AMSTERDAM -- Another 40 new golf carts will be purchased to join the fleet of 20 bought earlier this year for the Amsterdam Municipal Golf Course.
A $239,000 contract with Five Star Golf Carts and Utility Vehicles for the equipment was approved by the Amsterdam Common Council last week. The company was the low bidder again.
The city previously bought 20 carts from Five Star for $130,500 with a $1,500 delivery fee under a contract authorized in March.
Amsterdam is buying carts to replace and expand the previously existing fleet of 40 leased carts for which the terms expired this fall.
Mayor Michael Cinquanti said buying instead of leasing will enable the city to build equity in the fleet, which will be an asset after the carts are paid off. Bond anticipation notes will be issued for the 40 new carts and were previously issued for the 20 initially purchased carts.
"It's the best price available. I don't feel good about any purchase price nowadays, but that's what the market is asking for and the benefit we're getting this time around is we are purchasing the carts," Cinquanti said. "It's a smarter purchase and, based upon the economic model now of the golf course, having enough carts for greens fees players is essential."
Amsterdam restructured fees and memberships at the course this season to create a preferred customer program while modifying the unlimited program for legacy members. Both programs involve an upfront fee to receive discounted rates on regular greens fees.
The shift is intended to boost profits while providing players a more equitable and affordable experience by lowering the barrier to entry for new golfers and creating a more balanced pay-for-play model among regulars.
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The change was seemingly effective as the course took in $621,942 from the various fees to play and from memberships this season, an increase of 4.51% from the $595,131 in revenue the previous year.
For the system to work, officials say the course needs to have enough carts to serve golfers, especially during peak tee times when greens fees are at a premium.
"We don't want anyone to be turned away from Muni because there is not a golf cart," Cinquanti said.
That sometimes happened when there were only 40 leased carts. As a result, the course was missing out on offering an estimated 44 tee times during peak hours every weekend, capable of generating at least $100,000 in revenue each year.
Those conditions contributed to the city's decision to buy 20 new carts for use this year with the existing leased carts to test the sufficiency and impact of a 60-cart fleet before ultimately buying such a large quantity.
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Officials said the additional carts helped ensure there were enough carts for regular play and for tournaments throughout the season. The city previously had to rent carts for larger tournaments or get permission to use private carts owned by course members.
The new carts were an added draw at the course and proved popular this season, even among some players who own carts, according to 5th Ward Alderman James Martuscello, who serves as liaison to the Golf Commission.
"When they came to our course and we offered a new golf cart, it's something that means a lot, because they're riding in comfort," Martuscello said. "A lot of people who had their own carts didn't use them and used the new carts. They were faster and they ran better."
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The faster pace of the new carts helped speed up the pace of play during tournaments, Martuscello added. Although 60 carts should be enough for now, he suggested the city should continue to evaluate whether buying more in the future may be warranted.
While tournaments typically attract 120 participants or fewer, Martuscello said such events can accommodate up to around 144 players. Two players to a cart at that volume would exceed the number of new vehicles at the course.
"Very seldom do we get them over the top," Martuscello said.
He suggested that could change with the added attraction of the new carts spurring further interest from players.
The 40 new carts are expected to be delivered by next spring and they will be the same model as those purchased earlier this year.
Officials believe revenue from the additional carts and other new amenities at the course will offset the cost of repaying the bond anticipation notes issued for the equipment.
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"These carts are part of an investment, part of the overall transformation of the course," Cinquanti said. "That's how we're moving towards a break-even model with the golf course. We have to get there and we can't get there without buying carts."
Among the new amenities are a driving range that opened late this season and will be in full swing next year when the new clubhouse is tentatively planned for construction.
The city will open construction bids on Friday with the contract to potentially be awarded by the council the following week. Amidst significant interest from general contractors, City Engineer Mike Clark said the scheduled bid opening was pushed back a week.
"I'm optimistic at this point that there's going to be a big turnout for that, and that is always good for us," Clark said. "I gave a week extension because it wasn't going to impact our ability to get to the council and bring a resolution to select someone and get this project into the next step."
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