Jun 6, 2017 - Increase the connectivity of the trail system with additional amenities such as a .... Cal Poly has up to
COUNTY OF SAN LUIS OBISPO BOARD OF SUPERVISORS AGENDA ITEM TRANSMITTAL
(1) DEPARTMENT
(2) MEETING DATE
(3) CONTACT/PHONE
Parks and Recreation
6/6/2017
Nick Franco (805) 781-5204
(4) SUBJECT Request to approve the El Chorro Regional Park (including Dairy Creek Golf Course) Programming Plan and for direction regarding the use of supplemental water to irrigate the golf course. District 2. (5) RECOMMENDED ACTION It is recommended that the Board: 1. Approve the El Chorro Regional Park Programming Plan. 2.
Provide direction to staff regarding the use of supplemental water to irrigate the golf course.
(6) FUNDING SOURCE(S) N/A
(7) CURRENT YEAR FINANCIAL IMPACT
(8) ANNUAL FINANCIAL IMPACT
$0.00
$0.00
(9) BUDGETED? N/A
(10) AGENDA PLACEMENT { } Consent
{ } Presentation
{ } Hearing (Time Est. _______)
{ X } Board Business (Time Est.120 Min)
(11) EXECUTED DOCUMENTS { } Resolutions
{ } Contracts
{ } Ordinances
{ X } N/A
(12) OUTLINE AGREEMENT REQUISITION NUMBER (OAR)
(13) BUDGET ADJUSTMENT REQUIRED? BAR ID Number: N/A
N/A (14) LOCATION MAP
(15) BUSINESS IMPACT STATEMENT?
{ } 4/5th's Vote Required (16) AGENDA ITEM HISTORY
N/A
No
{ X } N/A Date ______________________
(17) ADMINISTRATIVE OFFICE REVIEW David Grim (18) SUPERVISOR DISTRICT(S) District 2
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{ X } N/A
COUNTY OF SAN LUIS OBISPO
TO:
Board of Supervisors
FROM:
Parks and Recreation / Nick Franco (805) 781-5204
DATE:
6/6/2017
SUBJECT:
Request to approve the El Chorro Regional Park (including Dairy Creek Golf Course) Programming Plan and for direction regarding the use of supplemental water to irrigate the golf course. District 2.
RECOMMENDATION It is recommended that the Board: 1. Approve the El Chorro Regional Park Programming Plan. 2.
Provide direction to staff regarding the use of supplemental water to irrigate the golf course.
EXECUTIVE SUMMARY Faced with an uncertain future due to insufficient water to maintain a viable 18-hole golf course, Dairy Creek Golf Course was evaluated along with the entire El Chorro Regional Park for the opportunities to create a fiscally sustainable park operation that meets the community’s recreational needs within the available water allocation. County Parks contracted with Staples Golf Design to develop a Programming Plan for El Chorro Regional Park with additional input from RRM Design Group. The plan presents two fundamental options: one that has a minimum allocation of 160AF of water and retains the 18-hole course and another that has less than 160AF of water and reduces to a 9-hole course with a practice facility. Within each of those options, the implementation can be scaled to the precise amount of water that is allocated. The Board may direct staff to not seek any supplemental water. The Board may also direct staff to pursue supplemental water on either a long term basis or as an interim option while transitioning to a lower water use option and may specify the amount of supplemental water to receive. That direction will allow staff to pursue an implementation scenario consistent with the total anticipated water allocation. The intent is to implement revenue generating actions as quickly as feasible in order to reduce the amount of General Fund transfer that will be needed in subsequent years.
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DISCUSSION Golf is an important component of the services provided to the community by County Parks. The golf program offers an affordable opportunity for all generations to participate in an activity that provides a source of exercise and allows people to come together in club groups, tournaments, fundraisers and general play to build stronger social bonds with each other. Golf in San Luis Obispo County contributes to our tourism-based economy and raises money for non-profit organizations. Each of our courses provides venues for the San Luis Obispo, Mission Prep, Atascadero, Templeton, and Morro Bay high school boys and girls golf teams to teach the values and skills that are required to succeed at golf and life. County Parks remains committed to maintaining golf as a key public good provided at El Chorro Regional Park. While this began as a Master Plan concept, it became clear that a traditional Master Plan is too precise and detailed for what was needed to meet the needs of the park. The planning process evolved to become a Programming Plan to set the potential uses within the park that can be scaled based upon available water and available funding to implement. Once a long term decision is made regarding supplemental water availability, then a more specific implementation plan can be developed. The Programming Plan sets the basis, primarily water availability, upon which implementation decisions can be made. The Board of Supervisors first considered this item on May 17, 2016 when Parks staff provided a summary of the water issues, the financial impacts, and the operational options for the golf course. The Board directed staff to:
Not consider the use of supplemental potentially potable water for irrigation Not pursue operation by a management company Maintain the golf program as an enterprise fund Provide a General Fund subsidy of as much below $485,000 annually as possible Explore short range, medium range and long range options Return to the Board with costs, benefits, and timeframes
The Board again considered this item on October 4, 2016. The Board did not approve the immediate installation of event and camping features, but did approve Parks proceeding with master plan development (the current Programming Plan presented here). The Board reaffirmed its May 2016 direction regarding not including potentially potable water sources in the future planning for the golf course. The Board met again on February 28, 2017 and directed that County Parks explore all options for supplemental water to retain the 18-hole course. County Parks established an advisory committee with representatives who could address the park uses, creatively approach alternatives to keep a quality golf experience within available water resources, and engage other community members to participate in the planning process. That committee met six times between December 2016 and May 2017 to assist in developing the plan. There have been five public workshops to gather input regarding the future plans for the golf course and the park. The key takeaways from these workshops are:
Strong desire to keep the existing 18-hole course If less than 18-holes are retained, limit changes to original design intent
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Diversify the offerings to attract 100% of the community including adjustments to the park entry with added amenities and focus the entry around the clubhouse Anticipate future trends in golf and address revenue generation issues Increase the connectivity of the trail system with additional amenities such as a mountain bike skills course and disc golf area Improve marketing and branding and consider a rebranding of the entire property under one name and likeness
Members of the public also presented a petition to construct a “superpond,” or large additional pond to capture more water. County Parks had considered that last year, but the construction costs, the lack of available water to store in the pond and the challenge of the ability to obtain a diversion permit to collect sufficient surface water made this option infeasible. Additionally, members of the public suggested that golf, like other recreational activities such as tennis, softball, basketball, volleyball, etc., should be subsidized by the General Fund as a Special Revenue Fund instead of an Enterprise Fund. This is not consistent with the direction received from the Board on May 17, 2016 and was not considered. The Parks and Recreation Commission considered the Programming Plan at their April 27, 2017 meeting. The Commission recommended that the Board of Supervisors approve the Programming Plan and increase water allocation to an optimum 250 AF per year and no less than 160 AF in order to maintain an 18-hole golf course. The Commission further recommended that the Board of Supervisors approve the development of amenities as specified in the Programming Plan and develop a comprehensive marketing plan in order to increase marketability and be inclusive to 100% of the community. The Commission also requested that Park staff bring more details back to the Commission regarding moving Golf to a Special Revenue Fund instead of an Enterprise Fund or creating a separate Special Revenue Fund for El Chorro Regional Park to include Dairy Creek Golf Course. Programming Plan The vision of the plan is development of a unique, dynamic, and quality destination experience that is sustainably built for 100% of the community. Based upon the public input, the main purpose of the plan is to:
Integrate golf into parks and parks into golf Develop and market a unique and dynamic destination Have features to encourage participation from 100% of the community Expand on the sustainability efforts of the golf course
A total of four scenarios are presented based on water availability: 250AF, 160AF, 120AF and 100AF. The plan also adds additional features to meet community recreational needs, which will provide other revenue sources and better integrate the park. These features, which can be implemented at any time, will promote activities that appeal to the wider community without compromising the layout of the golf course in its current form. Those projects that contribute to additional revenues should be prioritized over non-revenue contributing features. Items that can be implemented at any time (expanded non-golf uses do not have a significant increase in irrigation water use): Page 4 of 8
Select appropriate golf course layout, 18-holes or 9-holes, based on the available water (desired timeframe commitment for known water availability is 10 years) Commit to marketing and rebranding the overall park as one, consider name change, promote golf through the Community Links® philosophy Redesign entry into park to direct traffic towards existing golf course clubhouse, convert current clubhouse into “central hub” including check in for all park activities on property Begin integrating non-golf uses on non-golf land such as expanded RV camping, cabin sites on land adjacent to current driving range, begin construction of a connected trail system, mountain bike skills course, expanded food & beverage activities, mini-golf, etc. to be located on land adjacent to the current clubhouse near the Walter Capps Memorial Grove Add electric go-karts Add batting cages near the current ball fields Add disc golf course
Items that can be implemented based on selected layout of the golf course:
Expanded cabin sites, and expanded tent camping to be located on possible abandoned golf course property Relocated range and expanded learning center to be located on existing holes 1 and 9 Golf learning center/Cal Poly “team building” should be located adjacent to the selected location of the driving range Expanded event center/concert venue adjacent to the relocated driving range
The activities proposed that are outside the current use of the park would need approval from the National Park Service to assure compliance with the deed restrictions for the property under the Federal Lands to Parks Program. None of the proposed activities are anticipated to be outside the typical scope of activities that can be approved by the National Park Service. Approval of the plan will allow staff to pursue implementation of additional features and/or implement changes to the golf course depending on the amount of water available now and into the future. Supplemental Water The park currently can reasonably expect to have 100AF of water available to the course on an annual basis. Reclaimed water will only be available between the months of December 1 and April 30 of each year. There is a potential of an unknown amount of water from a County owned Well #1 to which the County provided an easement to the California Men’s Colony (CMC) allowing them the use of the well’s water. County Parks continues to work with CMC to determine a shared use this well water for irrigation purposes at the park. Beyond these sources, delivery of water using the Whale Rock Reservoir infrastructure is the only viable solution. CSA10A (Cayucos) has 80AF of Whale Rock water and 40AF of Nacimiento water (which can be wheeled for Whale Rock water) that may be available annually to the park. That availability would decrease over time as CSA10A grows towards buildout. Cal Poly has up to 100AF of Whale Rock water available for purchase, but only for two to five years.
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The cost of supplemental water is up to $2,000 per AF. Purchase of supplemental water would be from the Golf Enterprise Fund. We anticipate that the improved play would translate to at least 13,000 additional rounds of golf to offset the cost up to $200,000 for 100 AF of water. Impact of Water Allocation on Option Selection The scenarios defined in the plan will be selected or scaled depending on the water allocation. Water determines the extent of the golf course and the extent of the golf course determines the extent of the park expansion onto the existing golf course acreage. Allocation of an additional 150AF will allow the park to fully function with a financially viable 18-hole golf course (250AF option). Allocation of an additional 60AF or more will allow the park to operate an 18-hole golf course, but the course will have no irrigated tees, long carries, and narrow fairways; it will be a more difficult course (160AF option). This option may not result in a financially viable 18-hole course and may necessitate conversion to a 9-hole course with a driving range and practice facility. 160AF is the critical decision point between 18-holes and 9-holes. The more water is reduced from 250AF towards the 160AF mark, the more difficult it will be to operate a viable 18-hole course. Allocation of less than 160AF will not support an 18-hole golf course. Some supplemental water will allow for 9 holes, a driving range and the inclusion of a practice facility (120 AF option). No supplemental water will allow only for 9-holes and a driving range (100 AF option). Any reduction below 100 AF will allow only a driving range with some practice holes, depending on the total water available. All options are designed to be fiscally viable upon full implementation. Full water allocation allows the golf course to be fiscally viable. As that water allocation decreases, more park revenues would need to be developed on existing golf course acreage in order to keep the whole park fiscally viable. Capital investment will be needed to accomplish implementation of any selected option. That investment can come from many sources including grants, sponsorships, donations, County funds, or other future available funds. Supplemental Water Direction Options The Board may direct staff to not seek any supplemental water. Upon receiving that direction, staff would immediately begin irrigating the golf course consistent with the 100 AF Scenario in the Programming Plan and would begin to develop an implementation plan for other amenities. The Board may direct staff to pursue supplemental water on either a long term basis or as an interim option while transitioning to a lower water use option and may specify the amount of supplemental water to receive. That direction will allow staff to pursue an implementation scenario consistent with the total anticipated water allocation. If staff receives direction to use any supplemental water, staff recommends that the Board provide the following direction: Authorize an immediate one-time purchase of up to $200,000 of water from any available source without the need to return to the Board Page 6 of 8
This direction is necessary in the event the Board desires to keep 18 holes open. In order to keep the golf course irrigated this summer while a long term agreement for water is negotiated or while the course transitions to a lower water use option, immediate access to water is needed. Currently, the course is not receiving any supplemental water and does not expect any more delivery until December 1, 2017. This means that the course is dependent on stored water in the ponds (approximately 65 AF of useable water) to last through the current summer and fall. This is insufficient to irrigate 18 holes. If the Board directs staff to pursue a long term allocation of water, staff recommends that the Board take any or all of the following actions: 1.
Provide direction to staff to secure supplemental water from CSA10A including: a. Present the proposal to the Cayucos Advisory Council and bring their feedback to the Board b. Work with Public Works to establish appropriate water costs/agreement with CSA10A c. Negotiate with the Whale Rock Commission for a wheeling agreement and bring an agreement back to the Board for consideration of approval
2.
Provide direction to staff to secure supplemental water from Cal Poly by negotiating an agreement establishing the costs and term and bring an agreement back to the Board for approval
3.
Continue negotiations with the California Men’s Colony regarding access to water from Well #1
4.
Pursue any other available option that may become available
Any of these actions will take time to finalize and, therefore, the immediate authorization to purchase water (recommended direction for immediate purchase above) is necessary for any action to be successfully implemented. OTHER AGENCY INVOLVEMENT/IMPACT The Department of Parks and Recreation has coordinated with the County Administrative Office and the Department of Public Works in addressing water and financial viability. Parks has also been in contact with the National Park Service who represents the Department of the Interior as it relates to federal deed restrictions on the property. Parks works with the California Men’s Colony, Camp San Luis Obispo, Cal Poly, the County Office of Education and the City of San Luis Obispo related to many of the use issues within the development of the plan. FINANCIAL CONSIDERATIONS One purpose of the programming plan is to recommend a course of action to keep the Golf Enterprise Fund financially viable. The Golf Division is the combined operations of Morro Bay, Chalk Mountain and Dairy Creek golf courses. Currently, the Golf Division is not financially stable due to the decline in play at Dairy Creek as a result of insufficient water to maintain quality playing conditions. As of the end of the third quarter, Golf is projecting a yearend deficit of $525,149. In order to ensure that operations can be sustained until permanent changes can be made and to ensure that the Golf program can make its debt payments, the Board of Supervisors approved “a subsidy of as much below $485,000 a year as feasible,” according to a motion passed on May 17, 2016. As part of the update to the Board on Page 7 of 8
October 4, 2016, the Department presented a plan that would keep a cash balance for Golf no lower than $300,000. If, at the end of the third quarter of each fiscal year, it is projected that a deficit would deplete the cash balance below $300,000, a request will be made to make up the difference with General Fund contingencies. Golf began the 2016-17 fiscal year with a cash balance of $778,191. With the currently projected deficit of $525,150 this would result in an ending cash balance of $253,041. As part of the third quarter report presented to the Board on May 16, 2017, a transfer from General Fund contingencies was approved to close the deficit by allocating $46,959 for FY 2016-17. It is anticipated that no matter what option is selected, Golf will need to use the entire $485,000 for FY 2017-18 while implementation of the selected option is completed. The intent is to implement revenue generating actions as quickly as feasible in order to reduce the amount of General Fund transfer that will be needed in subsequent years. More financial detail can be found in the recommendations section of the Programming Plan. RESULTS Maintaining a viable golf program and a more integrated park facility will provide affordable park and golf options for the residents of the County and will contribute to the Community Results of a healthy, livable and prosperous community by providing recreation, opportunities for social connections and support of the tourism economy of the County. Pursuing the recommended action also supports the following Department’s Strategic Plan objectives: Objective Objective Objective Objective Objective
1.1 1.2 1.3 2.1 2.2
– Provide parks that offer diverse recreational opportunities for the community – Provide recreational opportunities at the County’s Golf Courses – Provide sustainable parks and golf courses for the community – Ensure the recreation and health of the community – Ensure access and equity to our parks for all individuals
ATTACHMENTS 1. 2. 3. 4. 5. 6. 7. 8. 9.
Attachment A - Advisory Committee Members Attachment B - List of Meetings Attachment C - Table of Options Attachment D - Part I El Chorro Regional Park Programming Plan Attachment E - Part II El Chorro Regional Park Programming Plan Attachment F - Part III El Chorro Regional Park Programming Plan Attachment G - Part IV El Chorro Regional Park Programming Plan Attachment H - Appendix El Chorro Regional Park Programming Plan Power Point - El Chorro Regional Park Programming Plan
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