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RESOLUTION 88-19432 RESOLUTION NO: 88-19432 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH APPROVING A CHANGE IN THE ANNUAL PERMIT FEES, SUMMER GREENS FEES AND GOLF CART RENTAL FEES WHICH MAY BE CHARGED UNDER THE MANAGEMENT AGREEMENT WITH AMERICAN GOLF CORPORATION, EFFECTIVE NOVEMBER 2 , 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 annual permit fees, 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 increases in the maximum amount of annual permit fees and summer greens fees and golf cart rental fees which may be charged; and WHEREAS, the City Administration has reviewed the Operator' s request for an increase in fees and conducted a survey of annual permit fees charged at comparable public golf courses in Dade county; and WHEREAS, the City' s Golf Advisory Committee reviewed the Operator' s request for an increase in the annual permit fees and summer greens fees at their meeting October 7 , 1988 and recommended that the City Commission approve a revised schedule of the proposed fees; and WHEREAS, the proposed fees as recommended by the City Administration are described on the attached Revised Exhibit "H" to the Management Agreement, Revised November 2 , 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. 88-19432 signifying its adoption and approval of the fees described on the attached Revised Exhibit "H" , Revised November 2 , 1988 . PASSED AND ADOPTED THIS 2nd day of November, 1988. .1//7 / Of A _...L_ .imi MAYO ATTEST: 6,44.41.1 CITY CLERK APPROVED AS TO FORM: C__;: -‘09;'aor..im•....._, LEGAL DEPARTMENT DATED: /Vga7/06 HCM: ses ATTACHMENT I Page 1 of 2 141 4 4 4 •. 1+ ! . i •_y AMERICAN GOLF CORPORATION October 5, 1988 Mr. Rob Parkins City of .Miami Beach 1700 Convention Center Drive Miami Beach, FL 33139 Dear Mr., Parkins, Please find enclosed the proposed new fee schedule for Bayshore and Normandy Golf Courses. This schedule is a result of the Golf Advisory Board's sub-committee meeting on September 20. 1988. Attending this meeting were Golf Advisory Board Chairman Mike Lipsky, Helen Bennet, Hal Moeller and myself. We have based our proposal on three basic criteria-competative surveys of Dade and Broward County courses, supply arid demand for yearly tickets and the necessity of generating sufficient income to cover operating costs while continuing to upgrade the facilities. Our plans are to present the proposed fees to the Golf Advisory Board Friday October 7th. Given that a recommended rate increase comes from this meeting we would ask that the proposal be submitted to the council for vote prior to November 1, 1988. Best Regards, Howard Whiteside Regional Director Florida cc Bill Harrison 13 1633-26th Street, Santa Monica. California 90404-4024, Telephone (213) 315-4200 •t� ATTACHMENT I Rage 2 of 2 AMERICAN GOLF CORPORATION Proposed Rate Increase OPTION I OPTION II CURRENT PERMIT FEES (NO PER PLAY FEE) FIVE DAY PERMIT: ALL COURSES RESIDENTS NON PER FLAY RESIDENTS NON RESIDENTS RESIDENTS Play Monday through Friday also including Saturday, Sunday and Holidays after 1:O0PM only SINGLE $525.00 675.00 3.00 775.00 975.00 HUSBAND & WIFE 750.00 900.00 975.00 1200.00 SEVEN DAY PREMIT: ALL COURSES ' SINGLE 700.00 850.00 3.00 950.00 1150.00 weekdays* HUSBAND & WIFE; 1100.00 1250.00 4.00 1350.00 1550.00 weekends PAR 3 SINGLE 250.00 350.00 1.00 350.00 450.00 JUNIORS (UNDER 21 YEARS) 150.00 150.00 N/A 150.00 150.00 (TIME WHEN AVAILABLE *Weekends After 1 PM. PROPOSED SUMMER RATES (MAY 1 - OCTOBER 31, 1989) GREEN FEES - BAYSHORE & NORMANDY 18 HOLES 9 HOLES Weekend (Saturday, Sunday & Holidays $11.00 $7_00 Weekday (Monday through Friday) 9.00 6.00 (Excluding Holidays) Twilight 5.00 5.00 GREENS FEES - PAR 3 Day 5.00 5.00 Twilight 4.00 4.00 GOLF CART RENTAL 19.00 11.00 CARTS MANDATORY AT BAYSHORE ON FIRDAY, SATURDAY, SUNDAY AND HOLIDAYS BEFORE 1:00PM CARTS MANDATORY AT NORMANDY SATURDAY, SUNDAY BEFORE 1:00PM 14 • ATTACHMENT II MINUTES TO THE GOLF ADVISORY BOARD MEETING OF FRIDAY, OCTOBER 7, 1988 Golf Advisory Board C.M.B. Personnel American Golf Corp Lypsky R. Rumbaugh, Parks & Rec. H. Whiteside Temple B. Harrison, Purchasing B. Piana Levitt H. Moeller, Purchasing N. Frewin Holtzman Commissioner Grenald H ochberg Lowell Gewant Bennett B. Ellen in hospital Interested Spectators Mrs. B. Durschlag Mr. Halpern Mr. Whiteside spoke first on American Golf Corporation's philosophy which includes no annual fee members. The annual permits must be a good deal since there is a waiting list for them. Mr. Whiteside discussed necessary capital expenses such as a new roof for Bayshore and cart paths at Normandy. Mr. Whiteside suggested new rates (as per American Golf Corporation) as attached. Mrs. Lowell says she is not interested in a per play payment. Most members present agreed with her. The people present were reminded that the courses are owned by Miami Beach and facilities should be made available to residents at reasonable rates since their taxes are involved. Mr. Levitt reiterated that American Golf Corporation does not want annual permits. By increasing rates, members will drop out both at regular courses and the Par 3. Increases should not be approved by the City. Rates should be stabilized reasonably. The Golf Advisory Board recommends: increases in rates for tourists and non-residents. No increases for residents. Commissioner Grenald said American Golf Corporation is entitled to a profit, but residents of Miami Beach should be considered. Mr. Whiteside stated that the income from annual permit fees of 350,000.00 averages put to $6.00 per greens fee. National Golf Foundation averages $9.00 per greens fee. There are 19 non-resident, seven-day members and 56 non-resident, five-day members. No member of the board is in favor of the option proposed by American Golf Corporation whereby permit holders would pay the new annual fee, or pay the existing annual fee, plus a nominal per round fee. The Golf Advisory Board agrees an increase is in order for American Golf Corporation. Mrs. Gewant made a motion for an increase of $100 for this next year and $75.00 for the second year. Her motion was amended to $100 increase this year and $100 next year; across the board. The motion was seconded and carried. Mr. Whiteside said that the suggested increases are not satisfactory. It was suggested that starting time fees should be increased for non-permit holders. On Wednesday, October 19, 1988, there is a Commission Meeting at which time the increases will be discussed. Mr. Holtzman wanted it known that American Golf Corporation held a well-run, profitable tournament run at Normandy for the Optimists. Meeting adjourned at 12:20 p.m. Respectfully submitted, Helen Temple, Secretary 15 ATTACHMENT III SUMMARY OF ANNUAL PERMIT FEES AND RECOMMENDATIONS CURRENT AM GOLF GOLF ADV ADMINISTRATION REQUEST* RECOMM. RECOMMENDATIONS (Modified) FIVE 'DAY PERMITS Residents Single $525 $775 $625 - 1988 $675 $725 - 1989 • Husb/Wife $750 $975 $850 - 1988 $900 $950 - 1989 Non-Residents • Single $675 $975 $975 $975 Husb/Wife $900 $1200 $1200 $1200 SEVEN DAY PERMITS Residents Single $700 $950 $800 - 1988 $850 $900 - 1989 Husb/Wife $1100 $1350 $1200 - 1988 $1300 $1300 - 1989 Non-Residents ' Single $850 $1150 $1150 $1150 Husb/Wife $1250 $1550 - $1550 $1550 PAR 3 SINGLE Resident $250 $350 $300 - 1988 $300 $350 - 1989 Non-Res . $350 $450 $450 $450 JUNIORS (-21 YRS) Time Available Basis Residents and Non-Res. $150 $150 $150 $150 TIME RESERVATION FEES All Golfers Requesting Not Included Not Addressed in Reservation $1 in Request $2 Recommendation *The request from American Golf provided an option for permit holders to pay the higher annual rates or continue the current rates and pay a per round fee of $3 . 00 for 5-day permit holders ($4 . 00 for 7-day permit holders on weekends) . During subsequent discussions with the City Administration, the request was modified to $2 . 00 and $3 . 00 respectively. However, the proposal of offering this option was not supported by the Golf Advisory Comm. 1 _ ATTACHMENT IV SURVEY OF ANNUAL, SINGLE, FIVE-DAY GOLF PERMITS IN DADE COUNTY The City last contacted the golf courses listed below in May of 1986 concerning rates and fees charged. The amount charged for a single permit at that time is shown in the second column; the year of the most recent increase is shown in the third column. Current rates are shown in the fourth column and any anticipated increases which are contemplated at this time are shown in the fifth column. GOLF COURSE MAY LAST OCTOBER ANTICIPATED 1986 INCREASE 1988 INCREASES Miami Beach $445 1986 $525 Request received. Biltmore $530 1987 $590 None recommended Calusa $375 1987 $500 None proposed Costa Del Sol $450 1986 $450 Not this year. Key Biscayne $650 1987 $700 ( Proposed: $850 Melreese $400 1987 $520 None proposed Miami Lakes $850 1987 $950 Proposed: $1, 025 Miami Shores $925 1988 $850 Not this year. Palmetto $475 1986 $475 Proposed: $495 17 REVISED EXHIBIT "H" FEE SCHEDULE EFFECTIVE NOVEMBER 2 , 1988 RATES NOT TO EXCEED THE FOLLOWING NO PER PLAY FEE ANNUAL PERMITS RESIDENTS NON-RESIDENTS FIVE DAY PERMIT: ALL COURSES Play Monday through Friday also including Saturday, Sunday and Holidays after 1:00 P.M. only SINGLE $ 650 . 00 $ 975 . 00 HUSBAND & WIFE $ 875. 00 $1,200 . 00 SEVEN DAY PERMIT: ALL COURSES SINGLE $ 825. 00 $1, 150 . 00 HUSBAND/WIFE $1,275. 00 $1,550 . 00 PAR 3 (SINGLE) $ 300. 00 $ 450 . 00 JUNIORS- (UNDER 21 YEARS) $ 150 . 00 $ 150 . 00 (TIME WHEN AVAILABLE) NOTE: The Operator shall not seek a change in Annual Permit Fees before November 1, 1990 OPTIONAL PAYMENT METHOD INCORPORATING PER PLAY FEE PER PLAY FIVE DAY. PERMIT: ALL COURSES RESIDENTS NON-RESIDENTS FEE Play Monday hrough Friday also includin Saturday, Sunday and Holidays after 1: 00 P.M. only SINGLE $525. 00 $675.00 $2 . 00 HUSBAND & WIFE `pis 750. 00 900 .00 SEVEN DAY PERMIT: ALL COURSES { SINGLE $70 00 $850 . 00 $3 . 00 weekends before 1:00 PM otherwise $2 . 00 ' HUSBAND & WIFE , ,. < 1, 100 . 00 $1, 50 . 00 $3 . 00 weekends before 1: 00 PM otherwise $2 . 00 PAR 3 SINGLE . $250 . 00 $ 350 . 00 $1. 00 N JUNIOR UNDER 21 YEARS) $150. 00 $ 150 . 00 N.A. (TIn, WHEN AVAILABLE) REVISED EXHIBIT "H" PAGE 1 OF 3 REVISED EXHIBIT "H" ANNUAL PERMITS WILL BE AVAILABLE FIRST TO RESIDENTS OF THE CITY OF MIAMI BEACH WHO PURCHASE AN ANNUAL PERMIT ON OR BEFORE OCTOBER 1, 1986 AND NON-RESIDENTS WHO HOLD ANNUAL PERMITS AS OF JUNE 4, 1986. PERMITS SHALL BE EFFECTIVE FOR THE PERIOD OF OCTOBER 1ST THROUGH SEPTEMBER 30TH WITHOUT PRORATION. PERMIT HOLDERS MUST RENEW THEIR PERMITS ANNUALLY, AT THE FEES PREVAILING ON SUCH RENEWAL DATE, ON OR BEFORE OCTOBER 1ST OR AUTOMATICALLY WAIVE AND FORFEIT ALL PERMIT RIGHTS. PERMITS SHALL NOT BE ASSIGNABLE. PERMITS WILL BE RENEWED ONLY FOR THE PERMIT CATEGORY WHICH THE HOLDER HAS AS OF OCTOBER 1, 1986; PROVIDED THAT A SEVEN DAY (ALL COURSES) PERMIT HOLDER MAY CHOOSE A FIVE (5) DAY (ALL COURSES) PERMIT, AND MAY, IN A LATER YEAR OR YEARS, CHANGE BACK TO A SEVEN DAY PERMIT, EXCEPT THAT A FIVE (5) DAY PERMIT HOLDER WHO PURCHASES A PERMIT AFTER OCTOBER 1, 1986 MAY NOT CHANGE TO A SEVEN (7) DAY PERMIT. THE SURVIVING SPOUSE OF A HUSBAND AND WIFE (ALL COURSES) PERMIT HOLDER MAY PURCHASE A SINGLE (ALL COURSES) PERMIT. FOR ANY ALL COURSE PERMIT ISSUED ON OR BEFORE OCTOBER 1, 1986 WHICH IS NOT RENEWED ON OR BEFORE OCTOBER 1, 1987 , OR NOT RENEWED ON OR BEFORE OCTOBER 1, 1988 CITY OF MIAMI BEACH RESIDENTS SHALL HAVE THE RIGHT ON A FIRST COME-FIRST SERVE BASIS TO PURCHASE ON OR BEFORE DECEMBER 15, 1987 OR ON OR BEFORE DECEMBER 15, 1988, AS THE CASE MAY BE, FIVE (5) OR SEVEN (7) DAY PERMITS, BUT NO MORE PERMITS SHALL BE AVAILABLE FOR PURCHASE THAN THE NUMBER OF PERMITS OUTSTANDING ON OCTOBER 1, 1986 BUT WHICH WERE NOT RENEWED ON OR BEFORE OCTOBER 1, 1987 OR OCTOBER 1, 1988. THE OPERATOR SHALL MAKE AVAILABLE A MINIMUM OF 600 ANNUAL PERMITS EACH YEAR. ANNUAL PERMITS WHICH BECOME AVAILABLE BECAUSE OF DEATH, NON-RENEWAL OR OTHER ATTRITION SHALL BE MADE AVAILABLE IN THE SAME CATEGORY (5- DAY OR 7-DAY) AS THE PERMIT BEING RELEASED. PERMITS SHALL BE MADE AVAILABLE ON A FIRST COME-FIRST SERVED BASIS. ANY PERMIT HOLDERS WHO PURCHASE SUCH FIVE (5) OR SEVEN (7) DAY PERMITS ON OR BEFORE DECEMBER 15, 1987 OR ON OR BEFORE DECEMBER 15, 1988 SHALL HAVE THE RIGHT TO THEREAFTER RENEW SUCH PERMITS AT THE FEES PREVAILING ON SUCH RENEWAL DATE, PROVIDED SUCH PERMITS ARE RENEWED ON OR BEFORE OCTOBER 1ST ANNUALLY. THE FAILURE TO RENEW PERMITS ON OR BEFORE OCTOBER 1ST ANNUALLY SHALL CONSTITUTE AUTOMATIC FORFEITURE OF PERMIT RIGHTS. AFTER DECEMBER 15, 1988, EXHIBIT "H" PAGE 2 OF 3 REVISED EXHIBIT "H" FEE SCHEDULE EFFECTIVE NOVEMBER 2 , 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 ON 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) $11. 00 $ 7 . 00 Weekday (Monday through Friday) $ 9 . 00 $ 6. 00 (Excluding Holidays) Twilight $ 5. 00 $ 5.00 GREENS FEES - PAR 3 Day $ 5.00 $ 5.00 Twilight $ 4.00 $ 4 .00 GOLF CART RENTAL $19 . 00 $11. 00 CARTS MANDATORY AT BAYSHORE ON SATURDAY, SUNDAY AND HOLIDAYS BEFORE 1:00 P.M. CARTS MANDATORY AT NORMANDY ON SATURDAY AND SUNDAY BEFORE 1:00 P.M. REVISED EXHIBIT "H" HCM:ses Page 3 of 3 Rev: 11/16/88 • • r • . . . (iasc eat/ ei ear% FLORIDA 3 3 1 3 9 1NCOR ORATED)* "VACA TIONLAND U. S. A. " OFFICE OF THE CITY MANAGER CITY HALL ROB W.PARKINS 1700 CONVENTION CENTER DRIVE CITY MANAGER TELEPHONE: 673-7010 COMMISSION MEMORANDUM NO. • DATE: November 2, 1988 TO: Mayor Alex Dao. = •nd Members of e City Com s ��,,,_ eff FROM: Rob VV. Par''•s City Manager RESOLUTION APPR`VING A CHANGE IN THE ANNUAL PERMIT FEES AND SUBJECT: SUMMER GREENS 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 annual permit fees which has been in effect since October 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 Operator requested an increase in the maximum greens fees and golf cart rental fees in January of 1988 . That increase was subsequently approved by City Commission. The Management Agreement provides that fees and charges should be comparable with those charged at other public golf courses in Dade County. BACKGROUND The , background materials as presented to City Commission at the meeting of October 19, 1988 are attached as follows. Attachment I- Request of American Golf Attachment II- Minutes of Golf Advisory Board Attachment III- Summary of Request and Recommendations Attachment IV- Survey of Permit Fees On October 31, 1988 , Commissioner Grenald covened a meeting of the interested parties attending the earlier Commission meeting to review a suggested modification to American Golf' s request. The proposed Resolution incorporates the modification representing a $50. 00 reduction across most all permit categories for residents from that which was presented to Commission at its last meeting. The rates for non-residents and for summer greens fees are recommended as originally proposed by American Golf. ADMINISTRATION RECOMMENDATION: The City Administration recommends the adoption of the attached Resolution authorizing the Mayor and City Clerk to execute the Resolution authorizing increased annual permit fees, maximum summer greens fees and golf cart rentals to be charged by American Golf Corporation under the Management Agreement for operation of the City' s golf courses. RWP:E ' D :HCM: ses 10 Attachments AGENDA ITEM _ DATE -12-Ca! ORIGINAL RESOLUTION NO. 88-19432 (Approving a change in the annual permit fees, summer greens fees and Golf Cart rental fees which may be charged under the management agreement with American Golf Corporation, effective 11/2/88)