LTC 311-2005 Normandy Golf Course & Clubhouse
G MIAMI BEACH
OFFICE OF THE CITY MANAGER
NO. LTC # 311-2005
LETTER TO COMMISSION
FROM:
Mayor David Dermer and Members of the City Commission
Jorge M. Gonzalez, City Manager)\ r 0
December 20, 2005 . 0
NORMANDY GOLF COURSE AND CLUBHOUSE
TO:
DATE:
SUBJECT:
The Administration has been asked to assess what options might be available for a
temporary reopening of the Normandy Golf Course for the next six to eight month
period. Several options have been reviewed with the most feasible being reopening
as a park/open space, not for golf use, at an approximate cost of $75,000.
Background
When the decision to close the golf course was made in May of 2005, it was based
on the understanding that the initial project work to be done on the golf course was a
component of the neighborhood drainage program which would utilize sections of the
golf course swale as retention. This would necessitate the construction of berms and
retention swales on the golf course edge(s) in specific areas. At the time of the
closure it was anticipated the work would begin in October, 2005. The April 29,
2005 LTC advising the Commission of the course closure is attached.
While April 29, 2005 LTC anticipated course reconstruction to commence in October
2005, a number of issues have developed that has delayed the construction. In order
to address regulatory requirements, the storm drainage design for the golf course was
altered to include the addition of pressurized drainage wells into the course system.
The additional design work to incorporate the injection wells, as well the DERM
permitting process has caused a delay of several months in the start of construction.
Additional delay was encountered in coordinating the simultaneous neighborhood
right-of-way drainage work with the golf course drainage work. Originally the
drainage work was anticipated to be done independent of each other without any
interconnection during the construction period. DERM has approved conceptually the
option of coordinating the neighborhood right-of-way drainage and the golf course
drainage such that each project may proceed at the same time as expeditiously as
possible. At this point, it is anticipated that an invitation to bid will be issued in
January 2006 for award in early summer 2006 followed shortly by construction of
the golf course renovations.
At the time of the golf course closure in April 2005, the lease expired under which
PCM (Professional Course Management) had been operating the Normandy Shores
Golf Course which required them to pay all operational expenses. At that time PCM
had offered to continue to operate and manage the Normandy Shores golf course
throughout the 2005 summer months with the City collecting all revenue and
assuming all expenses and paying PCM a management fee. Based on the previous
year's summer play at Normandy Shores it was estimated that after income and
expenses the City could realize a loss of approximately $200,000 for the period of
May - September. Based on the anticipated construction commencing in late summer
and the potential operational loss, it was determined to be more cost effective and in
the best interest of the City to close the course in advance of the construction.
A decision to reopen the Normandy Shores Golf Course should include at minimum
the following considerations:
. The existing conditions of the golf course;
. Time and cost to restore it to minimum acceptable playing conditions;
. Time and cost to restore the clubhouse to a usable condition;
. Projected operational costs and management fees to maintain the golf course,
clubhouse, pro-shop, cart fleet, golf course maintenance equipment etc, until
construction begins.
Existing conditions
Since the course closure on May 2, 2005, the Normandy Shores golf course has
been cut at one height by one staff member assigned from the Miami Beach Golf
Club. It was anticipated this maintenance level would be acceptable for the short
period of time until the golf course was to become a construction site in late summer.
The golf course was not being watered or fertilized and no herbicides or pesticides
have been applied. This was done with the understanding the course would be
completely demolished and constructed new. At this time the golf course has many
weeds and the extensive rains and impacts of the numerous tropical storms and
hurricanes has made it difficult for the one staff member to keep up with the mowing
of the grass. There has also been damage to the course from the last hurricane.
The combination of not watering and not applying fertilizers, herbicides and
pesticides is most evident on the tees and greens, which have deteriorated completely
and not considered playable for golf.
Golf Course Use options and costs
Several options for a temporary reopening were assessed at a variety of service
levels. The highest level of service would be to reopen the course at close to pre-
closure conditions and services.
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The Golf Course Management Company assisted in the preparation of this service
option and the alternate options that follow.
Per the attached letter from Johnny laPonzina, President of Professional Course
Management, it is his professional assessment that:
. The restoration of the fairways and roughs to pre-closure conditions could be
done within 90 days if an aggressive weed control program was initiated
immediately and a regular mowing at fairway height is performed three times
per week. The restoration of the bunkers can also be completed in 90 days
and will require substantial investment in labor and materials to do so.
. The tees and greens are beyond restoration and would need to be replanted.
A quote to replant the tees and greens was requested from T.D.I., the golf
course construction company that built the Miami Beach Golf Club. According
to the estimate provide by T.D.1. the cost to reconstruct the tee boxes is
$77,712 and the cost to reconstruct the greens is $153,302 for a total cost of
$230,714.
. According to Mr. laPonzina the most critical consideration in the decision to
reopen the Normandy Shores Golf Course prior to reconstruction is time. The
earliest planting start possible is in is late January, a time when Bermuda and
Paspalum grass begin their dormancy. This start would have to be expedited
and not a typical bid process. In Mr. laPonzina's professional estimation the
earliest the greens would be playable is late April or early May, 2006,
assuming mild and favorable winter season conditions. The time to rebuild
versus the start of construction in the summer of 2006 makes the option of
reopening to pre-closure conditions highly impractical all other issues or costs
notwithstanding.
In reopening at close to pre-closure levels, expenses with the Club House would also
be incurred. At this time the Normandy Shores Clubhouse has been closed to the
public for approximately six months. Prior to opening it would require a full cleaning
of the interior as well as an inspection/ cleaning of the air conditioning system.
Additionally, several months prior to closing the interior restrooms/ locker rooms were
deemed unusable and a portable restroom trailer unit was rented and installed
outside the facility. This unit would need to be rented and installed back in its
previous location. Additionally, the water, sewer and electric would need to be
reconnected. The cost of renting the restroom trailer at time of the closure was
$625.00 per month; this cost would again be assumed by the City. The cost of
reconnecting the utilities would also apply.
At the time of closing, the clubhouse had a minimum food and beverage services
operation. The restaurant equipment was in very poor condition and for the most part
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not functional. An expenditure to purchase new equipment would be necessary if any
food and beverage service would be anticipated. The requirements of the City's
Building Department and other permitting agencies must also be taken into
consideration. At this time it is difficult to provide an accurate estimate of costs to
reopen the clubhouse.
Other operational expenses include:
. According to an estimate developed by PCM based on their past fiscal history
of operating the Normandy Shores Golf Course the total cost for the golf
course operations, pro-shop and food & beverage and all other related
expenses for the period of December 2005 -June 30, 2006 is approximately
$670,000. Assuming the golf course is restored and ready for play in April
of 2006 the total revenue generated is estimated at approximately $191 ,000.
Assuming there are no delays in grow-in and opening preparations the
estimated cost to the City net of revenue would be approximately $479,000.
. At the time of closure the golf cart fleet leased by PCM was returned to EZ Go
Golf Carts. The Administration has had a preliminary discussion with EZ Go
Golf Carts concerning the availability of the rental of a 75 cart fleet on a short
term basis (3-6 months). EZ Go is willing to consider transferring the cart fleet
presently being used at the Miami Beach Golf Club to Normandy in mid-
December when the new fleet is delivered to the Club. The cost to lease the
fleet would be $5,000 per month.
The following summary is the total estimated cost to restore to pre-closure service
levels, open and operate the Normandy Shores Golf Course for the period of
December, 2005 to June 30, 2006:
. Tees / Green Reconstruction
. Hurricane repairs
. Operations Expenses
Total Expenses
less Projected Revenue:
Estimated Operating loss for the 7 month period:
$230,714
30,000
670,000
$930,714
~ 1 91 ,000
$739,714
Other Alternatives to reopen i ng:
. Reopen with no rebuilding of the course, yet offer similar services to above,
including bathrooms, golf carts, club house availability.
o Operations Expenses
o Hurricane repairs
Total Expenses
$581,000
30,000
$ 6 11 ,000
No revenue is projected as the course would be in poor condition in
this option. Complaints would be anticipated.
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. Reopen with only minimal repairs for hurricane damage and no services. In
this option no bathrooms, clubhouse or carts would be available and the
course would be in very poor condition.
o Operations Expenses
o Hurricane repairs
Total Expenses
$275,000
30,000
$305,000
No revenue is projected as the course would be in poor condition in
this option. Complaints would be anticipated.
. Reopen as a park/open space rather than as a golf course. The Parks and
Recreation Department has quotes from their landscape contractors who cut
the grass in the City parks for the complete cutting and litter control of the
Normandy Shores Golf Course on a regular schedule of 14 days in the winter
and every 10 days in the summer. Additionally the perimeter of the property
would be litter controlled 3 times per week. The lowest bid came back at
$3,665 per cut. In the same period of December, 2005 -June 30, 2006 the
cost to the City to have the Normandy Shores Golf Course maintained at the
same level as other parks would be approximately ,$75,000.
Of the options available, none of the reopening scenarios that would make golf
available are feasible for the time periods that are in consideration. It is feasible
and cost effective to reopen as a park/open space to allow some community use
in the interim before course reconstruction will commence. The services
anticipated would be grass cutting and litter control. The City would also clean
debris as a result of Hurricane Wilma. Reopening would provide useable green
space and also provide a level of maintenance and appearance more
appropriate to the course setting. The Administration will proceed with the option
of reopening as park/open space unless otherwise directed by the City
Commission.
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CITY OF MIAMI BEACH
Office of the City Manager
Letter to Commission No. 111-2!OOS
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To: Mayor David Dermer and Date: April 29, 20050
Members of the City Commission -\ U1 ~
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From: Jorge M. Gonzalez d ~ r- ()
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City Manager ~. '-'> rn
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Subject: Closing of the Nonn dy Shores Golf Course c;;:) ~
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Please be advised that the Normandy Shores Golf Course will be closing effective May 2,
2005. This closure is in anticipation of the capital improvement project(s) planned for the
neighborhood in the near future. This coincides with the expiration of the current lease
agreement between the City of Miami Beach and Professional Course Management
(PCM), the golf course management company who has leased the course from the City
since October of 2001.
On November 25, 2003, the Mayor and City Commission approved the first amendment to
the Interim Management Agreement with Professional Course Management II, Ltd.. (PCM)
extending the term of the agreement for provision of the professional services for the
management and operation of the City's Normandy Shores from September 30, 2003, to
April 30, 2004. The amendment was initiated based on the Administration's plan that the
Normandy Shores Golf Course would be closed for construction renovations in the late
spring of 2004. As the term of this amended agreement concluded on April 30. 2004, and
there were issues related to the final scope of improvements forthe Normandy Shores Golf
Course and clubhouse still under discussion the administration of Professional Course
Management offered to extend the term through April 30, 2005, under the existing
agreement terms and conditions. This offer was accepted and approved by the City
Commission in March of 2004.
At the time the extension was entered into PCM also offered an alternative to this
.amendment where by PCM would manage the Normandy Golf Course forthe City under a
similar agreement to that used at the Miami Beach Golf Club (MBGC). In the MBGC
agreement the City pays a management fee and all revenue and expense is assumed by
the City. As summer play is very low, this arrangement would result in a net and
unbudgeted loss to the City which is why PCM is not willing to continue to operate under
the existing terms. Based on 2004 data. the estimated loss would be approximately
$200,000.00. The MBGC can easily absorb the rounds of golf play in its summer
operations as its summer play is also reduced from the maIn season. Typical summer
volume at the Normandy course averages approximately 1,800 rounds per month.
The initial project work to be done on the golf course is a component of the neighborhood
drainage program which will utilize sections of the golf course swale as retention. The new
drainage program will require the golf course to contain and retain any watershed
generated on it. This will necessitate the construction of berms and retention swales on the
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· th~ golf course edge(s) in specific areas. It is anticipated this work will begin in October
2005 and be completed by March 2006. In the meantime, the golf course construction
documents, which are being completed by the design team, would be processed for permit
through the City's Building Department and the required regulatory agencies. Once an
internal review of the construction documents is completed, an Invitation To Bid (ITB)
package would be prepared to implement the construction of the Project. It is anticipated
that the permitting process would be complete by the time the ITS package is advertised, in
late August 2005. The construction would commence in October 2005. The construction
of the improvements is scheduled to take 18 months. with the opening to the public
scheduled for May 2007.
In reference to the clubhouse. the Administration is negotiating a contract through its Job
Order Contracting (JOe) program for a design.build project. Construction documents need
to be developed and processed for permit before construction begins. The construction is
sCheduled to be coordinated with the golf course Project and be completed by the same
time.
The improvements currently planned are very similar to those made at the Miami Beach
Golf Crub. These Include the complete renovation of the golf course with new tees,
fairways, greens, cart paths, irrigation and select landscaping. The golf turf will be the
same as that used at the Miami Beach Golf Club which is paspalum. This will course is
also planned to have the irrigation system capable of using salt or fresh water or a blend of
both to water the sod. This has proven highly successful at the Miami Beach Golf Club
because the playing surface is among the best in all of the southern United States.
In the interim between the closure of the golf course and the initiation of construction PCM
has agreed to maintain a single staff member on the property to cut the grass on the
course to a height similar to other parks (all one length including tees and greens and not
to the specifications of a golf course).
Wewllf keep you apprised of the projects progress and should you have questions. please
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c: Robert C. Middaugh, Assistant Cily Manager
Kevin Smith, Parks & Recreation Director
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