20230117-002: 2023 Annual Concession Report — original pdf

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2023 ANNUAL ANNUAL CONCESSION CONCESSION REPORT REPORT AUSTIN PARKS & RECREATION DEPARTMENT  Contents Executive Summary ......................................................................................................................................................... 1 Concession Locations ....................................................................................................................................................... 3 Concession Contracts ....................................................................................................................................................... 5 Contract Terms Solicitations and New Contracts Contract Extensions Expiring Contracts Rowing Dock ....................................................................................................................................................................... 5 Zilker Café ........................................................................................................................................................................... 6 Rowing Dock ....................................................................................................................................................................... 7 Austin Rowing Club at Waller Creek Boathouse ................................................................................................................ 7 EpicSUP/The Trail Conservancy .......................................................................................................................................... 8 Rowing Dock ....................................................................................................................................................................... 9 Expedition School ............................................................................................................................................................... 9 Zilker Park Boat Rentals ..................................................................................................................................................... 9 Other Contract Changes Zilker Eagle ....................................................................................................................................................................... 10 Concession Revenue, Payments, and Expenditures ........................................................................................................ 11 Concessions Outside of Town Lake Park ......................................................................................................................... 18 Parks and Recreation Board Recommendations ............................................................................................................. 19 Environmental Commission Recommendations .............................................................................................................. 20 Revenue Share Payments Capital Improvements Public Benefit Short-Term Permits Concessions at Golf Courses Marine Waste Disposal Watercraft Census Lake Safety Consistency Across Concession Contracts New Concessions Carrying Capacity 5 5 7 9 10 12 14 15 18 18 20 21 23 24 25 25 i Unlicensed Vendor Activity Zilker Eagle Updates 26 28 Appendix 1. Temporary Concessions and Commercial Use Report FY23 .......................................................................... 29 Appendix 2. Austin Lake Water Protection Plan and Marine Waste Information ............................................................. 32 ii Executive Summary The mission of the Parks and Recreation Department (PARD) is to inspire Austin to learn, play, protect and connect by creating diverse programs and experiences in sustainable natural spaces and public places. In carrying out its mission, PARD has established nine permanent concessions in Town Lake Park that provide recreation services. These services include rentals of canoes, kayaks, and stand-up paddleboards (SUPs); rowing instruction and memberships; food and beverage sales; short-course golf; excursion boats; and a mini train. The concessions were established pursuant to City of Austin Code Section 8-1-71, which authorizes the director of the Parks and Recreation Department to allow a person to operate a food or beverage, rental, or service concession in Town Lake Park. Additionally, Section 8-1-73 requires PARD to present an annual report on the status of concessions operating in Town Lake Park to the Parks and Recreation Board and the Environmental Commission each year. At a minimum, the report must include the following information: • The name and location of each concession; • An income and expenditure statement for each concession; • The total number of boats rented on Lady Bird Lake; and • A statement describing any environmental or other problem caused or created by a concession. Within 30 days of receiving the Annual Concession Report, the Parks and Recreation Board and the Environmental Commission make joint recommendations to the City Council regarding the following: • The creation, continuation, or termination of a concession; 1 • The status of each existing concession; and • Issuance of a request for proposals for a concession under this division. 2 Concession Locations Figure 1. Map of Lady Bird Lake Concessions As of FY23, there are nine concessions located in Town Lake Park. • Seven provide water-based recreation services, including one or more of the following: rentals of canoes, kayaks, stand-up paddle boards (SUPs), and electric boats; summer water sports camps; rowing and paddling lessons and membership; guided group tours, team-building outings, and custom paddling events; fitness lessons; and lake excursion cruises. The watercraft concessions include: 3 o Rowing Dock o Texas Rowing Center o Zilker Park Boat Rentals o Lone Star Riverboat o Austin Rowing Club o Expedition School o EpicSUP • Butler Pitch and Putt provides short-course golf, leagues, lessons, and events. • Zilker Eagle (temporarily closed) provides a mini train. • Three provide a food and beverage service: o Austin Rowing Club (Alta’s Café at Waller Creek Boathouse) o Butler Pitch and Putt o Zilker Café (temporarily closed) • Austin Rowing Club offers event space rentals and an indoor rowing fitness studio at Waller Creek Boathouse. 4 All the Town Lake Park concessions are currently under contract, except for Zilker Cafe. Figure 2 below shows the contractual terms for each of the concessions. Additionally, changes to concession contracts in FY23 are discussed below. Concession Contract Begin Contract 0 0 0 End 2 5 0 0 2 0 1 0 2 5 1 0 2 0 2 0 2 5 2 0 2 0 3 0 2 5 3 0 2 0 4 0 2 Rowing Dock 2000 2024 2 5 5 5 5 1 1 Zilker Park Boat Rentals 2006 2024 5 5 5 1 18 mo. 2 2 5 5 2 5 5 4 3 2 . o m 6 2 5 10 10 10 5 5 5 5 10 *After May 15, 2021, all EpicSUP revenue share payments go to The Trail Conservancy. Figure 2. Contract Terms for Lady Bird Lake Concessions Concession Contracts Contract Terms Expedition School 2020 2024 Lone Star Riverboat 2015 2025 Austin Rowing Club 2012 2026 EpicSUP* 2013 2028 Butler Pitch & Putt 2019 2029 Texas Rowing Center 2020 2030 Zilker Eagle 2021 2031 Interim Period Basic Term Option Executed Option Remaining Extension Solicitations and New Contracts Rowing Dock The current agreement with Rowing Dock expired in April 2023. The contract authorized an initial term of five years (2002-2007) with three five-year options (2007- 2012, 2012-2017, 2017-2022). The contract was extended for one year (2022-2023), per Council Resolution No. 20220728-192. 5  The City released a Request for Proposals in fall 2022, with the goal of executing a new contract by April 2023, that would coincide with the contract expiration. The solicitation was published on November 9, 2022, and closed January 3, 2023, with four responsive proposals submitted. On March 13, 2023, a recommendation for award to Texas Canoes and Kayaks was posted, and a six-month extension was put in place to allow for the site’s transition to a new vendor. However, shortly after the award was announced, it was protested. On May 5, 2023, Central Procurement cancelled the solicitation on behalf of the City and will re-solicit in fall 2023. An additional year extension will be executed to allow for continued operations at the site while a solicitation is conducted. Zilker Café No vendor has been operating at the Zilker Café site since early 2016. After the contract with the previous vendor expired, the building was extensively renovated to address the structure’s severely deteriorated condition, to meet code requirements, and to provide ADA accessibility. In 2019, after a competitive solicitation, PARD signed a contract with a vendor to operate the concession beginning in January 2021. However, the opening of the café was delayed, first due to building permitting issues, then the COVID pandemic, and finally, to an unforeseen requirement for a Conditional Use Permit (CUP) to grant the vendor permission to sell beer and wine per the vendor proposal. The Austin Land Development Code requires any area designated as a public (P) district to receive approval of a conditional use site plan by the Land Use Commission for the sale of alcohol. In 2021, PARD requested a CUP for the site, conducted community outreach and collected public input, as required by the CUP process. Both the Parks and Recreation Board and the Planning Commission voted to deny the request, and ultimately, the CUP was not authorized. In 2022, after several unsuccessful attempts to 6 negotiate with the contracted vendor to begin food and beverage services, the City made the decision to terminate the contractual relationship. A new Request for Proposals (RFP) was released on May 30, 2023. One responsive proposal was received on July 25, 2023. The vendor’s response was evaluated but did not meet the minimum revenue share requirements delineated in the solicitation. The vendor was unwilling to move forward with a new proposal that met the minimum solicitation requirements, resulting in Central Procurement cancelling the solicitation. PARD is exploring alternative uses for the space that support the Barton Springs Bathhouse renovations, which are scheduled to begin in early spring 2024. Meanwhile, there is a food truck operating at the Zilker Café site until a new concession contract is established. Contract Extensions Rowing Dock As indicated above, the solicitation for a vendor at Stratford Drive was cancelled and will be resolicited in fall 2023. To continue providing a watercraft concession at the Stratford Drive location, City Council authorized an additional one-year extension with the current vendor, Rowing Dock, on August 31, 2023. The contract amendment extends operations until October 31, 2024, and will assist PARD in providing quality recreation while providing time to resolicit a concessionaire for the watercraft concession. Austin Rowing Club at Waller Creek Boathouse The contract with Austin Rowing Club to manage and operate the Waller Creek Boathouse expired in February 2023. Typically, a solicitation for a new contract would be released approximately a year prior to contract expiration. However, in late 2021, plans were announced that Project Connect would require a bridge and tunnel to be 7 built across the lake, necessitating the demolition of the boathouse. Because the demolition was projected to take place around 2024, the solicitation process paused until more details about the location of the transit line and construction timeline could be provided. In summer 2022, PARD planning staff identified the site at 2200 S. Lakeshore Drive as a potential site for a new boathouse, should the Waller Creek Boathouse be demolished. Subsequently, Council Resolution No. 20220901-085 directed the City to coordinate with Austin Rowing Club regarding relocation efforts and to extend the contract with Austin Rowing Club so that it could remain at the Waller Creek Boathouse until 60 days prior to scheduled demolition. PARD executed an amendment to provide a three-year contract extension, allowing the Austin Rowing Club to continue its operations at the boathouse until more details are known regarding the impact of Project Connect on the location. The current contract expiration date is February 28, 2026. EpicSUP/The Trail Conservancy EpicSUP is a former subcontractor with Hosteling International-USA (HI-USA), a group that held a license agreement with PARD for use of the building at 2200 S. Lakeshore Blvd. When the hostel closed in 2020, due to COVID-19, HI-USA terminated its agreement with the City, and accordingly, the subcontract with EpicSUP was also terminated. The vendor has continued providing watercraft concession services as a result of Council Resolution No. 20201112-071, which authorized EpicSUP to operate first through a temporary concession permit and then through a contract with The Trail Conservancy (TTC). In 2021, plans were announced that Project Connect would require a bridge and tunnel to be built across the lake, necessitating the demolition of the Waller Creek Boathouse. The site at 2200 S. Lakeshore Drive, near where EpicSUP operates, was identified as a potential site for a new boathouse. Because of the uncertainty surrounding the plans for Project Connect, PARD has not released a solicitation for 8 concession operations at the site. Instead, Council Resolution No. 20220901-085 directed the City to coordinate with TTC to extend the contract with EpicSUP until such time as the site is redeveloped. Accordingly, a contract extension was executed in early 2023, and the extension will allow the current vendor to continue its operation for a period of up to five years. Expiring Contracts The current contract with Rowing Dock will expire October 31, 2024. Meanwhile, Central Procurement will issue a solicitation in fall 2023 to solicit proposals for the Rowing Dock watercraft concession. Expedition School The contract with the Expedition School will expire April 28, 2024. The contract allows the concession to operate at a temporary location at the Festival Beach Boat Ramp until such time as the vendor can build a dock at the identified permanent location on the west side of the lagoon. The City will extend the agreement with the Expedition School to allow more time to complete the construction of a new facility. Once the new infrastructure is built, the vendor will relocate to the permanent location. Zilker Park Boat Rentals The contract with Zilker Park Boat Rentals will expire February 28, 2024. Staff will work with the vendor to extend the contract, allowing for sufficient time for the release of solicitation for a vendor to manage, operate, and maintain the watercraft concession. 9 Other Contract Changes Zilker Eagle Austin Parks Foundation (APF) was awarded a contract to operate and manage the mini-train operation in Zilker Park in 2021. All net proceeds are to be distributed to non- profit organizations operating within and around Zilker Park. APF built the tracks and infrastructure and acquired a new train, called the Zephyr Eagle. The new tracks follow the existing track base from the train depot to Lou Neff Point. APF has faced many challenges and setbacks in their attempts to restore the park amenity. This summer, APF began a new partnership with a local group of engineers who have the experience and expertise to deliver a safe, functioning train. Barring unforeseen complications, the new and improved Zilker Eagle will enter the testing phase in late fall/early winter, with the train opening to the public shortly thereafter. 10 Concession Revenue, Payments, and Expenditures Figure 3 below provides gross sales generated by each Town Lake Park concession, as well as total expenditures and payments to the City. $3.5 $3.0 s n o i l l i M $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 Butler Pitch and Putt (Pecan Grove Golf Partners) EpicSUP Expedition School Lone Star Riverboats Rowing Dock Texas Rowing Center Zilker Park Boat Rentals Austin Rowing Club at Waller Creek Boathouse Gross Sales $2,838,411 $394,144 $1,081,396 $2,206,240 $2,895,049 $3,010,728 $1,077,564 Reported Expenditures $1,315,889 $292,719 $1,035,469 $1,627,750 $2,688,421 $3,282,341 $615,248 Payments $227,266 $49,173 $99,561 $262,403 $322,984 $247,901 $99,548 $51,404 $39,004 $4,750 Figure 3. FY23 Gross Sales, Payments, and Expenditures, by Concession FY23 gross sales totaled over $13.5 million for the eight concessions. Rental activity on the lake, as well as at Butler Pitch and Putt spiked during FY21 and FY22, during and immediately after the COVID-19 pandemic. This past year saw a decrease in all watercraft activity over the previous year. However, the activity at Butler Pitch and Putt is on an upward trajectory and has increased 12% over FY22. Figure 4 below shows the increase in gross sales over the past nine years. 11 s n o i l l i M $16 $14 $12 $10 $8 $6 $4 $2 $- FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total Gross Sales $7,125,925 $6,375,309 $7,833,561 $8,812,340 $8,373,744 $6,722,615 $12,380,735 $15,994,081 $13,554,936 Figure 4. Total Annual Gross Sales Since FY15 Revenue Share Payments The revenue share for each concession is determined by a unique formula negotiated in each individual contract. The Expedition School, Zilker Park Boat Rentals, and EpicSUP remit a percentage of gross revenue monthly, and the other concessions pay a monthly flat fee in addition to an annual lump sum payment based on total annual revenue. Tables 1 and 2 provide the revenue share formulas required for each concession. Table 1. Required Monthly Fees and Formulas for Annual Revenue Share Payments to the City, by Concession Concession Monthly Payment to the City Butler Pitch & Putt $10,417/month Expedition School 10% of monthly gross revenue Lone Star Riverboat $1667/month Annual Lump Sum Payment 6% of annual gross revenue (gross sales minus sales tax) exceeding $694,444 n/a 10% of annual gross revenue (gross sales minus sales tax) greater than $200,000 12 Rowing Dock $667/month Texas Rowing Center $1500/month Austin Rowing Club $1000/month 1% of annual net revenue (gross sales minus sales tax) plus 8% of net revenue greater than $80,000 1% of annual net revenue (gross sales minus sales tax) plus 8% of net revenue greater than $80,000 1% of annual net revenue (gross sales minus sales tax) less than and up to $80,000 plus 8% annual net revenue greater than $80,000 Zilker Park Boat Rentals 10% of monthly gross revenue n/a Table 2. Required Monthly Fees and Formulas for Annual Revenue Share Payments to The Trail Conservancy Concession Monthly Payment to The Trail Conservancy Annual Lump Sum Payment EpicSUP 13.5% of monthly gross revenue n/a As shown in figure 3, FY23 total payments to the City totaled just over $1.26 million. Of the FY23 revenue, $252,288 went to the City’s general fund; $227,266 (from Butler Pitch and Putt) went to Golf ATX, an enterprise division of PARD; and $49,173 (from EpicSUP) was paid to The Trail Conservancy. Figure 5 below shows total revenue payments over the last five years. (These numbers include EpicSUP’s payments to The Trail Conservancy.) $1,286,493 $1,264,050 $753,861 $626,124 $651,620 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Total payments $753,861 FY19 FY20 $626,124 FY21 $651,620 FY22 FY23 $1,286,493 $1,264,050 Figure 5. Total Concession Payments, FY19 -- FY23 13 Table 3 below shows the breakdown of revenue payments for each concession over this period. Table 3. Payments FY19 -- FY23, by Concession FY19 FY21 FY20 FY22 $184,032 Concession Butler Pitch & Putt EpicSUP* Expedition School Lone Star River Boat Rowing Dock Texas Rowing Center Austin Rowing Club Zilker Park Boat Rentals All Concessions FY23 $227,266 $49,173 $4,75 $99,561 $262,403 $322,984 $247,901 $99,548 $1,313,586 *All EpicSUP revenue share payments are included in this table. In FY21, EpicSUP paid $4,447 to the City and $48,855 to TTC. In FY22 and FY23, all payments went to TTC. $72,284 $4,519 $68,786 $256,927 $453,171 $184,451 $134,608 $1,286,777 $73,801 $22,199 n/a $65,237 $146,717 $205,687 $146,135 $62,519 $753,861 $98,204 $53,302 $6,086 $10,002 $138,037 $188,896 $114,359 $91,589 $700,474 $39,068 $38,103 n/a $64,822 $143,031 $186,225 $121,161 $33,401 $626,124 Capital Improvements A capital improvement is a durable upgrade, adaptation, or enhancement of a property that increases its value, often involving a structural change or restoration. Concessions are required to provide basic repairs and routine maintenance of the premises, and these expenses are captured in the expenditures reported above in figure 3. Capital improvements implemented by the concessionaires add to the value of the site and any structures thereon and provide enhancements for customers while also reducing costs to the City. The reported capital improvements for FY23 are listed below. This year, the only concession to complete capital improvements to its site was Butler Pitch and Putt. Butler Pitch and Putt – $78,795 Improvements to the property include new low-voltage safety lighting; new courtyard fans, misters, and string lighting; a new well water pump; a new sprayer; repair/replacement of the roofing and siding on the maintenance shed; greenside 14  collars expansion and sod replacement; replacement of tee box mats; and updates to the putting green drainage system. Public Benefit Many of the concession contracts include requirements for public benefit programming for underserved youth and seniors. Among these, the contract with Austin Rowing Club includes specific requirements to provide a minimum of $40,000/year in programming for underserved youth and designate 10% of annual rowing revenue toward financial assistance for rowing memberships, lessons, or camps. PARD’s vendors typically provide benefits over and above what is required, partnering with community youth groups to provide free or discounted services and with environmental groups for lake cleanup activities. The self-reported FY23 charitable contributions by the Town Lake Park concessions are summarized below. Austin Rowing Club • Provided free programming and discounts to youth and community groups, such as Boys and Girls Club, The Phoenix, PARD summer camps, and McBeth Recreation Center attendees; provided full and partial scholarships for families with demonstrated financial need; hosted lake clean-up events. Provided youth programming to underserved youths through the Rowing in Schools Experience (RISE) program at Murchison and Martin middle schools and the STEM to Stern science and water safety program at Martin Middle School. Butler Pitch and Putt • Provided passes for free rounds and clinics to local youth programs and non- profit fundraising events; provided cash donations to local charities on behalf of 15 Business League winning teams; waived venue rental fees for Tito’s Shorties • Hosted monthly and Earth Day lake cleanup events; donated SUPs for events for Operation Get Out and Dam That Cancer; donated gift cards to local charities • Provided free guided paddle sessions to individuals with severe cognitive disabilities and individuals with visual and hearing impairments; provided discounts for economically disadvantaged schools, individuals, and families; held outdoor education programs for AISD educators and middle and high school students; hosted monthly lake cleanup events; submitted weekly water • Donated free passes to local schools and nonprofits for fundraising events, provided reduced price tickets for bat watching cruises for the Education in Classic charity event. EpicSUP for fundraising events. Expedition School quality test data to LCRA. Lone Star Riverboat Action summer program. Rowing Dock • Provided free equipment use for community non-profit organizations; hosted nonprofit fundraising events, including Paddle for Puppies, Alzheimer’s Foundation Fundraiser, and Earth Day; provided direct contributions to the Texas River School, The Trail Conservancy, Explore Austin, and Flatwater Foundation; and provided discounted rentals to active military personnel, first responders, teachers, college students, and the Texas Outdoors Woman Network. 16 Texas Rowing Center • Provided scholarships for youth rowing programs, summer camps, and adaptive programs; hosted Keep Austin Beautiful lake cleanups and other charitable paddling group events; provided gift certificates to over 50 local non-profit fundraisers; sponsorship of the Austin Parks Foundation, The Trail Conservancy, Texas River School, and TRC High Performance, a non-profit that supports elite rowing athletes training for the Olympics and World Rowing Championships. Zilker Park Boat Rentals • Donated free watercraft rentals for Keep Austin Beautiful lake cleanup efforts; youth camps, such as Austin Sunshine Camp and Big Brothers Big Sisters; and PARD summer camps and after-school programs. Donated gift certificates to local schools and other non-profits for charitable fundraisers. 17 Concessions Outside of Town Lake Park Short-Term Permits In addition to the concessions discussed above, which operate under long-term contracts, PARD offers short-term permits for temporary concessions and commercial uses. Permits are issued for a period of either one day or six months, and the types of concessions and commercial activities that are authorized include food trucks, vending or merchandise sales, fitness trainers, performing artists, and group tour operators. Permit fees are based on the term, the use, and the type of park. For example, six-month permits are $1500 for metro parks and $500 for all other parks. The total collected in FY23 from commercial use permits was $41,691. Details regarding the temporary concessions in Town Lake Park, including types of permits, park areas affected, and names of vendors, are included in Appendix 1. Concessions at Golf Courses PARD also collects fees from three vendors that operate concessions at City golf courses: two are food and beverage concessions and one is a driving range. The total FY23 revenue collected from the golf concessions was $414,098. These funds are deposited into the Golf ATX budget. Additionally, since February 2021, the food and beverage concession at Lions Municipal Golf Course has been operated by Save Historic MUNY District (SHMD), which contracts with a vendor for services and receives 10% of the vendor’s net revenue. In FY23, SHMD received $77,522. Per the City’s contract with SHMD, the proceeds shall be used only for improvements to the golf course infrastructure or to upgrade or replace equipment. 18  Parks and Recreation Board Recommendations PARD staff presented the FY22 report at the February 27, 2023, Parks and Recreation Board meeting. Board members voted 8-0 to recommend to Council for the continuation of Town Lake Metro Park concessions, including the following actions: • Include consideration to recent studies and how that can impact water quality, the environment, safety, wildlife, and outdoor recreation. • Upon expiration of a contract on Lady Bird Lake, consider findings of environmental and capacity studies on Lady Bird Lake and consult experts. • Upon expiration of a contract, reevaluate the revenue sharing of that concession’s contract and weigh it against recent rates and the public’s ability to enjoy the park. Regarding the first two recommendations, in 2022 PARD commissioned a study of Lady Bird Lake capacity that considered the recreational uses of the lake and their potential environmental and social impacts. More information on the study is provided below in the Environmental Commission Recommendations section. The findings and recommendations of these studies will be taken into consideration before releasing future solicitations. Regarding revenue sharing, the PARD Contracts Unit has begun working with the Economic Development Department to determine the value of the concession real estate. These discussions will inform the requested revenue share for any potential new vendors. 19  Environmental Commission Recommendations PARD staff presented the FY22 report at the March 1, 2023, meeting. The Environmental Commission voted 8-0 on Motion No. 20230301-005 to recommend continuation of the concession contracts on Lady Bird Lake (Town Lake) Park with the following conditions: 1. Be consistent with the Environmental Commission’s previous recommendations in the 2023 Annual Report, PARD staff will verify that three years of records for marine waste disposal have been maintained for any entity that pumps waste on Lady Bird Lake, and that these monthly records are included in the public record going forward. 2. PARD staff should continue to review the number of public and private watercraft that are typically on Lady Bird Lake, what the safety strategies of the City of Austin, and their ability to meet capacity. 3. PARD should continue working on consistent terms and conditions in the various contracts to the extent practicable. 4. Include the waste pump-out data in the 2022 Annual Report and future reports. 5. Provide an update on any new concessions. 6. Provide an update on unlicensed vendor activity and the actions being taken. 7. Provide information on how carrying capacity is being addressed. 8. Report on the Zilker Eagle reconstruction, track realignment, and environmental impacts to be included in the final 2022 report. PARD’s responses to these recommendations are provided below. Marine Waste Disposal In response to the Environmental Commission’s recommendations regarding marine waste disposal since 2016, PARD’s actions have been as follows: • PARD monitors Lone Star Riverboat’s monthly pump-outs by requiring copies of manifests. 20  • All boats must comply with the State of Texas Clean Water Certification Program requirements and other state requirements for boat design, installation, operation, waste documentation, etc. • Austin Water’s Lake Water Protection program requires permits for each excursion boat with onboard toilet facilities (marine sanitation devices) and • Austin Water conducts inspections at least annually on boats and pump-out each boat pump-out facility. facilities. Currently, only three excursion boats, with marine sanitation devices, have been permitted for use on Lady Bird Lake: • Lone Star, operated by Lone Star Riverboat • MV Nighthawk, operated by Capital Cruises • MV Pride and Joy, operated by Capital Cruises The Capital Cruise boats are launched from a private dock and thus are not under More information about the Austin Water Lake Protection Program is provided in PARD’s purview. Appendix 2. Watercraft Census PARD tracks the number of watercrafts in each concession’s inventory and has reported these numbers in the annual concession report since FY11. Table 4 records the number and type of rental crafts in use at the six water PARD-authorized recreation concessions in FY23 and the total number of boats for each over the last five years. The total FY23 inventory of rental crafts, not including coaching launches, is 2,374, which represents an increase of 58 watercrafts over the previous year. 21  Table 4. FY23 Watercraft Inventory, by Type of Boat and Concession Austin Rowing Club EpicSUP Expedition School Rowing Dock Texas Rowing Center 225 Zilker Park Boat Rentals 70 Type of Boat Kayaks Stand-up Paddle Boards (SUP) Canoes Rowing Shells Electric Boat Coaching Boats/Launches 166 145 0 67 15 11 33 150 0 0 0 0 58 39 8 0 0 0 214 365 22 0 0 0 Totals* 393 183 105 601 Fiscal Year 2019 Total Boat Inventory 1597 *Not including coaching launches 2020 1640 2021 1924 2022 2316 473 19 162 0 11 879 86 57 0 0 0 213 2023 2374 In response to recommendations from the Parks and Recreation Board and the Environmental Commission regarding lake saturation, in 2022 PARD contracted with a team from Huston-Tillotson University to conduct a study of lake capacity. The team used aerial drone photography and land-based counts to estimate the number and types of watercrafts on the lake at specified peak and non-peak times. Using these boat counts, the study’s authors estimated the boat density at certain segments on the lake. The results of the study were presented at Parks and Recreation Board and Environmental Commission meetings and attached as an appendix to the FY22 Annual Concession Report. 22  Lake Safety PARD staff began compiling peak usage time numbers in FY18, in response to the Environmental Commission’s questions regarding lake capacity and safety. Table 5 provides the numbers of rentals during weeks of peak usage, as reported by the concessionaires. The numbers represent the total rentals by each concession during designated eight-day periods including spring break (mid-March), Memorial Day, Fourth of July, and Labor Day. Table 6 provides the total number of rentals for FY23 for each location. Rental activity on these holiday weeks can vary each year due to weather. Still, the totals for FY23 are down about 35% from FY22. (The exception is Expedition School, which doubled rental activity for these weeks compared to FY22.) Table 5: Watercraft Rented During FY23 Weeks of Peak Usage, by Concession Holiday Week EpicSUP Expedition School Rowing Dock Texas Rowing Center Austin Rowing Club Zilker Park Boat Rentals Totals 471 86 2,283 2,347 972 1,644 7,131 1,089 257 3,435 6,695 1,913 2,429 15,818 1,099 412 4,159 6,436 1,644 2,316 15,394 618 154 1,992 3,103 1,002 1,194 8,063 Spring Break Memorial Day Fourth of July Labor Day 23  Table 6: Total Rentals for FY23, by Concession Type of Boat EpicSUP Expedition School Rowing Dock Texas Rowing Club Austin Rowing Club Zilker Park Boat Rentals Totals Canoes 0 110 4,229 3,745 0 4,430 12,514 Kayaks 6,004 1,566 32,971 30,533 20,775 17,916 109,765 SUPs 10,827 767 17,936 48,187 5,855 11,997 95,569 Electric Boats 0 0 0 0 4,269 0 4,269 Totals 16,831 2,443 55,136 82,465 30,899 34,343 222,117 The total number of rentals for FY23 is 222,117. This number is down 33% from FY22’s 333,974 total rentals, suggesting that FY22 was an outlier due to the conditions coming out of the COVID-19 pandemic. PARD will continue to monitor the number of boats in the concessions’ rental inventories and also continue to consult with Austin Police Department, Austin Fire Department, and the Texas Parks and Wildlife Department to monitor safety conditions for lake users. Consistency Across Concession Contracts Because the concessions operating in Lady Bird Lake Park typically have long-term contracts, with initial terms of five to ten years, it is difficult to ensure 100% consistency across concession contracts, as the scopes of work and contracts are not written at the same time. Additionally, not all vendors provide the same services or operate in the same locations, so there is some variation in some of the terms and conditions. 24  However, all the contracts are meant to be competitively solicited following the City’s Central Procurement processes, so that the request for proposal (RFP) and evaluation process are consistent for each solicitation, and each contractor is subject to standard terms and conditions applying to all city contracts. PARD staff will continue to work diligently on establishing consistent terms and conditions among the various concession contracts. The City Central Procurement (CP) Office is responsible for managing the procurement of goods and services for all City of Austin operations, and this includes the release of solicitations and resulting contract execution. PARD’s role is to provide the scope of work (SOW) and evaluation criteria to CP. PARD works closely with CP to streamline documents and improve the SOW and evaluation language as a way to encourage more vendor responses. PARD actively provides information to prospective vendors on how the procurement process works, how to register as a vendor through the vendor registration system, and how to access solicitation notices. An update on new concessions is provided at the beginning of this report. New Concessions Carrying Capacity The main goal of the 2022 HTU study was to define a carrying capacity for Lady Bird Lake and to explore issues related to managing carrying capacity. There are several definitions for carrying capacity, including ecological, recreational, special or facility, and experiential or social. In other words, these definitions focus on how many boats can be on the lake without negatively affecting the lake ecology, recreational use, safety, or user enjoyment. The study used several different methods to gather 25  information that would help assess the carrying capacity of Lady Bird Lake, and also compared the gathered data with target numbers from published sources. In short, the study found that these target density numbers were exceeded on some Saturdays in one area of the lake—the segment from MoPac to the South Lamar Bridge. The counts were consistent with anecdotal reports of increased density during the summers of 2020, 2021, and 2022. However, the study concluded that more research needs to be conducted to determine what deleterious effects, if any, this occasional lake density has on the lake and its users. Specific effects that can be attributed to watercraft usage, such as a decrease in water quality or an increase in safety concerns or safety incidents, if observed, may indicate that the lake has exceeded the desired lake capacity. PARD plans to follow up with further research as funding is available, but no follow-up has been initiated as of the end of FY23. Statistics and anecdotal evidence both showed that lake activity during summer 2023 was down compared to the two previous years, which could be an indication that the density situation may not be as great. Unlicensed Vendor Activity Per City Code § 8-1-71, If authorized by the director, a person may operate a food or beverage, rental, or service concession in Lady Bird Lake Park. Per City Code § 8-1-72, subject to certain restrictions, a person may operate a boating concession adjacent to Lady Bird Lake Park. The concessions listed in this report were so authorized. This report does not include information regarding vendors operating on private property adjacent to Lady Bird Lake, including Capital Cruises, Live Love Paddle, and Austin Paddle Shack, which operate from the south shore east of the South Congress Bridge. PARD is aware of a number of unlicensed vendors that operate on Lady Bird Lake. The existence of these vendors has been identified by various methods: social media 26  advertisements and postings, and reports and sightings by licensed vendors, Park Rangers, citizens, and Austin 311. The unlicensed vendors access the lake from various sites on City parkland, but they do not maintain a permanent site on the lake. Typically, their customers reserve equipment via the internet or social media platforms and the vendors transport their equipment to specific meeting points at designated times—the locations and times of distribution of craft is provided only to customers when they make their reservation. Some of the businesses only provide rental equipment, which they distribute from their trailer or van to waiting customers, and others provide guided tours on the lake. They are not available for walk-up business, like the PARD concessions, and they do not maintain a consistent presence at a particular site. In many cases, the name and owner of the unlicensed vendors is known. These businesses are in violation of the City Code, and their unlicensed activity creates several problems. The first problem is that these businesses are using public parkland maintained by the City for their own commercial gain without compensating the City for their use of these sites. PARD does not receive any revenue share from their businesses. In contrast, the authorized businesses pay a certain revenue share to the city in return for use of these prime sites along the lake. The unlicensed businesses also take paying customers away from contracted vendors. Moreover, the City’s authorized vendors must adhere to certain rules and regulations regarding safe operations, insurance coverage, living wage requirements for employees, maintenance of the shoreline where they operate, environmental guidelines, etc. However, it’s unknown what regulations and guidelines these unauthorized businesses follow, as the City has no purview over their operations. As part of their study, the Huston-Tillotson University team addressed unlicensed vendor activity in relation to their contribution to lake density, or the total number of boats on Lady Bird Lake. In considering whether Lady Bird Lake is approaching maximum 27  density or lake capacity, there is no question that privately owned craft and craft rented by unlicensed vendors contribute to this density. However, as the study acknowledged, it is impossible to easily distinguish by visual inspection which boats are rented and which are privately owned. Enhanced enforcement will be needed to mitigate the safety and environmental issues caused by these unpermitted activities. PARD’s Park Rangers have been patrolling these areas to identify and to warn unpermitted vendors of code violations. PARD staff, along with the Austin Police Department and the City’s Legal Department, are exploring options for more stringent enforcement. Zilker Eagle Updates The Environmental Commission requested an update on the Zilker Eagle, specifically the reconstruction, track realignment, and environmental impacts of the train. Contract information on the Zilker Eagle is included in the section on Concession Contracts (see page 10). 28 Appendix 1. Temporary Concessions and Commercial Use Report FY23 Temporary Concession Permits and Commercial Use Temporary concession and commercial use permits are required and issued to applicants for commercial activity needs that benefit the public’s recreation experiences at approved City of Austin park locations. Permits are granted for either single-day or six-month use. Revenue for Temporary Concessions and Commercial Use Net Revenue: $41,691.45 Summary of Revenue for Temporary Concessions Temporary Concession Permits Total Permits Issued: 31 • 6 Month Total Revenue: $33,000.00 o Fee/Permit: $500.00 – $1,500.00 • Single Day Revenue: $1,700.00 o Fee/Permit: $50.00 – $100.00 Commercial Use Permits – Instructor led groups (six month) Total Permits Issued: 46 • Total Revenue: $6,971.45 o Fee/Permit: $50.00 o Fee/Sound Permit: $20.00 o Fee/Attendee: $0.45/Attendee • Group Attendees: 10,381 participants Performing Artist (single day) Total Permits Issued: 2 • Total Revenue: $20.00 o Fee/Permit: $10.00 29 Temporary Concession Permits – Six Month and Single Day Concession permits are issued for commercial activity (vending, merchandise sales, etc.) in the park system. Six-month and single-day permits are available. Park Area Zilker Park – District or Metro Vendor Odd Pop Mom and Pop’s Natural Pops Lady Bee’s Shaved Ice Jim Jim’s Water Ice Amy’s Ice Cream Top G Roasted Corn Il Panini F’real – Milkshakes and Smoothies Cannone Mike's Bikes and Rentals Kona Ice Sweet Frida None Pawstin Barkery Body Spec None None Cannone Pretty Cute Coffee Jim Jim’s Water Ice 512 Epic Austin Duck Adventures None None None Town Lake – District or Metro Northwest – District or Metro Parks Northeast – District or Metro Parks South – District or Metro Parks Downtown – District or Metro Parks Roy G. Guerrero Metro Park Zilker Park Area – Other Town Lake – Other Northwest – Other Northeast – Other South – Other Downtown – Other Targeted Concessions • PARD invited vendors to apply for temporary concessions in parks with high pedestrian traffic through a Request for Applications (RFA) process. The following sites were targeted: o Zilker Metropolitan Park o Vic Mathias Shores at Town Lake Metro Park  PARD continued to test concessions serving a park purpose at Vic Mathias Shores – Recreation Goods/Services have shown success. 30  Park Area Northwest Butler Shores Commercial Use – Fitness Instructors and Instructor-Led Classes • Commercial use permits are issued for instructor-led classes and exercise groups in the park system for two permit terms: January–June and July–December. Clarksville, Circle C, Ramsey, South Austin, Onion Creek, Northwest, Krieg Fields Dick Nichols, Springwoods Edward Rendon Sr. Garrison Northwest, Walnut Creek, Garrison Mary Moore Searight Perry Roy G. Guerrero Zilker Vendor Rah! Fitness Dog Training Elite – Dog Training House of Flow Yoga Camp Gladiator Fit4Mom Sky Sweat Village Fit Sit Means Sit – Dog Training Mindful Gatherings FrigNFit ATX Sprint Squad More Mindful Yoga Health by Galete AdZENtures Yoga Performing Artists – Balloon Artist and Face Painting • Performing artists are permitted to entertain in the parks using single-day permits. • Requests for permits have been very limited since the COVID-19 pandemic. 31 Appendix 2. Austin Lake Water Protection Plan and Marine Waste Information 32 Austin Water Lake Water Protection Program Contact: Chuck Deatherage, Supervisor, Water Protection Program, 512.972.1076, Charles.Deatherage@austintexas.gov CITY REQUIREMENTS Austin Water requires excursion boats to comply with all state and federal laws. Currently, only three excursion boats with marine sanitation devices have been permitted for use on Lady Bird Lake: Lone Star, Lone Star Riverboat (PARD Town Lake concession) • • MV Nighthawk, Capital Cruises • MV Pride and Joy, Capital Cruises City ordinance (Chapter 6-5, Article 3, Division 2) governs watercraft with marine sanitation devices. Austin Water’s Lake Water Protection Program oversees compliance by requiring each excursion boat with an on-board toilet (marine sanitation device) and each boat pump-out facility used for removing sewage from any boat or watercraft to obtain annual permits. In each case, the owner or operator must apply for a permit and follow permit display requirements. • • Excursion Boat with Marine Sanitation Device Permit Application Boat Pump-Out Facility Permit Application The ordinance authorizes the director of Austin Water to “inspect any boat, shore facility or boat pump-out facility at any reasonable time to determine compliance” with city code. Per this ordinance, Austin Water inspects each boat annually and checks for compliance with pump-out regulations. Failure to comply with any part of these rules may result in enforcement action, including fines of up to $2,000 per violation per day. Annual permit applications include the date of the most recent inspection, whether the applicant passed the inspection, and information about the waste removal method and provider. STATE REQUIREMENTS All boats and boat pump-out facilities must additionally comply with State of Texas Clean Water Certification Program requirements, whether or not the requirement to obtain a permit applies. In addition, owners and operators of all boats, marinas and shore facilities must meet other requirements related to boat sewage and sanitation facilities, including those addressing design, installation, operation, discharge prohibitions, record-keeping and waste documentation. Austin Lake Water Protection Plan and Marine Waste information FY 2019 ILLEGIBLE OR INCOMPLETE APPLICATIONS WILL NOT BE ACCEPTED. This form is required in accordance with Austin City Code, Chapter 6-5, Article 3 (Watercraft, Marinas, and Shore Facilities). It must be completed by the owner or operator of any watercraft operated for compensation within the City’s planning jurisdiction if the watercraft has or is required to have a marine sanitation device. See reverse side of this application for applicable rules. Full Name: Last Address: Street Address Owner/Operator Information First M.I. City County State Zip Code Contact Info: ( ) Primary Phone ( ) Alternate Phone E-mail Address Vessel Information Hull Number Texas Parks and Wildlife Registration No. & Expiration Date / Marina Name (□ NA): Dock No.: ___________ Slip No.: Manufacturer Model Year Feet Inches Length: / Identifying Info: Name of Vessel: Storage Location: Boat Description: Number of Heads Number of Tanks Total Gallons of Waste Storage Lakes Used for Boating: (check all that apply) □ Lake Austin □ Lake Travis □ Lady Bird Lake Marine Sanitation Device Type: □ Type 1* □ Type 2* □ Type 3 *Operating a watercraft on Austin’s lakes is not allowed if the watercraft has a marine sanitation device capable of discharging treated or untreated sewage to the water. Type I and Type II MSDs must be secured in accordance with Title 30 of the Code of Federal Regulations, Part 159. Waste Removal Method Used: □ Approved On-Site □ Boat Pump-Out Facility □ Liquid Waste Hauler Sewage Facility Waste Removal Facility/Service Info: Enter Location of Waste Facility Used or Name of Liquid Waste Hauling Company Hauling Company Name Texas Clean Water Certification Decal: □ Yes □ No Expiration Date: Texas Party Boat Operator License: □ Yes □ No Expiration Date: I certify that the information provided on this application is true and correct: Owner or Operator Print Name Owner or Operator Signature Date Office Use Only Application Info: Inspection Info: Received Date Application Complete? □ Yes □ No Inspection Passed? □ Yes □ No Date Inspector Initials If inspection failed, describe all violations noted and required corrective actions below: Permit Number Decal Number Permit Issued Date Permit Expiration Date Permit Info: Please forward the report to: City of Austin Special Services Division 3907 South Industrial Drive, Suite 100 Austin, Texas 78744-1070 Phone: (512) 972-1060 Fax: (512) 972-1260 www.austintexas.gov/boatsewage Applicable Regulatory Requirements for Excursion Boats Careful attention must be paid to all applicable requirements of the Austin City Code (to view these regulations in their entirety, go to: www.austintexas.gov/boatsewage), including the following selected sections relating to excursion boats:  From §6-5-23: “A person may not discharge sewage into the water supply.”  From §6-5-31: (A) A person may not operate a watercraft on the water supply, if the watercraft has a marine sanitation device capable of discharging sewage into the water (B) A person may not operate a watercraft on the water supply, if the watercraft has a marine sanitation device that does not comply with all applicable local, supply. state or federal requirements. (C) A person may not operate a watercraft with one or more sleeping quarters unless the watercraft is equipped with at least one permanently installed marine toilet properly connected to a marine sanitation device. (D) A person may not dispose of the contents of a marine sanitation device by any means other than: (1) discharge into a boat pump-out facility certified and permitted as required under this article; (2) discharge into an adequately-sized-on-site sewage facility permitted to receive boat sewage that is in compliance with Chapter 15-5, Article 1 (Regulation of On-Site Sewage Facilities), as applicable, and all applicable local, state, and federal regulations; or (3) collected by a liquid waste hauler that is in compliance with Chapter 15-5, Article 2 (Liquid Waste Haulers), and all applicable local, state, and federal regulations.  From §6-5-33:  From § 6-5-35:  From § 6-5-36: (A) A person who operates an excursion boat with a capacity of more than twenty passengers shall have at least one marine sanitation device on the watercraft for passengers unless the excursion boat is used exclusively for cruises lasting no more than one hour that do not include food or alcoholic beverage service. (B) A person who owns or operates an excursion boat with a marine sanitation device who disposes of any sewage or waste derived from sewage by using a liquid waste hauler shall keep and make available for inspection and copying by the director all waste transport and disposal records for at least three years from the date the record is created. (C) A person who owns or operates an excursion boat with a marine sanitation device shall submit periodic reports and records documenting the volumes, dates, and frequency of waste removal and disposal as may be requested by the director. (E) A permit is not required for: (1) the owner or operator of a boat pump-out facility that is part of a marina located on or adjacent to Lake Travis that is operating under a permit from the Lower Colorado River Authority; or (2) the owner or operator of an excursion boat operated exclusively on Lake Travis at a marina facility subject to subsection (E)(1), and that is certified as required under Title 30 Texas Administrative Code Chapter 321, Subchapter A (Boat Sewage Disposal). (A) A person who violates a provision of this article commits an offense subject to the penalty prescribed by Section 1-1-99 (Offenses; General Penalty). (B) An offense under this article is subject to the fine applicable for an offense that relates to public health and sanitation. (C) Each occurrence of a prohibited act, and each day that an offense continues, is a separate offense. Lone Star Riverboat Cruises Lone Star Pump-outs: January 2021-October 2023 2023 February 15 March 21 May 11 June 8 August 7 September 5 2022 March 1 March 22 April 4 May 16 June 16 June 24 July 7 August 3 September 2 September 28 October 25 December 7 2021 March 1 April 13 May 20 June 17 June 30 July 12 August 13 September 21 Lone Star has two 200-gallon capacity holding tanks. Each date listed above represents one 200- gallon pump-out. As part of contract compliance, Lone Star Riverboat provides PARD with all invoices from their hauler, Sellman Enterprises, Inc. Septic Services, and waste tracking forms for hauled liquid waste. Documentation going back to 2015 is on file. Notes: