2007-26657 ResoRESOLUTION NO. 2007-26657
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AMENDING RESOLUTION
NO. 2002-24995, WHICH ESTABLISHED THE CURRENT
MAXIMUM SCHEDULE OF USER RATES FOR THE MIAMI BEACH
GOLF CLUB; SAID AMENDMENT MODIFYING THE ANNUAL
RESIDENT MEMBERSHIP RATES AND THE DRIVING RANGE
FEES.
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-Decemberof
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, via Resolution No. 2005-26016, the
City Commission approved a second amendment to the initial fees established
for non-residents playing at the Miami Beach Golf Club; and
WHEREAS, the rates for Miami Beach residents have not been modified
since the initial schedule of user rates were established by the City Commission
on September 25, 2002; and
WHEREAS, a discussion concerning the proposed golf fees modifications for
residents was held at the July 19, 2007 meeting of the Finance and Citywide
Projects Committee; and
WHEREAS, following the Administration's, the Committee recommended
that only the Resident Annual Memberships, and the price of both the small and
large baskets of driving range golf balls, be modified until the Normandy Shores
Golf Club is opened for play; and
WHEREAS, the recommended modifications for the Resident Annual
Memberships and Driving Range Fees are as follows:
Annual Memberships Current Proposed
Resident -Single $3,000 $3,500
Resident -Family $4,000 $4,500
Resident - Dependent $400 $450
Driving Range Golf Balls
Small basket (30 balls) $ 6.00 $ 8.00
Large basket (60 balls) $10.00 $12.00
and
WHEREAS, these recommendations were subsequently forwarded to the
City Commission on September 5, 2007; and
WHEREAS, the Resident Annual Membership fees as recommended in
Fiscal Year (FY) 07/08 will increase each category by $500, an increase which,
when amortized since the Club's opening in December of 2002, equates to an
increase of approximately 3.3% annually; and
WHEREAS, it is projected that the increased membership fees will generate
additional revenue, in the amount of $100,000 annually, and the additional revenue
from the driving range is estimated at approximately $25,000; and
WHEREAS, the added revenues will enable the levels of customer service
and maintenance standards to remain at the current standards, 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
2007.
WHEREAS, the new rates for FY 2007/08 would take effect on October 1,
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYORAND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDAthatthe Mayorand City
Commission hereby approve an amendment to Resolution No. 2002-24995, which
established the current maximum schedule of user rates for the Miami Beach Golf
Club; said amendment modifying the Annual Resident Membership Rates and the
Driving Range Fees. /~ /,
PASSED AND ADOPTED this 26th day of sept~mber~/~ ,y 12007.
David e O`/ED AS TO
AT ST: FORM ~ LANGUAGE
t~ FOR EXECUTION
C CLERK Robert Parcher
~ ~~
T:WGENDA\2007\sep2607 budget\Regular\9_26 Golf Fees -Annual Resident Merrl~f Reso. ~~
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution amending Resolution No. 2002-24995 which established the current maximum schedule of user
rates for the Miami Beach Golf Club, modifying onlythe annual resident membership rates and the driving range
fees.
Ke Intended Outcome Su oated:
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
the o to recreational facilities a cou le of times a month or more.
Issue:
Shall the Ma or and Commission a rove the Resolution?
fcem summaryrrcecommenaation:
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. The Miami Beach
Golf Club opened for play in mid-December of 2002 under the Commission approved fees. Since the opening
the Club has met its revenue projections which enabled the payment of the annual debt service of over
$800,000 per fiscal year. On June 9, 2004, via Resolution No.2004-25594, the City Commission approved the
first amendment to the initial fees established for non-residents playing at the Miami Beach Golf Club. On
September 21, 2005, via Resolution No. 2005-26016, the City Commission approved the second amendment to
the initial fees established for non-residents playing at the Miami Beach Golf Club. It should be noted that the
rates for Miami Beach residents have not been modified since the initial schedule of user rates was established
by the City Commission on September 25, 2002.
Havisory tsoara rcecommenaanon:
The proposed rates were discussed at a meeting of the Golf Advisory Committee but no formal action was
taken.
Financial Information:
Source of
Funds:
Amount
Account
2
BPI Tatal
Financial Impact Summary:
The increase in fees is estimated to generate annual revenues of $125,000.
Cit Clerk's Office Le islative Trackin
Kevin Smith, Director of Parks & Recreation
Si n-Offs:
Department Director Assistant Ci anager City Manager
KS JMG
T:WGENDA\2007\sep2607 budget\Regular\9_26 Golf es - Annuaf Resident Membership Ammendment Summary.c~f6c
~~-~~ AG~~IOAITEM R7G
~' >~ o~Arl~ db 0
?~ MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor David Dermer and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: September 26, 2007
suB~ECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING RESOLUTION NO. 2002-24995
WHICH ESTABLISHED THE CURRENT MAXIMUM SCHEDULE OF USER
RATES FOR THE MIAMI BEACH GOLF CLUB; SAID AMENDMENT
MODIFYING ONLY THE ANNUAL RESIDENT MEMBERSHIP RATES AS
AND THE DRIVING RANGE FEES AS DELINEATED IN THE RESOLUTION.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution
KEY INTENDED OUTCOME SUPPORTED
Increase Satisfaction with Recreational Programs
BACKGROUND
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. This
approval was the result of extensive planning, evaluation and analysis developed to be
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.
The Miami Beach Golf Club opened for play in mid-December of 2002 under the
Commission approved fees. Since the opening the Miami Beach Golf Club has met its
revenue projections which enabled the payment of the annual debt service of over
$800,000 per fiscal year. On June 9, 2004, via Resolution No. 2004-25594, the City
Commission approved the first amendment to the initial fees established for non-
residents playing at the Miami Beach Golf Club. On September21, 2005, via Resolution
No. 2005-26016, the City Commission approved the second amendment to the initial
fees established for non-residents playing at the Miami Beach Golf Club. It should be
noted that the rates for Miami Beach residents have not been modified since the initial
schedule of user rates was established by the City Commission on September 25, 2002.
September 26, 2007
Commission Memorandum
Miami Beach Golf Course Amendment to User Fees
Page 2 of 2
A discussion concerning the proposed golf fees modifications for residents was held at
the July 19, 2007 meeting of the Finance and Citywide Projects Committee. During the
discussion the Administration proposed the fee modifications to the Committee.
Following the administration's presentation and Committee discussion the members
recommended that only the Resident Annual Memberships and the price of both the
small and large baskets of driving range golf balls be modified. It was stated that the
resident daily fee should not be modified until the Normandy Shores Golf Club was
opened for play. These recommendations were subsequently forwarded to full City
Commission on September 5, 2007 as a component of the Committee Report. The
following information is a summary of the recommendations.
Annual Memberships Current Proposed
Resident -Single $3,000 $3,500
Resident -Family $4,000 $4,500
Resident -Dependent $400 $450
Driving Range Golf Balls
Small basket (30 balls) $ 6.00 $ 8.00
Large basket (60 balls) $10.00 $12.00
It should be clearly understood that goal for the Miami Beach Golf Club when it was
being developed was to create a high quality resort level golf destination for our
residents and tourists. Since opening the Miami Beach Golf Club has achieved this goal
and is in fact considered one of the top golf destinations in Florida. Area golf clubs that
are comparative to the Miami Beach Golf Club are the Doral Golf Resort, Emerald Hills
and the Diplomat golf clubs. Attached for your information are these golf clubs current
annual membership rates. As noted the Miami Beach Golf Club is by far the most
reasonably priced and should be considered a good value for our residents.
The Resident Annual Membership fees as recommended in FY 2007/08 will increase
each category by $500, an increase which when amortized since the Club's opening in
December of 2002 equates to an increase of approximately 3.3% annually. It should be
noted that the Annual Resident Membership category is currently fully enrolled with a
membership of 200. There are also approximately thirty five residents who have
expressed interest in joining as annual members.
It is projected that the increased membership fees will generate additional revenue in the
amount of $100,000 annually and the additional revenue from the driving range is
estimated at approximately $25,000. The added revenue will enable current the levels
of customer service and maintenance standards to remain at the current standards,
which are being very positively received by our golfing residents, tourists and day guests
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 07 - 08 would take effect October 1, 2007, but will be
advertised immediately upon approval.
T:IAGENDA\2007\sep2607 budget\Regular\9_26 Golf Fees -Annual Resident Membership Ammendment Memo.doc
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