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REQUEST FOR COUNCIL CONSIDERATION AgendaeortSection: 96-17 <br /> 1_C <br /> Report Number: 96_17 40STAFF REPORT Report Date: 5-24-96 <br /> laiNDS <br /> Council Action: <br /> grerj- 9 ❑ Special Order of Business <br /> Partnc� ❑ Public Hearings <br /> 10 • CITY COUNCIL MEETING DATE May 28, 1996 ❑ Consent Agenda <br /> C Council Business <br /> Item Description: Consideration to Award Bid for Lease Purchase Golf Carts <br /> Administrator's Review/Recommendation: , <br /> - No comments to supplement this report /� <br /> - Comments attached. <br /> Explanation/Summary (attach supplement sheets as necessary.) <br /> ,SUMMARY; <br /> MEMO TO: CHUCK WHITING, ADMINISTRATOR <br /> FROM: MARY SAARION, DIRECTOR <br /> PARKS, RECREATION& FORESTRY <br /> DATE: MAY 22, 1996 <br /> SUBJECT: RECOMMENDATION TO AWARD BID TO CLUB CAR FOR LEASE <br /> PURCHASE AGREEMENT FOR GOLF CARTS AND UTILITY CART , <br /> 0 FOR THE BRIDGES GOLF COURSE <br /> RFP's were advertised for lease/purchasing 10 golf carts and one utility cart for The Bridges Golf <br /> Course. Year end evaluation and recommendation was made by Effective Golf Course Systems <br /> to look into the feasibility of purchasing rather than leasing golf carts. Research showed that <br /> purchasing golf carts results in greater profits after four years. The lease/purchase option requires <br /> annual payment periods of 6 months with 6 months non-payment months. Annual payment is <br /> within operational expenses of the golf course. After four years, the carts will be fully paid and <br /> profits will increase. Last year's cost for leasing 8 golf carts was $960 per month or $120 per cart <br /> per month. The monthly cost for lease/purchasing 10 golf carts is $1704.40, or $170 per cart per <br /> month, a difference in annual lease/purchase costs versus leasing costs of$50 per cart per month <br /> or $3,000 year. The longevity of each cart is 8 - 10 years providing increased revenue profit <br /> stream from power cart rentals for 4-6 years once the carts are fully paid after 4 years. <br /> Two bids were received. Club Car and Yamaha, Golf Car Midwest were the only two bidders. <br /> Club Car has the best bid at $1704.40 per car per month with 5 year warrantee.. Golf Car <br /> Midwest bid $1,775.00 per month with 3 year warrantee. John Hammerschmidt, Golf Course <br /> Superintendent, has worked with Club Car before and has been very satisfied with their service. <br /> IDRecommendation: Staff recommends bid award to Club Car for lease/purchasing 10 golf carts <br /> and one utility cart for The Bridges Golf Course, at a cost of$1704.04 per monthly payment for <br /> four years, 6 months off(November through April) and six payment months (May through <br /> October). The annual cost is $10,226.40. Expense is to be funded from Golf Course Enterprise <br /> Fund. <br />