Title
Resolution to Approve Golf Cart Lease with CCB’S, LLC ($69,951.72/yr)
Memorandum
Attached for your review and action is a resolution to enter into a contract with CCB’S, LLC (dba Golf Cars Plus) to lease 97 golf carts and three utility vehicles for the 2017 and 2018 seasons for use at Huron Hills and Leslie Park Golf Course. In addition, under the terms of the lease, the City at its option, could extend the lease for the 2019 session. The current golf cart lease expired at the end of the 2016 season.
Budget/Fiscal Impact: Funding is available in the FY2017 approved Parks & Recreation Services General Fund budget and will be included in the budget plan for FY2018 and FY2019.
Both Huron Hills and Leslie Park Golf Courses offer golf carts for rental. This is significant revenue generator for both courses. In FY2016 golf cart rentals resulted in approximately $230,000.00 in revenue.
An Invitation to Bid (ITB #4455) was advertised on the Michigan Inter-governmental Trade Network as well as on the City of Ann Arbor Purchasing website.
Four bids were received by the City:
Pifer Inc $63,960.00 per year
$108.00 per cart (2013 model)
*Work utility carts asked for in the ITB were not included in the bid per specifications
Golf Cars Plus $69,951.72 per year
$112.46 per cart (2017 model)
Spartan Distributors $102,137.28 per year
$164.91 per cart (2017 model)
Midwest Golf & Turf Vehicles $105,580.86 per year
$167.85 per cart (2017 model)
Staff recommends moving forward with the second lowest bidder in this instance. In this case the lowest bidder offered used carts from 2013 while the selected bidder is providing brand new carts from 2017 for only $4.46 per cart per month more. Per bid language, the City has the right to award in the best interest of value to the City. Brand new carts from 2017 will provide a better experience for guests, better appearance, better fuel economy and likely result in less maintenance issues and carts out of service than carts from 2013.
Also included in this bid were requests for two work vehicles for on-course maintenance and one beverage cart for refreshment sales at Leslie Park. All but the low bidder came in with acceptable bids for these vehicles and CCB’S, LLC was low bidder with vehicles at $214.22 and $321.56 per month (for six months) respectively.
CCB’S, LLC meet all the specifications of ITB #4455 and their references have been checked.
The lease agreement is for 97 2017 Yamaha Drive Golf Carts, two 2016 Yamaha Adventure work utility carts and one 2017 Fairway Lounge Beverage cart. These all include weekly maintenance check-ins throughout the contract period and emergency service within 24 hours of reporting a problem, by a certified service technician and year end winter service and storage.
It is requested that the lease agreement be approved for two years (with a third optional), for an amount not to exceed $69,951.72 per fiscal year.
CCB’S, LLC complies with the requirements of the City’s non-discrimination and living wage ordinances.
Staff
Prepared by: Doug Kelly, Director of Golf
Colin Smith, Parks and Recreation Services Manager
Reviewed by: Derek Delacourt, Community Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, Golf carts are an important aspect of the golf operations and are available at both Huron Hills and Leslie Park Golf Courses;
Whereas, In the interest of providing City customers with a quality and reliable vehicle for rental the City desires to enter in a lease agreement with CCB’S, LLC (dba Golf Cars Plus);
Whereas. CCB’S, LLC bid is in the best interest of value to the City, providing brad new golf carts;
Whereas, Funding is available for FY2017 in the approved Parks & Recreation Services General Fund and will be included in the budget plan for FY2018 and FY2019; and
Whereas, CCB’S, LLC complies with the requirements of the City’s Non-Discrimination and Living Wage Ordinances;
RESOLVED, That City Council approve a lease contract with CCB’S, LLC (dba Golf Cars Plus) for an amount not to exceed $69,951.72 per year for the lease of 97 golf carts and three utility vehicles for the 2017 and 2018 calendar years;
RESOLVED, That the Mayor, City Clerk, and City Administrator are authorized to execute the necessary lease documents after approval as to form by the City Attorney; and
RESOLVED, That the City Administrator be authorized to exercise the City’s option to extend the lease with CCB’S, LLC and execute the necessary lease documents for the 2019 season if deemed in the best interest of the City.