2008-26903 ResoRESOLUTION NO. 2008-26903
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, AMENDING RESOLUTION N0.2007-26657, WHICH APPROVED
AND ESTABLISHED THE CURRENT MAXIMUM SCHEDULE OF USER RATES FOR
THE MIAMI BEACH GOLF CLUB; SAID AMENDMENT MODIFYING ONLY THE
SOUTH FLORIDA RESIDENT AND RACK RATES, AS DELINEATED IN THE
ATTACHED EXHIBIT "A" TO THIS RESOLUTION (GOLF AND MEMBERSHIP RATES
SHEET); WITH SUCH NEW RATE CHANGES EFFECTIVE AS OF OCTOBER 1, 2008.
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 (formerly known as the Bayshore Golf Course); and
WHEREAS, the Miami Beach Golf Club opened for play in mid-December of 2002
under the City Commission approved fees at the time, and since then has met its revenue
projections, which enabled the payment of the annual debt service of over $800,000 per
fiscal year; and
WHEREAS, on June 9, 2004, the Mayor and City Commission approved Resolution
No. 2004-25594, which amended the initial fees established for the Miami Beach Golf Club
under Resolution No. 2002-24995; and
WHEREAS, on September 21, 2005, the City Commission approved Resolution No.
2005-2601 amending fees established for non-residents playing at the Miami Beach Golf
Club; and
WHEREAS, on September 26, 2007, the Mayor and City Commission approved
Resolution No. 2007-26657, amending the fees established for Resident Annual
Memberships, and the price of both the large and small baskets of driving range balls; and
WHEREAS, a discussion concerning the amendments increasing the South Florida
residents and rack rates at the Miami Beach Golf Club was held at the July 10, 2008 meeting
of the Finance and Citywide Projects Committee; and
WHEREAS, the Committee supported the increased rate, as proposed for South
Florida Residents and Rack Rate players, but stated there should be no increase for City of
Miami Beach resident rates; and
WHEREAS, the Committee also directed the Administration to present the proposed
rates to the City's Golf Advisory Committee for its review and comment; and
WHEREAS, the proposed golf rate increases for were presented to Golf Advisory
Committee at its September 2, 2008, meeting and the Committee voted unanimously in
support of the increases; and
WHEREAS, it is projected that the proposed rate modifications at the Miami Beach
Golf Club will generate an additional $82,800 in revenue; and
WHEREAS, the Miami Beach Golf Club anticipates generating approximately
$4,213,950 in total revenue fro FY 2008/09; and
WHEREAS, expenses are projected to be $4,300,165, inclusive of debt service and
internal service charges, resulting in a projected deficit of $86,215 in FY 2008/09.
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 an amendment to Resolution No. 2007-26657, which approved
and established the current maximum schedule of user rates forthe Miami Beach Golf Club;
said amendment modifying only the South Florida Resident and Rack Rates, as delineated
in the attached Exhibit "A" to this resolution (Golf and Membership Rates Sheet); with such
new rate changes effective as of October 1, 2008.
PASSED and ADOPTED this 17th day of September 2008.
MAY R
TEST: Matti Herrera Bower
VU(,
CITY LERK
Robert Parcher
T:L4GENDA~2008\September 17Wliami Beach Golf Club Rates Ammendment 08-09 Reso.doc
APPROVED AS TQ
FORM & LANGUAGE
FOA f~CUT10N
A
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COMMISSION ITEM SUMMARY
Condensed Title:
A. A resolution establishing a maximum schedule of user rates for the Normandy Shores Golf Club.
B. A resolution amending Resolution No. 2007-26657 which established the current maximum user rates for
the Miami Beach Golf Club, amending only the South Florida resident and rack rates.
Key Intended outcome Supported:
Increase Satisfaction with Recreational Programs.
Supporting Data (Surveys, Environmental Scan, etc.): Parks and Recreation appeared as one of the most
important areas affecting resident's quality of life. Of the 79% of residents and 82% of businesses rated the overall
quality of the recreational programs and facilities as excellent or good and. 58% of residents stated that they go to
recreational facilities a couple of times a month or more. More recreational opportunities appeared as one of the
changes residents would make to make Miami Beach a better place to live, work, and play.
Issue•
Shall the Ma or and Ci Commission a rove the Resolutions?
Item Summa /Recommendation:
On July 10, 2008, the proposed golf rates for the Normandy Shores and Miami Beach Golf Clubs were discussed by
the Finance and Citywide Projects Committee. The Committee did not oppose the rates for Normandy Shores but took
no formal action on them. The Committee also discussed rate increases proposed the Miami Beach Golf Club. The
Committee supported the increased rates as proposed for the South Florida Resident and Rack Rate but stated there
should be no increase for resident rates. The Administration was also directed to present all the proposed rates to the
City's Golf Advisory Committee.
The proposed rates for both golf courses were disuussed by the Golf Committee at their September 2, 2008, meeting
where they voted unanimously in support of all the proposed rates. The City also plans on starting a free Junior Golf
Instructional Clinic for economically disadvantage resident youth and is recommending junior golf rates that will enable
more youth to play at the Normandy Shores Golf Club.
The total revenue projected at the Normandy Shores Golf Club is estimated at approximately $2,337,850, while the
expenses are projected to be $2,863,745 inclusive of debt service and internal service charges, resulting in a
projected deficit of $525,895 in FY 2008/09. The proposed rates at the Miami Beach Golf Club will generate an
estimated additional $82,800 in revenue. The Miami Beach Golf Club anticipates generating approximately $4,213,950
in total revenue. Expenses are projected to be $4,300,165 inclusive of debt service and internal service charges,
resulting in a projected deficit of $86,215 in FY 2008/09.
The Administration recommends a royal of the Resolutions.
Adviso Board Recommendation:
Recommended for approval by the Miami Beach Golf Advisory Committee at their September 2, 2008 meeting.
Financial Information:
Source of Amount Account
Funds:
2
3
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Trac
Sign-Offs:
De artme D' ector Assistan Mana er Cit Man er
K JMG
T:WGENDA\2008\September 17\Golf Courses Rates FY 08-09 Summary .doc
AGENDA ITEM
~,~- '~ ~~~ ~ ~~ ~ DATE ~ V
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeochfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: September 17, 2008
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND ESTABLISHING A MAXIMUM
SCHEDULE OF USER RATES FOR THE NEWLY RENOVATED NORMANDY
SHORES GOLF CLUB AS DELINEATED IN THE ATTACHED EXHIBIT "A" TO
THIS RESOLUTION (GOLF AND MEMBERSHIP RATES SHEET) WITH SAID
RATES TO BE EFFECTIVE AS OF OCTOBER 1, 2008; FURTHER
AUTHORIZING THE CITY MANAGER TO ESTABLISH A RATE FOR
CHARITABLE OR COMMUNITY BASED ORGANIZATIONS, WHICH IN NO
EVENT SHALL BE LESS THAN 70% OF THE APPROVED RACK RATE THEN
IN EFFECT; AUTHORIZING THE CITY MANAGER TO ESTABLISH LESSER
RATES FOR GOLF TOURNAMENTS, PROMOTIONS AND DAILY PLAY
RATES WHEN HE DEEMS, IN HiS REASONABLE JUDGMENT AND
DISCRETION THAT IT IS NECESSARY FOR THE EFFICIENT AND
FINANCIALLY PRUDENT OPERATION OF THE GOLF COURSE.
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING RESOLUTION NO. 2007-26657,
WHICH APPROVED AND ESTABLISHED THE CURRENT MAXIMUM
SCHEDULE OF USER RATES FOR THE MIAMI BEACH GOLF CLUB; SAID
AMENDMENT MODIFYING ONLY THE SOUTH FLORIDA RESIDENT AND
RACK RATES, AS DELINEATED IN THE ATTACHED EXHIBIT "A" TO THIS
RESOLUTION (GOLF AND MEMBERSHIP RATES SHEET); WITH SUCH
NEW RATE CHANGES EFFECTIVE AS OF OCTOBER 1, 2008.
ADMINISTRATION RECOMMENDATION
Adopt the Resolutions.
KEY INTENDED OUTCOME SUPPORTED
Increase Satisfaction with Recreational Programs.
BACKGROUND
When the City undertook renovations to the Bayshore and Normandy Shores Golf Courses,
clubhouses and related facilities the City Commission made the decision that the Bayshore
golf course would be renovated into a high quality tourist destination that would also serve
our residents and the Normandy Shores course. It was also decided that Normandy Shores
would be renovated as a high quality resident golf course with a price sensitive fee structure
that gave our residents another high quality but lower-priced golfing option.
Commission Memorandum
Establishing Golf Courses Rates F.Y. 2008/09
Page 2 of 4
The Normandy Shores Golf Club golf course, cart barn, maintenance facility and on course
restrooms, a $14.2 million construction project, is nearing completion. Additionally, a multi-
million dollar clubhouse is also is about to begin construction. At this time it is anticipated
the golf course will begin operations inmid-November, 2008. The completed components of
the project to date include the beautiful Arthur Hills designed golf course with the Paspalum
(Supreme) golf turf and dual irrigation system capable of using both salt and fresh water,
new on-course restrooms, new cart barn and renovated golf course maintenance facility.
The. construction of a new clubhouse is also in process and a temporary modular clubhouse,
similar to the unit that was leased at the Miami Beach Golf Club while its clubhouse was
being constructed is being leased until such time as the newly constructed clubhouse
opened, presently projected to be in February 2010.
Normandv Shores Golf Club Golf Rates
The proposed golf and membership rates for the Normandy Shores Golf Club are the result
of extensive planning, evaluation and analysis based on the projected operational costs and
debt service as well as sensitivity to the price point of the Miami Beach resident, the tourist
and day player.
On July 10, 2008, the proposed daily play and memberships golf rates for the Normandy
Golf Club were discussed by the Finance and Citywide Projects Committee. A market
comparison of compatible golf rates for other golf courses within the area and an operational
budget summary for F.Y. 08/09 were also presented for review and discussion by the
members of the Committee. Following a discussion, the members of the Committee did not
oppose the Normandy Shores Golf Club rates but took no formal action on them. The
Committee also directed the Administration to present the proposed rates to the City's Golf
Advisory Committee for their review and comment.
The proposed golf and membership rates for the Normandy Shores Golf Club, the market
comparison and operational budget summaries were presented to the members of the Miami
Beach Golf Advisory Committee for their review and comments at their September 2, 2008,
meeting. The rates were discussed and at the conclusion of the discussion the members of
the Golf Advisory Committee voted unanimously in support of the proposed rates for the
Normandy Shores Golf Club.
It is also important to the revenue generating process that the City Manager have the
flexibility to establish golf rates for tournaments, promotional rates and other daily play rates,
within the existing rates range at the time as deemed necessary and prudent to attract the
golfing patron. Using the schedule of user rates for the newly renovated Normandy Shores
Golf Club as delineated in attached rates schedule as a base line the City Manager may
establish lesser rates for golf tournaments, promotions and daily rates when it is deemed in
the best interest of the City. This process shall also permit a lesser rate for charitable or
community based organizations, which shall not be less than 70% of the approved rack rate
then in effect to be established by the City Manager. This process has been in place since
the opening of the Miami Beach Golf Club and has proven to be fair and equitable in serving
the community and charitable organizations in our city.
It should be noted that with the approval of the rates as currently proposed it is projected that
the golf and membership rates and cart fees at the Normandy Shores Golf Club will
generate approximately $2,279,000 in revenue. Other income from the driving range,
lessons, pro-shop and restaurant etc. is anticipated to generate approximately $58,850, for a
total income of $2,337,850. Expenses are projected to be $2,863,745 inclusive of debt
service and internal service charges, resulting in a projected deficit of $525,895 in FY
2008/09.
Commission Memorandum
Establishing Golf Courses Rates F.Y. 2008/09
Page 3 of 4
Junior Golf Program at the Normandy Shores Golf Club
Subsequent to the rates discussion held at the Finance and Citywide Projects Committee
the Administration, with the support and assistance of Commissioner Jonah Wolfson,
applied for a United States Golf Association (USGA) grant to develop a Junior Golf Club
Youth Clinic at the Normandy Shores Golf Club.
The intent of the program is to provide a free of charge structured 18 week golf instructional
program for up to twenty (20) economically disadvantaged children who do not play golf.
The program would establish the Normandy Shores Golf Course Youth Clinic as a way to
bring golf to youngsters that otherwise would not be exposed to the game and its positive
values.
The program will be funded in part by the USGA grant, if awarded, with the balance of
funding coming from a combination of in-kind services from the City of Miami Beach, the
City's golf courses operator, Professional Course Management (PCM) and community
support. The program instruction will be provided by Professional Golf Association (PGA)
certified instructors from Professional Course Management (PCM), at the NomtandyShores
Golf Club. The program is also supported fully by the City's Golf Advisory Committee. It is
anticipated that the majority of the participants will come from the North Beach community
and the North Shore Park Youth Center or other facilities operated by the City's Parks and
Recreation Department.
One major challenge for youth to continue playing golf once they have learned the
fundamentals, rules, etiquette and history of the game is the access to a practice area and a
golf course to play. In response to this challenge the Administration is recommending the
following fees for Normandy Golf Club also be approved:
Establish a Summer Junior Membership -walking only - (June 1st -August 30~') at
the Normandy Shores Golf Club at a rate of $150 for resident youth between the
ages of 6 and 17 who have completed the Junior Golf Club Youth Clinic or can
satisfactorily demonstrate to the Club's Head Golf Professional that he or she
possesses the competencies, knowledge, skills and is "on course" ready to play on
the 18 hole course. This would provide an opportunity for unlimited play over the
summer period. Access to the course will be based on space availability after 2 P.M.
Establish a daily (year round) Junior golf rate -walking only - at the Normandy
Shores Golf Club at a rate of $5.00 per round for resident youth between the ages of
6 and 17 who have completed the Junior Golf Club Youth Clinic or can satisfactorily
demonstrate to the Club's Head Golf Professional that he or she possesses the
competencies, knowledge and skills and is "on course" ready to play on the 18 hole
course. This rate is in line with the United States Golf Association (USGA)/and the
National Golf Course Owners Association (NGCOA) Kids on Course program to
provide golf course access for participants in USGA -supported golf programs
outside of schedule program hours. The "Kids on Course" program advocates a
youth golf rate of $5.00. The City will seek to participate with the USGA's Kids on
Course program. This daily rate will provide an option for youth who may not wish to
purchase the summer membership or not play enough to benefit from the summer
membership. It will also enable the summer member to play the remainder of the
year. Access to the course will be based on space availability after 2 P.M.
Commission Memorandum
Establishing Golf Courses Rates F.Y. 2008/09
Page 4 of 4
The implementation of this Junior Golf Program at the Normandy Shores Golf Club would
result in substantial benefits for youth in our community who otherwise would not have the
opportunity to learn the game of golf, while having minimal impact on golf course operations.
Golf is a sport that teaches valuable life lessons and depends on adherence to the rules for
its very existence. It is a game in which there are no officials to call a breach of the rules,
where only the individual participants know if the score he or she handed in is the score
actually shot. It is a game rich in history and tradition that invites respect and most of all is
fun. The game is never solved, perfection never achieved; there's always opportunity for
improvement and success.
The game teaches values for life and can be played for a lifetime. The management of the
junior golf program and access to the golf course will be managed by the Director of Golf or
his designee.
Seniors Golf Rates at the Normandy Shores Golf Club
The Administration is also evaluating potential options for a discounted senior's daily round
golf rate. These options with their budgetary impacts will be presented at the September 17,
2008, budget meeting.
Miami Beach Golf Club Non-Resident Rates Modifications
At their July 10, 2008, the Finance and Citywide Projects Committee members also
discussed the rate increases for the South Florida Resident and Rack Rate and Miami
Beach Resident players for the Miami Beach Golf Club. Following a discussion the members
of the Committee supported the increased rate as proposed for the South Florida Resident
and Rack Rate players but stated there should be no increase for resident rates at the Miami
Beach Golf Club. The Committee also directed the Administration to present the proposed
rates to the City's Golf Advisory Committee for their review and comment.
The proposed golf rate increases for the Miami Beach Golf Club, the market comparison and
operational .budget summaries were presented to the members of the Miami Beach Golf
Advisory Committee for their review and comments at their September 2, 2008, meeting.
The rates were discussed and at the conclusion of the discussion the members of the Golf
Advisory Committee voted unanimously in support of the increased rates as proposed for the
South Florida Resident and Rack Rate players the Miami Beach Golf Club.
It is projected that the proposed rate modifications at the Miami Beach Golf Club will
generate an additional $82,800 in revenue. The Miami Beach Golf Club anticipates
generating approximately $4,213,950 in total revenue. Expenses are projected to be
$4,300,165 inclusive of debt service and internal service charges, resulting in a projected
deficit of $86,215 in FY 2008/09.
If approved the new golf rates at both golf courses established for F.Y. 2008109 would take
effect October 1, 2008, but will be advertised immediately upon approval.
CONCLUSION
The Administration recommends the approval of these Resolutions.
T:WGENDA12008\September 17\Golf Courses Rates 08-09 Commission Memolll.doc
~.x l+ ~ 6 t T ..~ -,
Summer (5/1 -10!31)
Increase
Rack Rate
So. FI. Resident $90
$60
$75 ~
80
~ $85
~e-wkday
85-wkead $5
$10
$10
Miami Beach Resident $40 $45 45 wkday $0
$55 $50 60 wkend $0
Shoulder (11/1 -12115)
Rack Rate
So. FI. Resident $110
$85 ~
~ $a-2~
S55 $5
$10
Miami Beach Resident $55 $50 $50 $0
Peak (12/15 -4/30)
Rack Rate $160 $200 $200 $0
So. FI. Resident $110 125 $~1a $10
Miami Beach Resident $85 $80 $80 $0
Res. Junior Daily -walking only $5
Driving Rance
Large Bucket (60 balls) $10
Small Bucket (30 balls) $6
Membership Rates
Normandy Shores
Prouosed
Resident Single $2,500
Resident Family $3,500
Res. Dependent $400
Res. Junior $700
Roc. _luninr-summer $f50
Mi
Prouosed
$3,500
$4,500
$450
ami Beach Gc
Current
$3,500
$4,500
$450
Jf Club
Proposed
Increase
$0
$0
$0
Non Resident Single
Non Resident Family
Non Resident Dependent
Non Resident Junior $3,500
$5,000
$600
$1,000 $5,500
$7,000
$700 $5,500
$7,000
$700 $0
$0
$0
Cart Rate 18 holes
Cart Rate 9 holes $20
$12 $20
$12 $20
$12 $0
$0
City of Miami Beach Golf Courses
Proposed Golf and Membership Rates
Fiscal Year 2009
Goif Rates
Normandy Shores Miami Beach Golf Club
Proposed Proposed Current Proposed
Juniors may play after 2 pm. based on space availability