HomeMy WebLinkAbout2023 Transmittal - Amend Budget - Golf cart batteriesOWN
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CITY COUNCIL AGENDA TRANSMITTAL
Council Meeting Date: April 26, 2023
Agenda Item TTtie: Approval to Amend the Golf Course Budget for an Additional $45,000 for
Repairs to the Golf Carte.
Recommendation: Staff recommends City Council approve continued golf cart repair charges,
using funds from Golf Course Cub Reserves.
Background: In order to keep the golf cart fleet operating smoothly and safely, repairs are
needed through the teal of the fiscal year. It should be noted that this fleet was purchased and delivered in
August of 2017, making them 66 months old. The operational timeline of a golf can fleet industry standard on
a busy golf course is 42 to 48 months before normal wear and tear maintenance costs begin to inner more
frequently. Twenty of the golf carts' battery packs were replaced in the fall of 2020, under a courtesy
warranty by the can manufacturer, not the battery manufacturer. Those were the batteries just recently
replaced at our expense because there is only a one year warranty on said hatteries. The remaining fleet's
batteries were replaced in the first calendar year quarter of 2021, making them now overtwo years old. Them
is a consistent pattern of these battery packs not making the full 18 holes of the golf course. These batteries
will predictably continue to fail in the months to come. What is not known is whether all or only some will
fail before the replacement fleet arrives. Additional batteries have already been identified that need replacing,
as well as several other components including tires, bmkw, pedal assemblies and steering and alignmem
parts. In addition, City Garage labor is being charged to the golf course for their repair work Rounds at the
golf course have been near -record since the advent of Covid. The last three years all showed extreme
increases during the summer months and the pest two winter seasons have shown the golf course to be booked
to capacity or very close to it. All of this activity has created extra wear and tear on the golf cart fleet. For
this Fiscal year, up to April 18a, cart revenues are at $536,243, Repairing the golf carts will subside for the
1" quarter of Fiscal 2023-24 and by the end of the 1" quarter, the new cans should be delivered. With repairs
to basically the ®tire fleet, the resale value of each can will be at or above $2,000 per can or $160,000 for the
entire fleet. Following approval by the City Council to provide the additional budget amounts, Staff will
proceed with obtaining a formal bid to acquire the necessary batteries and pans.
If A ends Item Reoulres Bxoenditure of Funds:
Budgeted Amount: $26,316
Total Projected Cost for the Year: $71,316
Funds to Be Utiliud: $45,000 to be from Golf Course Cash Reserves
Attachments:
None y
Administrative Services Department Revlew: *�l
City Attorney Review:
Procurement Division Review, ((applicable: r
City Manager Authorization:
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Date: 2i� °%rb'3