2008-26902 ResoRESOLUTION NO. 2tlOti-26902
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
AMENDED AT THE SEPTEMBER 17, 2008, COMMISSION MEETING, TO INCLUDE
RESIDENT SENIOR RATES AS ADDED AND 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; AND ALSO 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.
WHEREAS, the Normandy Shores Golf Club, a $14.2 million construction project: is nearing
completion and amulti- million dollar clubhouse is also is about to begin construction; and
WHEREAS, the completed components of the project: to date: include the 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: and
WHEREAS, it is anticipated the Golf Course will begin operations in mid-November, 2008:
and
WHEREAS, 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 Miami Beach residents: tourists and
day players; and
WHEREAS, on July 10, 2008, the proposed daily play and memberships golf rates for the
Normandy Shores Golf Club were discussed by the Finance and Citywide Projects Committee; and
WHEREAS, a market comparison of compatible golf rates for other golf courses within the
area, and an operational budget summary for Fiscal Year 2008109, were presented for review and
discussion by the Committee; and
WHEREAS, following discussion, the Committee took no formal action on the proposed
rates; and
WHEREAS, the Committee directed the Administration to present the proposed rates to the
City's Golf Advisory Committee for its review and comment; and
WHEREAS, the rates were discussed at the Golf Advisory Committee's September 2, 2008:
meeting, and the Committee voted unanimously in support of the proposed rates; and
WHEREAS, the Administration is also seeking to allow the City Manager the discretion to
establish lesser rates for tournaments: promotions and daily play, such at times deemed prudent
and necessary to attract golfing patrons: and
WHEREAS, additionally the Administration is also requesting authorization for the City
Manager to have discretion to establish a lesser rate for charitable or community based
organizations, which in no event shall be less than 70% of the approved Rack Rate then in effect:
and
WHEREAS, the Normandy Shores Golf Club anticipates anticipating generating
approximately $2,337,850 in total revenue for FY 2008109; and
WHEREAS, expenses are projected to be $2,863,745, inclusive of debt service and internal
service charges, resulting in a projected deficit of $525,895 in Fiscal Year 2008109; and
WHEREAS, at the September 17, 2008, Commission meeting a discussion of golf rates for
resident senior citizens was held: and
WHEREAS, at the conclusion of the golf rates discussion held at the September 17. 2008,
Commission meeting the Mayor and City Commission amended the proposed golf rates for the
Normandy Shores Golf Club to include discounted rates for resident seniors underthe conditions as
added and delineated in Exhibit A, as amended.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA. that the Mayor and City Commission hereby approve and
establish a maximum schedule of user rates for the newly renovated Normandy Shores Golf Club,
as amended at the September 17, 2008, Commission meeting, to include resident senor rates as
added and delineated in attached Exhibit "A' to this Resolution (Golf and Membership Rates Sheet),
with said rates to be effective October 1, 2008; further authorizing the City Manager to establish
lesser rates for golf tournaments, promotional rates, daily play rates. when he deems it necessary
for the efficient and financially prudent operation of the Golf Course; and authorizing the City
Manager to establish a lesser rate for charitable or community based organizations, which in no
event shall be less than 70% of the approved Rack Rate then in effect.
PASSED and ADOPTED this 17°i day of September 2008.
A R
AT~ ~ ~ }tstti Herrera Bower
CITY CLERK
Robert Parcher
Farcpal$ALL1PreviouslKEVINICommission 20081Sept. 17 - 2nd budget readinglAmended 9-17-08 Normandy Shores Golf
Course Rates 08-09 Reso.doc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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EXHIBIT "A"
Cify of Miami Beach Golf Courses
Adopted Golf and Membership Rates
Fiscal Year 2009
Golf Rates
Normand Shores
Summer 5 1 - 10 31 - -
Rack Rate _ __ __ 890 l:~~a 595 5
So. R. Resident . 60 5R0 7a?wkttw 51G
57i 95 88-wkencl 510
Miami Beach Resident 840 845 45 wkda 0
S55 S60 60 wkend 0 i
Shoulder S1 1 - 12 15 i
Rack Rate _ 110 125 5}2B 55
So. FI. Resident 585 595 10
Miami Beach Resident SS 60 60 0
Peak 12 16 - 4 30) _
RacR Ratc 51fiU S2G0 20G SG
So. FL Ke9dect 5110 5125 10
Miami Beach Resident 65 80 80 O
Res. Junior Dall - welkin onl 55
Res. Senior Citizen Dail PIa Raie - 25% reduction o ff the dail la rate in effect at time o f la
Drivin R n
l.ar e ¢ucket oC balls SO
S.-riall ¢u;-Ret 3C balls 56
Membership Rates
Res. De endent 5400 450 SO 30
Res, lunior 700
Res. lunior -summer 150
Res. Senior CI[lzen 25%
reduction off annual rate (See
conditions below)
52,875
Non Resrlen[ Sin le 3 SGO 5 AO 5 SUO SG
Nor. Resident Famd 5 GGG 7 000 7 000 50
Non Resident De endent Si;CO 5iC0 700 SG
Non Kesde~l lunior 1 000
Cart Rate
18
hnles 20 20 S2U 0
__
_
Cart Rate 9 holes '12 12 512 0
Res. Senior Citizen 25% reduction off annuaf rate Se e conditions below
Cart Rate 13 'ioleo- 15
Cart Rate 4 holes Sri
Juniors may play after 2 pm. based on space avallabiUty
Sen'ois Rates Conditions
i. Must be a Miami Beach Resident - Proo/ of Resitlency Required
2. Must be 70 years or older at time of play -proof required
3. Reduction for Oay play is based on resident rate in eflect at time of play antl includes green fees and cart
4. Daily play rate is in effect Monday -Friday and includes a 3 day advance tee time reservation
5. Annual Memberships shall be limited to a maximum of 50
6. Senior annual Membership play is in effect Monday -Friday and include a 10 day advance tee time reservation
COMMISSION ITEM SUMMARY
Condensed Title:
A. A resolution establishing a maximum schedule of user races 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.
Ke Intended Outcome Su orted:
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
than es residents would make to make Miami Beach a better lace to live, work, and la .
Issue:
Shall the Ma or and Cit Commission a rove the Resolutions?
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 thatwill 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 S2,337,850, while the
expenses are projected to be $2,863,745 inclusive of debt service and internal service charges, resulting in a
projected deficit of S525,895 in FY 2008109. 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 54,213,950
in total revenue. Expenses are projected to be 54,300,165 inclusive of debt service and internal service charges,
resulting in a projected deficit of $86,215 in FY 2008109.
Advisory Board Recommendation:
Recommended for approval by fhe Miami Beach Goif Advisory Committee at their September 2, 2008 meeting
Financial Information:
Source of Amount Account
Funds: ~
---- ---
U 2
3 - ___ -- - ---
OBPI Total ! ---
Financial Impact Summary:
Si n-Offs:
De artme D' ector Assistan .Mona er CR Man er
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T-~,AGFNrIA•.20nt1•Se;llemher 171Gdf Courses Rates FY ;8 G9 Summary .doe ~--
~~(~+. (~ AGENDA tTEM
I~ MIAM ~/n DATE
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miomi Beoch, Flordo 33139, www.mi°mibe°chA.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager ~,' ^~~-
-J
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 stnacture
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 bam, 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 in mid-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 bam 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
2008109.
Commission Memorandum
Establishing Golf Courses Rates F.Y. 2008109
Page 3 of 4
Junior Golf Program at the Normandv 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 Normandy Shores
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 teamed 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 residentyouth 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 [he 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 Gotf Courses Rates F.Y. 2008!09
Page 4 of 4
The implementation of this Junior Golf Program at the Nonnandy 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 atthe 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 Citys Golf Advisory Committee for their review and comment.
The proposed goff 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 supportof the increased rates as proposed forthe
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 2008109.
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:IAGENDA120081September 171Go1f Courses Rates 08-09 Commission Memolll.doc
~xN~«~r ••~,l
City of Miami Beach Golf Courses
Proposed Golf and Membership Rates
Fiscal Year 2009
GoM flares
Norrnantlv Shores Miami Beach Golf Club
Proposed Proposed Current Proposed
Increase
Summer (571 - 10131)
Rack Rate $90 ~ 595 S5
So. FI. Resdent $60 ~ z0+ukday S10
S75 S95 85+vkenA $10
Miami Beach Reaident S40 845 IS wkday SD
855 S80 BO wkend 80
Shoulder (1711 -1217 5)
Rack Rale 5110 ~ 5120 $5
Sa. FI. Resident S85 95 S85 $10
Miami Beach Resident S53 S50 S80 SO
Peak (12f16 -4130)
Rack Rate 5160 $200 5200 SO
So. FI. Resident $110 ~ 5315 S10
Miami Beath Resldertt 585 580 880 SO
Res. Junior Dally -walking only S5
Orivinp Rance
Large Buckel (80 balls} $10
Small Bucket (30 balls) $6
Memberehip Rates
MWmI Beath Golf Club
Normandv Snores Proposed Curren Proposed
Proposed Increase
Resident Single 52,500 53,500 53,300 50
Resident Famify 53,500 84,500 84,500 SO
Res. Dependent 5400 5450 8450 SO
Res. Junior 5700
Res. Junior summer 8150
Non Resident Single $3.500 55.500 55,500 $0
Non Resident Family 55,000 57.000 $7,000 SO
Non Resident Dependent 5600 5700 $700 SO
Non Resident Junior 51.000
Cart Rate 18 holes 520 $20 S20 $0
Cart Rate 9 holes $12 $t2 512 SO
Juniors may play after 2 pm. based on Space availability