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Date
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February 9,
2009
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Agenda
Item No. 21 Roll
Call No. 09-
Communication No. 09-054 Submitted by: Donald M. Tripp, Director of Park
and Recreation |
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AGENDA HEADING:
Authorizing the
extension of a lease agreement between the City of Des Moines and Textron Financial
Corporation for the rental of golf carts for the 2009 season.
SYNOPSIS:
Recommend
approval to authorize the Golf Car (or cart) lease agreement to E-Z-GO
Textron (Kevin Holleran, President, 1451 Marvin Griffin
Road, Augusta, GA 30906). The existing lease agreement with
Textron Financial Corporation that provided golf carts to Waveland and
Grandview golf course expired on December 31, 2008. Due to the fact that Waveland and Grandview
will be privately operated for the 2010 golf season, staff is recommending an
agreement be extended for the 2009 season.
FISCAL
IMPACT:
Amount: $74,194.38
Funding
Source: Funding for the lease is available in the
FY09 Operating Budget as follows.
- EN201
PKS 010704, page 250 (Grandview - 45 cars) $28,536.30
- EN201
PKS 010707, page 251 (Waveland - 72 cars) $45,658.08
The
golf car lease payment will be paid through user fees from car rentals. This past season (Jan. 1 – Dec. 31, 2008),
the City collected $245,958 at Waveland and $215,470 at Grandview for a total
collection of $461,428 from golf car rentals.
ADDITIONAL
INFORMATION:
On March
20, 2006, the City entered into a lease with E-Z-GO Division of Textron, Inc.
for rental of golf carts for a three year period. Five bids were mailed and three bids were
received with E-Z-GO receiving the award.
On December 22, 2008, the City Council approved a
recommendation of the Golf RFP Evaluation and Selection Committee’s and Park
and Recreation Board’s recommendations to authorize the City Manager to
negotiate and execute a contract with C-Corporation, (Jeff Chiodo, president)
for the management of Grandview and Waveland Golf Courses effective January 15,
2010.
Beginning January 15, 2010, C-Corporation will be
responsible for all facets of the golf operation at Waveland, Grandview and
Blank.
The proposed lease agreement would allow the City to
utilize the existing golf carts from the past lease for one additional year
under similar lease agreement terms from the previous agreement. E-Z-GO Division of Textron, Inc., will
provide the City 117 golf carts to be used at Waveland and Grandview golf courses
while also providing two beverage vending carts at no additional cost. While researching options it was discovered
that local golf cart vendors rarely lease carts for less than three years due
to the investment returns needed for the vendor. The previous vendor that supplied the carts
has agreed to supply us with the exact previous fleet of golf carts for the
2009 season under the same financial terms, $74,194.38 for the six month
season. The only major change in the
terms is, now the City would be responsible for any repairs. The carts will be four years old for the 2009
season, so staff is willing to agree to that term change. After speaking with the vendor and both golf
superintendents, staff is conservatively forecasting this to be less than
$10,000 during the period of the contract.
The Parks Department already completes similar repairs to turf
equipment. The Legal Department has
reviewed and approved the proposed lease agreement.
A sample
of the Golf Car Lease Agreement is on file in the City Clerk’s Office, in
addition to the financing agreement with National City Golf Finance, who will
be financing the E-Z-GO Textron Golf Car Lease.
Staff recommends that the City Manager be authorized to sign the agreement
upon Council approval.
PREVIOUS
COUNCIL ACTION(S):
Date: December 22, 2008
Roll
Call Number: 08-2220
Action: Accepting proposal from C Corporation for the
management of Grandview and Waveland Municipal Golf Courses, and authorizing
the City Manager to negotiate an agreement.
(Council Communication No. 08-753) Moved by Meyer to include in the
contract early termination provisions for both parties, with the City’s right
to terminate early if C Corporation does not meet their Capital Improvement
obligations. Motion Carried 5-1-1. Nays:
Mahaffey Pass:
Vlassis
Date: March
20, 2006
Roll
Call Number: 06-435
Action: On Lease Agreement with E-Z-Go Division of
Textron, Inc., for rental of golf carts over a 3-year period and allowing for
one 3-year extension, $74,194.38 annually, (3-20-06). Moved by
Brooks to adopt. Motion Carried 6-1.
BOARD/COMMISSION
ACTION(S):
Date:
December 10, 2008
Roll
Call Number: 08-109
Action: Park
and Recreation Board approved the Golf RFP recommendation. Motion carried 8-2.
ANTICIPATED
ACTIONS AND FUTURE COMMITMENTS:
Second
and final public hearing on February 23, 2009.
For more
information on this and other agenda items, please call the City Clerk’s Office
at 515-283-4209 or visit the Clerk’s Office on the second floor of City Hall,