CITY COUNCIL AGENDA REPORT

City of Anaheim

FINANCE DEPARTMENT

DATE: MAY 19, 2015

FROM: FINANCE DEPARTMENT

SUBJECT: GOLF CARTS LEASE AND MAINTENANCE AGREEMENTS

ATTACHMENT (Y/N): YES ITEM # 14

200 S. Anaheim Blvd.
Suite #620
Anaheim, CA 92805
Tel: (714) 765-5110
Fax: (714) 765-5288
www.anaheim.net

Golf Cars Lease and Maintenance Agreements

May 19, 2015

Page 2 of 2

RECOMMENDATION:

That the City Council, by Motion:

1)  Accept the low bid of Club Car, LLC, Corona, California in the aggregate amount of $783,023.16 for a 36-month lease and maintenance of 92 golf vehicles for the Anaheim Hills Golf Course and a 48-month lease and maintenance of 75 golf vehicles for the Dad Miller Golf Course; and,

2)  Approve the required lease documents with Agricredit Acceptance, LLC, Johnston, Iowa for the leases of the golf carts, all in accordance with Bid # 8410.

DISCUSSION:

Purchasing solicited bids from known suppliers and posted the bid on the Internet. Sealed bids were received by 2:00 p.m., Tuesday, February 17, 2015, from the following bidders, and were publicly opened immediately thereafter.

Total Bid Price

Club Car, Inc. $ 755,596.92

Corona, California

EZ-GO, A Textron Company $ 1,328,220.00

Augusta, Georgia

Of the 32 vendors directly notified of this bid opportunity, only two submitted bids. The other companies elected not to bid for various reasons, including their inability to provide maintenance or governmental leasing programs or having insufficient resources to handle a contract of this size.

Of the 167 golf vehicles being leased, 92 will be stationed at the Anaheim Hills Golf Course and 75 will be located at the Dad Miller Golf Course. The lease of the carts for Anaheim Hills will be for a 36-month term and the carts for Dad Miller will be 48-month term. The shorter lease term for Anaheim Hills is due to the hilly terrain and the corresponding additional wear-and-tear on those units versus the relatively flat course at

Dad Miller. The leases will be provided through Club Car’s primary third party leasing source, Agricredit Acceptance, LLC. Club Car will provide all necessary labor, parts, and tools to maintain the fleet.

The request for bids contained options for windshields and USB ports to allow golfers to plug in their electronic devices while golfing. After evaluating the costs and the benefits, staff recommended that 89 of the carts be outfitted with the additional equipment for the convenience of the golfers, bringing the total lease amount to $783,023.16.

Monthly payments will be made to Agricredit Acceptance, LLC for the two leases of the golf carts and monthly payments will be made to Club Car, LLC for the ongoing golf cart maintenance for the life of the respective leases.

IMPACT ON BUDGET:

Funds are included in the Community Services Department’s proposed Fiscal Year 2015/2016 budget in the Golf Courses Fund. Subsequent years’ payments will be subject to Council approval of budget appropriations for each fiscal year.

Respectfully submitted, Concurred by:

Carole A. Ayuso Terry D. Lowe

Purchasing Agent Community Services Director

Attachment:

1. Lease Documents