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HomeMy WebLinkAbout2018 Season Golf Changes Presentation2018 Season Golf Changes 2018 Budget Adjustment Requests 2018 Changes to Golf Operations New Contract 1/1/18 with Golf Manager Revenues Shift from Contractor to Owners Range Fees Cart/Club Rental Personnel Changes Owners hire FT Greens Maintenance Manager Owners hire PT Greens Maintenance/Pro Shop Contract reduced by $142,000/year 2018 Changes to Golf Operations New Contract 4/1/18 with Restaurant New revenues from lease Will continue to charge tenant their share of utilities Helps secure quality food options for golfers, tournament sponsors, and patrons at our course Range and Rental Inventory Purchase Agreement needed to purchase range and rental inventory from Golf Contractor Verbally negotiated a buyout option of $136,485 2016 Golf Carts (25 @ $3,600 Each) 2007 Golf Carts (25 @ $1,500 Each) Club Rental Sets (19 @ $80 to $200 Each) Pull Carts (10 @ $120 Each) Misc. Range Items ($1,665) Range Ball Dispensers (3 for $2,000) Range Ball Pickers (3 for $1,000) Ball Washer ($800) Cart Options Desired cart quantity is 60 Teton Lakes 45 Legacy 15 Few extras allows the ability to move more over for rental during tournaments Carts Models – Precedent Club Car fuel injected 2018 with 4 year warranty (up to 60) $4,632 Includes windshield and sand bottle and bracket 2016 (25) $3,600 2007 (25) $1,500 City is willing to finance the up front cost over 5 years at 3% interest (can split finance option with County as well) Cart Options Cart Options Summarized Option Description Total Cost Cost/Year (5) 1.Purchase 60 new carts $312,712 $62,542 2.Keep 50 old carts/Buy10 New $199,257 $39,851 3.Finance New Carts w/vendor $388,714 $77,743 4.Lease Purchase New Carts $365,914 $73,183 5.Purchase 35 New, Keep 25 Used 2016 Carts $284,596 $56,919 6.Purchase 25 New, 25 Used 2016 Carts, and 10 Used 2007 Carts $250,466 $50,093 Staff Recommended Option Option 6 Purchase (25) 2018 carts Purchase (25) 2016 carts Purchase (25) 2007 carts (trade in 15 for same price we paid for them) Purchase Cost $229,785 Interest Cost $ 20,681 Total Cost $250,466 Cost/Year $50,093 5 Year Capital Improvement Plan 2 Year Capital Improvement Plan Description 2018 2019 Utility vehicle $11,000 Handicap Ramp $ 8,000 Hookup Water-TL $16,000 Inventory/Cart Purchase $50,100 $50,100 Aerator-Greens $23,500 Greens Mowers (2) $50,000 Tractor/Fairway Aerator- (City pay ½ cost & share) $31,500 Legacy-Possible Pump Stat $30,000* Carpet-Muni $ 4,000 Total Less Sale of Assets (5K) $103,600 $160,600 *Total cost $60,000-city water department may pay ½ or more if they can transfer water rights for city use elsewhere Financial Budget Analysis (See Full Budget Report for details) Financial Budget Analysis (See Full Budget Report for details) Owners have currently budgeted $14,000 each to subsidize the golf operating fund To make all recommended 2018 capital purchases, it would require an additional $17,500 from each Owner It would require an additional $36,800 from each owner to eliminate the projected fund deficit at Fiscal Year 2018 Yearend Requested Motions of Approval from Elected Officials Approval of Concessions Contract Approval of purchase of inventory from Contractor for $136,485 Approval to order new carts and finance internally 5 years Recommended to order 25 new and trade in 15 used Approval of budget adjustments for contract changes Approval of budget adjustments for capital replacement Approval of budget adjustments to increase city/county contributions from $14,000 each to $50,800