Agenda Item #12.2
For Council Meeting of February 15, 2022
CITY OF SANTA ROSA
CITY COUNCIL
TO: MAYOR AND CITY COUNCIL
FROM: JEN SANTOS, DEPUTY DIRECTOR – PARKS
TRANSPORTATION & PUBLIC WORKS DEPARTMENT
SUBJECT: APPROVAL TO TRANSFER FUNDS FROM BENNETT VALLEY GOLF COURSE CAPITAL FUND TO PURCHASE GREENS MOWERS
AGENDA ACTION: RESOLUTION
RECOMMENDATION
It is recommended by the Bennett Valley Golf Course Ad Hoc Committee and the Transportation and Public Works Department that the Council, by resolution, increase appropriations in the Bennett Valley Golf Course Operations fund in the amount of $100,000 for the purchase of two golf course greens mowers, with the source of funds from Bennett Valley Golf Course Capital Fund.
EXECUTIVE SUMMARY
The purpose of this action is to receive approval from Council to utilize funds from the Bennett Valley Golf Course (BVGC) Capital fund to purchase two golf course greens mowers. As these funds are not appropriated, Council must authorize the appropriations of the funds and the transfer to the BVGC Operations fund to purchase the equipment. The estimated cost of the two mowers is $100,000.
BACKGROUND
The Bennett Valley Golf Course is a 150-acre, 18-hole golf course with a driving range, pro shop, and restaurant with banquet rooms. In 2005 the City entered into a Management and Operations Agreement (Agreement) for operation of the Bennett Valley Golf Course.
The contract for the golf course requires the operator to provide the day-to-day operation of the golf course and provide regular maintenance, including golf course maintenance equipment owned by the City. The city is the owner of the golf course maintenance equipment and is required per the Agreement to keep the equipment up to date by liquidating equipment that is past its useful life and replace with new equipment.
It was recognized in 2017 that as an enterprise operation, the BVGC shall collect funds for future capital project needs and equipment needs. On June 13, 2017,Council approved Resolution No. RES-2017-090 which establishes an additional fee per round of golf effective July 1, 2017 to be utilized for capital improvement needs and equipment needs as necessary. Resolution No. RES-2017-141 amends the golf operator’s Agreement with the city to collect 100% of the capital improvement fee per golf round and provide revenue to the city, monthly.
The City and the golf operator have identified two greens mowers that need urgent replacement. The two greens mowers were purchased over 14 years ago and are in urgent need of replacement as they have exceeded the manufacturers recommended maximum hours of operation. Therefore, it is necessary for Funds to be transferred from the BVGC Capital Fund to purchase the new equipment.
PRIOR CITY COUNCIL REVIEW
Not applicable.
ANALYSIS
The City’s fleet maintenance team is ready to purchase two new green mowers under the authority of the City Manager or designee. However, the funds to move forward with the purchase are in the unassigned fund balance of the BVGC Capital fund 1662. This fund is utilized to hold funds for capital project needs and can be utilized for equipment purchase needs.
Only the City Council can increase appropriations in a budget, and by policy, only the Council can authorize transfers between funds in an amount of $100,000 or more. Typically, funds could be transferred as part of the annual budget process, if needed. At the time of the Fiscal Year 21-22 budget approval, it was unknown if specific equipment would be purchased for the golf course and that funds would need to be utilized from the BVGC Capital fund.
At their December 21, 2021 meeting, the BVGC Ad Hoc Committee evaluated the request to purchase the two new greens mowers. The Ad Hoc Committee recommended Council approval of the use of funds from the BVGC Capital fund for the purchase of two greens mowers.
FISCAL IMPACT
Approval of this action does not have a fiscal impact on the General Fund. There is sufficient fund balance in the BVGC Capital fund, Fund 1662 for the purchase of the two mowers at an estimated cost of $100,000. This item proposes Council increase appropriations in the BVGC Operations fund, Fund 1661, key 390002, with the source of funds being the BVGC Capital Fund, Fund 1662.
ENVIRONMENTAL IMPACT
The activity is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15601(b)(3) in that CEQA only applies to projects or activities which have the potential for causing a significant effect on the environment.
BOARD/COMMISSION/COMMITTEE REVIEW AND RECOMMENDATIONS
Not applicable.
NOTIFICATION
Not applicable.
ATTACHMENTS
Resolution
CONTACT
Jen Santos, [email protected], 707-543-3781
APPROVAL TO TRANSFER FUNDS FROM BENNETT VALLEY GOLF COURSE CAPITAL FUNDS TO PURCHASE TWO GREENS MOWERS PAGE 3 OF 3