SUBJECT: LOS LAGOS GOLF COURSE DATE: May 16, 2016 LAND USE PUBLIC OUTREACH

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1 COUNCIL AGENDA: 6/7/16 ITEM NO: 0... CITY OF SAN JOSE CAPITAL OF SILICON VALLEY Memorandum TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Angel Rios, Jr. SUBJECT: LOS LAGOS GOLF COURSE DATE: LAND USE PUBLIC OUTREACH Approved [\ Date 2<* Ik COUNCIL DISTRICT: 7 RECOMMENDATION Accept the public outreach process outlined in this memorandum for obtaining community input regarding current and alternative uses of park land occupied by Los Lagos Golf Course. OUTCOME Los Lagos Golf Course is a City-owned facility that incurred operating losses of $385,000 in The Department of Parks, Recreation and Neighborhood Services (PRNS) is committed to minimizing operating losses and is pursuing a variety of options to increase revenue and manage costs, including: working with the operator to establish a more competitive position within the local golf market; developing a more aggressive and diverse customer growth strategy; implementing more effective and creative outreach and engagement plans to ensure customer retention; and, improving oversight of operator agreements to contain costs. Simultaneously, at the direction of the City Council, PRNS will lead a community input process in the coming months to explore whether Los Lagos Golf Course best meets the needs and interests of the community at-large. Through this process, San Jose residents and stakeholders will be asked to provide comments, concerns, and priorities regarding current and alternative uses of the property. By conducting a broad, multi-faceted community outreach effort, the community's voice will inform the City Council's future strategy development regarding land use as it seeks to maximize the value of the Los Lagos open space relative to the current costs and public benefits of operating a golf facility.

2 Page 2 BACKGROUND On September 2, 2015, the City Auditor submitted to the Mayor and City Council a report entitled "Golf Courses: Loss of Customers and Revenues Requires a New Strategy." The report can be found on the City's web site at In the report, the City Auditor noted that although San Jose Municipal Golf Course operates at a profit, both Los Lagos and Rancho Del Pueblo Golf Courses are underutilized and currently operate with annual net losses of $300,000 each ($600,000 combined). When considered with the revenues generated by San Jose Municipal Golf Course and the debt obligations for both Los Lagos and Rancho Del Pueblo, the total General Fund subsidy for municipal golf stood at $2.2 million for In addition to a number of recommendations aimed at improving utilization, boosting revenues, and managing costs, the report also recommended that the City Council direct staff to begin a community engagement process to explore alternative land uses for the underutilized golf lands (Los Lagos and Rancho Del Pueblo). The report suggested potential policy directions that could: 1. Continue the General Fund subsidy to keep the three golf courses as operated today; 2. Reduce the General Fund subsidy through a competitive sale of a portion of golf course lands to pay off the outstanding lease-revenue debt; and/or, 3. Increase community utilization of scarce parkland by repurposing the lands to other uses. Subsequently, at the November 17, 2015, City Council meeting, the City Council directed staff to bring back a community engagement strategy proposal to evaluate the current land use of the Los Lagos Golf Course property. In seeking a broad and inclusive engagement process, the City Council voiced its intention to establish guiding principles for ensuring that future use(s) of the site (status quo or otherwise) will serve the needs and interests of the community. In accordance with Council direction, this memorandum recommends: 1) principles and considerations for ensuring a broad and inclusive citywide outreach effort; and, 2) a framework and timeline for engaging City of San Jose residents and stakeholders regarding the use of the land occupied by Los Lagos Golf Course. With the Council's revisions and/or acceptance, staff will use the framework to develop a consultant-facilitated process that collects and summarizes community perspectives. These perspectives will inform the City Council's development of guiding principles for future discussions regarding the disposition of the Los Lagos Golf Course property. As outlined below, the recommendation is presented with the objective of ensuring that whatever options are considered (status quo or otherwise), future deliberations will be informed by the diverse needs and interests of City of San Jose community at-large. ANALYSIS The community engagement process promises to be a major undertaking. Given the great diversity of community interests regarding the use of the City's available open space, staff is

3 Page 3 proposing to utilize an existing master agreement with PlaceWorks, Inc., to develop and facilitate a process designed to identify predominant needs, perspectives and themes among the community at-large (including Council District 7 residents, in particular). In guiding this effort, staff intends to work alongside the consultant and contribute support as required. This will enable a broader, more cost-effective outreach; facilitate efficient communications and coordination among the individual Council Districts; and ensure prompt response to community needs, interests, and concerns, as they arise throughout the process. Community Outreach Parameters Through various survey mechanisms, engagement tools, and in-person events and meetings, the community may be prompted for input with questions such as 1) does the current use of the park land for Los Lagos Golf Course satisfy community needs/interests and maximize community benefits; 2) what changes, if any, should the City Council consider in terms of operations, land use, etc.; 3) should the City continue to use the park land as a golf course exclusively, in part, or not at all; 4) if in part or not at all, what alternative land uses should the City Council consider for the Los Lagos Golf Course site. Regardless of the final format and facilitation approach, staff recommends the following parameters to guide the development of a contractual scope and final public outreach process: 1. Outreach efforts must extend to Los Lagos Golf Course's surrounding neighborhood, in particular Council District 7 residents, and provide in-person engagement opportunities to the entire San Jose community and stakeholders at-large; 2. Outreach efforts must consider a combination of engagement methods including, but not limited to online/social media surveys, neighborhood canvassing, pop-up/intercept events (tables at high-traffic public areas like shopping centers, libraries, schools, etc.), community workshops, etc.; 3. Community workshops must include available summary background information and information regarding the known costs, benefits, and trends related to municipal golf and alternative land use options and trends as a means for fostering a robust dialogue; 4. Written, online and in-person notifications and survey instruments must be inclusive and account for the large number of Vietnamese, Spanish, and English language speakers throughout the City; 5. Community feedback must be documented and posted online to foster open dialogue throughout the process; 6. All public feedback must be summarized in a final report that the consultant and staff shall present to the City Council - this report will highlight prominent themes among Los Lagos Golf Course's adjacent neighborhood and the citywide community; and 7. The final report shall include recommended options for developing a next-phase process for exploring the current and future use of the Los Lagos Golf Course site.

4 Page 4 Draft Public Outreach Process Outline Based on preliminary discussions with PlaceWorks, Inc., the effort is expected to take approximately six months to complete at a cost of approximately $41,000. The actual duration and cost will depend on the number of community meetings held. At present, staff recommends two regional workshops (with at least one located in Council District 7), which will unfold in accordance with three main process stages summarized below. Stage 1: Develop Content Tools, and Process Logistics (Months 1-2) 1. Content Development a. Draft surveys (Citywide, Canvassing, Pop-Up Events, etc.) b. Collect community education information c. Develop community event/workshop agendas and presentation materials 2. Outreach Tools/Resources a. Dedicated website and social media presence b. Marketing materials c. Mailers, public noticing, television spots, etc. 3. Process Logistics a. Develop outreach event schedules and calendars b. Coordinate Council Office event attendance & briefing schedules c. Work with Mayor/City Council to identify key stakeholder contacts d. Identify/schedule volunteer and staff support for events, meetings, etc. Stage 2: Public Outreach Activities (Months 2-5) 1. Online Community-wide Survey (via website) 2. Social media outreach (Facebook, Twitter, Next Door, etc.) 3. Los Lagos neighborhood door-to-door (canvassing) surveys 4. Stakeholder surveys (Golf, Soccer, Softball, Youth, etc.) 5. Pop-up events w/intercept surveys (citywide with emphasis in District 7) 1 6. Community meetings (2 community workshops, including one in District 7) Stage 3: Outreach Summary & Recommendations (Month 6) 1. Summarize process and outreach effectiveness 2. Identify themes & issues (by community areas, interests, etc.) 3. Recommend key focus areas to consider 4. Recommend outreach process next steps 5. Deliver survey & meeting documentation/data 1 Pop-up events and intercept surveys involve in-person conversations with the community at high-traffic locations like malls, shopping centers, libraries, parks, etc. where staff/volunteers solicit general input and administer surveys.

5 May 16,2016 Page 5 EVALUATION AND FOLLOW UP With City Council's acceptance of this framework, staff will work with PlaceWorks, Inc., to finalize the process design and schedule and begin implementation. Ultimately, staff intends to return with PlaceWorks, Inc., to the City Council at the conclusion of the project by no later than January 2017 with a report documenting the overall process, a summation of the community feedback obtained through the various modes of outreach discussed above, and recommendations regarding next steps in the public outreach process. POLICY ALTERNATIVES Alternative #1: Proceed with a staff-led public outreach process regarding future land uses related to the Los Lagos Golf Course property. Pros: Assigning this project to staff will avoid the projected consultant costs. Cons: Staff who possess the background and expertise necessary to successfully coordinate this effort are already working on other key projects. The City will need to re-evaluate priorities and defer some of these projects for capacity reasons. At present, key projects include Coleman Soccer Facility, Kelley Park Master Plan, Arcadia Softball Facility, Three Creeks Trail, the Greenprint Update and others. Reason for Not Recommending: This alternative will adversely impact the strategic work plans and deadlines to which the City has already committed in other areas of community interest. In addition, deferring other projects to a later date will likely have negative contractual and cost implications in the areas of capital development and/or programming execution. Faltering on prior commitments with key stakeholders in these areas may strain relationships that have already been established in good faith. Alternative #2: Do not proceed with a public outreach process regarding future land uses related to the Los Lagos Golf Course property. Pros: The City Council may begin immediate discussion to determine land use options related to the property. Cons: The City Council may experience challenges and delays in advancing any number of future actions pertaining to the property if competing community interests are not heard and vetted in advance.

6 Page 6 Reason for Not Recommending: This alternative is not consistent with the City Council's prior direction to conduct a broad and inclusive public outreach process as a means for developing guiding principles for deliberating the Los Lagos Golf Course property's future disposition. PUBLIC OUTREACH At the November 17, 2015, City Council meeting, staff was directed to develop a broad and inclusive public outreach process to ascertain the community's needs, interests, and concerns regarding the current and future use of the Los Lagos Golf Course property. The process outlined in this memo will ensure that all stakeholders will have the opportunity to inform the City Council's future discussions and deliberations regarding how to best use the property to maximizing community benefit. COORDINATION This memorandum has been coordinated with the City Manager's Budget Office, the City Attorney's Office, and the City Auditor's Office. COST SUMMARY/IMPLICATIONS As proposed, staff estimates this public outreach effort will be at least $41,000 and possibly up to $53,000 in consultant expenses. These expenses will be absorbed within the Municipal Golf Course Fund (Fund 518) Los Lagos Golf Course appropriation, which has performed slightly better than budgeted. CEOA Not a Project, File No. PP10-066(d), Agreements/Contracts: Consultant Services for Design, Study, and Research. /s/ ANGEL RIOS, JR. Director of Parks, Recreation and Neighborhood Services Department For questions please contact Matt Cano, Assistant Director, at (408)