Golf Car Lease Agree - Bunker Hill
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MEMORANDUM
February 16, 2006
TO: Michael C. Van Milligen, City Manager
FROM: Gil D. Spence, leisure Services Manager
SUBJECT: Golf Car lease Agreement
INTRODUCTION
The purpose of this memorandum is to request that the City Council award a five-year
lease for fifty (50) golf cars for the Bunker Hill Golf Course to Tiziani Golf Car
Corporation.
DISCUSSION
Bids were received on January 27,2006, for the lease of golf cars for the Bunker Hill
Golf Course. The five year agreement includes maintenance and repairs from normal
use.
The following three bids were received:
. E-Z-GO Textron, Des Moines
. Tiziani Golf Car Corp. (Club Car), Madison
. Harris Golf Cars (Yamaha), Peosta
$116,640
$136,800
$138,000
($23,328/yr)
($27,360/yr)
($27,600/yr)
The lease agreement that has expired was for forty (40) golf cars. After the first year of
that agreement, we added ten (10) golf cars with another five year lease. These bid
proposals called for forty (40) cars the first year and fifty (50) the remaining four years of
the lease. Harris Golf Cars had the lease for the forty cars that expired, plus they have
the current lease for the ten (10) cars. If Harris does not receive this lease, we must
honor that last year of the agreement for the ten (10) cars.
I recommend the bid of E-Z-GO Textron be rejected because our bid specifications
called for a straight five-year lease and the E-Z-GO proposal requires a balloon
payment of $70,000 at the end of the lease. They include a letter from The New Golf
Cars of Iowa stating they will purchase the fifty (50) cars for the $70,000 balloon
payment, but I do not know if they can be held to that commitment.
continued
golf car lease agreement, page two
I recommend the bid be awarded to the next lower bidder, Tiziani Golf Car Corporation
in the amount of $136,800 ($27,360 per year) pending negotiation of an acceptable
service agreement with Wilwert's Golf and Utility Vehicles. We have been very pleased
with the level of service we have received from Harris Golf Cars and have received
reports from two golf courses of poor service from Wilwert's. We have received a report
from another golf course of good service from Wilwert's so we want a service
agreement that clearly outlines what is expected and to provide a standard to measure
that service.
This is especially important because there is only a $1200 difference (.09%) between
the two responsive bidders. The next lowest bidder is Harris Golf Cars of Peosta, Iowa,
supplying Yamaha golf cars:
. Our golf course has had Yamaha cars for twenty-six years, twenty-one when the golf
professional had the rights to provide this service and five years with the City.
During this period we have been very pleased with the performance of the cars and
the level of service provided by Harris Golf Cars. Actually, we have had very little
service required during the golf season throughout the five-year lease. That is a
good indication of the quality of the Yamaha golf car.
· Harris also provides extra golf cars for heavy use weekends at a very competitive
rate. These cars are always in good condition and clean.
· Harris has also show support of the golf course by sponsoring and participating in
special events.
· In their bid, Harris has offered an additional incentive that includes:
v' One playing spot in the WGA Pro-Am at the Western Open;
v' Four single day skybox tickets to the Western Open
v' This package is valued at $2,200 and would be raffled to generate money for
the golf course. This raffle would only have to generate $240 annually to, in
effect, lower the Harris bid to that of Club Car.
ACTION STEP
The action requested is that the City Council award the five-year lease for fifty (50) golf
cars for the Bunker Hill Golf Course to Tiziani Golf Car Corporation, conditioned on
negotiation of satisfactory maintenance service agreement. The actual lease
agreement will be submitted for City Council approval at a later date.
GDS:et
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MEMORANDUM
February 13, 2006
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Golf Car Lease Agreement
Bids were received for a five year lease for 50 golf cars for the Bunker Hill Golf Course.
Leisure Services Manager Gil Spence is recommending award of the contract to the
lower bidder, Tiziani Golf Car Corporation of Madison, Wisconsin, in the amount of
$136,800, with one very important condition.
Tiziani Golf Car Corporation will be providing Club Car Golf Cars. Their local service
provider will be Wilwert's Golf and Utility Vehicles of Dubuque. The City spoke with
three golf courses that receive maintenance from Wilwert's and two of those were not
satisfied with the service.
Leisure Services Manager Gil Spence is recommending that the bid award be
contingent on negotiating a service agreement satisfactory to the City that clearly
outlines what is expected and to provide a standard to measure that service.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Gil D. Spence, Leisure Services Manager