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supported by General Funds.
Pro Shop Flood Damage Repair (CIP 2000568) – Planned for FY 2026–27 with a budget of $250,000, this project will repair flood damage to the Pro Shop facility.
Reopening the Pro Shop will allow for merchandise sales, rental equipment operations, and support for community events, including meeting space for seniors and community groups.
These two CIP projects are on hold until Council provides direction on timing and scope, as they directly enable revenue-generating activities outlined in Table 7. Other CIP projects at the course, such as routine maintenance, fleet replacement, parking lot resurfacing, and irrigation improvements, remain scheduled for future years according to the City’s CIP plan and are shown in Table 9.
Additional Potential Facility Enhancements Requiring New Capital Investments Along with the currently funded CIP plans for the LLGC, the Golf staff have met with the local disc golf club, SLO Throwers, and have preliminary designs for an 18-hole disc golf course within the current LLGC property layout. The disc golf course layout is intentionally designed to not interfere with current greens and tees, as well as incorporate involving natural obstacles currently present at the course. The addition of a disc golf course will allow for single and multi-day course tournaments, as well as create an additional opportunity of play for the disc golf community and once installed, require minimal maintenance cost for upkeep. This partnership has been successful at current park locations within Sinsheimer Park and Laguna Lake Park. Estimated new investment funds is approximately $45,000-$50,000 with a potential installation timeline of 6 months.
Another opportunity to attract new users and expand the value of the LLGC functions is the installation of a miniature golf, putting experience. This family-friendly programming would complement the current golf range and the inclusion of a putting green to assist providing skill development, First Tee program collaboration, as well as an alternative to traditional golf activity to provide a fun golf experience for a variety of ages and abilities.
Staff have identified the current event space located adjacent to the Driving Range that could be developed to support this facility enhancement. Staff would need to contract with a consultant to obtain potential project costs and develop a business model for a future CIP investment.
As the City currently has a lack of lighted sport fields to support youth and adult sports, the current enclosed driving range could be remodeled to have multi-use capabilities. At scheduled times of the day or week, the area could transition to a small turf field to support soccer and football practices, and/or clinics and provide turf access for the residents on this side of the City. Lighting would need to be added to the current poles to allow for after-hours utilization of the range bringing in a new community opportunity to the course.
This upgraded option to a multi-use facility would not impact the general golf course fairways and greens as it is a stand-alone amenity.
A more significant future CIP project that is recommended by Staff is for the course irrigation infrastructure to be assessed for replacement in order to reduce the irrigation malfunctions and leaks throughout the property. As noted, these irrigation impacts cause
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delays with the mowing of the course, aerifying the greens, and impact the course play and customer satisfaction, as well as water waste. An updated irrigation system will result in more efficient watering schedule, reduce turf loss, and dependence on external contractors, as well as reduce water waste. In conjunction with an irrigation replacement, the course fairways could be modified with simple redesign providing an opportunity to reduce the amount of irrigated turf and add more drought tolerant plantings along the edges and non-playing areas, including adding designated cart paths and walkable pathways between each hole that allow for better accommodation and access for the golf community and walking groups. This Capital Improvement Project could range between $1.5 million to $2 million in new CIP funding.
Additional Potential Uses of the Golf Course Property
At the April 15, 2025 Council meeting, in providing direction to staff to comprise information on the Golf Course, councilmembers discussed potential other uses of the property, including affordable housing. The section below includes information about what it would take to make the land available and ready for affordable housing and also discusses the option of turning the Golf Course into a community park. Pursuit of either of these or other reuse options would involve a major work plan effort with participation from multiple City departments.
Housing
The entire Laguna Lake Golf Course parcel is approximately 29-acres in area and currently zoned Public Facility (PF). This total 29-acre site is made up of three parcels (APNs) conveyed through multiple deeds (Attachments A, C, and D), which include the parkland property (26-acres) and the supporting properties that make up the parking lot and maintenance area, and the adjacent portion of the property where the Pro Shop and restroom facility is located. APN 053-111-055 is subject to a deed restriction related to acquisition under the Nejedly-Hart State, Urban, and Coastal Park Bond Act of 1976 (Attachment B), which limits its use to park and recreation purposes. The Public Facility zone is generally for park and recreation uses, utility facilities, schools, government offices/buildings, and allows only minimal housing uses (such as caretaker’s quarters and transitional and supportive housing). If the site was rezoned to High Density Residential (R-4), it would have a maximum of 24 dwelling units per net acre, plus any available density bonuses pursuant to State law. With confirmation from the City’s Community Development Department, the Net Lot Area is determined by Municipal Code Section
17.70.110(B). By way of example, if approximately 20 net acres of the 29-acre parcel were used to calculate density, the site could theoretically have a density of approximately 480 two-bedroom dwelling units. More information about allowed and prohibited uses can be found in Table 2-1 of Chapter 17 of the Municipal Code.
Development of the Laguna Lake Golf Course for housing or any other large development project would require construction of new frontage improvements along Los Osos Valley Road and internal roadway improvements. A signal modification/upgrade could be required at the intersection of Laguna Lane and Los Osos Valley Road and the limited site frontage on Los Osos Valley Road may make it challenging to provide two points of access to the internal street network for a project site, which could present circulation and
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emergency response limitations. New water, sewer, and storm drain mainline extensions would be required to facilitate development of the site.
Prefumo Creek navigates through the property site and part of the site adjacent to the creek is within a FEMA 100-year flood zone. Development affecting the portions of the site within the flood zone would require approvals from FEMA. To comply with Regional Water Quality Control Board Post-Construction Stormwater Regulations and the City’s Waterways Management Plan, it is likely that stormwater detention facilities would be required to mitigate peak flows from the development which could limit the potential residential use of the site in order to properly size and site the required stormwater detention facilities. Portions of the site are also within the Very High, High, and Moderate Fires Hazard Severity Zones with the majority of the site located in a Fire Hazard Severity Zone. Currently, City codes do not allow for subdivisions within the Very High Fire Hazard Severity Zone and building hardening and defensible space requirements will apply to any project at this location.
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Lastly, it is likely that an affordable housing developer would need to partner with a market rate developer to make a housing project feasible on this type and size of property (significant land acquisition and infrastructure costs, coupled with natural hazard risks).
To make the property available for development, the City would also need to follow the lengthy and complex Surplus Land Act process. It should be noted that APN 053-111- 055, which represents only a portion of the full Laguna Lake Golf Course site, is subject to a deed restriction associated with acquisition under the Nejedly-Hart State, Urban, and Coastal Park Bond Act of 1976 (Attachment B). This restriction limits the use of that parcel to park and recreation purposes, and any potential housing development would need to carefully evaluate its impact on site design, allowable uses, and feasibility.
Community Park
The accessible 26-acre property could be converted to a community park, requiring decommissioning the golf course amenities of tee boxes, greens, and golf related signage within the property. The current restroom facility, parking lot, BBQ/seating area and maintenance shop could remain to support community users and operations with some potential upgrades for accessibility and safety.
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The property would require a safety/risk assessment and incorporate appropriate mapping and inclusion of walking paths and safety walkway lighting. Should this alternative be pursued, staff would recommend completing the project to replace the pedestrian/cart bridge over Prefumo Creek in order to provide safe access across the property. Staff would also recommend pursuing the disc-golf course inclusion, which would requiring modest up-front funding and ongoing maintenance of the 18-hole amenity. The current uninhabitable Pro Shop would either need to be removed and the area assessed for future use/incorporation into the revised use of the park. Or continue with the planned renovation project and utilize the space as a community room/activity space.
Estimated maintenance and operational costs of a passive park space, plus disc-golf and a potential community room space, would be similar to the maintenance operations at Damon-Garcia Sports Complex. Based on the recent maintenance staffing study that was presented to Council on January 14, 2025, Staff estimate approximately 1.75 – 2.0 FTE positions to maintain the 26-acre property. This would include, but not limited to, mowing, tree and shrub management, utility costs, and managing the irrigation system (which would still be recommended for upgrades). Anticipated maintenance operational expenditures, including staffing, could range between $425,000 to $450,000 annually.
Comparing the similar facility operational models in Table 4, this forecasted expenditure cost is similar to the variance between Parks and Recreation operations and revenues at LLGC with an estimated $459,000 annual subsidy.
External Contract Service for Operations
The opportunity to pursue an outside contract service to take over all golf operations and maintenance of the property was explored by the City on December 2, 2014, resulting in the recommendation to maintain oversight and operations by the Parks and Recreation Department. Staff remain concerned that the current facility issues outlined in this report would be a strong deterrent for an outside/private service to be interested in operating the course. The aging irrigation, lack of a Pro Shop, and the inability to utilize the pedestrian/cart bridge are deterrents to advertise and secure a reputable golf service contract.
An additional concern would be in maintaining the current City and community partnership agreements the City provides to youth and recreational community groups such as the local school programs, Special Olympics, and Cal Poly Kinesiology courses. The accessible and low-barrier pricing model established by the City would also be a significant concern if an external service provider took over the operations and maintenance. The market rate of the comparable sized golf courses in Table 1 could financially constrain the potential contractor.
Previous Council or Advisory Body Action
The following summarizes key meetings, reports, and Council actions related to the Laguna Lake Golf Course. These provide context for operational decisions, fee studies, and potential alternative uses of the property:
June 11, 2009 – Laguna Lake Golf Course Fund Rate Reviews June 1, 2010 – Laguna Lake Golf Course Fund Rate Reviews
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April 12, 2011 – Strategic Budget Meeting for 2011-13 City Financial Plan July 21, 2011 - 2011-13 City Financial Plan
June 17, 2023 - 2013–15 Financial Plan / Major City Goals December 2, 2014 – Council Study on Operational Models 2018–2021 – Parks and Recreation Blueprint for the Future (2021–2041) June 20, 2017 - FY 2017–19 Financial Plan
December 2, 2014 – RFP For Laguna Lake Golf Course
January 14, 2025 – Maintenance Staffing Study
April 15, 2025 – Strategic Budget Meeting 2025–27 Financial Plan Review Public Engagement
With the Council Study Session request on April 15, 2025, staff informed the Parks and Recreation Commission of the opportunity for the LLGC to be discussed during a Council Study Session. Additionally, users of the LLGC reached out to Parks and Recreation Department and the Golf Division staff for additional information. Staff met with a community group referring to themselves as “Friends of Laguna Lake Golf Course,” providing requested information. A meeting was held with four members of the “Friends of Laguna Lake Golf Course” and Parks and Recreation management on November 13, 2025, to describe what a Council Study Session entails, including the creation of a comprehensive operational assessment by Staff and the opportunity for the community to provide public comment in person at the meeting or via written correspondence.
CONCURRENCE
This report has been prepared by staff from the Parks and Recreation Department, in support by staff from Public Works and Utilities Department, and Community Development Department.
ENVIRONMENTAL REVIEW
The Study Session is not subject to environmental review as this presentation is not a “project” under Section 15378 of the CEQA Guidelines.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2025-26
Funding Identified: Yes
Fiscal Analysis:
There is no fiscal impact associated with receiving and filing the study session report; the discussion below provides context on the current, FY 2025-26, budget and the General Fund support required to operate the Laguna Lake Golf Course.
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Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $0 $0 $0 $0
State
Federal
Fees
Other:
Total $0 $0 $0 $0
For FY 2025–26, the Laguna Lake Golf Course is budgeted to generate $297,000 in revenue. Total expenditures, including staffing, utilities, and other operating costs, are projected at $834,218, resulting in a cost recovery rate of 36%. This places the course within the mid-range cost recovery goal of 30%–60%, indicating that revenues cover slightly more than one-third of total operating costs, with the remainder funded through the General Fund. Table 8 below provides a detailed breakdown of the budgeted revenues, expenditures, and cost recovery for the 2025–26 fiscal year.
Table 8: Budget for 2025-26
Account Budget
Revenue $297,000
Staffing $528,362
Utilities $156,686
Other Operating $149,171
Total Expenditures $834,218
Cost Recovery 36%
General Fund Subsidization 64%
In addition to ongoing operational expenses, several Capital Improvement Program (CIP) projects have been planned for the Laguna Lake Golf Course to maintain and enhance the facility. These projects include routine maintenance, fleet replacement, facility repairs, and infrastructure improvements, such as irrigation upgrades and bridge replacement.
Table 9 below provides a summary of projects within the 10-year CIP, including project numbers, descriptions, fiscal years, and budgeted amounts, highlighting both near-term and longer-term investments in the course.
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Table 9 – Laguna Lake Golf Course CIP Projects, Budget and Fiscal Year CIP No. Project Name Description / Notes Fiscal
Year Budget Amount
2000030 Golf Course
Maintenance
Routine
maintenance 2026–27 $10,000
2000519 Fleet
Replacement Golf course truck 2026–27 $69,000
2000568 Pro Shop Flood
Damage Repair
Facility repair from
past flood 2026–27 $250,000
2001071 Bridge
Replacement
Storm response and
recovery
2026–27 $600,000
2000519 Fleet
Replacement Golf course mower 2027–28 $90,000
2001031 Irrigation
Improvements System upgrades 2030–31 $300,000
2000031 Parking Lot
Maintenance Resurfacing/repairs 2031–32 $50,000
2000520
Fleet
Replacement –
Public Works
Golf course mower 2031–32 $90,000
2001031 Irrigation
Improvements System upgrades 2031–32 $1,700,000
2000031 Parking Lot
Maintenance Resurfacing/repairs 2032–33 $400,000
2000519 Fleet
Replacement
Golf course cart
spray applicator 2032–33 $30,000
2000519 Fleet
Replacement
Golf course diesel
UTV w/ dump bed 2032–33 $30,000
2000519 Fleet
Replacement
Golf course utility
car
2032–33 $40,000
2000520
Fleet
Replacement –
Public Works
Golf course reel
mower
2032–33 $90,000
Total $$3,749,000
The figure below illustrates total CIP funding for the Laguna Lake Golf Course by fiscal year, combining all individual projects from Table 9. This figure (Figure E) highlights the timing and scale of planned investments, with peak funding years occurring in FY 2026– 27 and FY 2031–32.
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Figure E: CIP Funding by Fiscal Year
ALTERNATIVES
1. Council could choose to provide direction to staff to research alternative (nongolf activities) and/or assess the current fees related to the Golf Division and Parks and Recreation Departments community programming specific to the use Laguna Lake Golf Course property. This strategy may require realignment of the current financial philosophy related to cost recovery policies, and program accessibility for the community. Staff resources will be required to conduct a user fee survey and assess the threshold of the variety and types of multi-use programs. This would also include assessing the physical impacts to the course conditions, and current or revised times of course use for traditional golf activities which support a variety of community partners.
2. Council may choose to direct staff to pursue classifying the Golf Course Operations as an enterprise fund program. This would entail staff conducting a comprehensive fund analysis of all user fees, including daily use fees and rental/reservation fees, as well as review community partnership agreements, to increase fees to meet the current subsidy delta point. The estimated revenue increase would need to increase by 50-64% which could result in pricing out community users, as well as limit the accessibility of a significant portion of the community population who utilize the programs at the LLGC.
3. Council could choose to provide direction to staff to pursue the costs and benefits of decommissioning the golf program and converting the property to a community park. This option would require muti-department staff resources from $0.00
$200,000.00
$400,000.00
$600,000.00
$800,000.00
$1,000,000.00
$1,200,000.00
$1,400,000.00
$1,600,000.00
$1,800,000.00
$2,000,000.00
2026–27 2027–28 2030–31 2031–32 2032–33
CIP Funding by Fiscal Year
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Parks and Recreation, Public Works and Utilities, and City Attorney’s Office, to develop the process and conversion of an active recreational area to a passive recreational area, including property deed review, infrastructure assessments for ADA pathways, environmental impacts for Prefumo Creek, and safety/risk assessments of the 26-acre property, including concerns and mitigation of unauthorized after-hours park use. The conversion would also have impacts such as loss of program revenue and golf-specific recreational opportunities for a variety of community partners and community members.
4. Council could choose to provide direction to staff to investigate alternative usage regarding the Laguna Lake Golf Course 26-acre property related to housing. This option would require staff support from Community Development, City Attorney’s Office, Parks and Recreation, Administration, Finance, and Public Works & Utilities Departments, as well as potential need for contract or consultant support.
Potential areas of significance for staff research and review may be related to property deeds and environmental property reviews, assessment of current required park acreage related to the City’s adopted general elements for both the Parks and Recreation and Housing elements, review of the re-zoning process for any property use changes, and neighborhood wellness impacts.
ATTACHMENTS
A - Grant Deeds for APN 053-111-055
B - Resolution Approving the Application for Federal Land and Water Conservation Fund Grant-In-Aid Program funding for the Laguna Lake Golf Course and Driving Range Acquisition Project
C - Grant Deed for APN 053-111-058
D - Grant Deed for APN 053-111-062
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M
RECORDING REQUESTEI Y
CIAICAGO TITLE CONS_ .. qY
ANU WHEN RECORDED MAIL TO
CITY OF SAN LUIS OBISPO
Attn. Paul LeSage
1341 Nipomo Street
San Luis Obispo, Ca
Doc No: 1999- 042194
Official Records
San Luis Obispo Co.
93401 Julie L. Rodewald
Recorder
Jun 11, 1999
Time: 11: 11
Rpt No: 00052566
UN 22. 00
NF - 1 0. 00
1i
L r 1
Escrow No. 250421 - So L 31 TOTAL 22. 00
Order NO 250421 - NN
SPACE ABOVE THIS LINE FOR RECORDER' S USE
t nr_ utNULMIGNED GRANTOR(S) DEC
DOCUMENTARY TRANSFER TAX
unincorporated area
GRANT DEED Assessor' s Parcel No:
053, 111, 058 portion
LARE( S
2 00 / I
ITFW PAID ExEmPT OUT OF
is STATE
City of
computed on the full value of the interest or property conveyed, or is computed on the full value less the value of liens or encumbrances remaining at time of sale, and FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
THE CONGREGATIONAL CHURCH - UNITED CHURCH OF CHRIST
hereby GRANT( S) to
THE CITY OF SAN LUIS OBISPO , a charter municipal corporation of the State of California tfie following described real property in the
County of SAN LUIS OBISPO State of California:
LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF BY REFERENCE Dated April 14, 1999
STATE OF CALIFORNIA
COUNTYQF SAN LUISLUIS OBISPO } SS.
On 1 " Lt_ X , before me,
the un ersigned
a Notary Public in and for said County and State, personally appeared U IvAam
personally known to me ( or proved to me on the basis of satisfactory evidence) to be the person( s) whose name( s) is / are subscribed to the within instrument and acknowledged to me that he / she / they executed the same in his / her / their authorized capacity( ies), and that by his / her / their signature( s) on the instrument the person( s), or the entity upon behalf of which the person( s) acted, executed the instrument.
THE CONGREGATIONAL CHURCH -
UNITED, GiYMCH OF CHRIS // T
BY:
UE ZAKARIA
Comm. fr` 113048, ELO Nota ry Public
California
AN LUIS OBISPtJ COUNTY
M' Comet. C- 91re3 br. 20 2801
WITNE my hand and official seal.
3 _ g) - 01
gnat a of Notary Date My Commission Expires FOR NOTARY SEAL OR STAMP MAIL TAX STWTEdENTS TO PARTY SHOWN ON FOLLOWING LINE: IF NO PARTY SO SHOWN, MAIL AS DIRECTED ABOVE same as return address shown above
Name Street Address City, State & Zip
GD1 -- 05/ 30/ 97bk
T ,
p] I - I q e
computed on the full value of the interest or property conveyed, or is computed on the full value less the value of liens or encumbrances remaining at time of sale, and FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
THE CONGREGATIONAL CHURCH - UNITED CHURCH OF CHRIST
hereby GRANT( S) to
THE CITY OF SAN LUIS OBISPO , a charter municipal corporation of the State of California tfie following described real property in the
County of SAN LUIS OBISPO State of California:
LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF BY REFERENCE Dated April 14, 1999
STATE OF CALIFORNIA
COUNTYQF SAN LUISLUIS OBISPO } SS.
On 1 " Lt_ X , before me,
the un ersigned
a Notary Public in and for said County and State, personally appeared U IvAam
personally known to me ( or proved to me on the basis of satisfactory evidence) to be the person( s) whose name( s) is / are subscribed to the within instrument and acknowledged to me that he / she / they executed the same in his / her / their authorized capacity( ies), and that by his / her / their signature( s) on the instrument the person( s), or the entity upon behalf of which the person( s) acted, executed the instrument.
THE CONGREGATIONAL CHURCH -
UNITED, GiYMCH OF CHRIS // T
BY:
UE ZAKARIA
Comm. fr` 113048, ELO Nota ry Public
California
AN LUIS OBISPtJ COUNTY
M' Comet. C- 91re3 br. 20 2801
WITNE my hand and official seal.
3 _ g) - 01
gnat a of Notary Date My Commission Expires FOR NOTARY SEAL OR STAMP MAIL TAX STWTEdENTS TO PARTY SHOWN ON FOLLOWING LINE: IF NO PARTY SO SHOWN, MAIL AS DIRECTED ABOVE same as return address shown above
Name Street Address City, State & Zip
GD1 -- 05/ 30/ 97bk
T ,
p] I - Page 211 of 213 I q e
V 1
Pagc 1
Escrow No. 250421 - SO
LEGAL DESCRIPTION EXHIBIT
That portion of Lot 59 of Stratton' s Subdivision of the Ranchos Canada de Los Osos and La Laguna, in the County of San Luis Obispo, State of California, as shown in Book A of Record Maps at pages 83 and 84, recorded in the office of the San Luis Obispo County Recorder, described as follows:
Beginning at a 1 1/ 2" iron pipe and tag, L. S. 3982, on the Southwesterly line and distant 49 ft. from the Westerly corner of Parcel A, as shown in Book 20 of Parcel Maps at page 71, being THE TRUE POINT OF BEGINNING; thence, at right angles to the said Southwesterly line, South 45 degrees 59 minutes 25 seconds West, a distance of 65 ft.; thence, along a line parallel to and 65 ft. Southwesterly of the Southwesterly line of Parcel A, South 44 degrees 00 minutes 35 seconds East, a distance of 130 ft.; thence, along a line at right angles to the Southwesterly line of Parcel A, North 45 degrees 59 minutes 25 seconds East, a distance of 65 ft.; thence, Northwesterly along the Southwesterly line of Parcel A, North 44 degrees 00 minutes 35 seconds West, a distance of 130 ft. to the TRUE POINT OF BEGINNING.
DEEDLEGL- 08/ 09/ 94bk
I
I
CERTIFICATE OFACCEPTANCE
THIS IS TO CERTIFY that the interest in real property conveyed by the Grant Deed dated
6. 1999 from Congregational Church - United
Church of Christ to the CITY OF SAN LUIS OBISPO, a
Political Corporation, is hereby accepted by the undersigned officer on behalf of the City Council pursuant to authority conferred by Resolution No. 5370 ( 1984 Series) recorded June 15, 1984 in Volume 2604, Official Records, Page 878, San Luis Obispo County, California and the Grantee consents to recordation thereof by its duly authorized officer or his agent.
Date: June 10, 1999
ATTEST:
Lee Price C. M.
City Clerk
C
CITY OF SAN LUIS OBISPO"
Y w
Allen K. Settle, Mayor
END OF DOCUMENT Page 213 of 213