HomeMy WebLinkAbout2011-06-28; City Council; 20610; IMPROVEMENTS CROSSINGS ADJACENT SPACE REMEDIATIONCITY OF CARLSBAD / PUBLIC FINANCING
AUTHORITY - AGENDA BILL
11
AB#
MTG.
DEPT.
20.610
6/28/11
P&R
IMPROVEMENTS TO THE CROSSINGS
AT CARLSBAD AND ADJACENT OPEN
SPACE EROSION REMEDIATION
DEPT. DIRECTOR \^
CITY ATTY. ^^
CITY MGR.(f —
RECOMMENDED ACTION:
Adopt Carlsbad Public Financing Authority Resolution No..56 appropriating
funds for improvements to The Crossings at Carlsbad golf course to include reconstruction of the 18th
green and the conversion, on a trial basis, of the boardroom into a players' lounge.
Adopt City of Carlsbad Resolution No. 2011-153 appropriating funds for erosion remediation in
the open space adjacent to the golf course.
ITEM EXPLANATION:
In 2010, the Parks & Recreation Department commissioned a report from a third party golf course
operation expert for an operational assessment of the golf course (prepared by Mark Tansey, Sunrise
Golf, 11/16/10; hereinafter "Report"). The purpose of the Report was to gain perspective from a neutral
party regarding the current performance and future expectations of the course and its operations. Staff
and the consultant presented the Report's findings to the Board of Directors at the City Council's
November 16, 2010 workshop.
Course Improvements
One of the Report's findings related to the difficulty of the course as a barrier to long term financial
success. Improved course payability encourages repeat visits from players. Kemper Sports
Management (KSM), the city's operator of the course, and city staff worked together to study
adjustments to the course design that might improve its payability. Several opportunities were identified
with holes 10, 15, and 18 selected as priority areas of the golf course for improvement. Cost estimates
were prepared for improving the payability of these three holes (exhibit 3).
At this time, staff and KSM are recommending, as a top priority, improving only Hole 18. Player surveys
indicated that Hole 18 is the one hole most players would most like to see changed. Improvements to
Hole 18 involve reconstruction of the green to enlarge it and to lessen the severity of the undulations.
Making Hole 18 easier will lessen players' frustration at the final hole of the round and encourage
increased repeat play.
Players' Lounge
Another significant finding of the Report was to create a dedicated "players' lounge" or "19th hole" where
players could go after their round to relax, enjoy food and beverage, and watch sports on television.
Customer surveys indicated that many players would stay for food and beverage if a players' lounge was
provided.
DEPARTMENT CONTACT: Mark Steyaert 760-434-2855 mark.stevaert@carlsbadca.aov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
WITHDRAWN
AMENDED
if
a
CONTINUED TO DATE SPECIFIC D
CONTINUED TO DATE UNKNOWN D
RETURNED TO STAFF D
COUNCIL RECEIVED THE D
REPORT/PRESENTATION
OTHER-SEE MINUTES D
Page 2
The intent of the lounge is to encourage player loyalty by developing a dedicated space for players to
relax and socialize, and to increase revenues at the course through food and beverage sales. Staff and
KSM looked at four possible locations for the lounge (exhibit 4) and created cost estimates and rough
return on investment pro formas for each location (exhibits 5 and 6).
Staff and KSM are recommending converting the existing space currently identified as the "boardroom"
into a players' lounge. This would be done on a trial basis by installing a temporary bar, 2 to 3 additional
televisions, and golf related fixtures. This location has the least impact on current operations and will
test the popularity and revenue potential at the course without extensive capital outlay. Conversion of
the boardroom is the most cost-effective solution because it will provide a quicker return on investment
compared to the other three locations examined which would require greater capital investment.
After one year of operation, the performance of the players' lounge will be evaluated using food and
beverage sales revenues and player satisfaction survey analysis. Based on the analysis of the
performance of the players' lounge, staff will report back to the Board with a recommendation to 1)
continue using the boardroom as a players' lounge, 2) to install more permanent amenities to enhance
the players' lounge further, or 3) to revert the players' lounge back to its previous use as a boardroom.
Erosion Remediation
During last December's heavy rains, the open space areas around the course experienced severe
erosion. Runoff from the site created crevices and brought silt onto public streets. Exhibit 7 lists those
areas affected along with cost estimates for repair, permanent drainage improvements, and re-
vegetation of eroded areas. Staff is recommending repairing all of these areas to prevent further
erosion, storm runoff, and possible damage to existing facilities and public streets.
FISCAL IMPACT:
Funding for capital improvements at the golf course have been set aside annually into a capital reserve
account. Sufficient funds are available in the "Golf Course Capital Reserve Fund" to cover the rebuilding
of Hole 18 and the conversion of the boardroom to a players' lounge. Staff is proposing that General
Capital Construction funds be utilized for the open space erosion control.
Item
Golf course improvements (Hole 18)
Players' lounge (boardroom conversion)
Subtotal course and clubhouse
Open space erosion remediation
Cost
$80,000
$12.000
$92,000
$106,000
Funding source
Golf Course Capital Reserve Fund
General Capital Construction Fund
ENVIRONMENTAL IMPACT:
On June 7, 2000, The Planning Commission adopted Resolution No. 4772 certifying the Environmental
Impact Report for the Carlsbad Municipal Golf Course Project and CUP 97-07 for the construction and
operation of the Golf Course.
Minor alterations to the 18th Hole, erosion remediation, and interior alterations to the existing boardroom
are exempt from California Environmental Quality Act (CEQA) per State CEQA Guidelines Section
15301 - Existing Facilities - consisting of the repair, maintenance, or minor alteration of existing public
or private structures, facilities, or topographical features, involving negligible or no expansion of use
beyond that existing at the time of the lead agency's determination.
Page 3
In addition, restoration of the areas eroded within the preserve is exempt from California Environmental
Quality Act (CEQA) per State CEQA Guidelines Section 15333 (d)(1)- Small Habitat Restoration
Projects - to assure the maintenance, restoration, enhancement or protection of habitat for plants or
wildlife by revegetating the disturbed areas with native plant species.
EXHIBITS:
1. Carlsbad Financing Authority Resolution No. 56 appropriating funds for the
improvement of The Crossings at Carlsbad golf course and clubhouse
2. City of Carlsbad Resolution No. 2011-153 appropriating funds for erosion remediation
3. Course improvements list and cost estimates
4. Players lounge alternative locations
5. Players lounge alternatives cost estimates
6. Pro formas on players lounge alternatives
7. Open space erosion projects and cost estimates
1 RESOLUTION NO. 2011-153
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROPRIATING FUNDS
3 FROM THE GENERAL CAPITAL CONSTRUCTION FUND
4 FOR EROSION REMEDIATION IN THE OPEN SPACE
AREAS ADJACENT TO THE CROSSINGS AT CARLSBAD
5
WHEREAS, recent rain events have caused severe erosion to the open space
6
surrounding The Crossings at Carlsbad golf course, and
7
WHEREAS, remediation of the erosion is required to prevent further damage to8
„ the golf course and runoff of silt to City streets, and
WHEREAS, staff has estimated the cost of the remediation to be approximately
11 $106,000; and
12 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
13 Carlsbad, California, as follows that:
14 1. That the above recitations are true and correct.
15
2. That funds are available in the General Capital Construction fund to cover the
16
erosion remediation.17
3. That the City Council hereby authorizes appropriation of one hundred and six
19 thousand dollars ($106,000) from the General Capital Construction fund to
20 remediate the erosion damage.
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PASSED, APPROVED AND ADOPTED at a Joint Meeting of the Carlsbad Public
Financing Authority and City Council held on the 28th day of June 2011, by the following
vote to wit:
AYES: Board Members Hall, Kulchin, Blackburn, Douglas.
NOES: None.
ABSENT: Board Member Packard.
MATT HALL, Chairman of the Board
ATTEST:
L^RRAfN E M . WOOD, Secretary
(SEAL)
't.
'
1 RESOLUTION NO. 56
2 A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE CARLSBAD PUBLIC FINANCING AUTHORITY,
3 AUTHORIZING THE APPRORIATION OF FUNDS FROM
4 THE GOLF COURSE CAPITAL RESERVE FUND FOR
IMPROVEMENTS TO HOLE 18
5
6 WHEREAS, staff commissioned a third party operational assessment of The
7 Crossings at Carlsbad golf course prepared by Mark Tansey, Sunrise Golf, dated
8 November 16, 2010 ("report"), and
9 WHEREAS, staff presented the findings of the report to the Board of Directors at
10 the City Council's November 16, 2010 workshop, and
11
WHEREAS, per Board's direction, staff is returning with recommendations for
12
improvements to the golf course intended to help to increase revenues, and
WHEREAS, staff recommends the reconstruction of the 18th green to improve
j 5 payability of the course,
16 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
17 Carlsbad Public Financing Authority hereby resolve as follows:
180 1. That the above recitations are true and correct.
19
2. That funds are available in the Golf Course Capital Reserve fund to cover
20
certain improvements to The Crossings at Carlsbad.
21
3. That the Board of Directors of the Carlsbad Public Financing Authority hereby
23 appropriate eighty thousand ($80,000) from the Golf Course Capital Reserve
24 to rebuild the 18th green.
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1 PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
2 Carlsbad City Council and Public Financing Authority, held on the 28th day of June
2011, by the following vote to wit:
4 AYES: Council Members Hall, Kulchin, Blackburn, Douglas
5
NOES: None.
6
ABSENT: Council Member Packard.
7 "
8
9 MAfTfHALL, Mayor
10 ATTEST:
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13 LORRA'INE M. WOOD, City Clerk
(SEAL)
Exhibit 3
ROUGH ESTIMATE OF PROBABLE COSTS
FOR COURSE IMPROVEMENTS TO HOLES 18,10, AND 15
HOLE
in priority
18
10
15
ITEM
Construction cost
Bonds (2%)
Contingency (15%) \O^
CONSTRUCTION SUBTOTAL jff^
Design (10%) <J-C
Inspection (5%) ^
TOTAL
Round
Construction cost
Bonds (2%)
Contingency (15%)
CONSTRUCTION SUBTOTAL
Design (10%) .
Inspection (5%) <c\ P"
TOTAL fP>
Round rO^V'rf* *VConstruction cost ^ .c^NV<
Bonds (2%) "V^ '
Contingency (15%)
CONSTRUCTION SUBTOTAL
Design (10%)
Inspection (5%)
TOTAL
Round
ROUND TOTAL
GENERAL DISCRETION OF WORK
18 Complete reconstruction of green to soften undulations
COST
$
$
$
$
$
$
$
$
60,000
1,200
9,000
70,200
6,000
3,000
79,200
80,000
$
$
$
$
$
$
$
$
135,000
2,700
20,250
157,950
13,500
6,750
178,200
179,000
$s
$$$$
$
$
200,000
4,000
30,000
234,000
20,000
10,000
264,000
264,000
$523,000
10 Complete reconstruction of green to lower elevation and raise cart path which will
enlarge and provide easier access to green, rebuild greenside bunkers, regrade adjacent
to green.
15 Widen fairway on left side adding turf, add mounding and/or bunkers on right side to keep
balls in the fairway, remove bunker and add cart path at lay-up area for ease of play and
safety purposes.
NOTE: prices based on opinion of cost from golf course builder in conjunction with general
guidance from a local golf course architect
ms 6.8.11
PARKING LOT EXHIBIT 4
^ xx ,...-.••••/• '•, '•/'•'' •"' •///'•' «**""•> -'_ . I • •_ j^N. .• /rmu*iivhHili\ '
!Y /J .;n~^% "* ' // jtf™
^' // X";:;":"^,,
} Boardroom
fRoston Room
I Pro shop Patio
iSnack Bar Pavilion
SNACK BAR
north
PLAYERS' LOUNGE ALTERNATIVE SITES
. - _X 4
°l
Exhibit 5
ESTIMATE OF PROBABLE COSTS
FOR PLAYER'S LOUNGE ALTERNATIVES
Options
1. Boardroom
minmal option
on trial basis
2. Roston Room
3. Pro Shop Patio
4. Snack Bar
ITEM
Lump sum for purchase of temporary bar, televisions,
furnishings, furniture refurbishing, and miscellaneous items
Construction cost
Bonds (2%)
Contingency (15%)
CONSTRUCTION SUBTOTAL
Design (8%)
Inspection (5%) ^ NS
X\J *
TOTAL jSF-
ROUND ^SOP"
;^°eConstruction cost »\OX -oft^
Bonds (2%) ^$P
Contingency (15%)
CONSTRUCTION SUBTOTAL
Design (10%)
Inspection (10%)
TOTAL
ROUND
Construction cost
Bonds (2%)
Contingency (15%)
CONSTRUCTION SUBTOTAL
Design (10%)
Inspection (10%)
TOTAL
ROUND
$12,000
$
$
$
$
$
$
$
$
106,500
2,130
15,975
124,605
8,520
5,325
138,450
138,000
$s
$$
$$
$$
681,500
13,630
102,225
797,355
68,150
68,150
933,655
934,000
$
$$
$
$$
$$
1,494,500
29,890
224,175
1,748,565
149,450
149,450
2,047,465
2,047,000
Notes:
1. The more complicated the project, the more contingency, design, and inspection (e.g. the
Board Room and Roston Room are more interior design projects while the Patio and Snack Bar
involve multiple disciplines for design work, structural calculations, and utilities)
ms 6.8.11
Exhibit 6
(g) KemperSports*
The Crossings at Carlsbad
Proforma Summary Profit and Loss Statement
ROI Analysis
Estimated Construction Costs:
Boardroom
$12,000
Roston Room
$139,000
Golf Patio
$934,000
Snack Bar Pavilion
$2 048,000
not recommended at this
NET OPERATING INCOME (5 Year Average)
Annual Projected Operational Impact
$
Boardroom
24,000 $
Roston Room
(11,801) $
Golf Patio
9,980
Snack
$
Bar Pavilion
58,600
ROI (In terms of Years)0.50 n/a 93.59 34.95
EXHIBIT 7
OPEN SPACE EROSION REMEDIATION
ESTIMATE OF PROBABLE COSTS
No.
1
2
3
4
5
6
Item
Slope behind 18 tee
-fill in gopher holes
-repair rills
-replant
-tree removal adjacent to reservoir
Pave and install drainage in path between 2 and 3
- regrade dirt road
- install concrete surface and curbs
-install drainge structures to direct water to inlets
Right side of hole 17
-regrade to new c.b. (create swale)
-new larger c.b. to tie into exist, c.b. on left side of fairway or other location
-backfill and replant slope sloughing
-repair irrigation
Canyon between 8th green and 9th tee
-install curbing along cart path (one side) to direct water
-install spill way at headwall at cart crossing
-backfill along sides of cart path
-additional rip rap at cart crossings
SDG&E cone, road behind #1 going down to corner PAR and
College
-install curbing
-backfill against new curbing
-install water dissipation device at bottom
Drainage problem n.e. green #14
-install flex pipe to outlet
- fill in over pipe and reseed
TOTAL
cost lump sum
$ 3,000
$ 50,000
$ 28,000
$ 12,000
$ 13,000
$ 106,000
ms 6.8.11
John Coates
All Receive
For the Information of the:
To:
Subject:
Lisa Hildabrand
FW: The Crossings at Carlsbad
ACM _j/CC j
City Manager^-— -"
Hi Lisa:
During Council briefings yesterday, a few questions were asked that required additional investigation. The questions and
responses follow.
From: Chris Hazeltine
Sent: Tuesday, June 28, 2011 12:21 PM
To: John Coates
Subject: The Crossings at Carlsbad
HiJohn-
Per your request please find the following answers to your inquiries:
Ql. What is the anticipated profitability of the golf pro shop for 2011?
Al. Based on gross merchandise sales of approximately $325,000, the pro shop will net
approximately $100,000.
Q2. What is the current balance of the golf course capital reserve fund?
A2. As of May 31, 2011, the current balance is $211,627.
Thanks
-Chris
Distribution-
City Clerk
. City Clerk
Deputy Clerk
Book
Improvements to The Crossings at Carlsbad and Adjacent Open Space ErosionRemediationErosion RemediationChris Hazeltine, Parks and Recreation DirectorMark Steyaert, Park Development Manager6.28.11
2
key findingsGlfiltliltl•Golf in general struggling over last couple years•High points of The Crossings:–Course and clubhouse “curb appeal”pp–Kemper Sports Management service standards•ChallengesDifficultyofcourse–Difficulty of course–No dedicated casual gathering place for golfers3
COURSE IMPROVEMENTS•Kemper consulted with a third party golf ppygcourse architect•Studied entire course for playability•Staff and Kemper recommended prioritizing holes #18, #10, and #15 for improvements4
Hole # 18$ 80,0005
Hole # 10$179 000$ 179,0006
Hole #15$ 264,0007
Hole # 18RECOMMENDED –Reconstruction of greeng$80 000$ 80,0008
PLAYERS’ LOUNGEALTERNATIVES9
The Boardroom$12,00010
The RostonRoom$138,00011
The Pro ShopPatio$934,00012
The Snack Bar area$ 2,048,00013
PLAYERS’ LOUNGEReturn on Investment Analysis Boardroom RostonRoom Golf Patio Snack Bar Pavilion EstimatedEstimated Construction Costs: $ 12,000 $ 139,000 $ 934,000 $2,048,000Annual Projected Operational Impact Boardroom RostonRoom Golf Patio Snack Bar Pavilion NET OPERATING INCOME (5 Year Average)$25,566 $ (11,801) $ 9,980 $ 58,600 ROIROI(In terms of Years)0.47 n/a 93.59 34.95 14
RECOMMENDED –Players’ Lounge (trial basis)The Boardroom$12,00015
OPENSPACEEROSIONREMEDIATIONOPEN SPACE EROSION REMEDIATION16
RECOMMENDED –Erosion Remediation$ 106,00017
RECOMMENDED ACTIONCarlsbad Public Financing AuthorityGolf Course Improvements:ITEM COSTReconstructionofhole#18$80 000Reconstructionof hole # 18$80,000Convert Boardroom to Players’ $12,000Lounge (trial basis)TOTAL $92,000FUNDING SOURCE: GOLF COURSE CAPITAL RESERVE18
RECOMMENDED ACTIONCarlsbad City CouncilOpen Space Erosion Remediation:ITEMCOSTITEMCOSTAll Damaged Areas $106,000FUNDING SOURCE: General Capital Construction 19
QUESTIONS ?Q201
Slide 201 Mark Steyaert, 6/26/2011
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