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RESOLUTION 88-19152 RESOLUTION NO: 88-19152 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH APPROVING A CHANGE IN THE MAXIMUM GREENS FEES AND GOLF CART RENTAL FEES TO BE CHARGED UNDER THE MANAGEMENT AGREEMENT WITH AMERICAN GOLF CORPORATION, EFFECTIVE FEBRUARY 4, 1988 WHEREAS, pursuant to Resolution No. 86-18464, the City of Miami Beach and American Golf Corporation (hereinafter referred to as the "Operator") entered into a Management Agreement commencing October 1, 1986 and ending September 30, 1991 (hereinafter referred to as the "Agreement") ; and WHEREAS, the above described Management Agreement provides for the operational management of City-owned golf courses known as Bayshore Golf Course, Normandy Shore Golf Course and Par 3 Golf Course; and WHEREAS, the Management Agreement provides that all fees and charges shall be competitive with those charged by comparable public courses in Dade and Broward Counties; and WHEREAS, the Management Agreement further provides that greens fees and golf cart rental fees are subject to the prior approval of the City Commission; and WHEREAS, The Operator has submitted a request for an increase in the maximum amount of greens fees and golf cart rental fees which may be charged; and WHEREAS, the Operator has further submitted the results of a survey of greens fees and golf cart rental fees at comparable public courses in Dade and Broward Counties; and WHEREAS, the City Administration has reviewed the Operator' s request for an increase in fees and the results of the Operator' s survey of fees charged at comparable public golf courses in Dade and Broward counties; and WHEREAS, the City' s Golf Advisory Committee reviewed the Operator's request for an increase in the greens fees and golf cart rental fees at their meeting January 8 , 1988 and recommended that the City Commission approve the proposed fees; and REVISED EXHIBIT "H" FEE SCHEDULE EFFECTIVE FEBRUARY 4, 1988 RATES NOT TO EXCEED THE FOLLOWING ALL RATES SHOWN ARE PLUS TAX WINTER RATES (November 1 through April 30) GREENS FEES - BAYSHORE & NORMANDY 18 Holes 9 Holes Weekend (Saturday, Sunday & Holidays) $20.84 $11.00 Weekday (Monday through Friday) $17.35 $10. 00 (Excluding Holidays) Twilight $10.00 $10. 00 GREENS FEES - PAR 3 Greens Fees $ 7.25 $ 7.25 Twilight $ 4.25 $ 4.25 GOLF CART RENTAL $20. 00 $12 .00 CARTS MANDATORY AT BAYSHORE ON FRIDAY, SATURDAY, SUNDAY AND HOLIDAYS BEFORE 1:00 P.M. SUMMER RATES (May 1st through October 31st) GREENS FEES - BAYSHORE & NORMANDY 18 Holes 9 Holes Weekend (Saturday, Sunday & Holidays) $ 8.00 $ 5.00 Weekday (Monday through Friday) $ 7.25 $ 4.65 (Excluding Holidays) Twilight $ 4.00 $ 4.00 GREENS FEES - PAR 3 Day $ 4.25 $ 4.25 Twilight $ 3 .00 $ 3.00 GOLF CART RENTAL $18.00 $10.00 CARTS MANDATORY AT BAYSHORE ON FRIDAY, SATURDAY, SUNDAY AND HOLIDAYS BEFORE 1:00 P.M. REVISED EXHIBIT "H" HCM:ses Page 2 of 2 Rev: 02/03/88 WHEREAS, the proposed fees are described on the attached Revised Exhibit "H" to the Agreement, Page 2 of 2 , Revised February 3 , 1988 . NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, that the Mayor and the City Clerk are hereby authorized to execute this Resolution No. 88-19152 signifying its adoption and approval of the fees described on the attached Revised Exhibit "H" , Page 2 of 2 , Revised February 3 , 1988 . PASSED AND ADOPTED THIS 3rd d.y of February, 1988. A4LP/(7 .17AALL YOR ATTEST: A1414 4_4-001440e CITY CLERK APPROVED AS TO FORM: (-1 'e ------ .EGAL DEPARTMENT DATED: ///:adArAt HCM:ses &re/ 41iffi eead "PM� �,11 FLORIDA 3 3 1 3 9 14--(*t1NCORZRATED)*" "VACA TIONLAND U. S. A. " OFFICE OF THE CITY MANAGER CITY HALL ROB W.PARKINS 1700 CONVENTION CENTER DRIVE CITY MANAGER TELEPHONE: 673-7010 v COMMISSION MEMORANDUM NO. 39-88 y DATE: February 3, 1988 TO: Mayor Alex Dao , and Members of a City Com s F ROM: Rob W. Parkins fa City Manager RESOLUTION APPROVING A CHANGE IN THE MAXIMUM GREENS FEES SUBJECT: AND GOLF CART RENTAL FEES TO BE CHARGED UNDER THE MANAGEMENT AGREEMENT WITH AMERICAN GOLF CORPORATION HISTORY Pursuant to Commission Resolution No. 86-18464 , the City entered into a Management Agreement with American Golf Corporation for operational management of Bayshore, Normandy Shore and Par Three Golf Courses. The Management Agreement established a schedule of maximum fees and charges which have been in effect since June of 1986. No increase in the maximum fees and charges could be submitted until after the completion of the first year of operation, i.e. September 30, 1987 . The Management Agreement provided that fees and charges should be comparable with those charged at other public golf courses in Dade and Broward Counties. BACKGROUND American Golf recently completed a survey of greens fees and golf cart rental fees, the results of which are attached (Attachment I) . The results of this survey indicate that the rates currently charged in Miami Beach are substantially below those charged at comparable public courses in Dade and Broward counties. The average greens fees and golf cart rental fees reported during weekdays are $20. 00 and $29 . 65 respectively, (with $21. 00 and $30. 88 reported as the respective rates on weekends) . American Golf has proposed maximum greens fees of $17 . 36 and golf cart rental fees of $27 . 36 on weekdays (with $21. 13 and $31. 13 as the weekend rates) . No increase in the annual permit fee is proposed at this time. In further support of the proposed rates, American Golf has supplied the City with a certified statement of operating losses for the first year of operation (Attachment II) . This statement reports operating losses of $557, 099. (Note: Capital improvements ($226, 476) required by the agreement are in addition to the total operating losses referenced above) . The Golf Advisory Committee reviewed the request at their meeting on January 8, 1988 and unanimously recommended its approval by the City Commission. ADMINISTRATION RECOMENDATION: Based on the foregoing, the City Manager recommends the adoption of a resolution authorizing the Mayor and the City Clerk to execute the Resolution signifying approval of the increased greens fees and golf cart rental fees proposed by American Golf Corporation. RWP/EJD/HCM/ses AGENDA ITEM /tRi4t DATE RATE SURVEY - MIAMI BEACH AREA • 04 WEEKDAYS WEEKENDS GREEN FEES GREEN FEES & CARTS GREEN FEES i GREEN FEES & CARTS BILTMORE 12. 50 _ 30. 35 12. 50 30.35 �, h ;i f 30. 45 30. 45 CALUSA 21{. 15 24. 15 COSTA DEL SOL 21 .20 45.58 21 .20 45. 58 , ; 1 ; . , i. . HOLLYWOOD LAKES 21 .20 21 .20 23.32 23.32 x F- - • a) KEY BISCAYNE 23.00 34.65 23.00 34.65 =D -, _ t (0 MELREESE 14.70 22.05 14.70 22.0 z a) L.Li r- (15 . „...-.. ., t..i : M M I SPRINGS 14. 0 22.05 14. 70 22.05 � WI A 7 �- i - -� --� F--- = - ,41 38. 16r V 1 M AMI LAKES 51 . 41 38. 16 5 i' -� 0 . AVERAGE 21 . 20 31 . 43 22 .25 32 73 a MIAMI BEACH cL 22. o 5,o0 24.00 PRESENT 13. 50 5 t MIAMI BEACH PROPOSED 18. 40 29.00 . 22. 40 33.00 eNote : Cart increase $1 .00 - $1 . 50 per person • ATTACHMENT II --- ,L,.._' 4 AMERICAN GOLF CORPORATION January 14 , 1987 Mr. Hal Moeller CITY OF MIAMI BEACH 1700 Convention Center Drive Miami Beach, FL 33139 Pursuant to your request, American Golf Corporation hereby submits the following financial information for the period of June 1986 through November 1987 : NET OPERATING LOSS Normandy Shore G.C. $ (203 , 596) Bayshore G. C. $ (353 , 503 ) CAPITAL IMPROVEMENT EXPENDITURES Normandy Shore G.C. $ 47 , 541 Bayshore G. C. $178 , 935 w I certify that the foregoing information is true and correct. AMERICAN GOLF CORPORATION 40011r. Agee// %;" . :y: David Flickwir Treasurer and Chief Financial Officer -- 3 _ 1633-26th Street, Santa Monica, California 90404-4024, Telephone (213) 315.4200 T -_. _�y- ORIGINAL RESOLUTION NO. 88-19152 (Approving a change in the maximum-greens fees and golf cart rental fees to be charged under the management agreement with American Golf Corporation, effective 2/4/88)