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TR-2014-3 APPROP FOR GOLF CARTS vvv 71 TR-2014-3 Ai3orvV-­0'- A RESOLUTION APPROPRIATING THREE-HUNDRED THOUSAND DOLLARS ($300,000) FROM FREE CASH FOR THE PURCHASE OF SIXTY- SIX (66) MOTORIZED GOLF CARTS AND CORRESPONDING SERVICE PLAN FOR THE AGAWAM MUNICIPAL GOLF COURSE Sponsored by Mayor Richard A Cohen Whereas, the current motorized golf carts at the Agawam Municipal Golf Course are fourteen (14) years old, purchased in 2000; and Whereas, the average life cycle of a motorized golf cart at similar coges i! between five and seven years; and Whereas, the Agawam Municipal Golf Course is unable to continue servicing the needs of their golfers because of the poor condition of the cart fleet; and Whereas, the cost to repair the current cart fleet would far exceed its value w't�ich='", could be sold after new carts are purchased; and o , f Whereas, as funds become available the Agawam Municipal Golf Course will repay the funds to Free Cash; and Whereas, it would be in the best interest of the Town and the Golf Course to purchase a new fleet of motorized golf carts for the Agawam Municipal Golf Course. NOW THEREFORE, BE IT RESOLVED BY THE AGAWAM CITY COUNCIL that Three-hundred thousand dollars ($300,000) shall be appropriated from free cash to fund the purchase of sixty-six (66) new motorized golf carts for the Agawam Municipal Golf Course following the completion of the requisite bidding procedures 04- d- saIA amc=c)-W shall be- rt �a� cl tr the EPiureL( 6� ttte Gol G��_ef"prf 5e i7vnd Uji-�In t'e t ) Lj 'P6L s. Dated this '•�) day of , 2014. PER ORDER OF THE AGAWAM CITY COUNCIL [" r 7h 0" -- Christopher C. Johns , President C� - C'C T PROVED LTOFORM AND LEGALITY i Vincent ioscia, City Solicitor MAYORAL ACTION Received this l day of ' 2014 from Council Clerk. Signed by Council President this day of -iqb , 2014. APPROVAL OF LEGISLATION By the powers vested in me pursuant to Article 3, Section 3-6 of the Aga wa�Chartcr, as amended, I hereby approve the passage of the above legislation on this��day of hcuc l 22014. Richard A. Cohen, Mayor DISAPPROVAL OF LEGISLATION By the powers vested in me pursuant to Article 3, Section 3-6 of the Agawam Charter, as amended, I hereby veto the passage of the above legislation on this day of 2014 for the following reason(s): Richard A. Cohen, Mayor RETURN OF LEGISLATION TO COUNCIL CLERK Returned to Council Clerk this day of ` �- , 2014. .T . Agawam Massachusetts Office of the Mayor 36 Main Street, Agawam, MA 01001 mayor@agawam.ma.us Richard A Cohen T: 413.786.4520 Mayor F: 413.786.9927 16 January 2014 Christopher Johnson Council President Agawam City Council 36 Main Street Agawam, MA 01001 Dear Council President Johnson: I would like to provide you and the City Council an update regarding the Agawam Municipal Golf Course. First we will be resuming to run food and beverage service after last year's trial with a private vendor. The vendor did not take full advantage of the amenities available at the golf course. After experimenting we realize that our course staff is better suited to serve our golfers. Related to the change from private vendor to town run operations, the course will have the funding to run both food and beverage operations throughout the remainder of the fiscal year. In connection with the change of food and beverage service back to the town, the golf course has retained the two 70" televisions, all improvements and bar upgrades made and installed by the vendor. Finally, we are preparing a bid for the purchase of sixty-six new golf carts for the course. The current fleet was purchased back in 2000. They are over five years past their regular life cycle and are affecting the bottom line of the course with part of the fleet completely out of service and other carts routinely breaking down. I am looking for your support in appropriating $300,000 for the purchase of new carts. Respectfully, ':�7,Z,"/Q X?-,-,) Richard A Cohen Mayor cc: Full Council File AGAWAM MUNICIPAL GOLF COURSE 128 SOUTHWICK STREET FEEDING HILLS, MA 01030 (41 3) 786 - Z 1 94 (4) 3) 786 - 51 78 (FAX) GOLF COMMISSION DEAN GODEK - CHAIRMAN DAN MICHAEL TONY PIOGGIo MARIO TEDESCHI JA►.IUARY 16, 2014 MAYOR RICHARD COHEN C/O TOWN OF AGAWAM 36 MAIN STREET AGAWAM, MA O 100 1 DEAR MAYOR COHEN: WE ARE WRITING TO YOU IN REGARDS TO THE GOLF OPERATION AT OUR GOLF COURSE: AGAWAM MUNICIPAL GOLF COURSE. WE, AS A COMMITTEE HAVE MET AT LEAST ONCE PER MONTH WITH ANTHONY ROBERTO (GENERAL MANAGER) AND DAN SHAY (GREENKEEPER) FOR THE PAST TWO YEARS. WE ARE EXCITED AS A WHOLE WITH THE VARIOUS IMPROVEMENTS IN MANY AREAS THAT WE HAVE SEEN THE PAST TWO SEASONS. WE HAVE COME TO A UNANIMOUS DECISION THAT WE NEED TO IMPROVE THE CONTINUED GOLFING EXPERIENCE TO OUR CLIENTELE. TOADY, WE HAVE MET AND ITEMIZED THE CONDITIONS OF OUR GOLF CAR FLEET BELOW: • THE EXISTING CARTS ARE YEAR 2001 • WE ARE OPERATING WITH THE OLDEST GOLF CARTS WITHIN A TWO HOUR RADIUS OF OUR FACILITY • THE QUALITY OF BOTH THE EXTERIOR LOOK AND THE OPERATING CAPACITIES OF THESE CARTS IS DEPLORABLE • THE LOSS OF A REVENUE STREAM AND REPEAT CUSTOMERS IS SUFFERING DRAMATICALLY • REPAIRS ON THIS EXISTING FLEET HAS BEEN JUST A BAND-AID THAT CONTINUOUSLY IS BLEEDING AFTER SUCH REPAIRS WE WOULD RECOMMEND SERIOUS CONSIDERATION BE GIVEN TO THE REPLACEMENT OF THIS EXISTING FLEET. WE FEEL THAT WITH THE DIRECTION THAT TONY & DAN HAVE US GOING IN, THAT THE ADDITION OF A NEW FLEET WOULD ALLOW THE TOWN TO STAND PROUD AND FEEL STRONGLY THAT WE ARE OFFERING A "GOLFING EXPERIENCE" FROM START TO FINISH ONCE A CUSTOMER ENTERS OUR COMPLEX. WE HAVE PROVIDED DOCUMENTATION SUPPORTING OUR NEED THAT WILL IMPROVE THE BOTTOM LINE FOR THE TOWN. THANK YOU FOR YOUR CONSIDERATION REGARDING THIS MATTER. Q[W�� V GOLF COMMISSION MEMBERS . AGAWAM MUNIC1 PAL GOLF COURSE CART INFORMATION UPDATE January 16, 2014 The total number of golf carts in our operation is 69. Of the 69 golf carts, 44 are running and fully operational. This being said, we have been operating with this number since 6/25/2013. Due to this, we have had to block Starters Times every sixth tee time (7 Tee Times Total per Weekend Day) to make sure that we have ample carts for the latter part of the mornings on weekends. This is costing us $1904.00 per weekend,or$7616.00 k per month. In a typical New England golf season of 7 good months of weather, the total is $53,312.00 for the season. I believe that some customers have chosen not to return if they get a cart that is inoperable during their round. In addition to this, we have had to bring in Rental Carts for the season during different times to make it through some normal weekend play and to help us get through when we have tournaments scheduled. We probably have spent another S13,000.00 on rent.€I carts because of the condition of our fleet. We have also spent$5,000.01) on golf cart repairs. This together with our weekend losses totals $71,312.00 that has resulted due to the cart conditions. I believe that we are operating with the oldest golf carts widiin €t one and a half hour radius, as our carts are now thirteen years old. Typically the fleets arc replaced every 5 —6 years. Listed below are the carts in our inventory a:ul their current status: CART# PROB]. IM REPA IRED/UNREPAIRED 64 Brake Clip Woken 54 Dead 67 Dead 32 Dead 35 Dead 15 ? 70 Dead/Flat Tire 24 Steering/Rt. Rear Tire shot 57 Reverse grinding Bad 66 Sputters/Dies while running 6 Starts/Sputters 61 16 5 40 44 47 All Have been in"Dead file" prioi- to 2012 17 55 4 " 10 " 21 " 22 Starter 59 Broken Frame 9 Front End/battery 10 36 Bent Franic/Steering,, No # Bad Frame No# Missing Frame 3 No I:everse This is an update of the carts xvhicll we own. We do have one very interested party wh is interested in buying this fleet. 3'lic carts are worth roughly to $800.00 per vehicle, per an estimate from an unrel.iled vendor. Roughly, we can possibly realize $44,575.00 for the sale of these vehicles. This total coupled with the $66,312.00 rental loss and repair costs estimate above could result in a profit $115,887.00, if we did move forward with a new fleet purchase. The estimate to repair our present Ilect is $22,000 for the c,irts that are operable and $37,500 for the carts that are riot operating for n ;raii(I Iot:►I to repair of$59,500.00. The estimate to repair/replace was by an independent firul: Capitol Power& Equipment out of Manchester, Coimecticut. Capital provides various kinds of Power Equipment to the general publ is and also operates a Goll'Cart Division that is in the Cart Rental business to golf operanons, corpontijons curd individuals in the marketplace. Respectfully submitted, Anthony A. Roberto III General Manager/PGA Director of Golf TR-2014-3 A RESOLUTION APPROPRIATING THREE-HUNDRED THOUSAND DOLLARS ($300,000) FROM FREE CASH FOR THE PURCHASE OF SIXTY- SIX (66) MOTORIZED GOLF CARTS AND CORRESPONDING SERVICE PLAN FOR THE AGAWAM MUNICIPAL GOLF COURSE Sponsored by Mayor Richard A Cohen Whereas, the current motorized golf carts at the Agawam Municipal Golf Course are fourteen (14) years old, purchased in 2000; and Whereas, the average life cycle of a motorized golf cart at similar courses is between five and seven years; and Whereas, the Agawam Municipal Golf Course is unable to continue servicing the needs of their golfers because of the poor condition of the cart fleet; and Whereas, the cost to repair the current cart fleet would far exceed its value which could be sold after new carts are purchased; and Whereas, as funds become available the Agawam Municipal Golf Course will repay the funds to Free Cash; and Whereas, it would be in the best interest of the Town and the Golf Course to purchase a new fleet of motorized golf carts for the Agawam Municipal Golf Course. NOW THEREFORE, BE IT RESOLVED BY THE AGAWAM CITY COUNCIL that Three-hundred thousand dollars ($300,000) shall be appropriated from free cash to fund the purchase of sixty-six (66) new motorized golf carts for the Agawam Municipal Golf Course following the completion of the requisite bidding procedures. Dated this day of ) 2014. c7 ^ o o � PER ORDER OF THE AGAWAM CITY COUNCIL 2 p �C-s r Christopher C. Johnson, President -D , A/PPROVED LTO? FORM AND LEGALITY Vincent loscia, City Solicitor