Palm Harbor Golf Course

Golf Cart PurchaseOctober 29th, 2013

Presented byChristopher M. Quinn, MACC, CPA, CFE, CGFO, CGMA Finance Director

Background2009

City enters into agreement with Kemper Sports Management, Inc. to operate the Palm Harbor Golf Course

Council approves lease of golf carts from EZ Go for four years

Current lease expires November 1, 2013September 2013

Kemper contacts three major golf cart manufacturers to obtain new proposals for lease of golf carts

Club Car, LLC 5.50% Lease Rate EZ GO 4.65% Lease Rate Yamaha 4.20% Lease Rate

October 1st 2013 City Council approves new lease agreement with

Club Car, LLC

Additional BackgroundGolf Carts

1 Turf Gas Cart 1 Café Express Cart 2 Gas Golf Carts (Precedent i2) 70 Electric Golf Carts (Precedent i2)

Current Lease Ends in November 2013 $5,451.00/month 48 months

Approved Lease (if entered into new lease agreement)

$5,385.00/month 48 months 5.5% Lease Rate

Lease Execution Issues

Required to list the Leasing Company as an additional insured on the Certificate of Liability Insurance provided by the City The City cannot comply as it would be

waiving our right to sovereign immunity

Proposal

Purchase Total Purchase Amount $303,761.92

Internal Lease Payment Option $4,631.08/month 48 months 2% Lease Rate Over $9,000.00 annual savings to the Golf Course Use available funds within the Fleet Fund to make

the purchase• Sufficient funds exist for this purchase• Current rate of return is 1.13% based on a 3

year average• Internal lease payment option would increase

the rate of return on these funds

Fund Balance Use of existing Fleet fund balance to

make purchase• Sufficient funds exist for this purchase

FLEET FUND FY 13 FY 14 FY 15 FY 16 FY 17 FY 18Prior Year Carry-over 3,750,000 4,137,337 4,124,865 3,772,046 3,557,891 3,490,062

Revenues Internal Fuel Charges 709,000 726,725 744,893 763,515 782,603 802,168 External Fuel Charges 325,000 333,125 341,453 349,989 358,739 367,708 Internal Replacement Charges 1,572,860 1,727,977 1,814,376 1,905,095 2,000,349 2,100,367 Internal Maintenance Charges 1,170,837 1,289,364 1,353,832 1,421,524 1,492,600 1,567,230 Interest Earnings 6,500 5,000 37,875 37,875 37,875 37,875 Transfer from Streets - New Equipment 75,000 75,000 - - - - Transfer from Stormwater - New Equipment - 150,000 - - - - Transfer from Utility - New Equipment 26,500 67,500 - - - -

Total Revenues 3,885,697 4,374,691 4,292,429 4,477,998 4,672,167 4,875,348

Total Available Funds 7,635,697 8,512,028 8,417,294 8,250,044 8,230,058 8,365,410

Expenditures Operating Expenditures 2,248,360 2,299,263 2,345,248 2,392,153 2,439,996 2,488,796

Fleet Replacements 972,500 1,795,400 2,300,000 2,300,000 2,300,000 2,300,000 Fuel Tank upgrades 26,000 - - - - - New Mowing Crew Equipment 150,000 - - - - - New Equipment 101,500 292,500 - - - -

Total Expenditures 3,498,360 4,387,163 4,645,248 4,692,153 4,739,996 4,788,796

Available Funds End of Year 4,137,337 4,124,865 3,772,046 3,557,891 3,490,062 3,576,614

Recommendation

Adopt Resolution Approving the Purchase of Golf Carts from Club Car, LLC for a total of $303,761.92, utilizing Fleet funds

Discussion