TITLE
Consider a memorandum/resolution awarding Bid No. 17-17 to E-Z-GO/TCF Equipment Finance for the lease of rental golf carts at Stonetree Golf Club.
SUMMARY
DATE: October 17, 2017
TO: Ronald L. Olson, City Manager
FROM: Brett Williams, Executive Director of Community Services
SUBJECT: Lease agreement for Stonetree Golf Club Golf Carts
BACKGROUND AND FINDINGS:
Stonetree Golf Club requires daily rental of golf carts to its customers. Annually, over 43,000 rounds of golf are played at the golf course. Stonetree also serves as the host venue for 45 tournaments annually. Stonetree Golf Club generates in excess of $1,000,000 annually in revenue. Golf cart rentals account for $170,000 in net revenue. Due to the volume of usage on the rental fleet by customers, the golf carts are subject to maintenance issues beyond the four-year mark in the life of the cart. Staff recommends the replacement of the golf cart fleet every four years to ensure that working golf carts are consistently available for Stonetree Golf Club customers.
Lease agreements provide the most cost effective method for Stonetree Golf Club to maintain a fully operational fleet; the lease method provides the course with a fleet that is covered via warranty. Leasing allows for the fiscal impact to be evenly distributed over the life of the possession of the golf carts. This method of procurement also coincides with the approved operating budget for the golf course. Community Services has already transitioned to the lease approach for all mowing equipment, fitness equipment, and golf carts. The lease method ensures that the high volume of usage placed on equipment within the department does not compromise the City's ability to provide quality service.
Staff has identified E-Z-GO / TCF Equipment Finance through the competitive bid process as an entity that can provide the g...
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