Title
Resolution to Approve Amendment No. 1 to Golf Cart Lease with Pifer Inc. and Authorize Sale of 32 City-owned Golf Carts ($50,336.00)
Memorandum
Attached for your review and action is a resolution to amend the current lease with Pifer Inc. for the 2014 and 2015 seasons for lease of 99 golf carts (an increase of 34 carts from the original 65 carts leased) for use at Huron Hills and Leslie Park Golf Course. In addition, you are asked to authorize the sale of 32 City owned golf carts to Pifer Inc.
The original contract was bid in 2013 as ITB #4259 and was advertised on the Michigan Inter-governmental Trade Network as well as on the City of Ann Arbor Purchasing website. Bids were received from four companies, with Pifer Inc. submitting the most competitive response by a significant margin. City Council approved a 2-yr lease/sale contract with an option to renew the lease/sale contract for 1 additional year on March 18, 2013 (R-13-077). The proposed amendment exercises the renewal option and establishes the qualities for new carts and trade-ins. The terms of the original lease in respect to sale price offered for acquiring the City's old carts and the cost per new cart leased remain in effect.
Both Huron Hills and Leslie Park Golf Course offer golf carts for rental. This is a significant revenue generator for both courses. In FY2013 golf cart rentals resulted in approximately $225,000.00 in revenue. Increased golf cart rental at Huron Hills Golf Course has also resulted in new clientele who were unable to play when it was a walking - only course.
Our current carts and the carts proposed for lease are gasoline powered. Our long term goal is to have electric carts which are environmentally preferable, quieter and meet the City's sustainability goals. Currently we do not have infrastructure for electric carts. A cart storage building has been included in the CIP for FY15 that will provide necessary infrastructure to use electric carts. The pro...
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