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Home My WebLink About2013.09.03_OPGA AgendaPUBLIC NOTICE OF THE MEETING OF THE OWASSO PUBLIC GOLF AUTHORITY C16 TYPE OF MEETING: Regular COW DATE: September 3, 2013 TIME: 6:30 p.m. PLACE: Council Chambers, Old Central Building 109 N. Birch A Notice of the meeting and agenda filed in the office of the City Clerk and posted of City Hall at 6:00 p.m. on Friday, August 30, 2013. i Sherry Bishop, ty Clerk AGENDA Call to Order Chairman 2. Roll Call 3. Consideration and appropriate action relating to a request for approval of the Consent Agenda. All matters listed under "Consent" are considered by the Trustees to be routine and will be enacted by one motion. Any Trustee may, however, remove an item from the Consent Agenda by request. A motion to adopt the Consent Agenda is non-debatable A. Approval of the Minutes of the August 20, 2013 Regular Meeting Attachment #3-A B. Approval of Claims Attachment #3-B 4. Consideration and appropriate action relating to items removed from the Consent Agenda 5. Consideration and appropriate action relating to the purchase of golf cars Corey Burd Attachment #5-A Staff recommends acceptance of a proposal from Yamaha Golf Car Company for the lease/purchase of seventy-four (74) Yamaha (EFI) golf cars. 6. Report from OPGA Manager 7. Report from OPGA Attorney 8. New Business (New Business is any item of business which could not have been foreseen at the time of posting of the agenda) 9. Adjournment OWASSO PUBLIC GOLF AUTHORITY MINUTES OF REGULAR MEETING Tuesday, August 20, 2013 The Owasso Public Golf Authority met in regular session on Tuesday, August 20, 2013 in the Council Chambers at Old Central per the Notice of Public Meeting and Agenda posted on the City Hall bulletin board at 6:00 p.m. on August 16, 2013. ITEM 1 CALL TO ORDER Chairman Bonebrake called the meeting to order at 7:52 p.m. ITEM 2 ROLL CALL PRESENT ABSENT Doug Bonebrake, Chairman Chris Kelley, Vice Chairman Charlie Brown, Trustee Jeri Moberly, Trustee Patrick Ross, Trustee A quorum was declared present STAFF Warren Lehr, Interim Authority Manager Julie Lombardi, Authority Attorney ITEM 3 CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR TRUSTEE APPROVAL OF THE CONSENT AGENDA A. Approval of Minutes of the August 6, 2013 Regular Meeting and August 13, 2013 Work Session B. Approval of Claims C. Receipt of Monthly Budget Status Report Mr. Brown moved, seconded by Mr. Ross, to approve the Consent Agenda with claims totaling $29,800.94. Also included for review were the payroll payment reports for 08/10/13. YEA: Ross, Kelley, Moberly, Brown, Bonebrake NAY: None Motion passed 5-0 ITEM 4 CONSIDERATION AND APPROPRIATE ACTION RELATING TO ITEMS REMOVED FROM THE CONSENT AGENDA No action required ITEM 5 REPORT FROM OPGA MANAGER Larry Langford presented a monthly update on activity of the Bailey Ranch Golf Club. ITEM 6 REPORT FROM OPGA ATTORNEY No report Owasso Public Golf Authority ITEM 7 NEW BUSINESS None ITEM 8 ADJOURNMENT Dr. Kelley moved, seconded by Ms. Moberly, to adjourn the meeting. YEA: Kelley, Moberly, Brown, Ross, Bonebrake NAY: None Motion passed 5-0 and the meeting was adjourned at 7:59 p.m. August 20, 2013 Doug Bonebrake, Chairman Ashley Hickman, Minute Clerk Claims List 9/3/2013 Budget Unit Title Vendor Name Payable Description Payment Amouni OPGA JPMORGAN CHASE BANK WALMART-FOOD 14.96 JPMORGAN CHASE BANK WALMART-FOOD 16.26 JPMORGAN CHASE BANK WALMART-FOOD 6.00 JPMORGAN CHASE BANK WALMART-FOOD 12.40 JPMORGAN CHASE BANK SYSCO-FOOD 634.91 JPMORGAN CHASE BANK WALMART-FOOD 61.02 JPMORGAN CHASE BANK SYSCO-FOOD 408.98 BGR DAILY ACCT. REIMB PETTY CASH 2,037.75 JPMORGAN CHASE BANK JAVA DAVES-COFFEE/TEA 168.84 JPMORGAN CHASE BANK SYSCO-FOOD 482.63 JPMORGAN CHASE BANK OAKLEY-MERCHANDISE 82.50 JPMORGAN CHASE BANK OAKLEY-MERCHANDISE 92.50 JPMORGAN CHASE BANK GREAT PLAINS-BEVERAGES 684.46 JPMORGAN CHASE BANK GREAT PLAINS-BEVERAGES 437.75 JPMORGAN CHASE BANK TIGERSHARK-MERCHANDISE 135.00 JPMORGAN CHASE BANK GREAT PLAINS-BEVERAGES 209.64 TOTAL OPGA 5,485.60 COURSE MAINT JPMORGAN CHASE BANK OREILLY-OIL ABSORBENT 21.16 JPMORGAN CHASE BANK OREILLY-HYDRAULIC HOSE 39.43 JPMORGAN CHASE BANK OREILLY-BUTTON SWITCH 9.99 UNIFIRST HOLDINGS LP UNIFORM SERVICE 15.85 UNIFIRST HOLDINGS LP TOWEL SERVICE 11.19 UNIFIRST HOLDINGS LP AIR FRESHENER 2.00 OKLAHOMA STATE UNIVERSITY NEMATODE ANALYSIS 50.00 HOLLIDAY SAND & GRAVEL CO SAND 260.88 JPMORGAN CHASE BANK OREILLYS-HYDRAULIC FLUID 235.96 JPMORGAN CHASE BANK OREILLYS-HYDRAULIC FLUID 51.99 JPMORGAN CHASE BANK ALL BATTERY-BATTERY 98.05 JPMORGAN CHASE BANK ALL BATTERY-BATTERY 112.90 JPMORGAN CHASE BANK IBT-BEARINGS 61.86 JPMORGAN CHASE BANK AMERICAN HOSE-HOSES 295.38 JPMORGAN CHASE BANK NEW HOLLAND-MOWER PARTS 19.48 JPMORGAN CHASE BANK WINFIELD-HERBICIDE 194.79 JPMORGAN CHASE BANK WINFIELD-SPRAY NOZZLES 176.53 JPMORGAN CHASE BANK WINFIELD-FERTILIZER 499.04 JPMORGAN CHASE BANK SHOPEZGO.COM-FENDERS 65.32 AT&T CONSOLIDATED PHONE BILL 80,72 UNIFIRST HOLDINGS LP TOWEL SERVICE 11.19 UNIFIRST HOLDINGS LP UNIFORM SERVICE 15.85 UNIFIRST HOLDINGS LP AIR FRESHENER 2.00 TUCKER CHEMICAL, INC. PAPER GOODS 84.75 JPMORGAN CHASE BANK OREILLYS-HYDRAULIC HOSES 154.03 JPMORGAN CHASE BANK SUPPLY HOUSE-HERBICIDE 109.95 JPMORGAN CHASE BANK WINFIELD-CHEMICALS 1,111.25 Page 1 Claims List 9/3/2013 Budget Unit Title Vendor Name Payable Description Payment Amouni COURSE MAINT... JPMORGAN CHASE BANK P & K EQUIPMENT-REPAIRS 509.85 JPMORGAN CHASE BANK MAIL THIS-SHIPPING CHARGE 15.49 JPMORGAN CHASE BANK PROF TURF-THROTTLE CABLE 69.69 JPMORGAN CHASE BANK IGCEMA-GAUGES 407.50 JPMORGAN CHASE BANK MAIL THIS-SHIPPING CHARGE 40.29 JPMORGAN CHASE BANK GREEN ACRE-TOPSOIL 250.00 JPMORGAN CHASE BANK PROF TURF-ROLLER KITS 475.62 TOTAL COURSE MAINT 5,559.98 FOOD & BEV JPMORGAN CHASE BANK SYSCO-SUPPLIES 58.49 JPMORGAN CHASE BANK SYSCO-SUPPLIES 64.90 JPMORGAN CHASE BANK SYSCO-SUPPLIES 255.72 JPMORGAN CHASE BANK WALMART-SUPPLIES 3.07 JPMORGAN CHASE BANK SYSCO-SUPPLIES 30.34 JPMORGAN CHASE BANK WEBSTAURANT-SUPPLIES 778.61 JPMORGAN CHASE BANK GREAT PLAINS-SUPPLIES 24.00 TOTAL FOOD & BEV 1,215.13 GOLF ADMIN JPMORGAN CHASE BANK COX-CABLE 61.11 WASTE MANAGEMENT QUARRY LANDFILL REFUSE SERVICE 406.05 JPMORGAN CHASE BANK GOLFSWITCH-TEE TIMES 150.00 AT&T CONSOLIDATED PHONE BILL 309.90 TOTAL GOLF ADMIN 927.06 FUND GRAND TOTAL 13,187.7 OPGA GRAND TOTAL $13,187.77 Page 2 OWASSO PUBLIC GOLF AUTHORITY PAYROLL PAYMENT REPORT PAY PERIOD ENDING DATE 08124/13 Department Payroll Expenses Total Expenses Golf Shop Operations 2,312.42 2,675.74 Cart Operations 1,641.02 1,842.55 Golf Course Operations 10,101.93 11,722.11 Food & Beverage 4,262.13 4,870.16 General & Administration 3,232.22 3,818.37 FUND TOTAL 21,549.72 24,928.93 ?v"~ City Witiout Limits, TO: The OPGA Chairman and Trustees City of Owasso FROM: Corey Burd Bailey Ranch Golf Club - Director of Golf SUBJECT: Recommendation for OPGA Golf Car Lease to Purchase DATE: August 30, 2013 BACKGROUND: During the FY 2012 OPGA budget year, examination and analysis of the current golf car fleet became priority partly due to the age, depreciation and reliability of vehicles as well as continued growing required maintenance cost (man hours and replacement materials). However, the main contributing factor in evaluating the current fleet for replacement stemmed from the required semi-annual replacement cost for batteries for the cars of $48,000. An industry standard for the life of a golf car fleet is four (4) to five (5) years. Higher end facilities change out their fleet every two (2) years. Bailey Golf Club cars are eight (8) years old which is the longest time a fleet has been maintained. With the age and intense use of the fleet, another growing concern will be failure and impending replacement of more expensive components of the vehicles such as motors and computers. Included in FY 2014 budget, the OPGA budget allows for expenditure of $60,000 for golf cars BID PREPARATION: During bid preparation and research the decision was made to change from electric to gasoline golf cars. Gasoline is more reliable, efficient, and has become the choice for powering golf cars for a larger part of the market. Gasoline provides a better return on our investment and allows for more options at the end of the lease. Consideration was also given to the cost of fuel versus electricity and found that gasoline is the cheaper alternative. Manufacturers have lowered the amount of lead in newly produced batteries therefore reducing their useful life and increasing the long-term cost of keeping an all electric fleet. Bid requests were sent to Club Car, EZ-Go, and Yamaha as well as posted per the City of Owasso policy. BID ANAYLSIS: Staff prepared bid specifications and requested sealed bids from vendors on July 12, 2013. Four bids were received and opened on August 1, 2013. Bidder Base Bid Alternate #1 Alternate #2 Alternate #3 Outright Purchase Purchase w/trade Lease w/Trade Lease w/out Trade Justice $397,300 $310,900 $4,302.03 $6,218.81 Golf Car $86,400 -trade value $51,624.36 - annual $74,625.72 - annual EZGO $306,777 $256,377 $3,288.81 $4,362.53 $50,400 -trade value $39,465.72 - annual $52,350.36 - annual D Nelson / $307,500 $246,300 $3,019.20 $4,402.26 Yamaha $61,200 -trade value $36,230.40 - annual $52,827.12 - annual D Nelson / $333,000 $271,800 $3,595.66 $4,977.98 Yamaha EFI $61,200 -trade value $43,147.92 - annual $59,735.76 - annual Upon review of the bids, staff found Yamaha offered the most for fleet trade-in and met all specifications as well as offered an Electronic Fuel Injection (EFI) option. Although the EFI model has a slightly higher cost, it offers many advantages. Most manufacturers are working on developing an EFI option, but Yamaha is the only manufacturer currently producing one. The EFI model gets 35 MPG as opposed to 26 MPG which in turn is more cost efficient and environmentally responsible. This fuel system will save an estimated $3,000 to $4,000 annually in fuel costs. In addition, as manufacturers transition to this type fuel system, this car will become standard and retain its value longer. The EFI option is more user friendly by not requiring the patron to use the manual choke lever which can sometimes be difficult to operate for those not familiar with gasoline cars. LEASE TO PURCHSE CONTRACT: Under the terms of the lease, total payments over the 48 months will be $172,583.52. The interest amount included in those payments will be $33,983.52 (4.2% interest rate). A residual payment of $133,200 will be due at the end of the lease to secure full ownership or the fleet may be returned with a minimum estimated equity of $44,000 available to apply towards a new lease/purchase. FUNDING: The FY 2014 OPGA budget includes $60,000 for golf car operations. RECOMMENDATION: Staff recommends acceptance of a proposal from Yamaha Golf-Car Company for the lease/purchase of seventy-four (74) Yamaha (EFI) golf cars with annual payments of $44,075.84. ATTACHMENT: A. Yamaha Lease/Purchase Proposal B. Gas versus electric golf cars comparison YAMAHA GOLF-CAR COMPANY 100%0 GA Highway 34 East + Newnan, Georgia , 30265-1320 Telephone: 866-747-4027 = Fax: 770-254-4158 August 29, 2013 Bailey Ranch Golf Club Corey Byrd 10105 Larkin Bailey Blvd Owasso, OK 74055 Corey, We at the Yamaha Golf-Car Company are very pleased to submit the following proposal to Bailey Ranch Golf Club. Yamaha Golf-Car Company will offer the following options on the new 2014 Yamaha Electronic Fuel Injection golf cars equipped with the following; Color: Glacier White Climagaurd Sun Top Sweater Basket Information Holders Fleet Decals Hinged Windshields Wheel Covers Four-Year Warranty Sand Bottles (2) per car Set-Up and Delivered Lease/ Purchase Yamaha Golf Cars Company agrees to supply the City of Owasso/Bailey Ranch Golf Club with the new cars listed, with all the inclusions listed above. Yamaha will offer Bailey Ranch the following options on a Municipal forty-eight (48) month lease with financing available thru Yamaha Commercial Customer Finance Dept. The 48) month lease is to include 58) "EFI" golf cars, 1) Adventurer One range picker with range cage and 5) Adventurer Two utility car's with 2) slide-in beverage coolers. The lease payment would be $48.59 per car, per month, with a purchase option of $1,800 per car due at the end of the lease. The 72) 2005 Club Car's are included in this lease price. Any taxes and insurance are not included in this lease price. Proposed By; Dennis Nelson Yamaha Golf Car Company Date: August 29, 2013 Accepted By; Bailey Ranch Golf Club City of Owasso, OK Date: GAS VERSUS ELECTRIC GOLF CARS Electric Benefits Quieter than gas Lower emissions - 29% less C02 per year Requires no gasoline to operate Gas vs. Electric - Cost analysis assumptions 30,000 golf car rounds per year Electricity rate $0.12 per Kwh 80 cars in fleet Labor based in $15 per hour 375 rounds per car per year Compare gas at $3.00, $3.50 and $4.00 per gallon Lease term is 48 months 5 miles per round Electric Gas 1.5 Kwh AC to recharge per holes 33.4 MPG Charging cost per round $0.18 Fuel consumption per round (gallon) 0.15 0.15 0.15 Annual electricity cost all cars $5,256 $3.00 / gal. $3.50 / gal. $4.00 / gal. Annual battery watering @ 5 minutes per car $2,600 Fuel cost per round $0.45 $0.53 $0.60 Annual battery charging @ 30 sec.per car per round $3,750 Annual fuel costs all cars $13,500 $15,900 $18,000 Annual refueling cost at 5 min. / car $1,315 $1,315 $1,315 Annual miscellaneous maintenance $1,200 Annual miscellaneous maintenance $5,200 $5,200 $5,200 Total annual operating costs $12,806 Total annual operating costs $20,015 $22,415 $24,515 Total operating cost for lease term $51,224 Total operating cost for lease term $80,059 $89,659 $98,059 Gas Benefits Lighter weight No hydrogen battery fumes Doesn't require special storage facility No battery stains in car barn or staging area Doesn't require additional electricity supply Doesn't require special handling (daily charging) Will operate even where there is a power outage Not limited to rounds per day Can travel 40 rounds per single tank of gasoline Less maintenance (no battery watering) Higher residual value Will not fail on course due to battery issues Electric vs. Gas residual difference per car $375 Total Electric v. Gas residual difference $30,000 Battery replacement in a year (3 per car) $600 Total battery replacement all cars $48,000 Battery replacement in a year (3 per ca r) Total battery replacement all cars $50 $50 $50 $4,000 $4,000 $4,000 $129,22 Total Electric car operation cost 4 Total Electric car cost per round $1.08 Total Gas car operation cost Total Gas car cost per round $3.00 / gal. $3.50 / gal. $4.00 / gal. $84,059 $93,659 $102,059 $0.70 $0.78 $0.85 Savings Gas over Electric $3.00 / gal. $3.50 / gal. $4.00 / gal. Overall savings 4 year lease term $27,165 $35,565 $45,165 Annual savings $6,791 $8,891 $11,291 Savings per day $23 $30 $38