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HomeMy WebLinkAbout1994-12-13; City Council; 12951; CONTINUATION OF THE AGUA HEDIONDA LAGOON PATROL PROGRAMWY OF CARLSBAD - AGWDA BILL -m Ll AB # Jdi9 5/ TITLE: CONTINUATION OF THE - CITY MTG. I3-14-c/Y AGUA HEDIONDA LAGOON DEPl PATROL PROGRAM CITY I I I i3 F.& :;> sf"' 3 PZ 2- CL 4 2 0 F 0 a d z 3 0 0 RECOMMENDED ACTION: If Council concurs, adopt Resolution No. C, LI a 325 authorizing: 1) additional fu in the amount of $14,300 for the continued operation of the Agua Hedionda Li Patrol Program, 2) approval of an increase in the annual and daily use permit fees 3) establishing a self-sustaining goal of 65-70% for program operation. ITEM EXPLANATION: As a result of the FY 1994-95 budget deliberation process, during the June 21 j meeting, Council directed staff to initiate steps necessary to terminate the existing with SDG&E for use of the inner Agua Hedionda Lagoon (AHL). Additionally, C approved the elimination of funding for the AHL Patrol Program as of January 1, Pursuant to that action, during the June 28, 1994 meeting, Council heard public from several users of the lagoon expressing concern that the future recreational the AHL would be in jeopardy if the City terminated the SDG&E lease and program. In response to that concern, Council directed staff to work with v interested parties to insure that the traditional recreational use of the AHL continue. In an effort to further address this issue, staff requested assistance and input frc Parks and Recreation Commission (PRC). On July 18, 1994, the Commission apF users of the AHL and report back with a recommendation concerning the recreational use of the inner lagoon. The subcommittee met several times over a period of two months in a public settir representatives of the user organizations, the general public, and city staff to revic discuss a number. of relevant issues. Public comment was also encourage considered as part of the overall findings and recommendations. Although the at Parks and Recreation Commission Agenda Bill #1194-4 (Exhibit 2) explains in detail the findings of the subcommittee, on November 21, 1994, the Comn accepted the subcommittee's report and unanimously (7-0) approved recommendations as follows: PRC Recommendation a subcommittee (Schulberg, Baker, and Heineman) to work with the organizatiol 1, At this time, in order to insure that the traditional recreation on the AHL cor the Parks & Recreation Commission recommends that the City continue th with SDG&E, assuming liability and continue to fund the AHL Patrol Progrz 2. Request additional funding in the amount of $14,300 in order to fund the patrol program through June 30, 1995. Implement the use of volunteer force appropriate. PAGE 2 OF AB#* 4W 0 3. Reduce the expectation of a 100% self-sustaining basis for the AHL Pro Establish a goal for the AHL program to be 65-70% self-sustaining. 4. The Commission recommends an increase of 2-112 times the existing annua\ I fee and 1-1/2 times the existing daily permit fee (effective January 1, 1995). 5. The City should request, and SDG&E should provide, a formal commitm dredge the AHL inner lagon within the very near future. 6. The City should formally seek a financial contribution from SDG&E towa annual patrol program operation of the AHL. In addition to the above recommendations, the Commission also endorsc subcommittee's finding that the issuance of citation authority to the lagoon personnel would be of significant benefit to the overall effectiveness and safety lagoon program. If Council concurs, staff has submitted an agenda bill and ordi establishing those citation powers. ALTERNATIVES: 1. Existing policy as identified in the Parks and Recreation Element is "to prov the safe recreational use at the AHL on a self-sustaining basis.'' If Co direction is to continue the lagoon program under the existing policy, tl would need to be adopted. In essence, this alternative would increase annu by approximately 300%. schedule identified as Alternative II within Exhibit 2 (PRC Agenda Bill #1 2. Direct staff to continue to implement Council direction of June 21 l 19s terminate the existing lease with SDG&E and effectively eliminate the progr of January 1 l 1995. FISCAL IMPACT: If Council concurs with the PRC recommendation to provide full year funding for pr operation, an additional $14,300 needs to be appropriated for the remainder of thc year. If Council also concurs with the PRC recommendation to increase permit fec appropriation will be offset by additional revenues estimated at $13,700. The nl of an additional 6-month operation is estimated at $600. Current Budget PRC Recom. Net Change (6- month (1 yr. fundinglfee (additional 6 mo. operation) increase) operation) Appropriation $1 8,200 $32,500 $1 4,300 Est. Revenue 8,000 21,700 13,700 Net Cost $1 0,200 $1 0,800 $600 EXHIBITS: ., 1. Resolution No. 2. Parks & Recreation Commission Agenda Bill #1194-4 ~. . .- ll 0 0 11 RESOLUTION NO. 94-325 1 2 3 4 5 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBI CALIFORNIA, AUTHORIZING: I) ADDITIONAL FUNDING IN T AMOUNT OF FOURTEEN THOUSAND THREE HUNDRED DOLLA HEDIONDA LAGOON (AHL) PATROL PROGRAM, 2) AN INCREASE THE AHL ANNUAL AND DAILY USE PERMIT FEES EFFECT I ($14,300) FOR THE CONTINUED OPERATION OF THE AG JANUARY 1,1995, AND 3) ESTABLISHING A SELF-SUSTAINING GC OF 65-70% FOR AHL PROGRAM OPERATION. I 6 7 WHEREAS, on June 21 , 1994, as part of the budget deliberation proces 8 for the AHL Patrol Program was eliminated effective January 1 , 1995, and 9 WHEREAS, public sentiment heard by the City Council on June 10 11 expressed concerns relating to the jeopardy of the future recreational use of I.1 I) WHEREAS, the City Council directed staff to work with various interesl 12 and Recreation Commission to evaluate issues related to the continuation c I* I WHEREAS, as a result of public meetings held by a subcommittee of 13 to insure that the traditional recreational use of AHL continues, and l5 11 Program has resulted in a report received by the Parks and Recreation Commi 16 I/ 17 It WHEREAS, the findings and recommendations of the subcommit 18 recommended that the City continue to fund the AHL Lagoon Program, increa: 19 annual and daily use permit fees and establish a goal for the AHL program 20 1 at a 65-70% self-sustaining basis, and 21 j i WHEREAS, the Parks and Recreation Commission unanimously apF 22 11 recommendations contained within the subcommittee report and directed staff 23 24 their recommendation to the City Council for consideration, and 25 )I WHEREAS, on December 13, 1994, the issue was presented to the C 26 ~ and their action approved additional funding for the continuation of the I 27 28 program, authorized an increase in AHL annual and daily use fees and establi 70% self-sustaining goal for program operation, II I' It 0 0 i I1 1 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 1 2 3 California, the following: 1. That the above recitations are true and correct. 4 11 2. The City Council does hereby authorize additional funding in tb 5 6 of $14,300 in order to provide full year funding for the AHL Patrol Program thrc 7 !j 301 lgg5. 8 3. The City Council does hereby authorize the increase of AHL pro 9 permit fees, a schedule of which is attached hereto and made a part hereo lo from the existing rate to 2-1/2 times the annual permit fees and 1-1/2 times I' // Recreation Commission Agenda Bill #1194-4). 12 13 14 15 19 18 the following vote to wit: 17 the City of Carlsbad, California, held on the 13th day of a 16 PASSED, APPROVED, AND ADOPTED at a regular meeting of the City 4. The City Council does hereby establish an AHL program operati be 65-70% self-sustaining. AYES: Council Members Lewis, Nygaard, Kulchin, Finnila, Hall 20 21 22 I NoES: None ' ABSENT: None 23 24 ATTEST: 25 26 ALETHA RAUTENKRANZ, City Ckrk 27 ii 28 I ~ I 1: PARKS~RECREATION COMMISS~ - AGENDA BILL . AB qT\u TITLE: MTG. w DEPT.cs- OF THE AGUA HEDIONDA LAGOON i SCBCOX1;CIITTEE REPORT/ CONTINC'ED RECREATIONAL USE i I 1 I z c 0 G a z 0 G 2 z I 0 I RECO"€NUEU ACTION: Receive the Subcommittee report and recommend appropriate action. Direct staff to pre: the Parks and Recreation Commission's recommendations for City Council consideratiol ITEM EXPLANATION: During the FY 1994-95 budget deliberation process, staff issued a budget statement (Exk 2) for the possible elimination of the Agua Hedionda Lagoon (AHL) Patrol Program. issue was offered for consideration in order to fund other city-wide programs that may f a higher priority. Although the patrol program had previously survived several year program eliminations and/or service level reductions, the principle reasons the suggc elimination was presented this year were: 0 Continued reduction in the City's FY 1994-95 operating budget 0 Liability exposure 0 Inability of the program to operate on a self-sustaining basis e City staff believed the traditional recreation on the lagoon would be cont based upon the State Attorney General's opinion that the AHL is an public navigable waterway. The cost of program operation offset by revenues would make $1 available for other city-wide programs. 0 Siltation buildup within the lagoon is diminishing the recreational res area and creating safety concerns. After submitting the issue statement during the budget review process, Council, on Ju 1994, unanimously directed staff to terminate the existing lease agreement with SDGi the inner AHL and eliminated funding for the patrol program as of January 1,1995. k to that direction, the Finance Department allocated sufficient funds (approximately $1 in order to fund the patrol program through the 1994 calendar year. During the June 28, 1994 lagoon expressing concern if the City terminated the meeting, Council heard public input fiom several users that the future recreational use of the AHL would be in je SDG&E lease and patrol program. in response to that CI Council directed staff to work with the interested parties in an effort to insure t traditional recreational use of the AHL would continue. 1 I u EXHll e 0 PAGE 2 OF AB# AS a result of Council direction, on July 18, 1994, the Parks and Recreation Commissj (PRO apwinted a Commission Subcommittee (Schulberg. Baker. and Heineman) to w( with the various organizations and users of the AHL and report back with a recommendat that would address the issue of the future recreationaj use of the AHL. In pursuit of a resolution to the issue, the Commission Subcommittee requested the inpu various organizations in a forum of committee proceedings. The following organizations their representatives which participated are as follows: e AHL Foundation - Tom King e Bristol Cove HOA - Keith Mahler e Carlsbad Boat Club - Mike Pfankuch e Snug Harbor Manna - Roxanne Rusing e SDG&E - John Hernandez 0 Passive users/community at large - Jim Hawks Although the California Department of Boating and Waterways was requested to attend invitation was declined. The Commission Subcommittee met with the various organizations on three (3) sep occasions from 7-9 p.m. at the Carlsbad Senior Center. All meetings were noticed, op the public, and invited public input. In addition, the Subcommittee met on several occa with City staff to discuss specifics related to operational issues of the lagoon program Through committee proceedings, a myriad of specific and statistical informtior presented by staff and the various user groups. As well, agreat deal of public sentimer expressed through public input. At the initial committee meeting, each organizatio: asked to make suggestions in tern of solutions or contribulions that their organizatio willing to make to insure the future recreation of the lagoon. It soon became evident ti future recreational use of the lagoon was indeed in jeopardy without City interventiol With an overall consensus through committee -dingo. the fdhwing issues havl identified as being important for the continuation of the traditional rtcregtiod use lagoon. Although the Committee as a whole did not nach collstnsus on rtsoiution t of these issues, the Commission Subcommittee identifies those issues and pnsent recommendations for consideration to the Parks and Recreation commission. They w 1. LIABlLITY Cinder terms of the existing lease with SDGBrE, the City 8ssumeS dl liabi agrees to protect, indemnify, and hold SDG&E harmless from any events h upon the inner lagoon. Prior to December 1991, the city required all wr lagoon to provide insurance which named the City as additionally insured. H since that time, and b& upon a ruling by the State Anorncy General's Of a 0 PAGE 3 OF AB# City was required to drop its insurance requirement as a result of the AHL bei! determined to be an open public navigable waterway. This determination by the St2 is a claim refuted by SDG&E as they assert the AHL is privately own( Irregardless, to date the City has been left in the precarious situation of having assume an increased liability risk exposure. If the City terminates the lease, SDG&E officials have stated that even though tk would like to see the lagoon remain open for recreational use, it would be an urd burden to assess SDG&E rate payers with any expense or liability associated w recreation on the lagoon. Furthermore, SDG&E officials stated that the Put Utilities Commission and company shareholders would not look favorably upon i contribution toward providing for the future recreation upon the lagoon. SDG&E the organizations associated with the AHL have not indicated a willingness to assc the required liability associated with the terms of the existing lease. Although supplemental insurance is available to augment the existing City polic: order to cover the initial $500,000 SIR, the annual cost of that policy is approxima $55,000. The Subcommittee has been unable to identify a funding source adlditional insurance through commitments from private contributions. Addition; the ability to recoup that expense through user fees is considered prohibitive. The fact finding efforts of the Subcommittee have identified the reported accident the AHL to be few and on the decline. In fact, no lawsuit has occurred on the lag since 1988. The Subcommittee does not dispute that a very real liability expo exists on the lagoon. However, they feel that the existing lagoon patrol has 1 effective and instrumental in reducing the City's exposure. PRC Subcommittee Recommendation (Liabilihr Issue) At this time, in order to insure that the traditional recreation on the AHL contii th'e Subcommittee recommed the City continue the lease with SDG&E, as liability and continue to find the AHL Patrol Program. indicated a willingness to entertain a lease agreement with private entities; howel 2. L.AGOON PATROL FUNDINGBUDGET During the committee proceedings, the budget allocation for the lagoon progran discussed and analyzed at great length. Several user groups suggested that thf of' providing the lagoon program could be reduced through the use of voluntee . patrol duties and buoy maintenance. In addition, it was suggested that the mol patrol hours could be reduced and the permitting requirements could be assum Snug Harbor and Bristol Cove. 0 e PAGE 4 OF AB# Since FY 2 991-92, the operating budget for this program has been redu approximately 24%. With the exception of a 10% reduction in patrol hours, City s is reluctant to reduce the operating budget further without jeopardizing the integ of the program's effectiveness. Furthermore, while the use of volunteer services cc be of benefit within limited areas of operation, those functions would not incl areas of enforcement and permitting responsibilities. It is the opinion of the Subcommittee that the operation of the patrol prograrr currently funded and administered by the City has been effective h providing a environment and has an excellent track record in terms limiting the number of s2 related incidences. Additionally, if the City is assuming the liability of the pro€ operation, it is considered essential that the City maintain control of the prop the greatest extent possible rather than limit its involvement. Iri anticipation of terminating the program as of January 1, 1995, the Fin Department has allocated $182 10 for program operation. Total fiscal year fun would require an additional $14,325 if the program is to continue through Junc 1!395. Annual operating costs would then total 332,535. PRC Subcommittee Recommendation (Fundinn/Budnetl Request additional funding in the amount of $14,325 in order to find the Lo Patrol Program through June 30, 1995 implement the use of volunteer forces appropriate. 3. SELF-SUSTAINING BASISPOLICY DECISION Currently, the Parks and Recreation Element of the General Plan identifi objective to "provide for the safe recreational use at the AHL on a self-sust; basis.'' For the past several years the revenues generated from the sale of use pc have fallen considerably short of the cost to operate the patrol program- In es the program has operated at a level between 384% self-sustaining. The Subcommittee suggests that the policy issue to maintain the AHL prow self-sustaining basis be reconsidered. An additional objective within the Parks and Recreation Element is to "provi maintain recreational and aquatic programming on a self-sustaining basis . sustainability for fee supported recreation programs and aquatic pm respectively. Although adult programs typically operate above 100% the programs offset that percentage, and recreation programs as a whole operate c or above the goals established by Council. it is anticipated that next Y' Recreation Fee Supported programs will operate between 6570% df-sustafi feasible." The City Council has previously established goals of 60% and 50' e e PAGE 5 OF AB# Because the AHL program provides recreation for both adult and youth, 1 Subcommittee recommends establishing a self-sustaining percentage which is mi comparable to that of the Fee-Supported Recreation programs. PRC Subcommittee Recommendation (Self-sustainine BasislPolicv Decision) Reduce the expectation of a 100% self-sustaining basis for the AHL progrc Establish a goal for the AHL program to be 6570% self-susraining, 4. FEE INCREASE Attached as Exhibit 1 is a matrix which identifies several options for fee increa Each option is accompanied by an approximate self-sustaining basis that the prog would operate at if those fees were implemented. Several assumptions were made in formulating this matrix. They are: 0 The annual operating budget for the AHL program is $32,535. 6 At no point would the daily use fees more than double. 0 A 15% variant assumes loss in revenue due to increase in fees and/or 1 drop in program participation. (Although 15% was used as a mean va it is estimated that the lower the fee increase, the lower the percent dec will be. Conversely, the higher the fee increase, the higher the pe decrease will be.) 01 Revenue estimates and self-sustaining basis is based upon the numb permits sold in 1993-94. The fee increase matrix identifies options which range in self-sustaining basis 54-100%. The recommended fee increase reflects an increase which would 01 the program within a range of 65-70% self-sustaining. PRC Subcommittee Recommendation - Pee Increase) The Subcommittee recommends an increase of 2-1/2 times the existing annual fiee and 1-1/2 times the existing daily permit fee. 5: DREDGING AHL SILTATION BUILDUP The siltation buildup within the AHL is creating safety concerns as it relates operation of power vessels within the resource area. Of particular and imr concern is the sandbar area which exists immediately east and adjacent to fieeway bridge. In addition, the siltation buildup at the eastern most portion lagoon is creating a shrinking resource area in which recreational activities car occur. m 0 PAGE 6 OF AB# During committee proceedings, SDG&E officials admitted that from an operatic standpoint the AHL will won require dredging in order to insure the required t flow necessary for continued operation of the power plant. Although discussi related to the need to dredge the inner lagoon for safety reasons have existed many years, to date no action has been taken. Currently, the City has a lease agreement with SDG&E which requires the Cit: provide for the safe recreational operation of the inner lagoon. In addition, the ( is required to assume all liability and indemnify SDG&E for activities occumng u the lagoon. The Subcommittee considers it increasingly difficult to provide operate a safe recreational environment unless efforts to dredge the lagoon will o in a timely manner. PRC Subcommittee Recommendation mredging) The Subcommittee recommends that the City should request, and SDGdLE SA provide, a formal commitment to dredge the AHL inner lagoon within the very funtre. 6. FINANCIAL CONTRIBUTIONS TO THE AHL PATROL PROGRAM Notwithstanding the recommendation to lower the self-sustaining basis f01 operation of the AHL program, the Subcommittet believes the City is providin City expense) a recreational benefit and opportunity to users at both a local regional level. That opportunity extends to all SDG&E rate payers to safely rec within an SDG&E asset, and from that perspective, the Subcommittee bel SDG&E would be justified in providing a financial contribution for the pro operation. Furthermore, without City intervention, SDG&E would be placed U precarious situation of facing public sentiment and State interpretations relative 1 recreational use of the AHL. PRC Subcommittee Recommendation (Financial Contributionl ne Subcommittee recommends that the City should fonnally seek u fim conm'bution from SDG& E toward the annual patrol program operation of the EXHIBITS: 1.. Fee Matrix 2. AHL Budget Issue Statement * e - - Q ,“%382F;: 5% b 2 s 3 E34 %if &L P) s 8s u? 8s P) g- OD h! 9 +- 9 8 3 liar - 32 F 2- v) .. e e ISSUE STATEM r- ~ ~~~ ~~ ~ ~~ ELIMINATION OF 1 AGUA HEDlONDA UGOON PATROL PROGR 1 ~~ Backaround The Agua Hedionda Lagoon (AHL) patrol program is fully funded in the proposed 1994-95 t at $34,000. In addition to the $W,ooO budgeted as a direct cost, there is also the indire1 of administrative statf, which is estimated at $20,000, Staff is presenting an issue statem Council's consideration which would eliminate this program. Elimination of this program allow the budgeted funds of $34,000 to be used for other citywide programs, Although providing for the safe recreational use of the AHL is an integral part of the par recreation element of the General Plan, staff is finding that the ability to provide this prog, a self sustaining basis is ditficutt. A comparison of revenues versus expenditures for this PI over the past several years has found that there is a recovery rate of 38 to 40%. This fail of the objective as identified in the parks and recreation element, to operate the lagoon 0 sustaining basis, I! is not anticipated that this level of recovery will improve In Mure year! has considered raising fees to a level which would make this program setf sustainin( estimated that the fee would need to be increased by $70, from $30 to an estimated ! order to recover direct cos~s, Staff believes that a fee increase of this magnitude will dc use significantly as the market would not bear higher charges. Condition The City currently leases the water surface of the lagoon from SDGSE, the owners resource area. Under the terms of the lease with SDGBE, the City agrees to police, regul control the entry and activities in and upon the premises of the lagoon. As a result, the i assumed a significant degree of liability exposure, Even if the City were not leasing tF surface of the lagoon, the State Department of Boating and Waterway3 has identifie waters as open, public navigable waterways, which means the lagoon is available for pul The availability issue exists regardless of which agency Is responsible for the water although SDGBE refutes this finding claiming the lagoon is privately owned. To date, the Cw'r lagom pmgram ha3 been successful In avoiding accidents ( consequence, mw, the mount of near miss OCcurrencBs observed by and reportel have been on Um haerse. Mdltlonally, the navigable water surfam area b decreasing buiid-up of artt, rubdng the area in which water craft actlvitieb can safety occur. Thes make it difficult to a888sa tne potenlid costs associated with the City's liability exposu Services cuirentty provided within the budget lndude regular on-water lagoon patrol dur usage periods which are from Easter week through Labor Day. Lagoon patrol Is dc limited, as needed basis during the remainder of the year, which exposes the Cw to This is especially true, as we are required within the lease agreement with SOG&E t regulate and control the actlvitles upon the lagoon. - +. ~ EXHIB, e 0 * . Rogardless of whether the City terminates the lagoon lease with SDGBE, the recreational u would continue. However the responsibility for providing levels of enforcement necessary insure safe OpefatfOn Should be borne by SOGBE, the Department of Boatlng and Waterway: perhaps the entrOpr0neurS Of Snug Harbor Marina, Cartsbad Boat Club and !he msnag agency of Brtstd Cave who profit and/or benefit from providing launch facilittes. Alternatlve~ At this time the Council may wish to conslder the lagoon patrol program as a methoc reducing the budget. Staff has developed three alternatives for consideration as outlined be 1. Termlnate lease agreement with SDG&E and eliminate funding for the lagoon patrol pros effective January 1, 1995. This alternative would allow 8 six month notice of termhatic affected parties, includlng permit holders. Estlmated net savlngs (including lost rever equal $6,550 for the six month period; $19,000 on an annual basis thereafter. 2. Terminate lease agreement with SDG&E and elimlnate funding for the lagoon patrol pro effective July 1, 1995. Estlmated net savings (inciuding tost revenues) equal 51 annually. 3. Maintain exiathg sedce level at lagoon patrol pfOgfMh A:WJCSETW.WUSGUSI'ATAHL