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Home My WebLink About09/06/1988, 1 - GOLF COURSE FEES I`I�lY11ll�lllllllll II � � - MEETING DATE: Gry ° III ci o San tuts OBISPO 9/6/88 COUNCIL AGENDA REPORT ITEM NU ER: FROM: David F. Romero Public Works Dire for Lane Wilson . Parks and Buildings Manager Paul Taylor „��J Golf Course Supervisor PREPARED BY: David Elliott N , Administrative Aid yst SUBJECT: Golf Course Fees) CAO RECOMMENDATION: Adopt the resolution simplifying and adjusting golf course fees. BACKGROUND: At the 8/16/88 council meeting, the council asked staff to bring back proposals for simplified golf course fees patterned after the policies for parks and recreation fees. These policies suggest that golf course fees should cover 80 to 100 percent of costs and that substantial discounts should be extended to seniors. ALTERNATIVES: Staff looked at two alternative strategies consistent with council direction. Both alternatives would eliminate 18-hole play discounts, 10-play cards, and weekend/holiday play with monthly cards. Alternative 1 would recover 82 percent of costs through fees, while Alternative 2 would recover 100 percent. Alternative 1 (82 percent cost recovery) Alternative 1 would set prices for single rounds high enough to recover the full cost of those rounds. A general fund subsidy amounting to 18 percent of budgeted program costs (about $53, 000 in the current year) would allow monthly card prices to be deeply discounted. Alternative 1 is the recommended alternative. Alternative 2 (100 percent cost recovery) Alternative 2 would set prices for single rounds at the high end of market rates, bringing in more than the full cost of those rounds. The gain realized here would subsidize monthly card prices, allowing substantial discounts. ��h�iti�►►�IIIII��° ►Ildlll MY Of San LUIS OBI SPO MaGa COUNCIL AGENDA REPORT Golf Course Fees page two The following table compares existing prices with prices proposed in Alternatives 1 and 2. Amounts in parentheses show increases from existing prices. EXISTING ALTER. 1 ALTER. 2 ------------ ------------ ------------ One 9-hole round: weekday $ 3.50 $ 4.25 (21%) $ 4.50 (29%) weekday for seniors 3.15 3.75 (19%) 4 .00 (27%) weekend/holiday 4.00 5.00 (25%) 5.50 (38$) Monthly cards (for weekday play only) : single $35.00 $40.00 (14%) $45.00 (29%) couple 50.00 60.00 (20%) 65.00 (30%) With both alternatives the monthly card price (virtually a senior discount) would provide on average about a 50 percent discount from full price. With Alternative 1 prices would be adjusted annually to keep pace with changes in the Consumer Price Index. With Alternative 2 prices would be increased annually by 11 percent for four years to keep pace with inflation and continue to cover 100 percent of costs. CITIZEN PARTICIPATION AND CONCURRENCE: Howard Bentzinger and Willis Waldo of the Laguna Lake Men's Golfing Association and Sally Horton and Phyllis Sheets of the Laguna Lake Ladies Golf Club have reviewed the proposed fee schedule and concur with it. Their recommendations have been incorporated into the fee schedule. They predict that eliminating monthly card play on weekends and holidays will simply cause a decline in weekend/holiday play. To the contrary staff expects that limiting monthly card play to weekdays will free up tee times on weekends/holidays (the usual peak demand period for golf) and encourage more play by patrons willing to pay premium prices. Staff proposes that monthly card play be restricted to weekdays for a six month trial. At the end of the trial period, if weekend/holiday play has declined sharply, then monthly card play on weekends and holidays may be restored. The association and club representatives agree with this proposal. ��vZ ��►n�►r►il�lllll��l�► ,q��U city of San tuts OBISpo i COUNCIL AGENDA REPORT Golf Course Fees page three SUMMARY AND STAFF RECOMMENDATION: Staff recommends that the council adopt the resolution simplifying golf course fees and adjusting them to recover 82 percent of costs. These objectives would be reached by: 1) eliminating.discounts for 18-hole play 2) eliminating 10-play cards 3) recovering the full cost of rounds sold as single rounds 4) recovering half the cost of rounds played with monthly cards '5) restricting monthly card play to weekdays 6) annually adjusting prices to keep pace with cost changes attach: resolution RESOLUTION NO. (1988 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO TO ADJUST FEES AT LAGUNA LAKE GOLF COURSE WHEREAS, the City recognizes that Laguna Lake Golf Course is an important recreation resource, particularly for seniors; and WHEREAS, the City wants to pattern golf course fees after parks and recreation fees, recovering 80 to 100 percent of costs while extending substantial discounts to seniors; and WHEREAS, the City wants to simplify and stabilize the golf course fee schedule; and WHEREAS, the City wants to restrict discounted play to off-peak hours; NOW THEREFORE BE IT RESOLVED by the Council of the City of San Luis Obispo that: 1. This resolution shall supercede Resolution No. 5718 ; 2 . The following green fee schedule for Laguna Lake Golf Course shall take effect on October 1, 1988: one 9-hole round: weekday $ 4 .25 weekday for seniors 3 .75 weekend/holiday 5.00 monthly passes for weekday play: single $40. 00 couple 60.00 3 . All green fee categories and discounts not included in this resolution shall lapse effective October 1, 1988; 4 . 10-play cards sold before October 1, 1988 shall be honored after October 1, 1988; 5. Beginning in 1989, on July 1 of every year prices shall be adjusted by a percentage equal to the percentage change in the Consumer Price Index for All Urban Consumers/Los Angeles- Anaheim-Riverside from April to March in the year before adjustment; 6. With approval of the city administrative officer, prices may be increased annually above the percentages specified in section 5 of this resolution if required to cover at least 80 percent of approved golf course program costs, provided that the total percentage increase does not exceed 15 percent; Resolution No. (1988 Series) Page 2 7. After adjustment, prices for single rounds shall be rounded to the nearest 10-cent increment and prices for monthly cards shall be rounded to the nearest dollar. On motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was passed and adopted this day of 1988. MAYOR RON DUNIN ATTEST: CITY CLERK PAMELA VOGES APPROVED: CITY ADMINISTRATIVE OFFICER INANCE DIREC OR CITY TORN? PUBLIC WORKS DIRECTOR Mltt: HUtNUH r DATE W 6 dd ITEM 9# - September 1, 1988 Denotes action by I and F.. Respond by: Council MEMORANDUM Y'Cdy may. TO: City Council C�sf,9/ev �� i VIA: John Dun FROM: Bill Statler Dave Elliott SUBJECT: Golf Course_' e ' -- addendum to agenda report for 9/6 On 8/23 we met for about two hours with Howard Bentzinger, Waldo Willis, Sally Horton, and Phyllis Sheets, officers of the men's and women's golf associations. We presented a proposal for golf course fee adjustments based on council direction at the 8/16 meeting. After some discussion, we made three concessions: 1) We agreed to lower the proposed monthly card prices from $45. 00 (single)/$65. 00 (double) to $40. 00 (single)/$60. 00 (double) . 2) We agreed to raise the general fund subsidy from 15 percent to 18 percent of costs in order to compensate for the lower monthly card prices. 3) we agreed to limit monthly card play to weekdays for a six month trial rather than permanently. With these concessions, the association officers agreed that the fee adjustments were acceptable. Their concurrence was noted in the agenda report for this item. A week later, after the agenda report had been submitted, Howard Bentzinger phoned to say they'd changed their minds -- they couldn't endorse the proposed fee adjustments without two more concessions from the city: that monthly card play be allowed on weekends and that a second round discount be included. Staffinembers disagree with these two additional concessions. Monthly cards offer an overall 50 percent discount from full price. It seems fair and logical that any discounts should be offered during non-peak hours on weekdays, saving weekends and holidays for those who can't play during the week. Paul Taylor believes that with a little promotion he can book up weekends and holidays with players paying full price, bringing in sorely needed revenue and reducing subsidies. All he wants is a six month chance to try. If it doesn't work, we can bring back a recommendation to reinstate monthly card play on weekends and holidays. Golf Course Fees page two Having a second round discount doesn't make sense for two reasons. First, not many players use it. Only 3 , 900 out 61,400 rounds were played as discounted second rounds in 1987-88 . Second, we don't particularly want to encourage a second round of play because it disrupts scheduling. Staff stands by the recommendation presented in the agenda report. It is generous to seniors, it offers others more opportunity to play, and it gives the city a chance to earn more revenue and reduce subsidies. In short, it balances the desires of golfers and seniors with the policy direction of the city council . c: Howard Bentzinger Waldo Willis Sally Horton Phyllis Sheets