HomeMy WebLinkAboutAgenda Statement 1981/05/05 Item 12
COUNCIL AGENDA STATEMENT
ITEM TITLE:
Item 12
Meeting Date 5-5-81
Resolution /.?f'5tAmending Resolution No. 8194 Establishing Greens Fees for
the Chula Vista MilIlicipal Golf Course
SUBMITTED BY:
Director of Parks and Recreation --j'Ylf?
(4/5ths Vote: Yes
NoJU
At the April 21, 1981 Council meeting, the City Council considered a report by the Director
of Parks and Recreation recomnending amendment of the municipal golf course greens fees.
During the course of deliberations, several golfers made oral presentations for and against
the proposed fees, and 1!r. Cliff Roland submitted a written report for consideration.
Council continued the deliberations on this matter for a week and directed staff to consider
the oral and written ccmnents. The ccmnents have been carefully considered. There is no
doubt that there will be some individual hardships imposed by 'the new fees, but the financial
health of the golf course is critical to its continued existence, without a continued drain
on the City's General Fund. In this regard, the fee structure recomnended in the report is
one which is designed to keep the fees low enough for the Chula Vista course to be competi-
tive enough to attract cash players in sufficient numbers to generate the required operating
and bond expenses. Schedule 7 in the report is the fee structure which will allow the course
to be competitive while providing a liberal discount through monthly tickets for Chula Vista
citizens. Lowering the ticket prices, allowing other discounts, allowing nonresidents to
purchase tickets will either reduce the revenue below the required amount or will require
an increase in the cash price. Accordingly, it is my
RECDMMENDATION: That Council adopt the fee structure reccmnended in the report.
EOARD/~~ISSION RECOMMENDATION: The Parks and Recreation Commission reccmnended adoption
of the staff-recommended fee schedule at their meeting on April 16, 1981.
DISCUSSION
The staff-recommended fee schedule is designed to cover only the operating and bond expenses.
, The increased fees are not intended to cover any flood damage repair or past years' deficits,
" nor to produce a profit in coming years. The surpluses in 1977-78 and 1978-79 ,mentioned in
; 1!r. Roland's letter did not include the required bond payments. Subtracting these payments,
, the total surplus for both years was approximately $15,000: These surplus years were followed
t by two years with heavy deficits, resulting in a substantial golf course debt to the City's
[ General Fund. The proposed fees do not include provisions for any debt repayment other than
, the bonds. IDwering any fees in one category would require a concomitant increase in another
category if the course is to break even.
The resident tickets are designed to give the residents of Chula Vista a golf course discount.
These ticket holders, based upon research, use the course an average of 13 times per month.
The recommended ticket fee of $25 for seniors and students equates to a charge of $1.92 per
~ round of golf, if used 13 times. The cost per round for a non-senior resident is $2.69 per
round. To break even, the course must return $5.40 per round. In this context, the $1.92
per round for senior residents and $2.69 for non-seniors appear to be quite liberal.
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Viewing the ticket increase from another perspective, the senior rate, assuming the 13 rounds
_, per month is played, is being increased from $1.15 per round to $1.92 per round, an increase
of 77 cents, while the cash players' fees are being increased by $1.50. The cash discount
Continued on Page two
A-113 (Rev. 11/79) I()l(~~
EXHIBITS
Agreement_____ Resolution~ Ordinanc~_____ Plat_____ Notification List
Report on greens fees '
Other x ENVIRONMENTAL DOCUMENT.: Attached Submitted on
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Page two
Item 12
Meeting Date 5-5-81
category for senior adult players has not been recommended. The availability of the cate-
gory to a limited number of players did not warrant the continuation. These players would
IlDve to a IlDnthly status or pay at recommended cash rates. By playing an average of five
rounds per IlDnth, with a senior resident ticket, an individual receives a.discoU11t of $1.00
per round; if IlDre rounds are played a greater discount is received.
The suggestion to grandfather nonresident ticket users has merit, but a check of the records
reveals tllat proper identification of the users and subsequent administration cost of such
a program would be high. Moreover, such a system is based on the subjective merit of a
special group of nonresidents. If this exception were approved, there are likely to be
other special category nonresidents who can make illl equally strong case for their groups,
resulting in a continuing addition of special group exceptions and a reduction in .generated
revenue.
Raising the golf course greens fees is a difficult task for everyone concerned. Accordingly,
a great deal of care was taken to develop a fee schedule which would restore the golf course
to a break-even financial state, while at the same time, being fair to the citizens of Chula
Vista and the golf course users. The recommended fee schedule comes closest to meeting this
goal. I continue to recommend this fee schedule.
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COUNCIL AGENDA STATEMENT
Item tr-. /0
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Meeting Date 4-at-81
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ITEM TITLE:
Resolution
'Amending Resolution No. 8194 Establishing Greens Fees
for the Chula Vista Municipal Golf Course
SUBMITTED BY:
Director of Parks and Recreationrn P
(4/5ths Vote: Yes
No~)
Included as an exhibit is a report on golf course greens fees.
RECDMMENDATION: That Council accept the report and approve a resolution amending the
present golf course greens fees, to become effective June 1, 1981.
BOARD/CDMMISSIONRECD\1MENDATION: The Parks and Recreation Ccmnission recorrrnendahon will
be presented orally.
DISCUSSION
The fiscal year 1981-82 budget request for the municipal golf course will be approximately
$430,000. Present greens fees and Glenn rental are estimated to produce revenues of about
$276,000, leavillg a projected Golf Course Fund deficit of $154,000 in fiscal year 1981-82.
The fiscal year 1981-82 deficit was preceded by deficits of $90,000 and $135,000. A busic
increase of $1.50 in all cash greens fees and the elimination of nonresident tickets and
9-hole play on Satrudays and Sundays is recorrrnended in the report in order to balance the
golf course revenues and expenditures.
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by the City Cowleil of
Chula Vista, Caliiornia
. Dated
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Form A-113 (Rev. 11 /79)
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EXHIBITS
Agreement Resolution x Ordinance Plat Notification List
Report on golf course greens fees- -
Other X ENVIRONMENTAL DOCUMENT: Attached Submitted on