,beverages and snacks.
C. The pro shop offers basic services to the customers: club repair, club and cart rentals,
and some golf merchandise sales.
d. A full-service web site, where customers can reserve tee times and schedule lessons,
would help expand the services at LLGC.
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Laguna Lake Golf Course Fund Rate Review Page 5
* In April 2003, staff presented a Laguna Lake Golf Course Status Report to Council which
addressed limitations on revenue potential and provided Council with recommendations on how
to close the gap between direct operating costs and revenues. Most of the initiatives that were
proposed in the report have been implemented in the past five years and, until this year, can
account for a steady increase of rounds. A copy of the report is available in the Council Reading
File.
Rate Review Obiectives
The objective of the rate review is to establish a fee schedule that maximizes revenue and ensures
the continued operation of a safe, attractive and reasonably priced golf course with an emphasis on
senior and youth services.
As stated in the Budget and Fiscal Policies for Enterprise Fund Fees and Rates:
"Golf program fees and rates should fully cover direct operating costs. Because of the nine-hole
nature of the golf course and 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 a pan of the
Financial Plan process, along with the need to possibly subsidize direct operation costs as well."
Staff has been trying to close the gap between the direct operating costs and revenues for several
years and often has had to work on a"shoestring" budget to continue operating the golf course. As
a result, the infrastructure has not been as well maintained as it should and this past fiscal year,
several major and minor capital projects along with necessary fleet replacements were needed. In
2006-07, seniors and youth golf activity was approximately 36% of the total rounds played. In the
fiscal policies for Recreation Programs, Senior and Youth services are considered low range cost
recovery activities (0-30%); therefore, more of the direct operational costs may need to be
subsidized from the General Fund in order to continue to serve those critical populations.
In comparing the golf course maintenance and operations direct cost recovery to two other Parks
and Recreation programs with comparable operating budgets — Children's Services and Swim
Center Operations and Maintenance (Public Works oversees the maintenance budget), the revenue
recovery for direct operating costs at LLGC is much higher.
Direct Cost Recovery Comparisons—2006-07 Actual
Program 06-07 Actual Direct 06-07 Actual' Direct
Expenditures Revenues Cost Recovery
Swim Center:
Operations(P&R) - $322,116 $162,451 50.4% - operations
Maintenance(PW) - $309,274
$631,390 total 25.7% - total (O&M)
Children's Services $746,195 $500,881 67.1%
Golf Course
Operations & $477,373 $388,678 81.4%
Maintenance
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Laguna Lake Golf Course Fund Rate Review Page 6
The recommended fees for 2008-09 are:
LAGUNA.LAKE GOLF COURSE FEES,EFFECTIVE JULY 19 2008
(changes identified in bold)
Current Rate Current Proposed Proposed
2°_d 9-holes Rate rd-9-holes
Senior/Youth/Student/Weekdays $6.75 $4.50 $7.00 $4.75
(Monday through Thursday)
General Weekdays $8.75 $4.50 $9.60 $4.75
(Monday through Thursday)
Senior/Youth/Student Weekend $7.75 $4.50 $8.00 $4.75
(Friday through Sunday)
General Weekend $9.75 $4.50 $10.00 $4.75
(Friday through Sunday)
Senior/Youth/Student 10 Play $60.00 $6250
Card
General 10 Play Card $75.00 $77.50
Twilight Rate(after 3:0 m) $6.00 $6.25
Staff is proposing over the next four years to increase the fees by$.25/round each year, and increase
the 10-play cards for seniors/youth/students and general by $2.50/card. The anticipated revenue,
based upon a moderate estimate of 40,000 rounds per year is expected to result in a total increase of
$100,000 in new revenue over the next four year period, which will assist in closing the gap
between revenues and operating costs.
Comparison with Similar Courses. Even with these increases, the cost to play at LLGC is
competitive with the other two nine-hole courses in the County:
Pismo State Beach (public): Sea Pines Golf Course, Los Osos (private):
general weekday/weekend rate—$9.50/$10.50 Weekday/weekend rate- $8.00/$10.00
senior rate- $7.00/$8.00
youth rate-$6.25/$6.75
It should be noted that Pismo State Beach and Sea Pines Golf Courses have additional amenities
that Laguna Lake does not offer, such as a full sized driving range, adjacent restaurant and/or on-site
alcohol sales and ocean views.
CIP Proiect
As a result of high winds and heavy rains this past winter, barrier netting and poles used to keep
errant balls from hitting the homes along Hole#5 failed and will cost$55,000 to replace. There is a
$20,000 savings from the Irrigation Control Replacement project as a result of a discount from Toro
given to locations with First Tee programs; staff is requesting a supplemental appropriation for this
project(Attachment 2).
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Laguna Lake Golf Course Fund Rate Review Page 7
CONCURRENCES
The Parks & Recreation Commission reviewed the LLGC Fund Rate Review on May 7, 2008 and
concurred with the assumptions and projections (see Attachment 3 —Draft minutes).
FISCAL IMPACT
The following are the proposed operating transfers from the General Fund for 2007-08 and 2008-
09:
Proposed O erating Transfers from General Fund
Variance
Mid Year Favorable
Year Budget Review Estimated (Unfavorable)
2007-2008 $509,200 $511,900 $(2,700)
2008-2009 $308,000 $309,300 $(1,300)
For many years, the golf course infrastructure was not addressed and as a result, the wear and
tear on equipment and course amenities became more apparent. An increase to the golf course
fund from the General Fund was approved in the 2007-09 Financial Plan to cover deferred
maintenance items and replace new equipment. As a result, staff is spending less time on
repairing old equipment, and key infrastructure needs such as well pumps, bridge replacement,
and irrigation controls, have been addressed.
ATTACHMENTS
1. Changes in Working Capital: Golf Course Fund
2. CIP Request: Laguna Lake Golf Course Barrier Netting
3. Parks and Recreation Commission Draft Minutes—May 7, 2008
4. Resolution adopting fee increase
ON FILE IN COUNCIL OFFICE
2003 Laguna Lake Golf Course Status Report
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4TTACHMENT '
Changes in Working Capital: Golf Course Fund
Explanations
FY 2007-2008
Estimated Operating Revenues
Account Target Estimated Difference
Investment Income $3,400 $8,500 $5,100
Cell Site Lease Revenue $27,400 $27,400 $0
Other Contributions $10,000 $0 -$10,000
Driving Range Fees $11,200 $12,700 $1,500
Food Sales Non-Tax $9,200 $10,000 $800
Green Fees $262,100 $245,000 -$17,100
Lesson Fees $4,000 $4,000 $0
Merch. Sales Taxable $19,600 $19,600 $0
Rental Fees $9,000 $10,500 $1,500
Golf Cart Rentals $20,000 $20,000 $0
Storage Fees $300 $300 $0
Other Non-Taxable $0 $100 $100
Sales& Use Tax $1,500 $1,500 $0
Credit Card Fees- rev. reduction -$3,000 -$3,000 $0
$374,700 $356,600 -$18,100
Increases:
1. Investment Income has been over$8500/year for the past two fiscal years, future
targets to be adjusted to reflect increases.
2. Driving Range Fees are expected to exceed target due to more use.
3. Food Sales are higher as Staff has added sandwiches and other food items to the
options available to golf course customers.
4. Rental Fees are higher due to increased activity in push cart and club rentals.
Reductions:
1. Green fees are down from 2006-07 as number of rounds played has declined by
9%. Staff believes this is attributed to several factors: major construction on
Hole#3, course shortened to 8 holes in preparation for the Hole#3/temporary
Hole#5 project causing rates to be pro-rated for a period of time, a decline in
twilight play, an unusually wet February resulted in several days of little or no
play on the course, and reduction of yardage on Hole#4 as a result of barrier
netting and pole failure adjacent to nearby residences.
2. Other Contributions-Cingular donation towards pro shop roof project has been
delayed, will be re-targeted for 2008-09.
-- A7AChaIEnT
Expenditures:
Operating Programs
1) No adjustments were made this past fiscal year to non-staffing line items.
2) There will be a salary savings of$9,000 as a result of a Maintenance Worker III
vacancy.
Capital Improvement Projects
1) Costs for the Hole#3 renovation project were increased by $68,017.
FY 2008-09
Revenues
1) Staff is recommending an increase in green fees of.25/round for FY 2008-09 with
a projected increase of$10,000.
2) Anticipated revenues from Cingular cell site lease is not anticipated to begin until
2008-09 so projection for this fiscal year will be $29,000 for the current cell site
lease by Sprint. An additional cell site lease was granted to C1earWire and is
scheduled to begin on 2008-09 with projected revenue of$29,000. Totals with a
COLA adjustment have been added to subsequent years.
3) Other Contributions—Cingular donation towards pro shop roof project to be
added to 2008-09 revenue projections.
Expenditures:
Operating Programs
No changes
Capital Improvement Plan
1) Add CII' request to repair barrier netting and poles along Hole#5 fairway at a
cost of$35,000; additional project funds to come from completed projects
account (funds remaining from irrigation control replacement project.)
FY 2009-10
Revenues
ATTACH,MIENT
1) Staff is recommending an increase in green fees of.25/round for FY 2009-10 with
a projected increase of$10,000.
Expenditures:
1) Provide golf course administration software package and additional workstation at
a cost of$45,000.
FY 2010-11
Revenues
1) Staff is recommending an increase in green fees of,25/round for FY 2010-11 with
a projected increase of$10,000.
Expenditures:
No changes
FY 2011-12
Revenues
1) Staff is recommending an increase in green fees of.25/round for FY 2011-12 with
a projected increase of$10,000.
Expenditures:
1) Complete Master Plan for Laguna Lake Golf Course at a cost of$50,000.
2) Install two permanent restroom units on golf course at a cost of$100,000.
arACHMOT Z
LAGUNA LAKE GOLF COURSE BARRIER NETTING/POLE REPLACEMENT
CIP Project Summary
Install new poles and barrier netting along homes adjacent to hole #5 at Laguna Lake Golf Course at a cost of
$55,000 in 2008-09.
Project Objectives
1. Replace poles and barrier netting adjacent to homes.on Royal Court.
2. Provide a means to prevent golf balls from entering yards or hitting homes along hole#5.
Existing Situation
During the Winter 2007-08 storms, two of the 40 foot metal poles securing over 300 feet of barrier netting along
hole #5 toppled over along with the netting due to rusting through at the pole bases. A member of the City's
Engineering staff inspected the remaining poles, found them in various stages of deterioration and recommended
that all of the poles be replaced. The existing poles were installed in 1.977; some poles were galvanized with
caps, while others were not. The poles without caps allowed water to collect inside the poles and over time, the
poles became rusted from the inside and weakened at ground level.
The barrier netting has been in place to prevent errant golf balls from hitting homes and entering backyards.
Homeowners have been complaining to Golf Course staff since the netting came down that they are having more
balls enter their yards and staff has modified the tee area temporarily to prevent balls from going into the yards
until the netting is restored.
The project will involve removal of the existing poles and netting and installation of eight new 40' high treated
wood poles along 321 linear feet, using black UV treated netting with sewn-in vertical, horizontal and perimeter
rib lines, extra high strength galvanized cable, 5/8" galvanized bolts and heavy duty galvanized attachment
hardware. With the work occurring along the golf course, golf play will need to be modified while the contractor
is performing the scope of work.
Goal and Policy Links
Park&Recreation Element-2.5 1.1 —Parks shall be maintainedin such a manner that priority will be given to the
preservation of the natural beauty and safe use of the land within the system.
Project Work Completed
A preliminary estimate to complete the work, which was based off of the 1977 plans, was obtained.
Environmental Review
This is a maintenance-only project and will replace existing infrastructure. As such, no formal environmental
review will be required.
47ACHr0ErIT Z
CAPITAL • • PLAN
LAGUNA LAKE GOLF COURSE BARRIER NETTING/POLE REPLACEMENT
Project Constraints and Limitations
1. Staff will need to coordinate with nearby residents to prevent balls from entering yards while project is
underway.
2. Golfers will be displaced during construction in order to allow the contractor to perform the work, which in
turn may reduce revenues from the golf course.
Installation should take four to five days to complete.
Stakeholders
Stakeholders include golf course staff, patrons of Laguna Lake Golf Course and residents living along the hole#5
fairway.
Project Phasing and Funding Sources
Project Costs by Phase
Project Costs
Budget-to-Date 2007-08 2008-09 2009-10 2010-11 Total
Study
Environmental Review
Land Acquisition
Site Preparation
Design
Construction 50,000 50,000
Construction Management 5,000 5,000
Equipment Acquisition
Total - - 55,000 I
Pr ject Funding by Source
Project Funding Sources
Budget-to-Date 2007-08 2008-09 2009-10 2010-11 Total
General Fund 35,000 35,000
Golf Fund 20,000 20,000
Total - - 55,000 - - 55,000
There is $20,000 remaining from the Irrigation Control System Upgrade project that can be used for this project. The
remaining amount will be a subsidy from the General Fund to the Golf Fund to cover the costs of the work to be done.
Key Project Assumptions
Cost projections are based upon an estimate given to Engineering staff. Two alternatives were provided with the
preference given to using wood poles versus metal galvanized poles, which would be more costly to install and
purchase. Since the estimate was good for a 30 day period starting in February 2008, it is anticipated that there
may be some increase to the estimate due to ongoing price changes in concrete and metal products. A quick
turnaround would keep the costs down.
yE /�
- a71ACHMENT Z—�
LAGUNA LAKE GOLF COURSE BARRIER NETTING/POLE REPLACEMENT
Project Manager and Team Support
Project Manager
Project management will come from the Engineering staff with assistance from the Golf Course Supervisor.
Project Team
The project team will consist of staff from Parks &Recreation & Public Works — Engineering. There will be
some review by the Building Division as this project comes closer to construction.
Alternatives
1. Deny the Project. Two poles are now down and at least two more non-galvanized metal poles remain
standing but are in various stages of rusting/deterioration. The safety of the public is a significant concern as
the possibility of the poles failing to remain standing could fall onto adjacent residences or golfers on the
course.
1 Defer or Re phase the Request. Deferral will essentially be the same as denial of the project as safety
concerns will still be prevalent.
3. Change the Scope of the Project. The remaining galvanized poles, if in acceptable condition, could be used
with wood poles used to replace those that are down or deteriorating. It is preferable, though, to replace all
poles with wood poles as it is less likely for failure dueto corrosion, as would be the case with metal poles.
Existing netting should not be used since it has a life expectancy of 10 years and is already over 30 years old
and is deteriorating as well. It would be preferred to replace all the poles at once, which would provide a
consistent-looking barrier along the hole#5 fairway.
Operating Program
Golf Course Operations and Maintenance
Project Effect on the Operating Budget
1. 20 hours will be needed to be scheduled by Engineering staff to manage the project and perform periodic
inspections. Golf course staff will need to be involved in closing down portions of the course while work is
underway.
2. There is a possibility that there will be a revenue loss if an insufficient number of holes exist for play. The
temporary hole#5 may be affected as a portion of the barrier netting is installed at the top 1/3 of the hole;the
regular hole#5 may not be playable during construction as well.
3. Maintenance costs to maintain the barrier netting and poles would be reduced for several years as staff would
not need to reinstall netting or address falling poles.
-iso
47ACHME41 2
IMPROVEMENTCAPITAL
LAGUNA LAKE GOLF COURSE BARRIER NETTING/POLE REPLACEMENT
Location Map/Schematic Design—Hole#5 barrier netting and poles, as they existed before November 2007, is
shown inside the oval. The poles in the square are the ones that have fallen down; the netting along the fairway
has fallen off the poles, leaving the residences exposed to errant golf balls.
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Parks and Recreation Commission
May 7, 2008
Page 6 of 9
Daniel Parks,420 Woodbridge Street, lifetime skateboarder and teacher, feels skateboarding is a
great outlet for those not accepted in other areas of sports or who don't care to play on team . As
a culture it incorporates artwork as well. Current Skate Park is like "skating on garbage" ut still
crowded by users. Feels the community deserves a better skate park.
End of Public Comment.
MOTION: (Regier/Kincaid): Recommend to City Council to:
a) Approve an amount, not to exceed $37,000, to develo a Santa Rosa Skate Park Master
Plan; and
b) Authorize staff to spend up to $50,000 on new to park equipment to assure the interim
safety of the facility and that this tempor quipment may be pre-owned or purchased
from re-sale if possible.
Approved: 7 yes: 0 no: 0 absent
Commissioner May thanked the ence for speaking and giving points to give to Council and
confirmed that RRM would fac' tate a plan that meets all users' needs.
Commissioner Hatch al thanked the audience but reminded funding will be difficult.
Recommended audie encourage Council and search for support and fund donors. Also noted
would like to see s nless steel as part of edges for in-ground design.
Commission egier advised the audience to marshal forces and be organized before Council.
Chair eux noted the longer the project is put off the larger the dollar figure will become.
Th ed audience and shared feeling of skateboarding being important part of community.
'vector Kiser reminded audience of cost and the importance of their attendance at Council on May
20 at 5 p.m.
5. Laguna Lake Golf Course Rate Review—Fitzgerald/Bunte
Recreation Manager Fitzgerald reviewed the 2007-08 annual golf fund financial report and
explained fee rates with the Commissioners. Explained the framework of working capital and
carryover from last year as well as comparison to other County courses. Advised not expecting
any more operating changes other than 2009/2010 software purchase. Discussed Hole 3
construction from November through this coming July and other delays due to irrigation system
and weather have contributed to drop in play and revenue this year. Repair to barrier netting first
established in 1977 was also needed due to rain in uncapped poles rusting at base. It is expected
that the revenue from new carts will pay for themselves and additional savings will be realized
this year from vacant position which has only recently been filled. Rate increase will minimize
expense and close gap between operating costs and revenues.
1 -6
y_E -i&
D � � AT-1 ACFPl;ENT
Parks and Recreation Commission
May 7, 2008
Page 7 of 9
Golf Course Supervisor Bunte and Recreation Manager Fitzgerald addressed Commissioners
questions on wood versus metal poles, concerns on poor visual appeal of putting green from
street, full-sized practice range would increase revenue, signage regarding distances, and the 25
cent increase only being approved for one year at a time. Also discussed were future
speculations of a food/beverage concessionaire, and the history of past small scale food vendor
attempts.
Chair Lemieux stated would support addressing options of alcohol/food sales at a future time,
feeling this would possibly encourage more play. Also expressed pride in low rates for seniors,
and the tight ship and positive welcoming environment created by Golf Course Supervisor Bunte.
MOTION: (Kincaid/May): Recommend the City Council :
a) Authorize the transfer from the General Fund to the Golf Fund of $2,700 for 2007-08
from $509,200 to $511,900 and an additional transfer of $1,300 for 2008-09 from
$308,000 to $309,300 to supplement operating costs
b) Approve the Capital Improvement Project request of $55,000 for barrier netting and pole
replacement along Hole#5
c) Adopt a resolution to raise green fees by $.25/round and 10-play cards by $2.50/card,
effective July 1, 2008.
Approved: 6 yes: 0 no: 1 absent(Henninger)
6. Annual Park Tour—Kiser
Director Kiser confirmed the following places of interest of the Co loners for the annual
park tour July 9:
• Bridge and Hole No. 3 at Laguna Lake Golf Cours
• Damon Garcia Sports Field
• Bob Jones Bikepath and Ranger Facility",_,"",
• Johnson Ranch /
• "Drive-by"Public Art
• Jack House Tour(inte a1,not gardens)
• French Park
• Eto Park
• Disc,Golf at Laguna Lake
• ,Islay Park
G�. Sinsheimer Tennis Courts
1 -7
yc=/7
aTIACKI>sNr____
RESOLUTION NO. (2008 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
AMENDING LAGUNA LAKE GOLF COURSE FEES
WHEREAS, it is the policy of the City of San Luis Obispo to review program fees on an
ongoing basis; and
WHEREAS, fees are adjusted as required to ensure they remain equitable and adequate to
cover the cost of providing services; and
WHEREAS, an analysis of the Golf Course Fund was performed for 2008-09 and
presented to the Council for its consideration on May 20, 2008.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Effective July 1, 2008, green fees shall be as follows:
LAGUNA LAKE GOLF COURSE FEES
1"9-holes 2d9-holes
Senior/Youth/Student Weekdays: $7.00 $4.75
.(Monday through Thursday)
General Weekdays: $9.00 $4.75
-(Monday through Thursday)
Senior/Youth/Student Weekends: $8.00 $4.75
-(Friday through Sunday)
General Weekends: $10.00 $4.75
-(Friday through Sunday)
Senior/Youth/Student $62.50
10-Play Card:
General 10-Play Card: $77.50
.Twilight Rate: $6.25
SECTION 2. The fees for the driving range, wholesale goods, lessons, and other special
activities and promotions shall be set by the Director of Parks & Recreation and the Golf Course
Supervisor.
CNi�RENT
y
Resolution No. (2008 Series)
Page 2
Upon motion of seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was adopted on May 20, 2008.
Mayor Dave F. Romero
ATTEST:
Audrey Hooper, City Clerk
APPROVED AS TO FORM:
Jonath . Lowell, City Attorney
TABudget FokkrA2008-09 Financial Plan SupplemenAEwrrprise Fwul Working CapiwAS. Gulf FwnA(Zesolution-UGC 2008 drnft.DOC
RECE1V.7
.., ��� ���, �' �! RED FILE
MAY 19 2008M I G AGENDA
����iiiii��llllllllll1°' IIIIIIi
COU1�+E�1�� �11'1012A1� C�a ITEM #,�.�
TO: City Council �l COUNCIL2rCDD DIR
CAOFIN DIR
VIA: Ken Hampian,CAO - ACAO ja'FIRE CHIEF
,j:ATTCRNEY ;2 PW DIR
CLERK/ORIG 7POLICE CHF
FROM: Betsy Kiser,Parks and Recreation Directo � k ❑ D PT EADS la REC DIR
'0 UTIL DIR
SUBJECT: Golf Course Rate Review Questions HR DIR
0—k? (:l AJt 2
The information below was provided to Councilmember Carter in response to questions regarding the 1
Golf Course Rate Review coming before Council on Tuesday,May 20, 2008.
Question: Could you provide me with a multiple year comparison for the table at the bottom of page 5
of your Golf Fund report -- perhaps 3 years, 04/05, 05/06, 06/07 and also include the CIP
for all three programs for those three years. Thank you.
Answer: Please see Attachments 1 and 2.
The Capital Improvement Project's (CIP's) identified in Attachment 2.are for the last several
years,but our report may reflect CIF's from previous years that haven't been completed yet,
such as the bridge replacement and the Monterey Pine tree removal project.
Question: Also, what exactly is included in Children's Services?
Answer: Children's Services include our Before and After School Childcare programs, both Sun N
Fun and S.T.A.R,the pre-school program at Hawthorne, the summer school after school
program and all day Fabulous Friday program, Adventure Day Camp (our summer camp
program),Teacher Work Days child care program and Spring Break Camp.
Question: Finally, to what extent does the school district pay revenue to (or absorb costs from)
Sinsheimer pool?
Answer: The School District does not pay for use of the pool per our Joint Use Agreement. The
following excerpt details that relationship:
"5.5 The District shall use the athletic facilities in Sinsheimer Park, specifically the
baseball stadium, tennis courts, swim center, and Throop Park, without a charge for
maintenance, repair, or utilities. This is in consideration of the District making the land
available on which these facilities are constructed. The District shall assume the cost and
responsibility for staffing District activities in these facilities to the satisfaction of the City."
Attachment 1: Multi-year Direct Cost Recovery Comparison
Attachment 2: List of CEP projects from 2004-07
Cc: Ken Hampian,CAO
Shelly Stanwyck,ACAO
Bill Statler, Director of Finance and IT
Linda Fitzgerald
Direct Cost RecoveryCom arisons-2006-07 Actual
Program 06-07 Actual Direct 06-07 Actual Direct
Expenditures Revenues Cost Recovery
Swim Center.
Operations (P&R) - $322,116 $162,451 50.4% -operations
Maintenance (PW)- $309,274
$631,390 total 25.7% -total
(O&M)
Children's Services $746,195 $500,881 67.1%
Golf Course
Operations & $477,373 $388,678 81.4%
Maintenance
Direct Cost RecoveryCom arisons—2005-06 Actual
Program 05-06 Actual Direct 05-06 Actual Direct
Expenditures Revenues Cost Recovery
Swim Center.
Operations (P&R) - $326,339 $148,124 45.3% -operations
Maintenance(PV)- $299,900
$626,239 total 23.65% -total
(O&M)
Children's Services $697,708 $486,026 69.7%
Golf Course
Operations & $430,091 $344,813 80.1%
Maintenance
Direct Cost Recovery Co arisons—200405 Actual
Program 04-05 Actual Direct 04-05 Actual Direct
Expenditures Revenues Cost Recovery
Swim Center:
Operations (P&R)- $289,233 $134,753 46.5% -operations
Maintenance(PR) - $265,411
$554,644 total 24.2% -total
(O&M)
Children's Services $728,635 $452,653 62.1%
Golf Course
Operations & $391,776 $316,399 80.7%
Maintenance
U-1 AMmENT
Parks and Recreation Capital Improvement Projects 2004—2007
Children's Services: None
Swim Center: Therapy Pool - $20,000—design—2003-04*
$200,000—construction—2004-05*
* Funded by Proposition 40
Golf Course: Hole#3 Reconstruction - $60,000—2006-07
Fleet Replacement—Tractor-$45,000—2005-06
Page 1 of 1
Council,SloCity
From: Joseph A.Johnson Uhnson@att.netl Sent: Tue 5/20/2008 9:10 PM
To: Council,SloCity
Cc:
Subject: Laguna Lake Golf Course Rate Increase Proposal
Attachments:
May 20, 2008 Tuesday night: 9:09 p.m.
Dear Mayor and Council Members:
I was not able to attend the entire meeting tonite, but I would like to give input concerning the rate
increase proposal. I have golfed at Laguna Lake for about 10 years. I now work for the city as a volunteer at
the Laguna Lake Golf Course. I have seen lots of tourists and outside visitors use the course. Rather than see
a 25 cent rate increase, I would like to see some other options such as an unlimited golf plan, for example. Say,
$50 per month for unlimited play.
Because Laguna Lake is such a popular sports and fitness area, I feel that it should continue to be subsidized.
The workers who maintain Laguna Lake Golf Course should be recognized as outstanding workers. I am
impressed with their dedication and hard work. The course is used by many locals as well as snowbirds and
tourists.
Thank you, /1 /!
Joseph A. (Joe)Johnson C L k4ec.L
200 Lincoln Ave. A�Q
San Luis Obispo
�oLi oc
7 L,16 rZ
https://mail.slocity.org/exchange/slocitycounciUImbox/Laguna%20Lake%2OGolf%2OCour... 5/21/2008