Resolution 2018-30420RESOLUTION NO.
2018 -30420
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE
RECOMMENDATION OF THE FINANCE AND CITYWIDE
PROJECTS COMMITTEE, AT ITS JULY 13, 2018 MEETING,
RECOMMENDING A NEW FEE SCHEDULE FOR BOTH THE
MIAMI BEACH AND THE NORMANDY SHORES GOLF CLUBS,
WHICH NEW RATES WOULD BE EFFECTIVE ON OCTOBER 1,
2018.
WHEREAS, the Miami Beach Golf Club ( "MBGC ") and Normandy Shores Golf Club
( "NSGC ") are owned by the City and currently operated by Professional Course Management
and under the current management agreement, NSGC and MBGC operate jointly,
complementing and assisting each other while saving operating costs by sharing key personnel;
and
WHEREAS, the City is responsible for all expenses except those related to the
concessions, for which it receives five percent (5 %) of food & beverage revenues and pro shop
sales, and 20 percent of lesson revenues; and
WHEREAS, the City receives 100 percent of green, cart, membership, range and
miscellaneous other revenues; and
WHEREAS, findings from an independent review analysis revealed that MBGC is one of
the top municipal golf operations in the country, with an outstanding, very well maintained golf
course and net operating income performance that places the facility in the top two percent (2 %)
of municipal golf facilities in the United States, even considering the revenue constraint resulting
from resident green fees that are well below `market' rates; and
WHEREAS, At the July 13, 2018 Finance and City Wide Projects Committee Budget
Briefing meeting, the committee recommended approval of the proposed fee increases as
delineated in Exhibit A; and
WHEREAS, the new fee schedule is estimated to have an increase of $223,850 in
revenue for MBGC, and a $97,400 increase in revenue for NSGC.
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby approves the recommendation of the Finance and Citywide Projects
Committee at its July 13, 2018 meeting, recommending approval of a new fee schedule for both
the Miami Beach and the Normandy Shores Golf Clubs, which new rates would be effective on
October 1, 2018.
PASSED and ADOPTED this 25th day of July, 2018.
ATTEST:
oc„ G6
Rafael E. Granado, Ci y Clerk
Dan Gelber, ayor
APPROVED AS TO
FORM & LANGUAGE
& FOR EXE;dTsN
Ci Attorney
Date
MIAM
BEACH
Resolutions - C7 AL
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: July 25, 2018
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
FINANCE AND CITYWIDE - PROJECTS COMMITTEE, AT ITS JULY 13, 2018
MEETING, APPROVING A NEW FEE SCHEDULE FOR THE MIAMI BEACH GOLF
CLUB AND THE NORMANDY SHORES GOLF CLUB, EFFECTIVE ON OCTOBER
1, 2018.
RECOMMENDATION
Mayor and City Commission approval of the recommendation of the Finance and Citywide Projects Committee at its
July 13, 2018 meeting, approving a new fee schedule for the Miami Beach Golf Club and the Normandy Shores Golf
Club, effective on October 1, 2018.
ANALYSIS
The Miami Beach Golf Club (MBGC) and Normandy Shores Golf Club (NSGC) are owned by the City and currently
operated by Professional Course Management (PCM). Under the current management agreement, NSGC and
MBGC operate jointly, complementing and assisting each other while saving operating costs by sharing key
personnel.
The City is responsible for all expenses except those related to the concessions, for which it receives 5% of food &
beverage revenues and pro shop sales, and 20% of lesson revenues. The City receives 100% of green, cart,
membership, range and miscellaneous other revenues.
MBGC resident green fees have changed very little over the years, with only a $5 increase since
2007. South Florida peak season resident rates have increased by only $20, from $100 to $120,
while non - resident fees were $150 at inception and are now $225.
While the pricing structure adheres to public policy goals, it's important to note that revenues are
significantly constrained by offering resident fees that are well below market rate. This is not an
uncommon strategy among premier municipal golf courses in the United States.
Findings from an independent review analysis revealed that MBGC is one of the top municipal golf
operations in the country, with an outstanding, very well maintained golf course and net operating
income performance that places the facility in the top 2% of municipal golf facilities in the United
States, even considering the revenue constraint resulting from resident green fees that are well below
`market' rates.
Page 789 of 1464
The increase to the golf fees being proposed isn't a percentage increase across the board; however,
the increases allow the clubs to remain competitive across the market, while offering reasonable rates
for Miami Beach Residents, South Florida Residents and visitors. The new fee schedule for both
clubs are reflected in Exhibit A. At the July 13, 2018 Finance and City Wide Projects Committee
Budget Briefing meeting, the committee approved these fee increases.
If the fee increase is approved, it is estimated for Miami Beach Golf Club to have a $223,850 revenue
increase and for Normandy Shores Golf Club to have a $97,400 increase.
Legislative Tracking
Parks and Recreation
ATTACHMENTS:
Description
D Exhibit A — New Fee Schedule for Golf Clubs
Page 790 of 1464
NEW Fee Schedule for Golf and Membership Dues Rates
Miami Beach Golf Club (MBGC)
Golf Fees
Current Rate
Proposed Rate
Rate
Increase
Estimated
Revenue Impact
Summer (5/1 - 10/31)
Rack Rate
$120.00
$125.00
$5.00
$14,500
Weekday (South Florida Resident)
$80.00
$80.00
$16,800
-
Weekend (South Florida Resident)
$95.00
$95.00
-
-
Weekday (Miami Beach Resident)
$45.00
$55.00
$10.00
$10,000
Weekend (Miami Beach Resident)
560.00
$70.00
$10,00
511,000
Shoulder (11/1 - 12/15)
Rack Rate
$130.00
$130.00
$50
Driving Range
South Florida Resident
$100,00
$100.00
-
$8,500
Miami Beach Resident
$60.00
$70.00
$10.00
$12,000
Peak 4/30)
Rack Rate
$225.00
$225.00
$7,500
Miami Beach Resident Jr.
South Florida Resident
$120.00
$120.00
-
Peak (12 /16- 4/80)
Miami Beach Resident
$80,00
$90.00
$10.00
$47,500
Proposed Cart Rates
Cart Rate 18 Holes
$20.00
$25,00
$5.0o
$30,000
Cart Rate 9 Holes
512,00
$15.00 $3.00
$6,500
Membership Dues
Current Rate
Proposed Rate
Rate
Increase
Estimated
Revenue Impact
Resident
Single
$3,500.00
$3,800.00
$300,00
$27,500
Husband & Wife
$4,500.00
$4,900.00
$400.00
$16,800
Each Dependent (Under 18 years of Age)
$450.00
$500.00
$50.00
$500
Non Resident
Single
$5,500.00
$6,000,00
$500.00
$4,000
Husband & Wife
$7,000.00
$7,500.00
$500.00
$2,000
Each Dependent (Under 18 years of Age)
$700.00
$750.00
$50.00'
$50
Driving Range
Small Bucket
$8.00
$10.00
$2.00
$8,500
Large Bucket
$12.00
$15.00' $3.00
$33,000
Total Estimated Revenue Impact $223,850
NEW Fee Schedule for Golf and Membership Dues Rates
Normandy Shores Golf Club (NSGC)
Golf Fees
Current Rate
Proposed Rate
Rate
Increase
Estimated
Revenue Impact
Summer (5/1.10/31)
Rack Rate
$ 80.00
$ 85.00
$ 5.00
$6,000
Weekday (South Florida Resident)
$ 50.00
$ 60.00
$ 10.00
$11,000
Weekend (South Florida Resident)
$ 65,00
$ 70.00
$ 5,00
$5,500
Weekday (Miami Beach Resident)
$ 40.00
$ 50.00
$ 10,00
$6,000
Weekend (Miami Beach Resident)
$ 50.00
$ 60.00
$ 10,00
$5,000
Miami Beach Resident Jr,
$ 5.00
$ 5.00
$ _
-
Shoulder (11 /1.,12/15) .,
Rack Rate
$ 95.00
$ 95.00
$ -
-
South Florida Resident
$ 65.00
$ 70.00
$ 5.00
$6,000
Miami Beach Resident
$ 50.00
$ 60.00
$ 10,00
$7,500
Miami Beach Resident Jr.
$ 5.00
$ 5.00
$ -
-
Peak (12 /16- 4/80)
Rack Rate
$ 125.00
$ 125.00
$
-
South Florida Resident
$ 75.00
$ 80.00
$ 5,00
$23,000
Miami Beach Resident
$ 60,00
$ 65.00
$ 5,00
$11,500
Miami Beach Resident Jr.
$ 5.00
$ 5.00
$
-
Proposed Cart Rates
Cart Rate 18 Holes
$ 20.00
$ 25.00
'$ 5.00
$7,600
Cart Rate 9 Holes
$ 12.00
$ 15.00
$ 3.00
$1,000
Membership Dues
Current Rate
proposed Rate
Rate
Increase
Estimated
Revenue Impact
Resident
Single
$ 2,000.00
$ 2,200.00
$ 200.00
$4,000
Husband & Wife
$ 3,000.00
$ 3,300.00
$ 300,00
$600
Each Dependent (Under 18 years of Age)
$ 400.00
$ 400.00
$
-
Non Resident
Single
$ 3,000.00
$ 3,300.00
$ 300,00
$2,700
Husband & Wife
$ 4,500.00
$ 4,800.00
$ 300.00
-
Each Dependent (Under 18 years of Age)
$ 600.00
$ 600.00
$
-
Junior
$ 1,000.00
$ 1,000.00
$
-
Page 791 of 1464
Total Estimated Revenue Impact $97,400