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HomeMy WebLinkAbout1/19/2011 - STAFF REPORTS - 5.C. �o pALM So 6 v vl * a0.N�p CITY COUNCIL AND CRA STAFF REPORT DATE: January 19, 2011 NEW BUSINESS SUBJECT: REVIEW AND DISCUSSION OF THE RESIDENT DISCOUNT FEE POLICY FROM: David H. Ready, Esq., Ph.D., City Manager BY: Thomas J. Wilson, Assistant City Manager SUMMARY In response to public inquiry, Mayor Pougnet asked that the Council review the City's Resident Discount Fee Policy, specifically in relation to the definition of "resident" and what the City accepts as proof of Palm Springs residency. The current Resident Discount Fee Policy was adopted November 5, 1997, by Resolution No. 19146, attached. The policy provides that the City will accept as proof of residency for the purpose of a resident fee discount one of two documents: 1. A valid California Driver's License with a Palm Springs address (post office box number is not acceptable); or 2. A Current California Voter's Registration Card with a Palm Springs street address. For a thorough review of the analysis which resulted in the current policy, please find copies of the following: 1. February 20, 1998, Park's Director Memorandum 2. Resolution No. 19146 establishing current policy 3. Staff Report to City Council for Resolution No. 19146 RECOMMENDATION: Direct staff as appropriate. Item NO. 5 . C . City Council Staff Report January 19, 2011 --Page 2 RESIDENT DISCOUNT FEE POLICY FISCAL IMPACT: NOTE—The data referenced in the following analysis is from the 2009 calendar year. There are three primary Categories of fees for golf rounds at the two Tahquitz Creek golf courses: • Non-Resident • Coachella Valley Resident • Palm Springs Resident In 2009 there were a total of 89,940 rounds of golf played. • Non-Resident Rounds = 72,193 • Coachella Valley Resident Rounds = 12,435 • Palm Springs Resident Rounds = 5,312 It is easier to demonstrate Coachella Valley Resident status than Palm Springs Resident status. Coachella Valley Resident status requires one of the following: • Valid CA Driver's License with a Coachella Valley address • Valid CA Automobile Registration with Coachella Valley address • Major Utility Bill with Coachella Valley address • Property Tax Statement with Coachella Valley address • Any other Coachella Valley City residence card For 2009 there were 3,506 persons who qualified as a Coachella Valley Resident. 1,146 of those, or approximately 33 % had a Palm Springs address. If the criteria to establish Palm Springs residency for the purpose of discount fee eligibility were to change to include Ownership of Palm Spring property, then in 2009 potentially 1,146 additional persons would have qualified. Assuming everyone played the same average number of rounds, then one-third of the 12,435 Coachella Valley Resident rounds (4,145 rounds) would have been at the Palm Springs Resident rate which is an average of $17.30 less than the Coachella Valley Resident rate. City Council Staff Report January 19, 2011 — Page 3 RESIDENT DISCOUNT PEE POLICY The revenue reduction, therefore, for 2009 would have been a maximum of$71,709.00 -� . Thomas J. Wi n David H. Ready .D_ Assistant City anager City Manager kdh Attachments: 1. February 20, 1998, Park's Director Memorandum 2. Resolution No. 19146 establishing current policy 3. Staff Report to City Council for Resolution No. 19146 Attachment 1 City of Palm Springs Department of Transportation Parks,Recreation&Golf Division � 401 S.Pavilion Way ■ Palm Springs,CA 92262 Telephone:(760)323-8265 ■ FAX:(760)323-8279 MEMORANDUM DATE: February 20, 1998 TO: Allen Smoot, Director, Department of Transportation FROM: Scott Mikesell, Contracts Manager, Parks, Recreation&Golf Division SUBJECT: GOLF COURSE RESIDENT POLICY Construction of what-is-now-called the legends Course at Tahquitz Creek Golf Resort was completed in 1959.The City of Palm Springs assumed that property's operation and management through a purchase agreement in 1962.The City has owned the property since that time and has operated it with City staff and through various leases and agreements to the present time. During the initial years of operation,from 1962 until 1971,the golf course had no specific policy regarding the distinction of resident status for discounted golf play.During this time,"Ticket Books" were issued to anyone interested in purchasing them.These books offered a discount to players by providing a set number of coupons for play in exchange for their advance purchase.This system remained in effect until 1971. On April 4,1971,City Council adopted Resolution 9985,which established a new set of"Rules and Regulations"for the Palm Springs Municipal Golf Course. This document also modified fees for play as had been done from time to time in previous City Council actions.The distinguishing article within Resolution 9985 pertaining to residents is the establishment of a new discount policy through the purchase of"Annual Permits"and"Ticket Books."These programs for discount golf privileges were to be made available only to residents of the City of Palm Springs.This new policy offered further discounted rates than before,limited the days and times when the discount could be used,and established the criteria by which the permits could be purchased.Other than limiting the times,days and general usage of both the Annual Permits and Ticket Books,the only criteria limiting their purchase was that the discount programs would be sold only to"registered voters of the City of Palm Springs."This was outlined in Section 4,Subsection c.1 for Annual Permits and Subsection i.I for Ticket Books in Resolution 9985. To date,and over the course of the next 17 years,City Council has adopted 13 separate resolutions, either amending the Rules and Regulations or modifying the Fee Schedules of the golf course.On seven separate occasions,these amendments have modified or changed the criteria for the definition of a resident relating to the purchase of discount programs being offered at the golf course. DATE: February 20, 1998 TO: Allen Smoot, Director, Department of Transportation FROM: Scott Mikesell, Contracts Manager, Parks, Recreation&Golf Division PAGE: Two SUBJECT: GOLF COURSE RESIDENT POLICY The first such change in resident criteria was adopted on October 6,1976,through Resolution 11945. This resolution changed the existing fee structure,eliminated annual permits(through omission)and expanded the criteria determining resident status under Rules and Regulations Section II,Subsection 8,Ticket Books,items"c"and"f:" C. 'Picket Books may only be purchased by a resident of the City of Palm Springs. f. Residents as used in c.above shall be defined as an inhabitant of Palm Springs as evidenced by: I) Voter's registration with City of Palm Springs address,or 2) A driver's license with a City of Palm Springs address,or 3) Proof of land ownership within the City,or 4) A lease agreement or copies of utility bills,or other documents demonstrating that the person resides in Palm Springs for a continuous twelve-month period h of time. On October 18, 1978, through adoption of Resolution 12794, the use of"Ticket Books" was eliminated within the golf course Rules and Regulations and Fee Schedule. The new program replacing this item was presented as a new"Discount Card"that could be purchased for a nominal fee and was available only to residents of Palm Springs. No modifications to the criteria for residency were done at this time.Resident criteria was not modified again until 1984. On September 5,1984,through Resolution 15217,City Council again made modifications to the golf course fee structure and amended the criteria designating residency requirements.In short,the item approving land ownership within the City of Palm Springs as proof of residency was eliminated within the appropriate section due to this action.This resolution remained in effect until September, 1988. On September 7, 1988,City Council adopted Resolution 16564.This resolution modified fees,rules and regulations,and added restrictive language defining residents and nonresidents,it being the fast time discount cards were offered to nonresidents of Palm Springs.A clearer distinction was being sought to describe the difference between a full-time resident of the city from that of a part-time resident or nonresident.This distinction was made clear by defining a"resident"as having their "primary"residence in the City of Palm Springs and accepted as proof of this residency a voter registration card or a valid California driver's license. DATE: February 20, 1998 TO: Allen Smoot, Director, Department of Transportation FROM: Scott Mikesell, Contracts Manager, Parks, Recreation&Golf Division PAGE: Three SUBJECT: GOLF COURSE RESIDENT POLICY I The next modification on file is dated November 5, 1997.This action further clarified the definition of a resident of the city within the Rules and Regulations for the newly-named Tahquitz Creek Golf Resort.Within Section 1,1tem b,the following was proposed: i i b. Resident Discount Cards may only be purchased by individuals who can provide at least one of the following: • Voter's Registration Card showing a Pahn Springs address; • California Driver's License showing a Palm Springs address(post office box unacceptable);or • Proof of ownership of real property within the city limits of Palm Springs. Acceptable proofs of ownership would be documents such as a current tax roll or property profile. On November 5, 1997,City Council adopted the above resolution,being.Resolution 19146,but amended the criteria regarding residency by eliminating the language accepting proof of ownership of real property within the city limits as evidence of residency. The current policy, as stated in Resolution 19146,is in effect today. As a recommendation,the Parks,Recreation&Golf Division staff seeks to include the language as originally proposed in Resolution 19146 (November 5, 1997), This language is similar to that adopted by Resolution 11945 (October 6, 1976) and is the most comprehensive and equitable solution for residents of the City of Palm Springs. It is also consistent with other local resident policies. I i I 1 Attachment 2 RESOLUTION NO. 19146 ' OF THE CITY COUNCIL. OF THE CITY OF PALM SPRINGS, CALIFORNIA, RESCINDING RESOLUTION NO. 16827 AS AMENDED REGARDING PALM SPRINGS GOLF COURSE AND ADOPTING FORMAL RULES AND REGULATIONS FOR THE TAHQUITZ CREF,K GOLF RESORT. WHEREAS the Formal Rules and Regulations for the former Palm Springs Golf Course are no longer applicable for the City-owned Tahquitz Creek Golf Resort;and WHEREAS Formal Rules and Regulations are necessary to operate the Tahquitz Creek GoII'Resort, NOW THEREFORE BE IT RESOLVED by the City Council of the City of Patin Springs that the Formal Rules and Regulations for the'rahquitz Creek Golf Resort be adopted as follows: RULES AND REGULAONS I. Discount Cards a. Resident Discount Cards may be purchased annually for a fee of$27 at the Palm Springs Leisure Center, 401 S. Pavilion Way, on Tuesdays and Thursdays between the hours of 9:30 a.m.and 12:30 p.m.and 1:30 p.m. and 3:30 p.m. b. Resident Discount Cards may only be purchased by individuals who can provide at least one of the following: • Voter's Registration Card showing a Palm Springs address;or • California Driver's License showing a Palm Springs address (post office box unacceptable). C. Resident Discount Cards are valid for one calendar year(January 1 through December 31) and yearly renewal is required. Cards are valid until December 31 of the year purchased or until a change in the Resident Discount Card policy affecting eligibility is approved by City Council or until the cardholder no longer meets the eligibility requirements,whichever occurs first. d. Resident Discount Cards are not transferable. e. No refunds will be given once card fee is paid. f. Reservations may be made Monday through Thursday and may be made up to,but not to exceed,seven days in advance for lee tines prior to 8:00 a.m. All other times are considered prime time and the use of the Resident Discount Card during all prune time shall be on a standby basis only.Prime time is considered to be Monday through Thursday after 8:00 a.m.and all day on Friday through Sunday and holidays. g. The following are designated as holidays for golf course purposes: January I - New Year's Day Third Monday in January - Martin Luther King's Birthday Second Monday in February - 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 Second Monday in October - Columbus Day November 11 - Veterans' Day Fourth Thursday in November - Thanksgiving Day December 25 - Christmas Day and such other as the Mayor may proclaim. h. The Resident Discount Card will provide special rates or discounts on the posted frill-rate golf tees for 18 holes(including cart)in accordance with the City's Comprehensive Fee Schedule. Discount cards cannot be used in conjunction with any other promotional discount. 2. All private golf cart owners shall check in with the starter prior to the beginning of play.Greens fees will not be discounted for private golf cart use. 3. Walking will be permitted on Monday through Thursday year round on the Legend Course. Rates will not he discounted for walkinalaye�s� � ��rf 4. With prior approval of golf course management staff,a"No Charge"rate shall apply for practice and match play to the Palm Springs High School Golf Team on a space- ' available basis, 5. The City of Palm Springs Director of Parks, Recreation and Golf Division may authorize special rates for promotional purposes or golf tournaments during slower periods,such as afternoon twilight hours and during off-season,for a maximum of 100 consecutive days. 6. Off-season rates will be in effect for the those in the Junior Golf Program(persons under age 18), all day Monday through Thursday on a standby basis and after 10:00 a.m.Friday through Sunday and on holidays. ADOPTED this 5th day of November , 1997. AYES: Members Barnes, Hodges, Oden, Spurgin and Mayor Kleindienst NOES: None ABSENT: None ATTEST: Cl' -O • PALM SPRTN S,CALIFORNIA By- City Clerk City Manager REVIEWED&APPROVED AS TO FORM j a . Attachment 3 DATE: November 5, 1997 TO: City Council FROM; Director,Parks,Recreation&Golf Division,via Director,Transportation Department ADOPTING FORMAL RULES AND REGULATIONS FOR THE TAHQUITZ CREEK GOLF RESORT AND AMENDING COMPREHENSIVE FEE SCHEDULE RECOMMENDATION: That City Council adopt a resolution setting forth the Formal Rules and Regulations for the Tahquitz Creek Golf Resort and adopt a resolution amending the Comprehensive Fee Schedule. BACKGROUND:. OwAhe`discount card'policy was'Iast reviewed by the City in 1989 when the current policy was adopted. There have been many major changes at the City's golf course, such as the addition of the new Resort Course, the common area improvements and upgrades,the adoption of the management contract with Arnold Palmer Golf Management Co.(APGMC) and the name change to Tahquitz Creek Golf Resort. To keep with the changes and improvements listed above,APGMC staff and City,staff have reviewed the current golf discount card policy and are presenting a revised program with added value for Palm Springs residents. It is widely known that any person, regardless of residence, can obtain a Nonresident Discount Card and receive the same golf privileges as Palm Springs residents. Currently,the number of resident cardholders is approximately 300,while the number of nonresident cardholders is 240.For fiscal year 1997,resident/nonre'sidentplay totaled 8,526 rounds on.the Legend Course and 415 rounds on the Resort Course. Each year,the number of cardholders has increased without any change in the discount card policy. Today, there are more than 53' resident/nonresident discount cardholders competing for a fixed number of starting times.As a result,more and more cardholders are voicing strong frustration at the difficulty in securing a starting time that allows use of the discount card. The attached Exhibit A details the current discount card policy. What follows is a summary of the proposed discount card program. 1)NomesiduJDiLc2mt—C1rds Discontinue gelling the Nonresident'Discount Card as of December 31,1997.All current nonresident cardholders would receive benefits until their card dates expire.This change �� would establish exclusive benefits for Palm Springs residents while reducing the competition for resident cardholders'tee times by as much as 40-50%daily. i 2)°Resitlei5t Drseti ti4kkMs Change the structure to a resident-only card effective January 1, 19,98. These cards �n. n +st eci yr"� would be renew aniit[a11�f find valid until Deceti ber 3 C'iif eacli year;t;egardless of the putchak. did,"(for example, a card purchased July 1, 1998 wduld be valid until December 31, 1998).All current resident cardholders would receive benefits until their current cards expire,After January 1, 1998,resident cardholders would be bound by the criteria of the new policy. The cost for the Resident Discount'Card is'$21 for the calendar year. i 3) Definition of Resident Alter the definition of Palm Springs resident to include owners of real property within I the city limits of Palm Springs. Proof of property ownership would now be an acceptable form of proof for the purchase of a Resident Discount Card, The only verification accepted as proof for the purchase of a Resident Discount Card 4 would be one of the following: i Valid Calrf0 i;4,"" ver s lke'ns with a Palm Springs #doss(post office box number'is not acceptable);or Current T ut"zf©rnta Wter's rogistrattdh card with a Palm Springs:,att t addre ;or .. :., Proof of ownership of real property within the city limits of Paint Springs. Acceptable proofs of ownership would be documents such as a ctycrewtaail:y,r 4) Valid Time fQr Resident Discount Card 11sc Weekday reservati6 =(IvforctTay through Thursday) Mdy.'be riot:W exceed;-sev`en days in advance for tee tunes prior to 8:.00'a,m. All other times are considered prime time and the use of the Resident Discount Card during all prince time shall be on a standby basis only. Prime time is considered to be Monday through Thursday after 8:00 a.m.and all day on Friday through Sunday and holidays. 5) Res_ident_Disscpunt Car�.gns Fee Rates I The Resident Discount Card will provide the following special rates or discounts on the posted full-rate golf fees for 18 holes(including cart).Discount cards cannot be used in conjunction with any other promotional discount. • f Off Season(May through September): RESIDENT DISCOUNT FULL RATF Resort Course: May - $25.00(Mon.-Thu.) s° $50.00 - $30.00(Fri.-Sun.and holidays) .s p $60.00 i June through September - $17.50(Mon.-Thu.) Sa $35.00 - $22.50(Fri.-Sun.and holidays),r'b $45.00 Legend Course: May - $17.50(Mon.-Thu.) $c $35.00 - $22.50(Fri.-Sun.and holidays) S n $45.00 June through September - $14.00(Mon.-Thu.) 3 o $28.00 - $19.00(Fri.-Sun.and holidays) �6 $38.00 Peak Season(October through April): RESIDENT DISCOUNT FULL RATE E, Resort Course - $60.00 weekdays(Mon.-Thu.) AS/D $80.00 $70.00 weekends(Fri.-Sun.and holidays) a $90.00 Legend Course - $25.00 weekdays(Mon.-Thu.) 507, $50.00 $35.00 weekends(Fri.-Sun and holidays) Lsj.6 $60.00 • All rates are for 18 hales only and include can. • Walking(Monday through Thursday except holidays)will be permitted year round on the Legend Course only for the same price. • Resident Discount Card rates will be reviewed pi-annua y. IC-J�`uo 6) venue As a result of eliminating the Nonresident Discount Card and revising the criteria to obtain a Resident Discount Card,we expect a net decrease in revenue of$20,000.It is anticipated that this decrease will be offset by increased revenue from individuals paying full greens fee rates. Summary of resident cardholder benefits: • Establishes a discount program with added value for Palm Springs residents • Provides access to an additional hour of premium tee times in the morning • Provides additional discounts for play on the Resort Course during the off season • Reduces competition for reservations among cardholders • Improves access for residents on both courses • Improves rates for private cart owners • Improves active participation within the Tahquitz Creek Men's and Ladies'Clubs • Improves residents' loyalty for the City,its residents and Tahquitz Creek This proposed discount card policy has been presented to the Tahquitz Creek Golf Resort's Men's and Ladies'Clubs and both have endorsed and support the policy as presented.The Parks and Recreation Commission also reviewed the proposed policy and recommends,by a 6/0 vote,that the City Council approve the resolution. APPROVED BY: c- ALAN DENF D,Direct ALLEN SMOOT,Director Parks, Recreation&Golf Division Department of Transportation APPROVED: OMB City anagerAPPROVED El T)l;C1.1NEr) ATTACHMENTS: Exhibit A Resolutions(2) Kathie Hart From: Martha Edgmon Sent: January 12, 2011 4:39 PM To: Kathie Hart Subject: FW: Residence card From: BetsyFurrer1122@aol.com [mailto:BetsyFurrer1122@aol.com] Sent: Wednesday, January 12, 2011 3:57 PM To: Martha Edgmon Subject: Residence card To Whom It May Concern: Please forward to ALL counsel members. Again I am writing because I have NOT heard about the outcome of the Residence Card. The Mayor was kind to call giving me some up-dates, but I have continued to track the City Counsel Meetings and have NOT seen this issue on the agenda. Again, we a tax paying residents of this county. We continue to bring in revenue to this county and desire a "fair shake". Most likely, Palm Springs would be little without "the snow birds." Betsy Furrer 502-3182961 1015 St Bimini Cir Palm Springs, Ca 92264 Al /1 2/1 1 5.C. REVIEW AND DISCUSSION OF THE RESIDENT DISCOUNT FEE POLICY: RECOMMENDATION: Direct staff as appropriate. MATERIALS TO FOLLOW Item No. 5 * C *