2004-25594 Reso
RESOLUTION NO. 2004-25594
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AMENDING
RESOLUTION NO. 2002-24995, WHICH ESTABLISHED A
MAXIMUM SCHEDULE OF USER RATES FOR THE MIAMI
BEACH GOLF CLUB, TO THE RATES DELINEATED IN
ATTACHMENT "A" TO THIS RESOLUTION; SAID RATES TO BE
EFFECTIVE AS OF OCTOBER 1, 2004.
WHEREAS, on September 25, 2002, the Mayor and City Commission approved
Resolution No. 2002-24995, which established the schedule of user rates for the newly
renovated Miami Beach Golf Club, formally known as the Bayshore Golf Course; and
WHEREAS, the aforestated rates were established based on a basic premise set
by a previous City Commission, which stated that the Miami Beach Golf Club would be
renovated into a high quality tourist destination that would also serve our citizens with the
expectation that the revenues generated must cover the cost of the on-going operations, as
well as future capital improvements and debt service on the construction loan; and
WHEREAS, in its first fiscal year of operation, the Miami Beach Golf Club met its
revenue projections and under expended its operational budget through a blended number
of residents, day golfers and tourists playing the course, and prudent management; and
WHEREAS, the new fees, as recommended in Attachment "A" to this Resolution,
will increase the tourist rate by $25.00 in the winter season and $10.00 in the summer, well
within the range of rates of other courses of similar resort quality; and
WHEREAS, the resident rate will be increased by $4.00 in the winter season and
$5.00 in the summer; and
WHEREAS, the recommended fees are in line with other golf high quality golf
destinations within Miami-Dade and Broward Counties; and
WHEREAS, the added revenue will enable the levels of customer service and
maintenance standards to remain at the current standards, which are being very positively
received by the golfing public, and further enable the operation to properly plan for future
anticipated expenditures by establishing a capital reserve for capital improvements and
capital equipment replacements; and
WHEREAS, the revised fees, as recommended herein and set forth in Attachment
"A", were reviewed and approved by the Miami Beach Golf Advisory Board at its March 2,
2004 meeting, and were also discussed and recommended for approval by the Finance
and Citywide Neighborhoods Committee at its meeting of June 1, 2004; and
WHEREAS, the new rates would take on effect October 1, 2004, but will be
advertised immediately upon approval; and
WHEREAS, the F.Y. 2004/05 Miami Beach Golf Club revenue projections and
operational budget were developed based on this premise.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby approve the amendment to Resolution No. 2002-24995, which
established a maximum schedule of user rates for the newly renovated Miami Beach Golf
Club, to the rates delineated in Attachment "A" to this Resolution; said rates to be effective
on October 1,2004.
PASSED and ADOPTED this 9th day of June, 2004.
ATTEST:
~'S~
r CITY CLERK 'a'
F:I$ALLIPreviousIKEVINICommission 20041June 9_0416_9 Golf Fees Ammendment Comm_Reso.doc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
( ~-;a;/'-f
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-------'---,-------..------------.-T-.~._---~
CITY OF MIAMI BEACH,
COMMISSION ITEM SUMMARY
m
Condensed Title:
A Resolution of the Mayor and City Commission of Miami Beach, Florida amending Resolution No. 2002-
24995 which established the user fates for the newly renovated Miami Beach (Bayshore) Golf Club; said
rates to be effective October 1,2004.
Issue:
Shall the City amend the established golf rates for the Miami Beach Golf Club to ensure they are consistent
with market rates of comparable high quality golf courses in the area sufficiently to pay the operating costs,
debt service and the establishment of a capital reserve for future improvements and capital equipment
replacement?
Item Summa IRecommendation:
Administration desires to amend the golf rates fees for the Miami Beach Golf Club per attached rates sheet
for Miami Beach residents, hotel guests and day visitors reflective of comparable rates with other golf
courses of similar high quality in Miami-Dade and Broward Counties. The potential success of Miami Beach
Golf Club when first opened was an unknown variable. Since opening in December of 2002 the Miami
Beach Golf Club has earned its reputation as a premiere golf destination for tourists, day guests and our
residents, being featured locally, nationally and internationally in golf magazines, news papers and other
media as an excellent golfing experience. This is documented by the Miami Beach Golf Club being ranked
18th out of over 180 new golf courses by Golf Digest magazine in 2003. Additionally, the new golf
clubhouse should be opening early fall of 2004 which will further enhance the golf experience.
The proposed rates were developed by the Administration and the City's golf management firm,
Professional Course Management, II, Ltd. It is estimated that the increased fees could generate additional
revenue in the amount of $250,000 - $300,000. The added revenue will enable the levels of customer
service and maintenance to remain at the current high standards, which are being very positively received
by the golfing public and further enable the operation to properly plan for future anticipated expenditures by
establish in a ca ita I reserve for ca ital im rovements and ca ital e ui ment re lacements.
Adviso Board Recommendation:
The revised fees as recommended were reviewed and approved by the Miami Beach Golf Advisory Board
at their March 2, 2004 meeting. The fees were also discussed and recommended for approval by the
Members of the Finance and Cit ide Pro'ects Committee at their meetin of June 1,2004.
Financial Information:
Source of
Funds:
Approved
D
Finance Depi.
City Clerk's Office Legislative Tracking:
I
Assistant Cit
JMG
KS
ReM
T:\AGENDA\2004\Jun0904\Consent\6_9 Golf Fees Ammendment Commission Summary Cover s eet (new).DOC
AGENDA ITEM I? 7.4
DATE ~ ~-(}t/
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miami-beach.fl.us
COMMISSION MEMORANDUM
To:
Mayor David Dermer and
Members of the City Commission
Date: June 9, 2004
From:
Jorge M, Gonzalez 0 ()/' ~
City Manager cJ ()
Subject: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AMENDING
RESOLUTION NO. 2002-24995 WHICH ESTABLISHED A
MAXIMUM SCHEDULE OF USER RATES FOR THE MIAMI
BEACH GOLF CLUB TO THE RATES DELINEATED IN
ATTACHMENT "A" TO THIS RESOLUTION; SAID RATES TO BE
EFFECTIVE AS OF OCTOBER 1, 2004.
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
ANALYSIS
On September 25, 2002, the Mayor and Members of the City Commission approved
Resolution No. 2002-24995 which established the schedule of user rates for the newly
renovated Miami Beach Golf Club, formally known as the Bayshore golf course. The
established rates were the result of extensive planning, evaluation and analysis developed
to meet the projected operational costs and debt service for the golf course. The approved
rates were also sensitive to the price point of the Miami Beach resident, the tourist and day
player while taking into consideration the unknown variables of the players' acceptance of
the new golf course, lack of a permanent clubhouse or perimeter fence.
The fees schedule was established based on a basic premise set by a past City
Commission which stated that the Miami Beach Golf Club (Bayshore golf course) would
be renovated into a high quality tourist destination that would also serve our citizens with
the expectation that the revenues generated must cover the cost of the on-going
operations as well as future capital improvements and debt service on the construction
loan. Prior to the fees recommendation, substantial work was done by the Mayor's Golf Ad
Hoc Committee, the Golf Advisory Board, the Administration and the City's golf courses
management company, Professional Course Management II, Ltd., to determine a structure
that would generate sufficient income for the operations and debt service, while being
comparable to market rates being charged at other golf courses of similar quality.
The Miami Beach Golf Club opened for play in mid-December of 2002 under the
Commission approved fees. In its first fiscal year of operation the Miami Beach Golf Club
met its revenue projections and under expended its operational budget. This was
accomplished through a blended number of residents, day golfers and tourists playing the
course and prudent management by the Administration and Professional Course
Management.
June 9, 2004
Amendment of the Miami Beach Golf Club User Fees
Page 2
The end of 2003 fiscal year records for Miami Beach Golf Club documents the following
player blend:
Total rounds played by Resident Members:
Total rounds played by Member Guests:
Total rounds played by Residents (non -members):
Total rounds played by Tri-County Residents:
Total rounds played by Tourists / Hotel Guests:
Total Players for the period of 12/21/02 - 9/30/03
6,295 (20.5%)
1,744 ( 5.6%)
8,029 (26.3%)
5,681 (18.5%)
8,906 (29.1%)
30,655
Additionally, as a comparison to the 03 fiscal year's play and an indicator of the positive
response to the Miami Beach Golf Club golf experience the course has documented the
golf play for period of 10/1/03 to 4/30/04:
Total rounds played by Resident Members YTD:
Total rounds played by Member Guests YTD:
Total rounds played by Residents (non -members) YTD:
Total rounds played by Tri-County Residents YTD:
Total rounds played by Hotel Guests YTD:
Total Players for the period of 10/1/03 - 4/30/04
3,502 (14.4%)
1,036 (4.3%)
5,280 (21.7%)
3,707 (15.2%)
10.791 (44.4%)
24,316
This information indicates that in the first fiscal year of operation the ratio of residents to
non-residents was nearly equal. The year to date information for 2004 indicates the swing
now moving more towards the tourist and non-resident day player as was anticipated in the
projections completed prior to construction. It was anticipated the tourist player would
assist in off-setting the cost to our resident players and this projection is now coming to
fruition. Based on the information above it is reasonable to state the Miami Beach Golf
Club has earned a strong position in the tourist! hotel, as well as the local player golf
market. Equally as important the Miami Beach resident golfer is very satisfied with the
quality and challenge of the course, the customer service and overall golfing experience.
The completion of the clubhouse and other amenities will further enhance the Miami Beach
Golf Club experience. It should also be noted that in the F.Y. 04 YTD statistics the tourist!
hotel play for the first seven months of 04 is up approximately 20% over last year's total.
The new fees as recommended will increase the tourist rate by $25.00 in winter season
and $10.00 in the summer, well within the range of rates of other courses of similar resort
quality. The resident rate will be increased by $4.00 in the winter season and $5.00 in the
summer. It is conservatively estimated that the increased fees could generate additional
revenue of $250,000 - $300,000. The added revenue will enable the levels of customer
service and maintenance standards to remain at the current standards, which are being
very positively received by the golfing public and further enable the operation to properly
plan for future anticipated expenditures by establishing a capital reserve for capital
improvements and capital equipment replacements.
The new rates for 04 - 05 would take effect October 1, 2004 but will be advertised
immediately upon approval.
Based on the proven success of the Miami Beach Golf Club to date and to ensure the
funding is in place to continue its successful operation it is the Administration's
recommendation that the new fees be approved as presented.
JMG/RCMlKS
T:\AGENDA\2004\Jun0904\Regular\6_9_04 MBGC Amendment of User Fees CommMemo.doc
ATTACHMENT A
MIAMI BEACH GOLF CLUB
PROPOSED FEES
FOR F.Y. 04/05
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