HomeMy WebLinkAbout1994-11-21; Parks & Recreation Commission; 1194-4; Subcommittee Report/Continued Recreational UsePARKS & RECREATION COMMISSION - AGENDA BILL
MTG. VAfr/ZU^
DEPT.CSP- PR
TITLE:SUBCOMMITTEE REPORT/
CONTINUED RECREATIONAL USE
OF THE AGUA HEDIONDA LAGOON
RECOMMENDED ACTION:,0
Receive the Subcommittee report and recommend appropriate action. Direct staff to present
the Parks and Recreation Commission's recommendations for City Council consideration.
ITEM EXPLANATION:
During the FY 1994-95 budget deliberation process, staff issued a budget statement (Exhibit
2) for the possible elimination of the Agua Hedionda Lagoon (AHL) Patrol Program. The
issue was offered for consideration in order to fund other city-wide programs that may have
a higher priority. Although the patrol program had previously survived several years of
program eliminations and/or service level reductions, the principle reasons the suggested
elimination was presented this year were:
• Continued reduction in the City's FY 1994-95 operating budget
• Liability exposure
• Inability of the program to operate on a self-sustaining basis
• City staff believed the traditional recreation on the lagoon would be continued
based upon the State Attorney General's opinion that the AHL is an open
public navigable waterway.
• The cost of program operation offset by revenues would make $19,000
available for other city-wide programs.
• Siltation buildup within the lagoon is diminishing the recreational resource
area and creating safety concerns.
After submitting the issue statement during the budget review process, Council, on June 21,
1994, unanimously directed staff to terminate the existing lease agreement with SDG&E for
the inner AHL and eliminated funding for the patrol program as of January 1,1995. Pursuant
to that direction, the Finance Department allocated sufficient funds (approximately $18,000)
in order to fund the patrol program through the 1994 calendar year.
During the June 28, 1994 meeting, Council heard public input from several users of the
lagoon expressing concern that the future recreational use of the AHL would be in jeopardy
if the City terminated the SDG&E lease and patrol program. In response to that concern,
Council directed staff to work with the interested parties in an effort to insure that the
traditional recreational use of the AHL would continue.
18
PAGE 2 OF AB#
As a result of Council direction, on July 18, 1994, the Parks and Recreation Commission
(PRC) appointed a Commission Subcommittee (Schulberg, Baker, and Heineman) to work
with the various organizations and users of the AHL and report back with a recommendation
that would address the issue of the future recreational use of the AHL.
In pursuit of a resolution to-the issue, the Commission Subcommittee requested the input of
various organizations in a forum of committee proceedings. The following organizations and
their representatives which participated are as follows:
AHL Foundation - Tom King
Bristol Cove HOA - Keith Mahler
Carlsbad Boat Club - Mike Pfankuch
Snug Harbor Marina - Roxanne Rusing
SDG&E - John Hernandez
Passive users/community at large - Jim Hawks
Although the California Department of Boating and Waterways was requested to attend, the
invitation was declined.
The Commission Subcommittee met with the various organizations on three (3) separate
occasions from 7-9 p.m. at the Carlsbad Senior Center. All meetings were noticed, open to
the public, and invited public input. In addition, the Subcommittee met on several occasions
with City staff to discuss specifics related to operational issues of the lagoon program.
Through committee proceedings, a myriad of specific and statistical information was
presented by staff and the various user groups. As well, a great deal of public sentiment was
expressed through public input. At the initial committee meeting, each organization was
asked to make suggestions in terms of solutions or contributions that their organization was
willing to make to insure the future recreation of the lagoon. It soon became evident that the
future recreational use of the lagoon was indeed in jeopardy without City intervention.
With an overall consensus through committee proceedings, the following issues have been
identified as being important for the continuation of the traditional recreational use of the
lagoon. Although the Committee as a whole did not reach consensus on resolution to each
of these issues, the Commission Subcommittee identifies those issues and presents their
recommendations for consideration to the Parks and Recreation Commission. They are:
ISSUES
1. LIABILITY
Under terms of the existing lease with SDG&E, the City assumes all liability and
agrees to protect, indemnify, and hold SDG&E harmless from any events that occur
upon the inner lagoon. Prior to December 1991, the City required all users of the
lagoon to provide insurance which named the City as additionally insured. However,
since that time, and based upon a ruling by the State Attorney General's office, the
19
PAGE 3 OF ABf
City was required to drop its insurance requirement as a result of the AHL being
determined to be an open public navigable waterway. This determination by the State
is a claim refuted by SDG&E as they assert the AHL is privately owned.
Irregardless, to date the City has been left in the precarious situation of having to
assume an increased liability risk exposure.
If the City terminates the lease, SDG&E officials have stated that even though they
would like to see the lagoon remain open for recreational use, it would be an unfair
burden to assess SDG&E rate payers with any expense or liability associated with
recreation on the lagoon. Furthermore, SDG&E officials stated that the Public
Utilities Commission and company shareholders would not look favorably upon any
contribution toward providing for the future recreation upon the lagoon. SDG&E has
indicated a willingness to entertain a lease agreement with private entities; however,
the organizations associated with the AHL have not indicated a willingness to assume
the required liability associated with the terms of the existing lease.
Although supplemental insurance is available to augment the existing City policy in
order to cover the initial $500,000 SIR, the annual cost of that policy is approximately
$55,000. The Subcommittee has been unable to identify a funding source for
additional insurance through commitments from private contributions. Additionally,
the ability to recoup that expense through user fees is considered prohibitive.
The fact finding efforts of the Subcommittee have identified the reported accidents on
the AHL to be few and on the decline. In fact, no lawsuit has occurred on the lagoon
since 1988. The Subcommittee does not dispute that a very real liability exposure
exists on the lagoon. However, they feel that the existing lagoon patrol has been
effective and instrumental in reducing the City's exposure.
PRO Subcommittee Recommendation (Liability Issue)
At this time, in order to insure that the traditional recreation on the AHL continues,
the Subcommittee recommends the City continue the lease with SDG&E, assume
liability and continue to fund the AHL Patrol Program.
2. LAGOON PATROL FUNDING/BUDGET
During the committee proceedings, the budget allocation for the lagoon program was
discussed and analyzed at great length. Several user groups suggested that the cost
of providing the lagoon program could be reduced through the use of volunteers for
patrol duties and buoy maintenance. In addition, it was suggested that the amount of
patrol hours could be reduced and the permitting requirements could be assumed by
Snug Harbor and Bristol Cove.
20
PAGE 4 OF AB#
Since FY 1991-92, the operating budget for this program has been reduced
approximately 24%. With the exception of a 10% reduction in patrol hours, City staff
is reluctant to reduce the operating budget further without jeopardizing the integrity
of the program's effectiveness. Furthermore, while the use of volunteer services could
be of benefit within limited areas of operation, those functions would not include
areas of enforcement and permitting responsibilities.
It is the opinion of the Subcommittee that the operation of the patrol program as
currently funded and administered by the City has been effective in providing a safe
environment and has an excellent track record in terms limiting the number of safety
related incidences. Additionally, if the City is assuming the liability of the program
operation, it is considered essential that the City maintain control of the program to
the greatest extent possible rather than limit its involvement.
In anticipation of terminating the program as of January 1, 1995, the Finance
Department has allocated $18,210 for program operation. Total fiscal year funding
would require an additional $14,325 if the program is to continue through June 30,
1995. Annual operating costs would then total $32,535.
PRC Subcommittee Recommendation (Funding/Budget)
Request additional funding in the amount of $14,325 in order to fund the Lagoon
Patrol Program through June 30, 1995. Implement the use of volunteer forces when
appropriate.
3. SELF-SUSTAINING BASIS/POLICY DECISION
Currently, the Parks and Recreation Element of the General Plan identifies an
objective to "provide for the safe recreational use at the AHL on a self-sustaining
basis." For the past several years the revenues generated from the sale of use permits
have fallen considerably short of the cost to operate the patrol program. In essence,
the program has operated at a level between 38-44% self-sustaining.
The Subcommittee suggests that the policy issue to maintain the AHL program on a
self-sustaining basis be reconsidered.
An additional objective within the Parks and Recreation Element is to "provide and
maintain recreational and aquatic programming on a self-sustaining basis when
feasible." The City Council has previously established goals of 60% and 50% self-
sustainability for fee supported recreation programs and aquatic programs,
respectively. Although adult programs typically operate above 100%, the youth
programs offset that percentage, and recreation programs as a whole operate close to
or above the goals established by Council. It is anticipated that next year the
Recreation Fee Supported programs will operate between 65-70% self-sustaining.
21
PAGE 5 OF AB#
Because the AHL program provides recreation for both adult and youth, the
Subcommittee recommends establishing a self-sustaining percentage which is more
comparable to that of the Fee-Supported Recreation programs.
PRC Subcommittee Recommendation (Self-sustaining Basis/Policy Decision)
Reduce the expectation of a 100% self-sustaining basis for the AHL program.
Establish a goal for the AHL program to be 65-70% self-sustaining.
4. FEE INCREASE
Attached as Exhibit 1 is a matrix which identifies several options for fee increases.
Each option is accompanied by an approximate self-sustaining basis that the program
would operate at if those fees were implemented.
Several assumptions were made in formulating this matrix. They are:
• The annual operating budget for the AHL program is $32,535.
• At no point would the daily use fees more than double.
• A 15% variant assumes loss in revenue due to increase in fees and/or other
drop in program participation. (Although 15% was used as a mean variant,
it is estimated that the lower the fee increase, the lower the percent decrease
will be. Conversely, the higher the fee increase, the higher the percent
decrease will be.)
• Revenue estimates and self-sustaining basis is based upon the number of
permits sold in 1993-94.
The fee increase matrix identifies options which range in self-sustaining basis from
54-100%. The recommended fee increase reflects an increase which would operate
the program within a range of 65-70% self-sustaining.
PRC Subcommittee Recommendation - (Fee Increase)
The Subcommittee recommends an increase of 2-1/2 times the existing annual permit
fee 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 to the
operation of power vessels within the resource area. Of particular and immediate
concern is the sandbar area which exists immediately east and adjacent to the 1-5
freeway bridge. In addition, the siltation buildup at the eastern most portion of the
lagoon is creating a shrinking resource area in which recreational activities can safely
occur.
22
PAGE 6 OF AB#.
During committee proceedings, SDG&E officials admitted that from an operational
standpoint the AHL will soon require dredging in order to insure the required tidal
flow necessary for continued operation of the power plant. Although discussions
related to the need to dredge the inner lagoon for safety reasons have existed for
many years, to date no action has been taken.
Currently, the City has a lease agreement with SDG&E which requires the City to
provide for the safe recreational operation of the inner lagoon. In addition, the City
is required to assume all liability and indemnify SDG&E for activities occurring upon
the lagoon. The Subcommittee considers it increasingly difficult to provide and
operate a safe recreational environment unless efforts to dredge the lagoon will occur
in a timely manner.
PRC Subcommittee Recommendation (Dredging)
The Subcommittee recommends that the City should request, and SDG&E should
provide, a formal commitment to dredge the AHL inner lagoon within the very near
future.
6. FINANCIAL CONTRIBUTIONS TO THE AHL PATROL PROGRAM
Notwithstanding the recommendation to lower the self-sustaining basis for the
operation of the AHL program, the Subcommittee believes the City is providing (at
City expense) a recreational benefit and opportunity to users at both a local and
regional level. That opportunity extends to all SDG&E rate payers to safely recreate
within an SDG&E asset, and from that perspective, the Subcommittee believes
SDG&E would be justified in providing a financial contribution for the program
operation. Furthermore, without City intervention, SDG&E would be placed in that
precarious situation of facing public sentiment and State interpretations relative to the
recreational use of the AHL.
PRC Subcommittee Recommendation (Financial Contribution)
The Subcommittee recommends that the City should formally seek a financial
contribution from SDG&E toward the annual patrol program operation of the AHL.
EXHIBITS;
1. Fee Matrix
2. AHL Budget Issue Statement
23
a3aUI
UIUIu.
IDC
UIa.
Z
§\J(33
I5UIz
§o
iff!
|
0>
E
§
8SE
ix*
eB
5xcp* 0»X CM U.
wT
<M
si
u^ X
N^
s£
ICO
X
UI
si
Cv «*
i
1
c
in
in
fe
I
§
£
00
CD
§
1
08
to
-5
ic
i
£Resident -8
S
fe
S
8
a
00
1
00
M
CO
~5
i£
i
oc
0
s
sfc
8
in
R
d Sail, Boats under 8' & Passivesi£Resident -§
S
3
8
8T~
^
00
CD
CD
aCO
s
^QQ
Non-Res. -8
CM
a
o
CM
1O
ig
<
ii
£
8
00
§
0)"
COs
s
£Sub-Total Annuali
I
o
co
CM
CM
co
in
CO
a
£
$
0.Resident -S
CO
00
CM
s
co
(A
T
00
1
(£Non-Res. -N
inCMin
in
n
co
co
3
<0
00
1
.1
$
c?Resident -CM
O)
CD
co
o>
co
o>
00
S
5
Non-Res. -o
S
8
in
CM
1
c
82*(placement Lvcc
1
CM
8
1
i
w
Sub-Total DailySat
s-
8#"i»
|!
f2in
o"
**
t
c
Total Revenue (% Self-Sustal?
in"
9
3
1
in
sf
86
^9 5^^^ ^*
|!
in
o"
T-
**
1
Total Revenue (% Self-Sustai0
so"
1
"c
n Necessary for100% Self-Sustaineral Fund)53
is
inual ContriDG&E/Prlva<52,
g
i
$32,5352
1
AHL Annual Operating BudgetwEXHIBIT 1, s
i I
|)
U f
24
ISSUE STATEMENT
ELIMINATION OF THE
AGUA HED1ONDA LAGOON PATROL PROGRAM
Background
The Agua Hedionda Lagoon (AHL) patrol program is fully funded in the proposed 1994-95 budget
at $34,000. In addition to the $34,000 budgeted as a direct cost, there is also the indirect cost
of administrative staff, which is estimated at $20,000. Staff is presenting an issue statement for
Council's consideration which would eliminate this program. Elimination of this program would
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 parks and
recreation element of the General Plan, staff is finding that the ability to provide this program on
a self sustaining basis is difficult. A comparison of revenues versus expenditures for this program
over the past several years has found that there is a recovery rate of 38 to 40%. This falls short
of the objective as identified in the parks and recreation element, to operate the lagoon on a self
sustaining basis. It is not anticipated that this level of recovery will improve in future years. Staff
has considered raising fees to a level which would make this program self sustaining. It Is
estimated that the fee would need to be increased by $70, from $30 to an estimated $100 in
order to recover direct costs. Staff believes that a fee increase of this magnitude will decrease
use significantly as the market would not bear higher charges.
Condition
The City currently leases the water surface of the lagoon from SDG&E, the owners of the
resource area. Under the terms of the lease with SDG&E, the City agrees to police, regulate and
control the entry and activities In and upon the premises of the lagoon. As a result, the City has
assumed a significant degree of liability exposure. Even if the City were not leasing the water
surface of the lagoon, the State Department of Boating and Waterways has Identified these
waters as open, public navigable waterways, which means the lagoon is available for public use.
The availability issue exists regardless of which agency is responsible for the water surface,
although SDG&E refutes this finding claiming the lagoon is privately owned.
To date, the City's lagoon program has been successful in avoiding accidents of major
consequence. However, the amount of near miss occurrences observed by and reported to staff
have been on ttw Increase. Additionally, the navigable water surface area is decreasing with the
build-up of sirt, reducing the area in which water craft activities can safely occur. These factors
make it difficult to assess the potential costs associated with the City's liability exposure.
Services currently provided within the budget include regular on-water lagoon patrol during peak
usage periods which are from Easter week through Labor Day. Lagoon patrol Is done on a
limited, as needed basis during the remainder of the year, which exposes the City to liability.
This is especially true, as we are required within the lease agreement with SDG&E to police,
regulate and control the activities upon the lagoon.
25 EXHIBIT 2
Regardless of whether the City terminates the lagoon lease with SDQ&E, the recreational use
would continue. However the responsibility for providing levels of enforcement necessary to
Insure safe operation should be borne by SDG&E, the Department of Boating and Waterways or
perhaps the entrepreneurs of Snug Harbor Marina, Carlsbad Boat Club and the managing
agency of Bristol Cove who profit and/or benefit from providing launch facilities.
Alternatives
At this time the Council may wish to consider the lagoon patrol program as a method for
reducing the budget. Staff has developed three alternatives for consideration as outlined below.
*
1. Terminate lease agreement with SDG&E and eliminate funding for the lagoon patrol program
effective January 1,1995. This alternative would allow a six month notice of termination to
affected parties, Including permit holders. Estimated net savings (Including lost revenues)
equal $8,550 for the six month period; $19,000 on an annual basis thereafter.
2. Terminate lease agreement with SDG&E and eliminate funding for the lagoon patrol program
effective July 1, 1995. Estimated net savings (including lost revenues) equal $19,000
annually.
3. Maintain existing service level of lagoon patrol program.
A:\BUDQ ET94.»5\ISSUSTAT.AHL
26