Title
Resolution to Approve a Two-Year Contract for the Lease of Golf Carts (NTE $20,130.00/yr; 2yr total NTE $40,260.00) with and to Authorize the Sale of 24 City Owned Golf Carts to Pifer Inc.
Memorandum
Attached for your review and action is a resolution to approve a contract with Pifer Inc. to lease 65 golf carts for the 2013 and 2014 seasons for use at Huron Hills and Leslie Park Golf Course, with an option to renew for the 2015 season. In addition, you are asked to authorize the sale of 24 City owned golf carts to Pifer Inc.
Both Huron Hills and Leslie Park Golf Course offer golf carts for rental. This is a significant revenue generator for both courses. In FY2012 golf cart rentals resulted in approximately $250,000.00 in revenue.
In 2009 Council authorized purchasing a fleet of golf carts at the end of an existing five year lease contract. The intent was to use those carts for a short period of time and then resell them. Golf staff has managed to utilize those carts for an additional four seasons while supplementing demand through the leasing of additional carts. After reviewing the 2012 season it was determined that the many of the owned carts, now nine years old, were no long suitable for rental. As a result, the City, issued an invitation to bid (ITB #4259) for a two-year lease for 65 carts (for carts not older than 7 years).
Also requested were trade-in prices for 24City owned carts deemed no longer suitable for rental. The carts were purchased in 2009 at a price of $950.00 per cart. Bidders offered between $1,200.00 and $1475.00 to buy the carts 4 years later. The purchase amount for the carts is being applied over the course of the 2 year lease for the 65 carts, lowering the monthly lease payments.
ITB #4259 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:
CREDIT FOR
SALE OF 24
LEASE COST CARTS NET COST
Pifer Inc. $75,6...
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