Tumwater City Council approved an agreement on Tuesday, June 6, allowing the city to lease 60 golf carts from PNC Equipment Finance, LLC for $198.00 per cart per month, totaling $712,800 for five years.
The new carts would replace existing golf cart rentals at Tumwater Valley Golf Club. Tumwater Parks and Recreation Director Chuck Denney told the council that they have been trying to replace the golf carts since last year but were not able to close a deal due to manufacturing issues brought on by the pandemic.
The city has been leasing its current fleet of golf carts since 2017, which means the fleet has been nearing the end of its lifespan. Denney said they are getting to a point where maintaining the fleet was becoming more expensive than renting a new set of carts.
The lease would be for a fleet of 60 RXV Elite Li Fleet Golf Cars. Denney said the new carts would have GPS screens so drivers would know how far they are from trees or a body of water. Management would also now be able to track the location of each golf cart from the pro shop so that they could remotely shut down carts before they reach places they should not be in, such as the parking lot.
Denney reported Last year’s revenue from cart rentals to be at almost $200,000.
2022 finances, cost up, revenue down
Golf Operations Supervisor Russ Olsen gave a more thorough view of last year’s finances at the golf club. Olsen reported that the club was still making a loss, with revenues at $1.36 million and expenses at $2.27 million.
“Many of the things that we use for maintenance, supplies, equipment, fertilizers, repairs doubled [or] tripled in price,” Olsen explained.
Olsen added that due to increased operating costs, they had to increase their rates by 5% in 2022. This year, the golf club also increased rates across the board by an average of 15%.
2023 is seeing improvements
So far, management is seeing better revenues this year compared to 2022 for the period of January to May, with increased revenues from fees, memberships, merchandise, and rounds.
South Puget Sound Community College golf team
Denney also announced that the golf club is hosting the South Puget Sound Community College (SPSCC) men's and women's golf teams, marking the first time SPSCC has its own golf team.
“We're very proud that we'll be having a new partnership with South Puget Sound Community College… which will help with recruitment and everything else within the community,” Denney said.
Denney added that further details about the partnership would be announced soon.