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HomeMy WebLinkAbout1989-03-07; City Council; 9904; Recreational Facility Financing Committee ReportCP- OF CARLSBAD - AGENt+” BILL MTG. 3-7-89 RECREATIONAL FACILITY FINANCING RECOMMENDED ACTION: To review and consider taking appropriate action relating to the Recreational Facility Financing Committee recommendations. I ITEM EXPLANATION: On January 3, 1989, the City Council appointed a citizens committee of eleven (11) members plus one (1) alternate to specifically identify recreational amenities as outlined in Proposition M, and to identify and recommend alternative funding methods for their development. The Committee met once a week for the past seven weeks in order to accomplish their assignment and present the results to the City Council by March 7, 1989. Attached as Exhibit 1 is the final report of the Recreational Facility Financing Committee and their recommendations for City Council consideration. FISCAL IMPACT: None at this time, depending on Council action. I EXEIBIT: 1. Recreational Facility Financing Committee final report, February 1989. FEBRUARY 1989 RECREATIONAL FACILITY FINANCING COE1MIllEE MEMBERS: Jerry Rombotis - Chairman John Strayer - Parks and Recreation Commission Liaison Ramona Finnilla Greg Armstrong Jack Schumaker Al Sutton Jim Smith Frank Aleshire Kathy Blair Bill Beverly Ed Scarpelli Michael-David Smith (Alternate) John Mamaux - City Council Liaison Frank Mannen - Assistant City Manager David Bradstreet - Parks and Recreation Director Jim Elliott - Finance Director Phil Carter - Assistant to the City Manager Keith Beverly - Senior Management Analyst Ken Price - Principal Recreation Supervisor BACKGROUND At the December 6, 1988 meeting, City Council Members discussed the results of Proposition M on the November 4, 1988 ballot. Although Proposition M failed to gain the 2/3 vote necessary for passage, the consensus of the City Council was that the 62% "YES" vote was a mandate of the voters to provide the facilities that would have been built had Proposition M passed. The Council decided to form an ad hoc Committee representing a broad cross-section of the community, to provide additional public input on financing facilities that-would have been built under Proposition M. CHARGE OF THE COMMITTEE On January 3, 1989, the City Council appointed an eleven (11) member (plus one (1) alternate) citizens committee whose purpose was essentially two-fold. FIRST the committee was charged with the task of confirming specific recreational facilities as identified in Proposition M, i.e., golf course, tennis facilities and other recreational amenities. SECOND the committee would assess and recommend alternative funding methods available to finance the development of these recreational facilities. INTRODUCTION Concurrent with the appointment of a citizens' committee, Council approved a work plan which would aid the committee in accomplishing it's task. The committee met on a weekly basis at the Public Safety and Service Center. All meetings were open to the public and public input was encouraged throughout the proceedings. The initial committee meetings consisted of general background information presented by staff. Reports included information on the City's financial structure, current and future planned recreational facilities and a variety of alternative financing possibilities to fund recreational amenities not currently identified in future park development plans. A thorough understanding of the City's current and future financial status and park development plans was paramount to the function of this committee. Several documents relating to both of these issues were reviewed and discussed at length during the committee meetings. After background information was reviewed, committee discussion centered around the recreational opportunities not currently identified in the City's development plans and the timing in which certain planned recreational amenities will become available for public use. A brief synopsis of the committee's weekly work program is as follows: WEEK ONE (January 12, 1989) 0 Selection of Chairperson (Jerry Rombotis) 0 Adoption of committee procedural guidelines 0 Review of specific function of committee 0 Staff presentation of Carlsbad's financial structure WEEK TWO (January 18, 1989) 0 Staff presentations: Growth Management Program Proposed 1988 Revision of the Parks and Recreation Element C.I.P. budget relating to park development Ballfield inventory and facility standards Macario Canyon Park Conceptual Master Plan Revision GolfCoursestudies (MacarioCanyon,McCellan-Palomar (County), Lake Calavera) WEEK THREE (January 25, 1989) 0 Staff review of previous ballot measures 0 Committee created a list of recreational amenities for possible consideration Golf Course (Championship and Executive) Tennis Complex (16 court and 16 court stadium complex) Soccer Complex Indoor Soccer Facility 0 Review by Finance Director of alternative financing methods: General obligation bonds Mello-Roos Districts Debt supported by special tax Debt supported by general tax Certificates of participation Revenue bonds General Fund Revision of PFF standards Privatization Tri/City Joint Powers Association WEEK FOUR (February 2, 1989) 0 Presentation by C.C.A. Silband Sports Corporation discussing a private investment towards development, maintenance and operation. 0 Staff presentation on cost estimates for amenity selection (Week Three) including; land acquisition, development, maintenance and operation costs. WEEK FIVE (February 9, 1989) 0 Selection of committee findings 0 The committee began the selection of desired recreation amenities 0 A motion to increase the T.O.T. for general fund purposes passed unanimously. 0 A motion to introduce a Proposition H vote for recreational facilities passed unanimously. WEEK SIX (February 16, 1989) 0 Continuation of selection process for recreational amenities and financing mechanisms 0 Final recommendation WEEK SEVEN (February 23, 1989) 0 Review of draft report to City Council 0 Incorporated recommended changes 0 Recommendation that the final report be made to City Council on March 7, 1989 , ’ CDMITTEE FINDINGS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Based on current projections and key assumptions, Carlsbad is financially strong. The Director of Finance estimates that the City will have a surplus of revenues over expenditures in the general fund beginning in FY 1990 - 91 and growing thereafter. The City is currently experiencing short term financial problems due to slower growth rates which result in lower developer related revenue. Development of recreational facilities utilizing only PFF, while effective, may not be scheduled soon enough to satisfy some current needs. Current and future recreational facilities/programs are well planned and designed according to the Parks and Recreation Element and the proposed Capital Improvement Program. PFF will produce sufficient revenues to provide the recreational facilities required by the Growth Management Plan. Due to the development and operational cost of recreational facilities beyond what is outlined in the Growth Management Program and the Parks and Recreation Element, additional revenues will be required to supplement the General Fund. Many recreational facilities could produce revenues, which should be monitored on an annual basis. All entrepreneurial aspects of recreational facilities and properties should be examined carefully and updated annually. Many recreational facilities could produce revenue and those revenues should be monitored annually. Golf courses can be maintained and operated without a financial commitment beyond construction from the General Fund. To help augment the recreational needs of a specific user group, i.e., tennis and soccer, some recreational facilities may need to be constructed prior to receipt of Public Facility Funds. Golf course and major tennis facilities (stadium concept) and indoor soccer facility are not part of the Public Facility Fund or Growth Management Program. There are possibilities of private capital being utilized to develop golf, tennis facilities and indoor soccer. 4 COWIllEE RECiiENDATIOII The following recommendations represent a strong consensus of the committee. They are based upon the comprehensive reports presented by staff complemented by the expertise contributed by committee members. Prior to final implementation of specific projects, we would urge the City Council to conduct further studies on location and off-site costs, fee schedules and cost-benefit of alternatives. 1. Increase the current transient occupancy tax (T.O.T.) by 2% for General Fund purposes (1% July 1989, 1% January 1990). 2. Introduce a Proposition H vote for the development of recreational facilities. 3. Initiate development of two (2) Municipal Golf Courses outlined as follows: a. Initiate development of a municipal regulation size golf course utilizing monies from the General Fund, contingent upon the availability of funds. Planning of this course is to begin in 1989. Fees are to be comparable to other municipal/public golf courses within the county. b. Initiate development of a municipal short course beginning two (2) years after the regulation size course is developed or whenever a source of funds becomes available. *The committee also directed staff to consider contracting for maintenance and operation of both golf course concepts. 4. Initiate development of a multi-court tennis facility adequate for tournament play beginning in 1989, utilizing primarily the Public Facility Fee (PFF) funds currently designated for parks tennis projects. 5. Initiate development of two (2) multi-purpose fields, adult size or larger. a. Initiate development of one (1) field in 1989, utilizing Public Facility Fee (PFC) funds currently designated for park development projects. b. Initiate development of one (1) field in 1989, on an interim basis, utilizing finances through the General Fund. If a permanent site can be secured, lighting should be provided. 6. The City should provide space at a future park site for an enclosed soccer facility. The City should attempt to arrange for private development investment for the construction and operation of this facility. If a private development approach of this facility cannot be implemented, the City should incorporate the construction of the facility in its park development master plan and contract out the maintenance and operation. . . - - - * . * . I 7. The Committee further recommends that the City Council direct the Parks and Recreation Commission to incorporate in the Revised Parks and Recreation Element of the General Plan the following facilities as recommended by the committee: 0 Two (2) Municipal Golf Courses Regulation Size Short Course 0 Multi-Court Tennis Complex 0 Two (2) Multi-Purpose Fields Adult Size or Larger 0 Enclosed Soccer Facility The Committee wishes to express its appreciation to Mr. Bradstreet and Mr. Elliott and their staff for the excellent presentations and conscientious support given to this committee. The Committee Chairperson, Mr. Rombotis, is also to be commended for his effectiveness in conducting the committee proceedings. We were all deeply impressed with the quality of long range planning for recreational facilities for Carlsbad and we are confident that our City will continue to grow better over time. The recommendations we have made in no way reflect dissatisfaction with current planning but rather a fine tuning of the plan by the addition of recreation amenities which will provide a similiar excellence to that already achieved by our outstanding Library, Police Facilities, Fire Facilities, Senior Center, and Open Space Program.