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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. 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