Title
RESOLUTION AWARDING A CONTRACT TO DE LAGE LANDEN PUBLIC FINANCE LLC FOR THE FOUR-YEAR SEASONAL LEASE OF GOLF CARS AND MAINTENANCE/UTILITY VEHICLES AT AN ANNUAL TOTAL OF $86,111.40 FOR 2016, 2017, 2018, AND 2019, AND A POTENTIAL TOTAL CONTRACT AMOUNT OF $344,445.60.
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CITY PROPOSAL:
RESOLVED, that that the proper city officials are hereby authorized to enter into a lease agreement with De Lage Landen Public Finance LLC (DLL) for a four-year seasonal (May - October) lease of one hundred-forty 2016 Club Car Precedent EFI gas golf cars and ten Club Car CarryAll 100 EFI gas maintenance and utility vehicles for the Lester and Enger Park golf courses, in accordance with city-approved specifications and Club Car’s low bid of $86,111.40 for each of the years 2016, 2017, 2018, and 2019, and a total potential contract amount of $344,445.60, sales tax collected with each rental, said $86,111.40 for year 2016 to be paid as follows:
(a) $43,055.70 from Golf Fund 503, Dept 400 (Parks & Recreation), Division ENGR (Golf Course Enger), Object 5415 (Enger-Vehicle/Equip. rental-short-term);
(b) $43,055.70 from Golf Fund 503, Dept 400 (Parks & Recreation), Division LSTR (Golf Course Lester), Object 5415 (Lester-Vehicle/Equip. rental-short-term)
RESOLVED FURTHER that this four-year lease is subject to the availability of funds.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes a contract, substantially in the form attached as Exhibit A, with De Lage Landen Public Finance LLC for the four-year seasonal lease of golf cars and maintenance/utility vehicles for a potential total contract of $344,445.60, or $86,111.40 per year, payable from the golf fund. This will be paid in six monthly installments each year, May through October, in the amount of $14,351.90, subject to the availability of funds. The lease will decrease total annual golf car lease costs by approximately $9517 relative to the projected 2015 total of $95,628.40.
The lease period runs May through October of each year. The golf cars are leased exclusively as rentals to golfers at both the Enger and Lester Park golf courses. The utility cars are used by golf course personnel as people movers. Sales tax is collected with each rental. The lease agreement includes a dealer balloon payment guarantee.
The purchasing division posted a request for bids on October 5, 2015, on the city's website, and received three responses by the closing date. Club Car Minnesota submitted the lowest of the three bids. Club Car Minnesota offers municipal financing through De Lage Landen Public Finance, LLC.
Vendor Base Bid (Annual Cost)
Club Car Minnesota $86,111.40
Yamaha Golf & Utility, Inc. $88,854.60
Versatile Vehicles $100,903.20