Res 09-003
Res 09-003
CITY COMMISSION AGENDA 2
- Meeting Date:
- 01/07/2009
- Title:
- Seventy-five (75) Golf Cart Lease Purshase
- Submitted By:
- Rita Williams, Purchasing
- Department:
- Purchasing
ACTION REQUEST (Brief Summary)
Approve the lease purchase of seventy-five (75) Precedent Golf Carts for the Bayou Golf Course, through the Texas Association of School Board (TASB), a Texas Local Government Purchasing Cooperative.
BACKGROUND
Total purchase price for the carts is $226,548.00; which includes the trade-in of sixty-two (62) carts at $1,000.00 each. The quotation, lease purchase agreement and vendor letter is attached for your review. Funds are available in the Contractual Services General Ledger Account. The lease is for forty-eight (48) months, with first payment due in March 2009.
The delivering dealer is Club Car, Inc.
The delivering dealer is Club Car, Inc.
ANALYSIS
It is my recommendation to award the lease purchase of seventy-five (75) golf carts through the Texas Association of School Board (TASB), for the total contract price of $226,548.00.
Thank you
Thank you
ALTERNATIVES CONSIDERED
Alternatives:
We also considered the "new" EZGO RXV golf cart. The RXV cart was equipped the same as the ClubCar. Both carts had 48 volt systems, sand bottles, hub caps, fold down windshields, canopies and battery fill systems. The EZGO bid of $262,656 was $36,108.00 higher than ClubCar's 48 month lease/purchase. Additionally, EZGO does not offer the aluminum frame and ArmorFlex body that comes standard to the ClubCar cart. The non-corrosive aluminum frame and the ArmorFlex body could be a critical factor regarding cart maintenance and in the value of the cart as a future trade. Previously the ClubCar product was purchased solely due to the aluminum frame and the high exposure to salt in our coastal environment.
The EZGO new technology "estimated" substantial future savings in maintenance and electrical expenses over the 48 month lease but the savings are unproven and not guaranteed. The fleets of carts might be comparable in cost only if all of the EZGO predicted savings materialized.
To summarize, the ClubCar lower initial costs, the availability of the aluminum frame, improved canopy, ArmorFlex body, proven quality of product, warranty, and dealership made the ClubCar offer the best deal for the Bayou Golf Course.
We also considered the "new" EZGO RXV golf cart. The RXV cart was equipped the same as the ClubCar. Both carts had 48 volt systems, sand bottles, hub caps, fold down windshields, canopies and battery fill systems. The EZGO bid of $262,656 was $36,108.00 higher than ClubCar's 48 month lease/purchase. Additionally, EZGO does not offer the aluminum frame and ArmorFlex body that comes standard to the ClubCar cart. The non-corrosive aluminum frame and the ArmorFlex body could be a critical factor regarding cart maintenance and in the value of the cart as a future trade. Previously the ClubCar product was purchased solely due to the aluminum frame and the high exposure to salt in our coastal environment.
The EZGO new technology "estimated" substantial future savings in maintenance and electrical expenses over the 48 month lease but the savings are unproven and not guaranteed. The fleets of carts might be comparable in cost only if all of the EZGO predicted savings materialized.
To summarize, the ClubCar lower initial costs, the availability of the aluminum frame, improved canopy, ArmorFlex body, proven quality of product, warranty, and dealership made the ClubCar offer the best deal for the Bayou Golf Course.