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HomeMy WebLinkAboutReso 1980-10456 Revised 5/8/81 RESOLUTION NO. 10456 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING RESOLUTION NO. 8194, ESTABLISHING GREENS FEES FOR THE CHULA VISTA MUNICIPAL GOLF COURSE The City Council of the City of Chula Vista does hereby resolve as follows: NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that Resolution No. 8194 be, and the same is hereby, amended in the following respects establishing the standard greens fees, effective June 1, 1981, for the Chula Vista Municipal Golf Course: STANDARD GREENS FEES Number of Rounds 18 18 9 9 18 Applicable Days/Times/Months Monday through Friday (excluding legal holidays) Greens Fees Charges $6.00 Saturdays, Sundays and legal holidays 7.00 Monday through Friday (excluding legal holidays) 4.00 Saturdays, Sundays and legal holidays 4.50 Monday through Friday (excluding legal holidays) after 4:00 p.m., from May 1 to September 30; after 2:30 p.m. from October 1 to April 30. (Said hours shall be subject to adjustment by the manage- ment from time to time and shall be posted at the golf course. ) 4.25 18 Saturdays, Sundays and legal holidays after 4:00 p.m., from May 1 to September 30; after 2:30 p.m. from October 1 to April 30. (Said hours shall be subject to adjustment by the management from time to time and shall be posted at the golf course. ) 4.75 18 Saturdays, Sundays and legal holidays; surcharge with monthly ticket as described herein. 2.50 LADIES' DAY GREENS FEES 18 Tuesdays only; except when a legal holiday falls on a Tuesday. 5.00 STANDARD MONTHLY TICKET - RESIDENT The cost of a standard monthly ticket is hereby established at $35.00. Said monthly ticket shall entitle the purchaser to playa maximum of 18 holes of golf per day, except that said ticket shall not be valid on Saturdays, Sundays and legal holidays as here- inafter defined, provided, however, that said monthly ticket will be honored on Saturdays, Sundays and legal holidays after desig- nated times to be set by the management upon the payment of a surcharge of $2.50. -1- ,::)-J.UUr:.,e.IJ. IYIVL'l.LI-l.LJ.L .L..L.....n..l:l..L - ..L'\..L.IU..L.lJ.L.I.L'l..L The cost of a student monthly ticket is hereby established as $25.00. Said monthly ticket shall entitle students (defined as non-college students who have not reached their eighteenth birth- day or completed their senior year of high school) to pay a maximum of 18 holes per day after the hour of 3:00 p.m., subject to any rules, regulations or restrictions imposed by the manage- ment of the Chula Vista Municipal Golf Course. The student monthly ticket will be honored on Saturdays, Sundays and legal holidays, after designated times to be set by the management upon the payment of a surcharge of $2.50. Student tickets may also be issued to members of any golf team representing colleges or junior colleges located in Chula Vista, during the competition golf season only, provided further, that the Parks and Recreation Department is here~ authorized to waive greens fees for the opponents of local high school and college golf teams at regularly scheduled matches at the Chula Vista Municipal Golf Course. SENIOR CITIZEN MONTHLY TICKET - RESIDENT The senior citizen monthly ticket charge is established as $25.00. An age eligibility requirement must be met and certain restric- tions are imposed to qualify for this special monthly rate. 1. The individual must be at least 62 years of age. 2. Play is restricted to weekdays only, holidays ex- cluded. 3. No reserved tee-off times are permi tted at the re- duced senior citizen rate. NON-RESIDENT HOLDING A CURRENT MONTHLY TICKET Any non-resident holding a current monthly ticket during the period of April 3 through May 5, 1981 will be allowed to purchase a monthly discount ticket for a charge of $50.00 each and may continue to purchase such a ticket so long as the monthly sequence of ticket purchases continues unbroken. This privilege is not transferable. RAIN CHECKS No rain checks will be given for any fee category. LEGAL HOLIDAYS DEFINED For the purpose of this resolution, legal holidays are 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, Admissions Day; second Monday in October, Columbus Day; November 11, Veterans' Day; fourth Thursday in November, Thanksgiving; and December 25, Christmas. PRIOR COMMITMENTS Any.commitments made prior to June 1, 1981, concerning greens fees for tournaments will be honored. Presented by Approved as to form by ~ ~ ....- 'Attorney Mark J. Pfi ter, irector of Parks and Recreation George D. Lindberg, City I c4 rJ(; ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHLl.A VISTA, CALIFORNIA, this 5th l~ 1 , by the following vote, to-wit: day of May AYES; NAYES: ABSTAIN: ABSENT: COtM'lCilmen Hyde, Cox, McCand1iss, Scott, Gi110w Councilmen None COtM'lCilmen Councimen None None Uj.t.U. --r{~ Mayor of the City of ChuIa Vista AT~~m~/?A;Y . '-. City Clerk . STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) 55. CITY OF CHULA VISTA ) I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chulo Vista, California, DO HEREBY CERTIFY that the above and foregoing is 0 full, true and correct copy of RESOLUTION NO. 10456 ,and that the same has not been amended or repealed. . DATED (seal) City Clerk .CC-660 J n cjtj~ REl'DRT ON GOLF COURSE GREENS FEES Greens fees for the municipal golf course were last amended in June, 1976. Since that date, the golf course has e"..perienced two floods that adversely affected the course's condition,and in turn, caused a considerable decrease in golf course patronage. This decreased patronage, coupled with double digit inflation,has produced a serious opera- ting deficit during fiscal years 1979-80 and 1980-81. The golf course has now been restored to its pre-flood condition and has experienced a significant increase in patronage during the past three months. Unfortunately, increased patronage alone will not overcome the operating deficit. Hence, an increase in greens fees is being recom- mended in order to make the golf course revenue ITk~tch the course's operating expenses. .RF-AXA'vIMENDATION: That COtmcil approve increased greens fees as outlined below: Fee Category Present Fees Proposed Fees 18-hole Monday through Friday 18-hole Monday through Friday (twilight) 18-hole Satllr.iay and Sunday 18-hole Saturday and Sunday (twilight) 9-hole Monday through Friday 9-hole Saturday and Sunday Resident Monthly ticket Nonresident Monthly ti.cket Student/Resident Student/Nonresident Senior/Resident Senior/Nonresident Ticket Surcharge $ 4.50 2.50 5.50 3.00 2.50 3.00 20.00 25.00 10.00 15.00 15.00 20.00 1.50 $ 6.00' 4.00 7.00. 4.50 4.00 4.50 35.00 None 25.00 None 25.00 None 2.50 DISCUSSION Chart No. 1 shows a six-year history of golf course revenues and expenses. Fiscal years 1979-80 and 1980-81 show an operating deficit of approximately $90,000 and $135,000 respectively. Without a fee increase, a deficit of $165,000 is estimated for fiscal year 1981-82. 111e recommended fee schedule, in conjunction with Glenn revenue, should meet operating and bond repayment e>>.1Jenses in fi.scal year 1981-82. Total yearly revenue from greens fees is controlled by two basic factors: (1) Number of golf players and (2) fee charged each player. Number of Players During a good year with favorable weather, it is estimated that 80,000 to 90,000 players C'lll be accommodated at the municipal golf course. Past records show that the course is very busy with 85,000 players and ,\QuId have to be operated at maximum efficiency to handle 90,000.players. During calendar year 1978, approximately 86,600 golfers played the course. For fiscal year 1981-82, it is predicted that 80,000 rounds of golf will be played. This is the number of rounds used as a base for calculating revenues for this report. /OL{()6 -1- .. ." ,- Fees Charged Each Player There are various methods used to establish goH course fees. '!'hree bro;ld categories are: 18-hole cash payment; 9-hole cash payment; and monthly, quarterly or yearly tickets. TIlese categories are then subdivided as follows: 18-hole Monday through Friday 18-hole Saturday and Sunday 18-hole Twilight - Monday through Friday 18-hole Tlvilight - Saturday and SuncL~y 9-hole Monday through Friday 9-hole Saturday and Sunday 9-hole Tlvilight - Monday through Friday 9-hole Twilight - Saturday and Sunday Adult Nonresident Ticket Adult Resident Ticket Adult Senior Nonresident Ticket and Fee Adult Senior Resident Ticket and Fee Student Nonresident Ticket and Fee Student Resident Ticket and Fee Ladies' Day Fee The simplest method for setting fees i.s to divide the course's required revenue by the number of players who will be playing the course during a given year. As an example, the Chula Vista "funicipal Golf Course has an operating and bond repayment budget request, of approximately ~130,000 for fiscal year 1981-82. Thus, using the 80,000 predicted players for fiscal year 1981-82, the required fee would be $5.40 per player. In select- ing a fee schedule which includes discOlUltS, considerati,on must be given to the fact that for each round of golf played which costs less that $5.40 in a given category, an equal amount over $5.40 must be charged to another category. The ideal fee arrangement for ma,lmum revenue is realized when a golf course is so popular the course can be assured of the ma,inmm number of possible r0U11ds being played during the year. Under these con- ditions, a flat fee which is reasonable to all players, can be set to produce the revenue needed to match expenses. The City of Coronado has such an arrangement, with a minor variation. The Coronado course has a flat $6.50 fee for 18 holes; a twilight fee of $4 and a yearly $270 ticket for residents of the City of Coronado. If one fee for all players appears to be best suited for a golf course, why then are there so may fee cate- gories? Fee Categories There are three general objectives for multiple fee categories: 1. To recognize the citizens of a comnunity through a fee discount for their parti,ci- pat ion in purchasing and supporting a municipal golf course. 2. To ensure that there is no unused golf course capacity being wasted and to encourage play during periods tllat are less than ideal. 3. To aid resident senior citizens and resident students who are on 'fixed incemes to play on the municipal course. The above objectives are met by allo\ving discounts frem the standard 18-hole fee through the use of monthly, quarterly or yearly tickets and by using a twilight di.scount. Since each round of golf must produce a certain amount of revenue ($5.40 for the Chula Vista Municipal Golf Course in fiscal year 1981-82), an ~unount equal to the discolUlt must be added to the 18-hole cash fees. Analysis of past and present fees chows the following existing Chuhl Vi,sta Golf Course fee patterns: 18-hole cash 43% 9-hole cash 2Wo All tickets 37% Using the above percentages, four model fee schedules were constructed, using various fee amounts and keeping the percentage pattern constant. Three additional models were then constructed to show the effect of changing the percentage pattern to increase the percentage of 18-hole cash play. The models are displayed on Table 1. /DL('?6 -2- ". Fee Sched,lle Models The fee schedule models display revenues which :lre predicted from various fee arrange- ments. All the schedules are predicated upon 80,000 players using the golf course during fiscal year 1981-82. Schedules 1, 2, 3 and 4 assume the present percentage pattern, while Schedules 5, 6 and 7 make allowances for player shifts from ticket and 9-hole play to IS-hole cash play. Minimum Glenn revenue for 6 months is added to each schedule. Schedule Analysi.s Schedule 1 uses the present golf course fees. The monthly ticket rate is derived by averaging the various ticket rates and predicting that the average ticket player will play 13 rounds per month. The revenue generated by this schedule is forecast to be approximately $276,000. This amount is 8154,000 short of the $4:30,000 targeted amount. Schedule 2 provides for a $1 increase over present rates and a straight $15 per ticket increase for all tickets. Revenue from thi.s schedule is calculated to be approximately $357,000 or $7:3,000 short of the $430,000 targeted amount. Schedule 3 raises the basic fee by $1.50 and the ticket fees by $15 per ticket category. The revenue generated by this schedule is approxima.tely $:3S2, 000, an amolmt which is short of the target amount of $430,000 by $48,000. Schedule 4 charges the same rate for weekdays as for weekends and holidays. The ticket rate is the same rate used in Schedules 2 and 3. The return on this schedule is approxi- mately $376,000. The revenue return is approximately $54,000 short of the $430,000 tar- get amOlmt. Schedule 5 has the same cash rates as Schedule 4, but $10 i,s added to each ticket. This i,ncrease in ticket cost will not only increase the average return from a ticket from $2.50 to $3.50, but it is predicted that the ticket play will decrease by 7,000 rounds ~U1d the 18-hole Monday through Friday wHl increase by the same amount. This schedule will provide an estimated revenue of $427,000, an amount within range of the $430,000 target amount. Schedule 6 provides for a $1 across the board increase in ]8-hole cash fees and 81.50 for 9-hole cash fees; elimination of three ticket categories; and limiting oJ 9-hole play on the weekend to the hours of 7:00 a.m. to 8:00 a.m. on the hack 9 holes. It is forecast that 9,600 ticket players will shift to 13-hole cash play, and 6,000 weekend 9-hole players will shift to weekend IS-hole play. The play on the back 9 holes, between 7:00 a.m. and 8:00 a.m. will allow a section oJ the course, which otherwise would be idle while a\'~liting the 18-hole golfer who teed off No.1 at 7:00 a.m., to generate revenue. 111is schedule eliminates nonresident tickets, but does allow for discounts to Chula Vi,sta resi,dents through the medium of =nthly tickets. Schedule 6 generates $407,000, which is $23,000 less than the targeted revenue of $4:30,000. Schedule 7 has the same elements as Schedule 6, except the fees for Glsh play are in- creased by $1. 50 in all categories. This schedule generates $433,000 which provides a modest surplus of $:3,000 over the $430,000 target amount. /04CJ(; -3- Schedule No. fute V,lriable l. 2. Present rates $1 increase in all fees; $15 increase in all U.ckets. $1.50 increase in all fees; $15 increase in all tickets. $6.50 fee rate all week; ~15 increase in all tickets. $6.50 rate all week; $25 increase in all tickets. $1 increase in 18 hole fees; $15 increase in all tickets; Eliminate nonresident tickets and restrict 9-hole play on weekends. Same elements ~lS Schedule 6; $1.50 increase in IS-hole fees. 3. 4. 5. 6. 7. Revenue Expenditure Difference 276,000 430,000 154,000 357,000 430,000 - 73,000 382,000 430,000 - 48,000 376,000 430,000 - 54,000 427,000 430,000 3,000 407,000 430,000 - 23,000 433,000 + .3,000 430,000 Schedules 5 illld 7 are the only schedules in a range which will balance revenues and e;.;penditures. Schedule 5 would result in a substantial increase in weekday greens fees and all discount tickets. Schedule 7 eliminates di.scount tickets for all nonresident categories and some 9-hole play on weekends. On balilllce, Schedule 7 appears to be the best cdnbination of fees for producing a balanced golf course fund. Chart 2 displays the prescmt fees from a samp] ing of S~m Diego County golf courses. Emphasis was placed on displaying rrnmicipal golf courses. The recarmended fees for the Chula Vista Municipal Course are competitive with other San Diego courses. Conse- quently, the proposed fee increase should have a limited short-term er'fect on golf course patronage. Recent golf course patronage statisU.cs for the Chula Vista course and other San Di.ego County golf courses suggest that ticket discounts are no longer needed to ensure full capacity use of the Chula Vista course. Accordingly, I am recomnending that the non- resident discount tickets, which are now being used for this purpose, be discontinued so that portion of Chula Vista's course capacity devoted to nonresident discount play Cilll. be converted to cash and resident tick~t players' use. Continuation of resident tickets is recomnended: 1. To recognize comnunity citizens through a fee discount for their participation in purchasing illld supporting a nmnicipal golf course. 2. To aid resident senior citizens and resident students who are on fixed incomes to play on the municipal course. 1()4 t) 6 -4- GOLF COURSE REVENUES AND EXPENSES* 1976-77 EXP REV 500,000 480,000 460,000 440,000 420,000 400,000 380,000 360,00'J I 340,000 1977-78 EXP IREV 320,000 300,000 2(10,000 20.0, :)00 21; (J ~ C;OO 220.000 200,000 180,000 ______. .......L..__..___ 1978-79 EXI' REV I i I I i " ! I I I I I I ! I I I : :;0 ~ ro I " i 0 i 3 3 i ro I :::> i 0. I I ro " j 0. " ro ro V> 1979-80 EXI' IREV 1980-81 EXP REV "Includes bond reI' aymenLbut does not include C, 101'0 items. FY's 1980-81 and 1981-82 are est;mates I D4 /f1p 1981-82 XI' REV -0 .., ro V> ro :::> rl- " ro ro V> Chart I E1iminat8, Some Eliminate Some Sizable Ticket Tickets; Limited Tickets; Limited, Increase; Weekend 9 Holes; Weel,end 9 Holes; , Present Rates Flat $1 Increase $1.50 Increase Same Rate All Week No Weekend Increase $1 Increase $1.50 Increase I r~~m:]Hate IRev~~ue :~~ RaJ\Revenue :~~~ RatJReven~el~~m~ Rate ~::nu: '~~~~'IIRaie Revenue,~~~~' RaJ~:ven~:I:~1~1~~:~I~venue i I I I' ,I i' I 115,0004.50 i 67,500115,0005.50 82,500,15,00016.001 90,000115,0006.50 97,500 22,00d;6.50 143,000;24,600 5.50 135,300124,600!~.00!]47,600 115, ooe 15.50 182,500115, 000 16'50197' 500; 15, ()()() I" oo[ '05,0001'5, ()()() 6, 50 97,5OOi 15,000 i'5O 197 '000122' 000 6,50 113,000 122'()()() (0'1''' ,000 I' 12,20012.75 I 6,0501 2,20013.75! 8,250 2,20014.251 9,350 2,200!4.25 9,3501 2,200 ~.251 9,3501 2,2003.75 8,2501 2,20014.251 9,3501~ 2,2003.25 I 7,1501 2,2004.25\! 9,350 2,2004.7511 10,450 2,2004.25' 9,3501 2,200 i4.25 9,3501 2,2004.25 9,3501 2,20014.751 10,4501~ ! ii' I I I I I~ 18,0002.50 120,0001 8,000:3.50 28,000 8,0004.001 32,000 8,0004.00 32,000 8,000 ~.OO! 32,000! 8,00~4.00 32,000: 8,000!4.00; 32,000'1' 18,0003.00 124,000 8,00014.00 32,000 8,000,4.501 36,000 8,00014.00 32,0001 8,000 ~.OO 32,0001' 1,00d4.50 4,50011,000i4.50i 4,500 i29,600 1.50 44,40029,6002.501 74,00029,60012.501 74,000129,60012.50, 74,000122,60d!3.50 79,100 20,00~2.50: 50,000:20,000i2.501 50,000 I I I I ! I i II i I I I, Ticket I I I I I Ii! I, I Surcharge i 5001.50 750! 5002.501 1,250 50012.50i 1,250: 5002.50 1,250i 5002.50 1,250)" 4002.50 l,oooi 400)2.50: 1,000 ;::\Tota1s 180 000 1252 350180 000 332 850180 0001358 050' 80 000 352 950180 000 1403 550180 000 Ave. 383 400' i 1408 900 )"Adult Nonresident 25 40 40 40 50 None None :;--Adult Resident 20 ,35 35 35 40 35 35 , ..... Adult Sr. Nonresident 20 35 30 35 35 None None Adult Sr. Resident 15 I 30 25 30 30 25 25 Student Nonresident 15 30 25 30 30 None None Student Resident 10 I 25 20 25 25 25 25 18 Holes 43% 43% 43% 43% 52% 6'1% 64% 9 Holes 20% 20% 20% 20% 20% \ 11% I 11% Tickets 37% 37% 28% 37% 28% 25% 25% Greens Fees 252,350 332,850 358,050 352,950 403,550 383,400 408,900 The Glenn 24,000 24,00024,000 24,000 . 24,000 24,000 24,000 Totals 276,350 356,850 ' 382,050 '376,950427,550 407,400 432,900 " () 1l ~ 18 Holes Mon-Fri Sat-Slln Twilight 18 Holes Mon-Fri Sat-Slln 9 Holes Mon-Fri Sat-Slln Tickets RATE SCHEDULES BASED ON 80,000 PLAYERS Schedule No. 1 Schedule No. 2 Schedule No. 3 Schedule No. 4 , Schedule No. 5 Schedule No. 6 Schedule No. 7 17,000 tic.l1.ct p1!.aljeM moved:to 18-{1O.i'.el>, MOil-FilL Z 9,600 tic.flu p1!.aljeM moved:to 18 hole" ," !\1ol1-Ff1-t, 37,000 9-hote p1!.aljeM moved t.o 18 I!ot~~, Sa:t-Sw ~_ ,.,.}+T_." .: ~ "~'j. . ~ . ~ ~ ~,_ ~ d' "~ .l:l.'............ tI,\I!-<I>, ... ... ;,.I.~ ,,.'11 ~,III'"~~ ~.'..~'I. <{'."<.-r"~""'Go,.Jo!~\~!, lo'1I;'il.:'''<'''''-'~''\V.r Greens Fees at Other San Diego COlmty Golf Courses * ~,o t:;.'IY "",0 0' * .0.0 0'" oi" cP * :<f'1>' ~ * . ,,'1>' t:;.'" <::f ~0 .~ <:;.'" .~<0 So'" .~ C:;'" cflo. ,$ o~ ",><J 0' 'b' ~00 :y'1>' <f' 00 ?y><J ,s; '1>'0 o~ ~ ~ #'u 0. ",'1>' <J3 .~0 f;f .:,.'" . 0'1>' CJ 00 6"0 0/ <<,.0 IS-Hole Mon-Fri $6.50 $6.00 $6.50 $9.00 $7.00 $7.00 $10.00 $6.00 $6.00 IS-Hole Sat-Sun $6.50 $7.00 $6.50 $10.00 $9.00 $9.00 $12.00 $8.00 $7.00 *These courses use discount tickets in various forms. Coronado has a $270 yearly discount ticket for resjdents only. Oceanside uses the following monthly tickets: Resident $33.00 Nonresident $37.00 Senior Resident $28.00 Senior Nonresident $34.00 Balboa uses a $22.25 resident and a $2S.00 nonresident ticket. Bonita uses a $60.00 monthly ticket. fOL/i?6 Chart 2 .,'..~...,-, ..... -'" .".