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Home My WebLink About08/16/1988, 4-A - GOLF COURSE FEES MEEnNG Q��I�I�NIII�IIIII�II�YIMII city O Sal l WIS OBISPO SATE:. lul�I�III j�/ (� AuAugust_gust 16, 1 88 MENZO COUNCIL AGENDA REPORT FROM: David F. Romero r`f/ Public Works Director Lane Wilson Parks and Buildings ManagerAo Paul Taylor Golf Course Supervisor 20 PREPARED BY: David Elliott Administrat' a An yst SUBJECT: Golf Course Fees CAO RECOMMENDATION: By resolution approve the following changes in golf course green fees effective September 1, 1988: 1) Eliminate the fees for 18-hole play, the monthly fees and the 10 percent senior discount 2) Raise all remaining green fees 23 percent to cover all program costs including direct costs, indirect costs and capital improvement 3) Adjust green fees effective July 1 in subsequent years to keep pace with the Consumer Price Index and continue covering all program costs OVERVIEW: At a recent meeting, the Council asked staff to recommend changes in golf course fees. At the same time the Council agreed to consider recommendations on golf course fees apart from general recommendations on fee and rate adjustments which will be presented later. Staff's approach and recommendations are based on adopted policy. BACKGROUND: In 1978 the City bought Laguna Lake Golf Course from the Rockwell Federal Credit Union for $263, 000. Over the next six years the City operated the course through a franchised concessionnaire and maintained the course with City crews from the park and buildings division of public works department. Because course revenues weren't high enough during this period, the general fund subsidized a portion of the course's direct costs plus all of its indirect costs and capital improvement. ��►►�i�il�Np��h �U�`` city of san tins osI.spo SliGe COUNCIL AGENDA REPORT Golf Course Fees Page 2 In 1984 the golf course program was reorganized as an enterprise to be financed fully through a separate golf course fund rather than the general fund. At the same time golf course operations were transferred from the private concessionnaire to the parks and buildings division. Since reorganization, golf course fund revenues have increased over 80 percent. About 1/3 of this gain has come from fee increases in 1985 and about 2/3 has come from improvements which have refurbished the course, sped up play and attracted more patronage. In fact, the number of rounds played has increased from about 35, 000 in 1983-84 to 61,400 in 1987-88. Since 1984, revenues have covered direct costs (salaries, materials,, services) and accumulated about $63,000 of retained earnings. But no indirect costs have been assessed and major capital improvements (such as the partial irrigation improvements) have been paid by the capital outlay fund. Following is the current green fee structure at Laguna Lake Golf Course and two other comparable 9-hole executive courses in the area, Pismo State Beach Golf Course and Sea Pines Golf Club in Los Osos: Pismo Laguna State Sea Lake Beach Pines Fee for 9-hole play - weekday $ 3.50 $ 4.00 $ 4.50 Fee for 18-hole play - weekday 5.50 7.50 8. 00 Fee for 9-hole play - weekend/holiday 4.00 4.50 5.50 Fee for 18-hole play - weekend/holiday 6.50 8.00 9.50 Monthly fee (single) * 35.00 40.00 --- Monthly fee (couple) * 50.00 60.00 --- 10-play card fee (weekday use only) 30.00 35.00 37.50 Senior discount on all fees 10% --- --- *unrestricted, unlimited play Besides setting fees 13 to 46 percent below market rates, the City's green fee structure at Laguna Lake Golf Course has created the following situations: a) Golf course revenues do not cover all of the golf course outlays b) Patrons paying monthly fees play about 41 percent of9 r �•I�6Off 1u AuclYUH August 11 , 11 TE Auc is 'ss ITEM # TO: ;ir. _:on Junin, Mayor., City of San Luis Obispo *Denotes action byLead Person Peg Pinard, PerLny Rappa, Jerry _leiss and «lan Settle, Members of the City Council icot"`"I Respond by: David Romero - Public Works Director lane .(ilson, Parks and Building Manager *AO David Elliot, Administrative Analyst iryAtty. Jim Stockton, Parks u Recreation !Manager Jerk-o4 FROD1 Gerry rouser, Past President, Laguna Lake Ladies Golf Club; �. u//tsonJ SUBJ' CT: Laguna. Lake Golf Course Fees 'm confused and worried about the proposed fee system and am sorry we have not been given more time to do more extensive research, having just been notified of the proposed increase on Tuesday, this week.and did not see the 4 alternatives suggested until today. In the first place I do not understand why the golf course is classified under. '.'Enterprise Fund Fees and Rates" along with ,Fater fund, sewer fund and parking fund. Why is golf excluded from tbartcs and Recreati on'?Depa.rtment? My husband and I are retired on a. fixed income. . Golf wa-s something we didn' t have time for until retirement and also something We could not afford until we found Laguna. We are proud of our course and the progress it has made. To get the arthritic joints active and the heart accelerated we get up early-,, each morning and head for the Course, as do many others. It has been the best therapy with a. challenge and purpose at the same time. 1 dare say there are many widows, widowers and couples in their 7O' s 8: 8O' s who would wither away in their rocking chairs if it were not for our Laguna Course. It gives them a reason to get up in the morning. Some don' t even drive but they can walk to the golf course. Some are a bit slow but they are out there and that is what is important. In looking over the Alternatives presented No. 1 appears to be the most acceptable with the exception of the 53101 across the board increase. This will defina.tely eliminate many of us and that scares me.. We need that golf course at a rate we can afford. PLEASD DOWIT TAXD AWAY OUR MONTHLY FEES OR OUR SEJJIOR CITIZEN DISCOLIT., In addition take us out of the Enterprise fund and put us under Parks and Recreation where we feel we belong. I do not feel we should be responsible for capital replacement and indirect costs any more than other sports or Senior Citizen Activities. San Luis Obispq I am a Native Daughi-er of/and proud of it. My husband. and I ..,have never been "out of town" shoppers as we always felt we ;should help support the local people 3uho supported us as long :;_as* we operated a small business here. We did not retire with a 6orporation, State, City, County or Federal retirement. We scrimped and saved towards retirement and enjoy the things we can afford to do. R E C E I yFtRk you for your consideration to our request. AUG 1 1 '1988 Yours ery trul/ y CITY CLERK SAN LU150915Po-CA august 13 , 1988 MEETING AGENDA i.c v c;oncern: DATE 4N is—w ITEM # ZIA i.iS t e_--d of" rate Mile iunicil_al 'soli uour6e e �Call -jj-ej'f ;.C) 4 - _L�Cy OT a.I L urLL Jn- it that ti, o--;e., :- -to t,. to ,.. ieve-1 i-s oovern- i;i e-I t CL�.i 0 n_L C a,, Doli course sh o uld not have to be self-su,jortint: It does not !D.ave -to be a money-ri-.al:inc Cr seif-su- -:or-.cin:; enter-,=ise . "z' I lv should be a service to the citizens just as local ::a--xsi 4 ..()ojs arz :.rovj.C-e ' -GT cit zens. cesrft _Z-11-nis CC-. �- I-_.CL 11!=i"� aoi-i" cour-Se come under the sarne c�-tegoryl: T-his zarticular volt course gets the bulk of -lay from senior citizens , tourist's and students from Guesta 1;oileage and Cal-'.iroly. ,:;o-.e Beniors co.-e from •as far as ':)'anta �V.'aria and Oar.nbria. If you raise t h a fees , -u h E 8 e seniors ::iii certainly take Into considera- tion onsid era- tion t1le mi'Learre plus the increased fees and find 21 place to �fay closer to :some or not play at all City parks and Building Dsanan-er Lane ',,ilson says, 11GOlf Is tr, dJtfonally game you ay to play" . I say -01-F U' __ to be a U CL -,u S'or' t. for the more &.Lflueot but, now, states and municipa- lities Z provide accommodation for this recreation for the average citizens funded in part by taxes. L Consider the effects your decisions ki-jill have on seniors and students who are on limited incomes. cer ly, Denotes action by Lead Person Respond by: Mouncil W-ew Clegg Cn-4 Alty. 165 Gilbert St. &Clerk-o4 Lv*_orro Bay, Ca. Aa-- /X-0- RECEIVE [) AUG 15 M CRY CLERK SAN LUIS 091M CA 7R rid by: 1COL A c- �J V'bq Atty Clerk-orig. I k ,2 6, it A;;' 03 Rqle A�GUENDIAJ FirA- is -as ss c 7� v c /L- i r 7-)A.'6 (-(5 g4 lot- An/ c c) oi rn�-4 F&Aj JS LL'/It"C, In 7-S Xf-v J-0 & c, ct jr/vx-S Fc) eb -74c) /< L) 0 pf, p� p I 7-S-e 4 1- /q7c 1 7- kj N� C jaJ)g re /17 6& /�/v C 7-/ p�iS1,cxc/'4 try j ---r�A.1, CL SIC L) IV THtf 1�to.K,.L e r I � jg I'All O\ aec&nj -e 3v Poo %3 6 4,> ,4_f -A,'7-_�- 0:0/ 7i) 74,41,e-2 Cl �-/y -'J� �7S CIAL)v 7* /eVc of Olje 1�77 C) A,/,f QaVIODT / A� -eg- .7, FEE AUG CITY CLERK SAN LOIS 091SPO CA edLy �tse /s .9 ✓�ili�rRj/ .�v d.P� 'P of /�P °P,��^rd�`� /�l��/>/'��•`/�1d /C /�,��✓/ /e c uIv,* Bi.e -tc) /R/-nY ee60ACOc1RtPJ s� �l DRi✓ //ji f�.IP�NT GC PIo IJ.IC �d2 dS� ��.BR� 1�/�Ct 'f/S�e ,(Pd,e� a�2 L GUd U 4,1) e i �e�/�d� ?f /JCOcJ•✓'/'; �� fT?dN CcL. V ?}/�•t� 4 /ZP� Q6 L) a R ��/vrle 6dc�; -�elv"•es 7�w Ai -e. �7oWT/r;Gy ,��eof /1 dicti f�� -/d2rnrV44y X /Ildsi 6d �.F ro vQSeS, Gds%ce owe �dcxL co ��J-� �i� �.x v� yaWx2 -e . �•P.N/,dK �3lSCOv'✓�� ,C//1�e �Lh70ST' tJa.�i f/PK-�JitLc'/ �9✓,B�LR�LP/ a AA7- Pvgi c. � c. b �2/'v� T� (Ov�.lP1, �xcePridn13 � � U s v N z 4 Y 7`/`/e �R i dry i`e �0 v�f SPS -Cd 07 m Al" /V,-C14 Fees. -MANN 7YOsP 7� fe,N id 25/SG D O AJ 7- /S /�i19R/ C LJG�S►/e y //1'J�O.Q%/dMT fI,N c p qyQ ,Pe T/it-e P S•11 :d,� is d� �b o� J/� le,'ac e / /v c O n-r� �D {cs.0 � /S'%`ri/49�t✓esw p'' �� fi9`P�, e v� �e G/ 6 V e �r�2 i¢DdGn! f?7C �P�S l�1' 92dPds6� GtJa v c D PFeci -7?'e 1pV7-,4 wd1V C'c r2-- AWP r14)cdm�e 1A) o7'P/' T�Q d fif1,P J�,v F f5ee rc u/ I S,p �d ci.d c r;L tO TiS�e 49�'Io� OrC- Fie f'r—Rdc, .v2-e .mJ i7 � a�!vci�i�..�, TS d•F �e �I�auoN.�F�c..e Ji`z e /yl�y �� /n1 aRD-P/�� Jir/C.P /T/�1�f P�iJ -Cp*YK1AL y`PAOJ OVre • .�jfle �.t2Si �l�d c�P�''P2 i9� iN cCc�a.t� 8� D �/PK Sd/� �!N/9.4 4-Yi Z-0 Z'4--j) R?-e- a, /moo c�'c,lG�/i's e� 7554e_ s�g ,vne �s .�n,/ o 7W� K yJ�R fC �(!� �P C�•<�i�c9.tiJ �.e�G i,� ,� d u.�fE� fR�J D or PP74�YV- C'i � 0-7eJ AO i`s (b6 %d /Y.f vT- G-e 0 v ; .amu G ZXfJ�e-6 If-ti^P pe i's FiaCi � � .—y fa�c FuN �i,�1G /s ec�ui��6/ 4,ot-up /�l'�.8,✓,rc You lc6 2 •' 71-716 - ,�ayA Cd v,c S,cw zviS d 6ANo(5, CA. 'F.Illd/ z Cc's `iiiYAUCra 'R8 ITEM11# / ., / 7 ti �i/, DA �1 #Denotes action by Lead Person Respond by: [3'Ooundl ---•-�- e........ ICAO Here again Fresno is blessed with some I of the most inexpensive public golf in the atq Atty. state. GjClerk-�9• The Riverside Golf Course,designed by the late Hall-of-Fame architect Billy Bell in 1�Wrrso� 1939 (the year the city purchased it from `�rT private owners) plays nearly 7,000 yards from the championship tees.It is open seven days a week and annually plays more than 70,000 rounds. It is the site of the Fresno City Amateur Championship played in May or early June. It is the course I cut my golf i teeth on and is one very difficult tract. . The Airways Golf Course has been the golf incubator for thousands of long-time Fresno residents.It is the haven of the junior and senior players and is a fight 5,182-yard, par-68 tract, again featuring many large, mature trees.Airways was designed by Bert Stamps shortly after World War II in 1950 and as the name indicates, is located at the Fresno Air Terminal. Palm Lakes, only a mile or so from Air- ways, was a semi-private course until two years ago when it was purchased by the city and redesigned by Richard Bigler into a 4,300-yard executive course. All three of these city-owned courses, leased to golf professionals, have a fee scale in reach of just about anyone with enough money to own golf clubs.Week day fees for adults are $5.75 and $6.75 on weekends. Seniors and juniors (17 years and under)$3.50.Monthly cards for adults are$32 weekdays only and$19 for seniors, weekdays only. Monthly cards every day are$36 for everyone.VA AUG 12 1988 QTY CLERK I SAN LUIS OBISPO.CA ' l *Denotes action by 'erson EETING AGENDA//////• Respond by: ATE Aur- Is 'ea ITEM # C 0'6uncil CfCAO ath Atty. P(.`perk-orig. 1490 Descanso #2 G}- U_ c' wns aJ San Luis Obispo, CA. 401 77 T: August 10. 1988 Dear Councilwoman Rappa, I would like to know why the City of San Luis Obispo is willing to subsidize practically all sports except golf? I was appalled to learn that golf is grouped with Sewer Fund, Parking Fund, and Water Fund as enterprises which must be totally self supporting. A modest increase in the current fee structure at Laguna Lake Golf Course would be reasonable, and I believe most current golfers would agree. However, the proposed increase would mean that many people, myself included, would have to "hang up" the golf clubs. There is no way that I can afford to continue playing golf on a regular basis if monthly cards, senior discount rates, and 18-hole rates are discontinued and regular 9-hole play rates go up. It seems to me the action is discriminatory against golfers. I strongly urge the City Council to continue to the current fee structure with a modest increase in fees, and out of our tax dollars subsidize the golf course to cover indirect costs and capital outlay. Most cities subsidize their municipal golf courses, have monthly rates, and offer a discount to senior citizens, and I believe it is reasonable and fair to expect San Luis Obispo to do the same. Your support will be appreciated. Sincerely, Zyllis Sheets RECEIVED AUG 15 1985 carr CLERK SANL ISCIRSb'CA Ptourd _ SAOAty Atly o the Members of the .City Council of San Luis Obispo 100'*-C4 August 13, 1988 �o,uv�aTo ��. TT I m a property owner, tax payer, citizen of San Luis Obispo, outraged at the poor quality of management expressed in 11 1mmendations to raise the fees at Laguna Lake Golf Course. From my experience as a business man; I believe your city management staff fails in three departments; .-public relations, organization and accounting. I urge the City Council to reject the council agenda report as. inadequate and direct Staff to present a new one. The new report from Staff should meet the following objectives: ( 1 ) It should include a proposal that reasonable citizens can approve of. None. of the four proposals to change the- golf fees is reasonable to the citizens. You ,have offended all -concerned citizens, golfers and non.-golfers, except -.those who would prefer to develope the golf douse into condominiums. Direct the Staff. to present the needs and the costs, without trying to antagonize with 50-100.% fee increases on short. notice. (My fees would increase from $31 . 50 to $133, if I don't reduce my play. ) (2) Move- the golf course. out of the Enterprise Fund to the Recreation Fund. That move is dictated by the nature of the function, not whether you charge fees or not. It is poor business organization to let income dictate hierarchy. The goals of the recreation department obviously include golf. (3) Capital replacement. costs should be depreciated over varying periods, not -limited to five years. The casual way you have Ca] .neglected the course and then [b] severely raised the fees to correct your accounting miscalculations is punishing your golf-fee payers for your Staff mismanagement. You can do ' financially what you want to do without -outraging your constituency. Z propose that a multiple-year program of golf course improvement• be combined with a switch to .the recreeti.on fund;. along with a multiple-year, modest, fee increase. The fee increase should use Alternate. 1 as format with. yearly- 'increases so .that the citizens_c-an see,`-[a] thatthey are being considered, [b] that Recreation Staff is being consulted and is responsible for city recreation and [c] that a responsible fee structure is instituted, ratherthan punishing ".ci:tizens for participati'ng_:!-in„ the advantages of. living .:,i.n $an Luis :Obispo.. 7. Yours truly, W. H. Waldo 3057 So. Higuera, No. 211 .San .Luis Obispo; CA 93401. . • R.E_C E I`V E D AUG 151988 CMVCLERK SANLM60B16PO.CA . AULNUA . IL FCAO � DA 1 E _ 11 GY,cfty Atty. C�erlc-o11g. t k� Aug. 13, 1988 wts- D Mayor Ron Dunin Councilmember Peg Pinard Councilmember Allen R..Settle Councilmember Jerry Reiss Councilmember Penny Rapp. . Public Works Director David F. Romero Parks and Building Manager Lane Wilson Administrative Analyst David Elliot In reference to the proposed increased rates for play . at .Laguna golf course we are astounded atthe amount .of inc=ease you members. of the City Administration -suggest be- put on. the.. backs ofcthe golfers who have supported the. course by paying green fees for nearly 20 .years,: We strongly believe that- before we are asked to share in such a heavy financial burden all of the facts should be made known to us. Financial statements showing total golf- course income and what that money is spent for should be: presented . to ,at least, the regular. members of the golf course. before you propose an -increase in green fees far exceeding any recent rate of inflation. Is that really. asking too much of the officials who are supposed to have. the best interests of all the people in mind when doing their official duties This should be done next Tuesday night. at the . Counci.l Meeting so we can record it and mull it over while we're deciding if the large- increase is really justified. Most of the golfers I have talked to were completely shocked when they learned of the proposed increase and feel that a very poor picture has been present.ed' as to whether the golfers are paying their way on the course:. . -For instance.: One report 'is that 'the monthly fees allow a golfer'. to play an 18 .hole .round of-go.lf for one dollar and a. guar.ter. This. figure was arrived at by taking the total amount of monthly fees- paid. in and dividing it by the number. of rounds of golf played by: the .members.•' Since: .tome members do .play an outlandish number of rounds . per month and, others play a .nominaL amount wouldn't it .seem to be :more egtL lits' to '.limit the number of rounds that can be. played. per :month, after- which :an additional charge should be made ? That makes sense to me. Also we find it hard to understand why the proposers of: this increase feel that: it is fair .to .expect the -golfers to help purchase capital. . items such as $40-fiboo worth- df mowers • and. a new•'.roof on the prb-shack and a new bridge- over the.creek when , while it .increases the value of the property' 't'.enhances,• •the. golfers �who- .ars"helping• to..pay the;.. tab• have not one single penny of vested interested ,in it?.' Where is. the' fairness.:in this arrangement?? RECEIVED _ AUG .151988 ary CLOW 2 . The Notice which was sent out causing all this upset and confusion sounds like the "Staffs" minds are already made up and that the golfers may sound off if they so desire but they are being given just 4 Alternatives and they must use one of them for a benchmark- for their future in recreational golf - at the. Laguna Lake course. Acknowledging the fact that you have the wheels of government on your side while we golfers,many of whom are retired and just trying to enjoy a recreational activity they love, are being put in a pos- ition of "take it or leave it" . This seems rather harsh treatment to us. Why the rush? Take the time to give this problem a little more study and come up with something more in line with "what is fair and reasonable for everyone: Right now we golfers feel that we are being unfairly dealt with.. As the kids say - we feel like we are being "shafted" ! Yours. for better government and fair play, Mr.& Mrs.William B..Boone 1801 Gathe Dr.. San Luis Obispo,Ca. 93401 P.S. We ARE registered voters. v�Co DATE were-� I� # Qcno dGry any. [r C.• W��ok� AuqUst 11 . 1U8H Cl�TT Mayor- Ron Dunin SLO City Hall 99t> Palm St . San Luis Obispo, CA 'f7 4r>1 Dear Mayor- Dunin I have just seen an announcement that the Council will discuss Laguna Lak-e GolF Course Fees August 16, and wou'1d like to make some comment, since I will be out of town and unable to attend the meeting. It seems almost lUdi.CrOUS to me that the municipal golf course is categorized as an enterprise, and not as, part of the city' s Parks and Recreation Department. In every other- city in which I have resided or heard of the golf courses fall „ as simple logic would dictate, under. parks and recreation. To extp.ect a truly recreational facility to bear- costs of administrative overhead seems to me to be - -r-se discrimination against those choosi•nq this Form of recreation. It is ridiculcus that the city will subsidise Senior Tours to a. ballgame, for example, for a r-ela*ively small group of citizens, while expecting the many more golfers in town to pay for City overhead, along with the sewer- system and like_ facilities. I am notably unimpressed with the amateurish "study" of thegolf course operations made by college students, which seems to have been the basis for the four- alternatives under- consideration for fee increases. I ' m sure any reasonable person would agree that fees should be increased. However , the radical increases proposed would essentially take Laguna La[.-.e "out of the market. " If McDonalds attempted to charge $10 for a hamburger, they would be out of business in minutes, and this could happen with Laguna Lake. i.. If one were to ,,.•ncrease fees 35% immediately'and .about 4% each of the next fourtears, the golf course would pay far its operation and necessary improvements and produce a profit Aver the next five years, if the administrative costs presently levied against it were not included. h 1: P I ask that you 'vote to put thegdl-f cdurse it:.o Park.s. an Recre ation, where i logically should be; and hav s.ome :k':nowlPdgeable hat fee increases are necessary before adoptind any adults anaiyzeltiv of the four alternative fee schedules under- present consideration. Ve'ry .truly yours, REC"t IVE.D AUei;16 -- r 5A��.ca William M. Hot tdn