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HomeMy WebLinkAbout2008/10/21 Item 10 CITY COUNCIL AGENDA STATEMENT . "'" A CITY OF ----" (HULA VISTA 10/21/2008, Item~ ITEM TITLE: PUBLIC HEARING: CONSIDERATION OF AtvIENDING THE CITY'S MASTER FEE SCHEDULE, CHAPTER VIII, SECTION A, B, Al'ID D AND ESTABLISHING NEW GREENS FEES AT CHULA VISTA i'vfUNICIPAL GOLF COURSE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ANIENDING CHAPTER VIII (GREENS FEES, CHTJLA VISTA MUNICIPAL GOLF COURSE) THE CITY'S i'vLA.STER FEE SCHEDULE AND ESTABLISHING NEW GREENS FEES AT CHULA VISTA MUNICIPAL GOLF COURSE SUBMITTED BY: REVIEWED BY: DIRECTOR OF PUBLIC WORKS @~ fi, INTERTh1 CITY MAi'lAGER <7-) . 4/STHS VOTE: YES D NO 0 SUMiVL<ill.Y Arrierican Golf Corporation (AGC) is requesting rate changes to greens fees for the Chula Vista Municipal Golf Course. In accordance with the lease agreement, AGC can submit rate changes on an annual basis for the City's review and approvaL The current greens fees have been in. effect since August 1, 2006. RECOMMENDATION: That Council conduct the public hearing and adopt the resolution. BOARD/COMMISSION RECOMMENDATION: The Presidents of the Men's and Women's Golf Clubs were notified and the proposed rate fee changes were posted at the Pro Shop. Both the Men's and Women's Clubs support the new greens fees. DISCUSSION: American Golf Corporation (AGC) submitted a request for rate changes to greens fees for the Chula Vista Municipal Golf Course (CVMGC) in April of 2008. Staff recommends approving modified Greens Fees rates, but different from AGC's proposaL The current greens fees have been in effect since August 1, 2006. L, preparing its analysis, staff compared the rate changes requested by AGC to comparable courses in the area, such as Coronado, Bonita, Balboa, and 10-1 10/21/08, Item~ Page 2 of 5 Oceanside. The San Diego Country Club and Eastlake golf courses were excluded from this analysis because these golf courses are privately and semi-privately o\\ined, respectively. AGC did not object to staff comparing their proposed rate increase to the golf courses mentioned above. Golf Course. The current golf course conditions reflect an improved on-going maintenance schedule that delineates the tee boxes, fairways, and greens areas by mowing grass at a shorter height. Greens quality remains consistent and bunker quality continues to improve. Golf course management has emphasized regular course audits and has paid close attention to details from a golfer's perspective. Furthermore, AGe has spent approximately $230,000 over the past t\\io years making capital improvements to the golf course. Some of the new improvements include: a Cart path installation (21,956 sq ft). a Fairway sod installation (29,500 sq ft). . Installed new HV AC in banquet rooms. . Replaced irrigation pumps. Greens Fees Analvsis. Table A shows CVMGC's current rates, along with AGC's proposal and rates for Bonita, Balboa, Oceanside and Coronado. As indicated in Table A, AGC proposes to increase resident and non- resident greens fees for weekend 18 holes by $3.00. AGC also proposes to increase the resident card from $10.00 to $20.00. Staff recommends increasing resident and non-resident' greens fees for weekend 18 holes by $3.00 and $4.00 respectively. The higher non-resident fee proposed by staff represents an increase of 11.76% compared to an increase of 11.54% for residents. Also, as reflected in Table A, non-residents typically pay higher greens fees at municipal golf courses. Regarding the resident card, staff recommends increasing this fee from $10.00 to $12.00. Senior Tickets. Currently, seniors who purchase the $50 monthly card have unlimited golf play on weekdays for $3.00 per round. AGC recommends increasing the ticket fee from $3.00 to $4.00 per round. However, this fee was increased from $2.00 to $3.00 per round "ith the last rate increase in August of 2006. In addition, this fee only affects the group of seniors who were "grand-fathered" as existing card holders, which means no new additional card sales can be issued. As a result, the number of senior tickets has been reduced from 64 to 35 cardholders over the past two years. Therefore, staff does not recommend increasing the senior tickets based on the following information: . There are only 35 monthly cardholders (45% reduction since 2006). o Monthly cardholders pay an average cost of $8.00 per round on weekdays and represents only 17 percent of all weekday play. a The $12.00 resident senior card allow seniors unlimited play at a fee of$I1.00 per round on weekdays and represents 61 percent of all weekday play. 10-2 10/21/08,ItemR Page 3 of 5 The following information is also provided regarding the play at CVMGC based on 76,995 rounds: . Residents represent 54 percent of total play; . o Non-residents represent 18 percent of total play; o Approximately 28 percent of total play are tournamentslreplays and greens fees specials; · The senior rate of $11 remains the lowest when compared with Balboa, Mission Trails, Coronado, Oceanside, and Bonita golf courses. Table A below shows CVMGC's current rates, including AGC's and staffs proposals and the rates tor Bonita, Balboa, Oceanside and Coronado. 10-3 Table A Competitive Market Analysis Average Rates Bonita Balboa Oceanside Coronado Rate of 4 CVlVIGC Courses Existing Weekday Resident 18 holes 26.00 28.00 23.00 25.00 .25.50 20.00 Non-Resident 18 holes 26.00 35.00 26.50 25.00 28.13 25.00 Resident 9 holes N/A N/A N/A N/A N/A 12.00 Non-Resident 9 holes N/A N/A N/A N/A N/A 15.00 Resident Twilight 17.00 17.00 12.75 13.00 . 14.94 13.00 Non-Resident Twilight 17.00 21.00 15.25 13.00 16.56 16.00 Resident Super-Twilight N/A N/A N/A N/A N/A 10.00 Non-Resident Super- Twilight N/A N/A N1A N/A il/A 1000 Senior (Residents) N/A 20.00 12.00 N/A 16.00 10.00 Senior Ticket (Residents) N1A N/A N/A N/A N/A 50.00 Ticket Fee N/A N/A N1A N/A N/A 3.001 Weekend Resident 18 holes 38.00 35.00 25.50 25.00 30.88 26.00 Non-Resident 18 holes 38.00 44.00 35.00 25.00 35.50 34.00 Resident 9 holes N/A N/A N/A N1A N/A 14.00 Non-Resident 9 holes N/A N/A N/A N/A N1A 17.00 Resident Twilight 25.00 21.00 15.25 . 13.00 16.44 16.00 Non-Resident Twilight 25.00 26.00 17.50 13.00 19.00 19.00 Resident Super-Twilight N/A N/A N/A N/A N/A 15.00 Non-Resident Super- Twilight N/A N/A N/A N/A N/A 15.00 Senior N/A N/A N/A N/A N/A N/A 10/21/08, Item~ Page 4 of 5 1 Existing cardholders have been "grand-fathered". Therefore, no new additional card sales are authorized. 10-4 10/21108, Item~ Page 5 of 5 Decision Maker Conflicts. Staff has reviewed the property holdings of the City COlUlciI and has found a conflict, in that COlUlcilmember McCann has holdings within 500' of the property, which is the subject of this action. FISCAL IMPACT: Staff recommends approving modified Greens Fees rates, but different from AGC's proposal, to go into effect on November 1,2008. The new greens fees increase will produce approximately $7,800 annually in additional revenue for the General FlUld based on a projected 76,995 rOlUlds of golf played at CVMGC Attachment: A. Request from American Golf Corporation for rate change for Chula Vista Golf Course B. Redline/strikeout (and clean copy) of the Master Fee Schedule Prepared by: Bob Beamon, Administrative Services lvfanager, Public Works Department H:\Agenda IremsIIO-2I-08ICVMGC Fee Increase. doc 10-5 ~ ehula Vista GOLF COURSE AA-nchrneJl+ A April 14, 2008 Mr. Tom Class Parks and Open Space Manager City ofChula Vista 447 F Street Chula Vista, CA 91910 Dear Tom; On behalf of Chula Vista Municipal Golf Course I am requesting the approval for golf rate increases. Rates were decreased in 2006 due to an overall decrease in rounds played and a competitive market analysis. Since the rate reduction we have had great success in securing more rounds than forecasted, increasing rOlli'ds 4% from 2005. However, in this same time span expenses have gone up considerably. 1v1inimum wage, health benefits, water and gas are just a few examples of our increases in expenses. Our labor expense has grown 25% since 2004, whiie water and other utilities have gro'Wn 200/0 over this same period. By add~""1g new equipment in food and beverage and maL'"1tenance, QUT lease expense has grOwTI 73% sL.'1ce 2004. Costs in these areas are forecasted to continue to rise. Along with these operating expenses, we have continued ,to invest in capir.al projects throughout this period. Following the $500,000 remodeling of the banquet facility, ivnerican Golf has invested over $300,000 in capital funds over the past Two years at Chula Vista Municipal. We have added $125,000 in c"-",, paths and have plans to continue this work~, 2008. Over S50,000 bas been spent on bunker and sod work during this time by adding sand to selected bunkers, and improving our summer turf coverage with the installation of bennuda sod. These projects have improved the overall guest experience and has added increased value to the properly We have completed a market analysis of competitor courses and comparable rates. We have identified a few rates L1clat we feel we are below the market and sbould increase. These suggested increases still keep our rates below Li}e price of our competition, 3J."1d will continue to be a value to Qur guests. I believe these increases are in order and will assist us in managing through the demands of ~ncreasing operating expenses while remaining competitive in OUT market segment. Thank you in advance for your time and consideration on this proposal. Please get back to us at your earliest convenience as we would like to implement the changes right away. l~ Chris Gilfillen General Manager Chula Vista Municipal Golf Course American Golf Corporation cc earn Stephens I Attachment 4475 Bonita Rd . Bonita, CA 91902. 619.479.4141 10-6 fun" Wee.kday IResid~n.t 18 holes Non-Resident 18 holes Resident 9 holes SQn-R~side[1t 9 holes Reside:1.! TwilighT NOl"l-Resider.t Twdignl lResidenl Super-Twiiig~( L-_ _ Non-Resider1t Super- T~~~~~_._.__ SeniOl (Residents) Senior Tickets (Residents) Ticket Fee Weekend R~;d~~; i8hok";--'--- No~-R'e;idenr 18 holes ehula Vista GOLF COURSE Competitive Mark.et Analysis Chula Vis'" Golf Course IBOnita Balboa lo,,,",;d. 26.00! 23.00! 23.001 26.001 36.001 26.501 N/Ai I N/AI NJAi N/A! :>-liA! N/A! 17.00! 12.501 12.751 17.00i 20.501 15,251 Nt.A.! , I N/Ai N/Aj I i NiAI N/A! N/Ai N/A..! 10.5o! 12.001 , , NiA! NJA: N/A": , N/Ai -N/A' N/A! .- ,-""- !" =- r.l~l buy resident card __~~:~~_._~oo:~_ 25.501 38.001 41.00! 35.001 ~~2~t~:;::~,~~~=---- ,;~~: ~~ReSlden7T~;!lg~l 2) DO! Resident Super-Twilight N/A! Non-Resident Super. Twilighl Senior Resident Cards Senior Resident funi';; -Monthly card 525. Free golfMon-Fri. 53 after 12 on weekend City of Long Be:lch City of UlS Ao-:ge!es-seniors only .._. ._._u.,~ N/.""J N/A\ NtA: !5.251 , ;--itA! 12.5oi 20.50! N/Ai , ii.50! N/.A.i i N/Ai , N/A! , NtAi N/A\ 2~.OO: 25.001 , -. :-.reighoorbg Cities resident card pricing 20.00! i i 25.001 N/.J I N/,<\l 1 N/AI }.ii.A..! MissioD Trails 23.001 23.00! I NiA! N/Ai 20.00! 20001 N/Al i N/Ai 20.00! NiA! WA! 39.00i 39.001 N/.,I N/AJ 28.001 28.001 Average Rate 0(4 .cQurses 23.i5 27.331 NiAi , NJAI 15.56 18.19 N/AI , 14.1i i I N,:A: N/AI i 31.881 38.25, , N/.....! NiAl 20.19, \J./ , 22.75 ! N/A! CYMGC Existing NJ.4.l 1 N/AJ N/Ai , , :-;:AI N/A! '.:~~-:A~;' Difference i~ii ~-:QiY.'.j" D;ff",,,, ~;~~! % % I :'-if.'\! , NtA: I I NiAi N/A! 20.00 25.00 - ::! [:1 :~~,::: 0.00 l (]4.00)i -]00.00% 0.00 i , 0.00 i {16..00)t .100.00% 0.00 i 0.00 0.00%'- 1.00 1 0.00'% ~ 0.00 1.00 I 3ijJ~~J:~: O,OO! 0.00% ::.:~j~{::?':_----- ::':~:"K~-:/~. :.______2____ 3.00! ] l.54%,;'~, ''';>:~-,' --2~qq)I-100.0090 ":".i "><~:];__L3:.00)1 -100.00% 000% ;~~,~;./ ~_ (14.00)! _~~-"~ 12.00 14.00 13.00 16.00 10.00 10.00 10.00 50.00 3.00 26.00 34.00 )4.00 I 10.DOi 20.00; 10.00 j \O.OOi 20.001 10.00 I , ! 25.00( 25.00i 0.00 4475 Bonita Rd' Bonita, CA 91902 . 619.479A141 10-7 CHAPTER VIII fl;\u.,.., 'h" ,.." , " ,(' ,,' n-"' r-c-, ,-; 1,''-'- '--1)(__ Greens Fees, Chula Vista Municipal Golf Course A. STA1'!DARD GREENS FEES Number Standard Resideut of Greens Discount Applicable Davsrrimes/Months Holes' Fees Rate i Monday through Friday I (excluding legal holidays) 18 $25.00 $20.00 Saturday, Sundays and legal holidays 18 $;438.00 $U29.0~ , Monday through Friday I (excluding legal holidays) 9 $15.00 $12.00 Monday through Friday/t\Vilioht 9 $16.00 $13.00 I Monday through Friday/super twilight 9 $10.00 $10.00 , * Saturdays, SUndays and legal holidays 9 $17.00 $14.00 Saturdays, Sundays and legal holidays/twilight $19.00 $16.00 Saturdays, Sundays and legal holidays/super twilight I $15.00 $15.00 [Resolution 'C~Qs 'C'C"2008-xxxx. effective Q,".''Cj''C~~sl Jl0112008! * 9-hole play would continue to be scheduled in the early morning on the back nine only, Once the front nine golfers are fInished, 9-hole play will be limited after 12:.00 noon. B. RESIDENT DISCOUNTS 1. A resident discount card is established at an annual charge of$~12.00. Residency requirements must be met to purchase the discount card. One of the following forms of identification will be required to show proof of residency: [Resolution 'COOS 'C'C"2 008-xxxx. ~lJective ,1,".''C :,"'COOS 1110 1/2008! 1. Driver's License 2. Current Utility Bill 3. A Parcel Map sho\ving location of Chula Vista property o\Vnership 2. Resident rates shall also apply for non-residents of the City ofChula Vista who are members of either the Chula Vista men's Golf Club or the Chula Vista ladies' Golf Association and who have paid a $25.00 one time only fee to the City of Chula Vista. C. JUNIOR MONTHLY TICKET The cost of a junior monthly ticket is hereby established as $25.0Q. Said monthly ticket shall entitle a junior (defined as non-college students who have not reached their eighteenth birthday or completed their senior year of high school) to playa maximum of 18 holes per day after the hour of2:00 p.m., subject to any rules, regulations or restrictions imposed by the management of the Chula Vista Municipal Golf Course. C:\Docum~nt:; and S~!;tings\RobertB\Loc:l! Seuings\Temporary !;\lemet files\OL1C.1\C:lp. VIU--Gr~ns ?e~5 CV\1GC (38 redJine}_IO-:l-OS.doc 10-8 D. SENIOR RATES 1. Qualifications a. Chula Vista residency. Said residency shall be verified by driver's license or voter registration card. b. The individual must be at least 62 years of age. c. Play is restricted to weekdays only, holidays excluded. (Monday through Friday, 8:00 a.m. to 12:00 noon) 2. Seniors Discount Cards (Yearly, Monthly) a. Yearly Discount Card, subject to above qualifications- $+G-,OO 12.00. b. Monthly Discount Card, subject to above qualifications - $50.00.' · Only existing cardholders to be "grandfathered". No new cards issued after 07/25/2006. [Resolution 2999 22:2008.xxxx. effective 9.-'-."290911/01/20081 3. Seniors Greens Fees (Residents only) . Number of Greens Fees Applicable Davsffimes/Months Holes Charges I Monday through Friday, excluding legal holidays I - with $~ 1) yearly discount card 9 or 18 $~ 11.00 per round I - with $50 morith1y discount card "grandfathered 9 or 18 $ 3 .00 per round , , cards" issued prior to 07/25/?006) [Resolution 2999 22-2008-xxxx. effective 0-.'2.'/209911/01120081 I E. RAIN CHECKS No rain checks will be given for any fee category. F. LEGAL HOLIDAYS For the purposes of these golf course fees, legal holidays re defined as follows: January 1, New Year's Day; February 12, Lincoln's Birthday; third Monday in February, Washington's Birthday; last Monday in May, Memorial Day; July 4, Independence Day; first Monday in September, labor Day; September 9, Admission Day; second Monday in October, Columbus Day; November 11, Veteran's Day; fourth Thursday in November, Thanksgiving; fourth Friday in November; and December 25, Christmas. C:\Documems and :5ettin~\.Robe"B\Lo<;;~J Sertingi\T~mporal)' Intel1'let FiiesIOLIC.4\Chp. VIll--Greens Fees C'l/!'vtGC (BB redlin"eJ_IO_21..oS.doc 10-9 CHAPTER vrn Greens Fees, Chula Vista Municipal Golf Course A. STANDARD GREENS FEES Number Standard Resident of Greens Discount Aoplicable Davsffimes/Months Holes Fees Rate ] i , I Monday through Friday 18 $25.00 $20.00 , (excluding legal holidays) j Saturday, Sundays and legal holidays 18 $38.00 $29.00 Monday through Friday (excluding leaal holidays) 9 $15.00 $12.00 ! Monday through Friday/twiliaht 9 $16.00 $13.00 Monday through Friday/super twilight 9 $10.00 $10.00 , * Saturdays, Sundays and legal holidays 9 $17 .00 $14.00 Saturdays, Sundays andlegal holidays/twilight $19.00 $16.00 Saturdays, Sundays and legal holidays/super twilight $15.00 $15.00 [Resolution 2008-xxxx, effective 1//01/2008J * 9-hole play would continue to be scheduled in the early morning on the back nine only: Once the front nine golfers are fmished, 9-hole play will be limited after 12:00 noon. B. RESIDENT DISCOUNTS 1. A resident discount card is established at an annual charge of $12.00. Residency requirements must be met to purchase the discount card. One of the following forms of identification will be required to show proof of residency: [Resolution2008-xx-.x, effective 1//0//2008J 1. Driver's License 2. Current Utility Bill 3. A Parcel Map showing location ofChula Vista property ownership 2. Resident rates shall also apply for non-residents of the City of Chula Vista who are members of either the Chula Vista men's Golf Club or the Chula Vista ladies' Golf Association and who have paid a $25.00 one time only fee to the City of Chula Vista. C. JUNIOR MONTHLY TICKET The cost of a junior monthly ticket is hereby established as $25.00. Said monthly ticket shall entitle a junior (defined as non-college students who have not reached their eighteenth birthday or completed their senior year of high school) to playa maximum of 18 holes per day after the hour of2:00 p,m" subject to any rules, regulations or restrictions imposed by the management of the Chula Vista Municipal Golf Course. C:\Documenu and Sertings\ltobertB\Loca.J S~ttings\Temporary Internet Fjles\OLK2.~\Cap. VlI1-Greens FellS CVMGC (de:m cc)_lO-:I..(lIUoc 10-10 D. SENIOR RATES 1. Qualifications a. Chula Vista residency. Said residency shall be verified by driver's license or voter registration card. b. The individual must be at least 62 years of age. c. Play is restricted to weekdays only, holidays excluded. (Monday through Friday, 8:00 a.m. to 12:00 noon) 2. Seniors Discount Cards (Yearly, Monthly) a. Yearly Discount Card, subject to above qualifications - $12.00. b. Monthly Discount Card, subject to above qualifications - $50.00.* * Only existing cardholders to be "grandfathered". No new cards issued after 07/25/2006. [Resolution 2008-xxxx, effective / //0//2008J 3. Seniors Greens Fees (Residents only) Number of Greens Fees I Applicable DavsrrimeslMonths Holes Charges Monday through Friday, excluding legal holidays . - with $12 yearly discount card 9 or 18 $11.00 oer round - with $50 monthly discount card "grandfathered 9 or 18 $ 3 .00 per round cards" issued orior to 07/25/2006) [Resolution 2008-xxxx, effective 1//0//2008J E. RAIN CHECKS No rain checks will be given for any fee category. F. LEGAL HOLIDAYS For the purposes of these golf course fees, legal holidays re defined as follows: January I, New Year's Day; February 12, Lincoln's Birthday; third Monday in February, Washington's Birthday; last Monday in May, Memorial Day; July 4, Independence Day; first Monday in September, labor Day; September 9, Admission Day; second Monday in October, Columbus Day; November II, Veteran's Day; fourth Thursday in November, Thanksgiving; fourth Friday in November; and December 25, Christmas. C;\DOI;T.lmenIS and Settin!lsIRobertB\Local Setlings\Tempor:uy [ntemel FilesIOLK14\Chp. V1lI-C....ecns Fees C"",fGC (deln cc)_lo.2l..(J8JoG 10-11 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CRULl.. VISTA Ai.\1ENDING CHAPTER VIII (GREENS FEES, CRULl.. VISTA 1vfUN1CIP AL GOLF COURSE) OF THE CITY'S 1vL;.STER FEE SCHEDULE AND ESTABLISHING NEW GREENS FEES AT CRULl.. VISTA MUNICIPAL GOLF COURSE WHEREAS, American Golf Corporation (AGC) submitted a request for rate changes to greens fees for the Chula Vista Municipal Golf Course (CVMGC) in April 2008; and WHEREAS, in accordance with the lease agreement, AGC can submit rate changes on an annual basis for the City's review and approval; and WHEREAS, the current greens fees have been in effect since August 1,2006; and \VHEREAS, staff recorrunends approving modified greens fees rates, but different from AGC's proposal; and WHEREAS, in preparing its analysis, staff compared the rate changes requested by AGC . to comparable courses in the area, such as Coronado, Bonita, Balboa, and Oceanside; and WHEREAS, AGC has spent approximately $230;000 over the past two years making capital improvements to the golf course; and WHEREAS, staff recorrunends increasing resident and non-resident greens fees for weekend eighteen holes by $3.00 and $4.00, respectively, because the higher non-resident fee . proposed by staff represents an increase of 11.76 percent compared to an increase of 11.54 percent for residents; and WHEREAS, staff recommends increasing the resident card fee from $10.00 to $12.00; and WHEREAS, staff does not recommend mcreasmg the semor tickets based on the fonowing information: . There are only 35 monthly cardholders (45 percent reduction since 2006); . Monthly cardholders pay an average cost of $8.00 per round on weekdays and represents only 17 percent of all weekday play; o. The $12.00 resident senior card allow seniors unlimited play at a fee of$II.OO per round on weekdays and represents 61 percent of all weekday play. 10-12 J:\.-\\tOr:leylRESOIFINANCE\MFS . CVMG C"urse Gr<:ens .~=-'O.2I-08.do<; Resolution 2008- Page 2 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby amend Chapter VIII (Greens Fees, Chula Vista Municipal Golf Course) of the City's Master Fee Schedule, as reflected on the revised Master Fee Schedule on file in the Office of the City Clerk: BE IT FURTHER RESOLVED that the City Council does hereby establish new Greens Fees at the Chula Vista Municipal Golf Course in accordance with staffs proposal shown on the table on file in the Office of the City Clerk. BE IT FURTHER RESOLVED by the City Council that the new fees shall become effective on November 1,2008, Presented by Approved as to form by Jack Griffin' Director of Public Works :\"~ C\ ) / .' I ( c' .,' ~_ "..... uJi1~-{ . ~I\Bartiij:_ Mies eld'j .... .-\1 InterYm CIty Attorney 10-13 J:\.-l.lIom<<yIRESQIF1NANCE'MfS . CVMG Caurse Greens l'eo:s_IO-::l-08.doc