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HomeMy WebLinkAboutFIN 2021-10-25 Item 1A - Purchase - 2021 Golf Course CapitalTO: FROM: BY: CC: DATE: SUBJECT: ISSUE Approval of City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM Finance & Governance Committee Tracy Gallaway, Parks & Recreation Director John H. Dunn III, Acting Parks & Recreation Manager Mayor Ekberg October 25, 2021 2021 Capital Purchases at Foster Golf Links budgeted capital purchases for Foster Golf Links (FGL) BACKGROUND As part of the 2021-2022 biennial budget, the Golf Fleet Program (Maintenance Equipment) and Cart Replacement Program was approved. With transitions at FGL, it was discovered that while the budget was approved by the Council, purchases over $40,000 were not brought to the Council in adherence with the City of Tukwila Purchasing Policy. Staff is seeking Council approval for these purchases and assures the Council that FGL will follow the purchasing policy moving forward. DISCUSSION Fleet Program (Maintenance Equipment): The following items were purchased in 2021 following the approved budget: Rough Mower $80,000 Reel Grinder $54,000 Tractor & Backhoe $44,000 Cart Replacement Program: An order was placed in March of 2021 for 17 new carts. The carts have been built and FGL is waiting on shipping to transport them from the East coast to Tukwila. Upon arrival, FGL is trading in 18 used carts. Upon final review of trade-in value of the used carts, the final price for the new carts will be under the $80,000 budgeted in 2021. RECOM MENDATION The Committee is being asked to approve the FGL Fleet Program and Cart Replacement Program and send to the Consent Agenda at the November 1, 2021 Regular Meeting. ATTACHMENTS A. 2021-2022 Golf Budget pages 309-314 2 2021 -2022 Biennial Budget City of Tukwila, Washington DEPARTMENT: Parks & Recreation FUND: Golf Course RESPONSIBLE MANAGER: Rick Still Description FUND NUMBER: 411 POSITION: Parks & Recreation Director The mission of Foster Golf Links (FGL) is to provide a quality golfing experience for those that live, work, and play in Tukwila. The golf course is operated as an enterprise fund with revenues covering all maintenance, pro shop services, and capital costs. 2019-2020 Accomplishments • Increased number of rounds of play in 2019 to 50,561 (2.5%) by increasing social media presence and reached the 1,000 follower's milestone on Facebook. Strategic Goals 2, 3; & 5. PROS Plan Goals 3 & 4. • Replaced point of sale system with Golfnow G1 optimizing our online registrations. Strategic Goals 2, 3, & 5. PROS Plan Goals 3 & 4. • Implemented golf cart replacement program with 12 new carts. Strategic Goal 4. PROS Plan Goals 3 & 5. • Provided customer engagement opportunities through clinics and the addition of practice nets. Strategic Goals 2, 3; & 5. PROS Plan Goals 3 & 4. • Continued commitment to growing the game through the Jr. PGA Golf program and First Tee of Seattle. Strategic Goals 2 & 4. PROS Plan Goals 2, 3, 4, & 5. • Added security features to Golf Shop to protect against theft. Strategic Goals 2, 3, & 5. PROS Plan Goals 3 & 4. • Rebuilt the bunker on hole #5 with better drainage to eliminate the annual pond feature in the bunker. Strategic Goal 1, 4, &5. PROS Plan Goals 4 & 5. S • Performed irrigation audits to better manage water system and optimize water usage and improve course conditions for healthier turf. Strategic Goal 1, 4, 85. PROS Plan Goals 4 & 5. • Reduced the size of collars by 60%, fairways by 5%, which increased playable grass quality while decreasing costs for fairway fertilizer by $3,000. Strategic Goal 1, 4, 85. PROS Plan Goals 4 & 5. 2021-2022 Outcome Goals • Continue with Cart Replacement Plan to reduce downtime and repairs on older carts. Strategic Goal 4. PROS Plan Goals 3 & 5. • Perform Deep Tine Aerification and top dressing to increase playability of course during the shoulder months. Strategic Goal 4 & 5. PROS Plan Goals 4 & 5. • Implement divot repair program through partnership with Men's and Ladies Club. Strategic Goal 4 & 5. PROS Plan Goals 4 & 5. • Perform capital improvements at the course for playability and sustainability. Strategic Goal 4 & 5. PROS Plan Goals 4 & 5. 309 3 2021 - 2022 Biennial Budget city of Tukwila, Washington • Continue to employ player engagement through marketing and clinics. Strategic Goals 2, 3, & 4. PROS Plan Goals 2, 3, 4, & 5. • Reduce chemical and fertilizer expenditures through turf management and watering practices. Strategic Goal 4 & 5. PROS Plan Goals 4 & 5. 2021-2022 Indicators of Success • Maintain rounds of play above 46,000 per year. • Attract new customers. • Improved satisfaction with equipment. • Better drainage on course, reduced soft spots, and healthier turf. • Increased use of carts on course (not regulated to cart path only) during shoulder months. Cart Replacement Program To provide a consistent and quality golfing experience for the customer, Foster Golf Links has included funding in the budget for the purchase of EZGO golf carts. The purchase of EZGO golf carts supports the cart replacement program which was restarted in 2019. The program ensures the service lives of our aging fleet of carts does not exceed 9 years and reduces excessive maintenance cost. The budget includes EZGO cart purchases as follows: Year Equipment Price 2021 17 EZGO Carts $80,000 2022 8 EZGO Carts $40,000 As part of the purchase in 2021, 19 of the oldest carts will be traded -in and 7 carts in 2022. Fleet Program (Maintenance Equipment) In 2020 Foster Golf Links maintenance assumed responsibility for the management of fleet program to allow for replacement of equipment on an as needed basis via a one in one out methodology. Equipment is evaluated annually for life expectancy based on condition and need for repairs. The fleet plan is a sustainable plan and allows for the following: Year Equipment Price 2021. Rough Mower $80,000 2021 Reel Grinder $54,000 2021 BedKnife Grinder $31,000 2021 Aerator $25,000 2021 Tractor and Backhoe $44,000 2022 Fairway Mower $65,000 2022 Utility Cart $12,000 2022 Blower $10,000 Total $321,000 310 4 2021 - 2022 Biennial Budget City of Tukwila, Washington Staffing and Expenditures by Program PROGRAMS FTE BUDGET YEAR-TO-YEAR PERCENT CHANGE 2021 1 % of Total Budget 2022 % of Total Budget 2021-22 Course Setup and Maintenance 3.00 383,000 20.8% 394,000 21.4% 2.9% Irrigation 0.40 ' 58,000 3.1% 60,000 3.3% 3.4% Fleet Maintenance 0.60 184,000 10.0% 186,000 10.1% 1 1.1% Carts 0.25 135,000 7.3% 99,000 5.4% -26.7% Golf Shop Operations 2.75 424,081 23.0% 439,127 23.8% 3.5% Golf Shop Administration 0.50 128,000 6.9% 131,000 7.1% 2.3% Golf Maintenance Administration 0.75 275,000 14.9% 277,000 15.0% 0.7% Capital Imprmements - 50,000 2.7% 50,000 2.7% 0.0% Indirect Cost Allocation_ 206,798 11.2% I 208,866 11.3% 1.0% PROGRAM TOTALS 8.25 1,843,879 100% 1,844,993 100% 0.1% Program Descriptions Course Setup and Maintenance: Execute maintenance tasks on PGA -rated Foster Golf Links, including maintenance of cart paths, course accessories, irrigation, landscape, sand bunkers, set course, turf, and equipment necessary to care for the course. Irrigation: Provide necessary repairs and performance checks to ensure golf course is properly watered. Fleet Maintenance: Perform demand and scheduled maintenance to golf equipment and power carts to support golf operations. Carts: Perform daily cleaning and fueling' of power carts. Includes the cost or renting power carts for tournaments. Golf Shop Operations: Provide customer service to players of the golf course, including clinics, lessons, golf shop merchandising, tournament hosting, men's and ladies club events and overall customer engagement. Golf Shop Administration: Provide leadership and management to golf shop operations including budget, marketing and sponsorship opportunities Golf Maintenance Administration: Provide leadership and management to golf maintenance operations including budget, fleet management, capital improvements and turf health. Capital Improvements: Funds are used to enhance and repair golf clubhouse and course improvements. Indirect Cost Allocation: Cost associated for the general fund support from Finance, Human Resources, City Clerk, Mayor's Office and Council. 311 5 2021 - 2022 Biennial Budget City of Tukwila, Washington Revenue and Expense Summary Foster Goff Course 312 6 Actual Budget Percent Change Projected 2018 2019 2020 2020 2021 2022 2020-2021 2021-2022 Operating Revenue Charges for Services Green Fees, Instruction $ 1,069,327 $ 1,098,867 $ 1,210,339 $ 1,088,500 $ 1,034,000 $ 1,053,000 -5.01% 1.84% Sales of Merchandise 151,287 154,220 132,000 137,000 130,000 130,000 -5.11% 0.00% Rents and Concessions 319,758 321,200 304,000 311,000 330,000 343,000 6.11% 3.94% Total Charges for Services 1,540,373 1,574,287 1,646,339 1,536,500 1,494,000 1,526,000 -2.77% 2.14% Miscellaneous Revenue Excise Taxes 4,432 4,046 3,000 2,900 3,000 3,000 3.45% 0.00% Investment Earnings 8,979 10,208 4,000 500 1,000 1,000 100.00% 0.00% Sale of Capital Assets - _- - - - 0.00% 0.00% Other Misc Revenue 9,536 21,610 22,200 41,000 20,000 20,000 -51.22% 0.00% Total Miscellaneous Revenue 22,947 35,865 29.200 44,400 24,000 24,000 -45.95% 0.00% Transfers In 300,000 300,000 511,724 300,000 300,000 300,000 0.00% 0.00% Total Operating Revenue , 1 863 320 1,910,152 2,187,263 1,880,900 1,818,000 1,850,000 -3.34% 1. 6% Operating Expenses Salaries & Wages 703,912 766,973 655,409 713,129 720,278 747,130 1.00% 3.73% Personnel Benefits 304,646 301,851 309,519 319,181 340,434 349,021 6.66% 2,52% Supplies 224,444 296,503 228,848 182,000 265,000 225,000 45.60% -15.09% Services 350,600 347,386 468,376 328,107 260,869 264,476 -20.49% 1.38% IntergoVi Services & Taxes 70,254 4,572 • - - - 0.00% 0.00% Total Operating Expenses 1,653,856 1,717,285 1,662,152 1,542,417 1,586,581 1,585,627 2.86% -0.06% Capital Expenses Capital Outlay - - 30,758 50,000 50,000 50,000 0.00% 0.00% Total Capital Expenses - 30,758 50,000 50,000 50,000 0.00% 0.00% Indirect cost allocation 184,517 189,683 196,512 196,512 206,798 208,866 5.23% 1.00% Transfer to Fund 301 - 1% Arts 500 500 500 500 500 500 0.00% 0.00% Total Expenses 1,838,873 1,907,468 1,889,922 1,789,429 1,843,879 1,844,993 3.04% 0.06% Beginning Fund Balance 636,000 660,447 663,131 633,092 960,472 934,593 Change in Fund Balance 24,447 2,684 297,341 91,471 (25,879) 5,007 -128.29% -119.3596 Net working capital (Fund Balance) $ 660,447 $ 663,131 $ 960,472 $ 724,563 $ 934,593 $ 939,600 28.99% 0.54%. 312 6 2021 - 2022 Biennial Budget City of Tukwila, Washington Salary and Benefit Details Foster Goif Course Position Description 2020 FTE 2021 FTE 2021 Budgeted Salaries Benefits 2022 FTE 2022 Budgeted Salaries Benefits Director of Instruction - Golf 1 1 88,399 $ 38,642 1 89,963 $ 39,092 Golf Maintenance Supervisor 1 1 84,834 48,127 1 88,468 49,950 Lead Maintenance Specialist- Golf 1 1 83,008 33,588 1 84,470 33,908 Fleet Technician Golf 1 1 71,156 45,415 1 77,258 47,862 Adm in Support Technician - Golf 2.5 2.5 153,827 71,131 2.5 159,874 73,366 Maintenance Specialist Goff 2.25 2.25 153,045 73,012 2.25 161,088 75,368 Extra Labor 3,544 3,570 85,000 23,618 3,500 85,000 22,588 Overtime 411.347.601,00.00 GOLF INSTRUCTION 2,702 1,009 201 500 1,009 187 Unemployment 1,000 411.361.110.00.00 INVESTMENT INTEREST - 5,600 10.208 - 5,600 Clothing Allowance 1,000 1,000 - 1,100 17,151 - 1,100 Department Total 8.75 8.75 $ 720,278 $ 340,434 8.75 $ 747,130 349,021 General Ledger Code Details Revenue G Account Code Account Description Actual 2016 2019 Projected 2020 2020 Budget 2021 2022 411.317.200.00.00 LEASEHOLD EXCISE TAX 4,432 4,046 3,000 2,900 3,000 3,000 411.341.702.00.00 SALES OF MERCHANDISE/PRO SHOP 138,191 141,585 116,000 122,000 115,000 115,000 411.341,704.00.00 SALES OF SNACKS 13,096 12,635 16,000 15,000 15,000 15,000 411.347.301.00.00 GREENS FEES 1,063,081 1,094,304 1,207,000 1,082,000 1,030,000 1,049,000 411.347.302.00.00 GOLF TOURNAMENT FEES 3,544 3,570 2,839 3,500 3,000 3,000 411.347.601,00.00 GOLF INSTRUCTION 2,702 993 500 3,000 1,000 1,000 411.361.110.00.00 INVESTMENT INTEREST 8,979 10.208 4,000 500 1,000 1,000 411.362.100.00.00 EQUIPMENT RENTS (SHORT-TERM) 17,151 18,346 11,000 16,000 18,000 20,000 411.362,101,00,00 POWER CART RENTALS 196,553 199,630 236,000 186000 190,000 195,000 411.362.101.00.11 POWER CART RENTALS -REPLACEMENT - - 14,000 - 18,000 18,000 411.362.800.00.00 CONCESSION PROCEEDS 106,054 103,224 43,000 110,000 104,000 110,000 411.369.100.00.00 SALE OF SCRAP AND JUNK 163 - - - - - 411.369.810,00.00 CASHIER'S OVERAGES/SHORTAGES 73 88 200 - - - 411.369,900.00.00 OTHER - 4,797 22,000 33,000 - - 411,369,900.01.00 OTHER -REWARDS PROGRAM 9,300 16,725 - 8,000 20,000 20,000 411.397.190.00.00 TRANSFERS -IN 300,000 300,000 I 300,000 300,000 300,000 300,000 411.397.501.0000 TRANSFERS -IN FLEET RESIDUAL - - 211,724 - - Totals 1,863,320 1,910,152 2,187,263 1,880,900 1,818,000 1,850,000 Expenses GL Account Code Account Description .T 411.00.576.680j100 SALARIES 411.00.576.680.12.00 EXTRA LABOR 411.00.576.680.13,00 OVERTIME 411.00.576.680.21.00 FICA 411.00.576.680.23,00 PERS 411.00.576,680,24,00 INDUSTRIAL INSURANCE 411.00.576.680.24.50 PAID FAMILY 8 MEDICAL LEAVE PRE MIL 411.00.576.680,25,00 MEDICAL,DENTAL,LIFE,OPT1CAL 411.00.576.680.25.97 SELF-INSURED MEDICAL 8 DENTAL 411.00.576.680.26,00 UNEMPLOYMENT COMPENSATION 411.00.576.680,28.00 UNIFORM CLOTHING Actual 2018 2019 PtoJoctod 2020 Budget 2020 2021 2022 363,884 360,134 52,525 47,398 243 438 32,676 30.701 54,322 49,151 13,560 12,777 24 587 3,478 3,455 82,203 82,752 42 607 383 392,623 25,799 645 33,463 51,352 13,671 450 3,400 102,000 416 700 397,026 392,043 411,283 55,000 55,000 55,000 500 505 505 37,062 34,237 35,709 50,422 51,834 47,846 13,474 18,659 18,659 662 690 3,347 3,567 3,852 90,463 106,520 115,041 5,100 5,100 5,100 1,100 1,100 1,100 313 7 2021 - 2022 Biennial Budget City of TukWila, Washington GL Account Code Account Description Actual 2018 2019 Projected 2020 2020 Budget 2621 2022 , , , ,. • .., • 411.00.576.680.31.00 OFFICE & OPERATING SUPPLIES 8,660 7,514 8,000 2,000 2,000 2,000 411.00.576.680.31.02 GROUNDS MAINTENANCE 15,437 28,852 30,000 i 30,000 15,000 15,000 41100576680.31.03 IRRIGATION 14,066 7,845 10,000 7,000 7,000 7,000 411.00.576.680.31.04 FERTILIZERS & MISC. CHEMICALS 44,114 42,647 50,000 37,000 50,000 50,000 411.00.576.680.31.05 FLEET SUPPLIES 11,596 1,471 5,000 3,000 3,000 3,000 411.00.576.680.34.00 FUEL- - 10,000 - 9,000 9,000 411.00.576.680.35.00 SMALL TOOLS & MINOR EQUIPMENT 473 10,133 3,777 4,000 4,000 4,000 411.00.576.660.35.01 SMALL TOOLS & MINOR EQUIPMENT-FLE 12,111 19,410 10,000 8,000 8,000 8,000 411.00.576,680,41.00 PROFESSIONAL SERVICES 3,266 7,819 3,000 2,000 2,000 2,000 411.00.576.680.41,01 PROFESSIONAL SERV10ES-FLEET 3,283 1,502 2,200 - - 411.00.576.680.42.00 COMMUNICATION 3,382 4,188 3,000 1,600 1,600 1,600 411.00.576.680.43.00 TRAVEL - - - 300 300 300 411.00.576,680,45,00 OPERATING RENTALS AND LEASES 842 1,352 1,000 2,500 2,500 2,500 411.00.576.680.45.94 EQUIPMENT RENTAL - REPLACEMENT 78,129 55,000 164,200 56,050 - - 411.00.576.680.45.95 EQUIPMENT RENTAL - 0 & M 29,176 21,816 - 61,257 - - 411.00.576,680.46.01 INSURANCE-LIA8ILITY 22,564 21,516 22,621 23,000 18,069 19,876 411.00.576.680.47.09 FOSTER GOLF MAINTENANCE BLDG 3,799 3,940 3,800 4,000 4,000 4,000 411.00.576.680.47.21 PUBLIC UTILITY SERVICES -ELECTRICITY 9,676 8,024 9,000 10,000 10,000 10,000 411.00,576.680.47.22 PUBLIC UTILITY SERVICES -GAS 751 643 500 700 700 700 411.00.576.680.47.25 PUBLIC UTILITY SERVICES-WATERJSEW 4,107 4,708 5,500 3,000 3,000 3,000 411.00.576.680.47.26 PUBLIC UTILMES-SURFACE WATER 35,631 37,413 38,535 35,000 35,000 35,000 411.00.576.680,48.00 REPAIRS AND MAINTENANCE 28,769 25,522 8,165 5,000 5,000 5,000 411.00.576.680.48.03 IRRIGATION 6,381 668 - - - - 411.00.576.680.48.04 VEHICLE REPAIR - - - - 60,000 61,800 411.00,576.680.49.00 MISCELLANEOUS 4,655 2,450 53,000 2,000 2,000 2,000 411.00.576.681.11.00 SALARIES 248,941 312,305 214,657 230,103 242,225 249,837 411.00.576.681.12.00 EXTRA LABOR 37,099 45,302 18,685 30,000 30,000 30,000 411.00.576.681.13.00 OVERTIME 1,309 1,396 3,000 500 505 505 411,00,576,681,21.00 FICA 20,740 22,185 17,400 19,680 20,864 21,446 411.00.576.681.23.00 PERS 33,439 34,991 27,574 29,275 31,664 28,599 411,00.576,681,24.00 INDUSTRIAL INSURANCE 6,481 6,626 5,493 5,125 6,067 6,067 411,00.576.681.24.50 PAID FAMILY & MEDICAL LEAVE PREMIL 15 437 400 - 403 414 411.00.576.681.25.00 MEDICAL,DENTAL,LIFE,OP11CAL 2,219 2,423 2,200 2,104 2,320 2,506 411.00.576.681 25.97 SELF-INSURED MEDICAL & DENTAL 54,882 55,341 51,000 61,529 56,937 61,492 411.00.576.681.26.00 UNEMPLOYMENT COMPENSATION - - - 500 500 500 411.00.576.681.31.00 OFFICE & OPERATING SUPPLIES 7,646 11,272 10,500 6,000 6,000 6,000 411.00.576.681.31.02 RENTAL SUPPLIES 178- 2,571 500 500 500 411,00.576.681,31.04 REPAIR SUPPLIES 89 136 - 1,500 500 500 411.00.576.681.34.00 FUEL- - 8,000 - 7,000 7,000 411.00.576.681.34.01 PRO SHOP SUPPLIES (RESALE) 79,007 81,385 66,000 60,000 50,000 50,000 411,00,576,681,34.02 PRO SHOP CONCESSIONS 9,313 10,502 5,000 8,000 8,000 8,000 411.00.576.681.34.03 PRO SHOP CUSTOM ORDER SALES 21,696 25,357 10,000 15,000 15,000 15,000 411.00.576.681.35.00 SMALL TOOLS & MINOR EQUIPMENT 60 49,980 - - 80,000 40,000 411.00.576.681.41.00 PROFESSIONAL SERVICES 1,354 1,695 1,380 4,000 2,000 2,000 411.00.576.681.42.00 COMMUNICATION 3,606 4,342 4,968 4,000 4,000 4,000 411.00.576.681.43.00 TRAVEL 286 1,908 407 200 200 200 411.00.576.681.44.00 ADVERTISING 3,937 6,399 8,500 5,000 5,000 5,000 411.00,576,681,45.00 OPERATING RENTALS & LEASES 37,369 47,468 33,000 35,000 35,000 35,000 411,00.576.681.47.00 PUBLIC UTILM( SERVICES (33,865) (34,542) (30,000)! (28,000) (28,000) (28,000) 411.00.576.681.47.21 PUBLIC UTILITY SERVICES-ELECTRIC1TY 41,744 43,877 45,000 44,000 44,000 44,000 411.00,576.681.47.22 PUBLIC UTILFTY SERVICES -GAS 2,634 3,713 2,600 3,000 3,000 3,000 411,00,576.681,48,00 REPAIRS AND MAINTENANCE 9,726 21,133 32,000 15,000 15,000 15,000 411.00.576.681.49.00 MISCELLANEOUS 10,866 12,512 8,000 8,500 8,500 8,500 411.00.576.681.49.01 PRINTING- 2,038 - - - - 411,00.576,681.49.08 CREDIT CARD FEES 38,531 37,775 45,000 25,000 25,000 25,000 411.00.576.681.49.53 MISCELLANEOUS 2,510 3,000 6,000 3,000 3,000 411.00.576.681,53.00 EXT TAXES & OPERATING ASSMNTS 6,415 4,572- - - - 411.00.576.681.54,00 INTERFUND TAXES & OPER ASSMNTS 63,839 - - - - - 411.00.594.760.63.05 TEES & GREENS- - - 50,000 50,000 50,000 411.00.594.760.64.00 MACHINERY AND EQUIPMENT- - 30,758 - - 411.00,597,190.00.00 TRANSFERS -OUT 184,517 189,683 1196,512 196,512 206,798 208,866 411.01.597.301.00.00 TRANSFERS OUT - FUND 301 500 500 500 500 500 500 Totals 1,838,873 1,907,468 1,889,922 1,789,429 1,843,879 1,844,993 314 8