Memorandum               

 

TO:

Dave Corliss, City Manager

Cynthia Boecker, Assistant City Manager

 

FROM:

Mark Hecker, Park Superintendent

 

CC:

Ernie Shaw, Interim Director

Date:

May 2, 2008

 

RE:

Agenda Item – Cart and Utility Vehicle Lease - Eagle Bend Golf Course

 

 

Please include the following item on the City Commission agenda for consideration at the May 13, 2008 meeting:

  • Project/Item Description.  Lease agreement renewal for golf carts and utility carts for Eagle Bend Golf Course.

 

  • Project Description/History.  The existing lease agreements with E-Z-GO for carts and utility vehicles at the golf course expire at the end of October 2008. Due to the long standing nature of our relationship with the company, the E-Z-GO representative was authorized to negotiate a contract renewal prior to the expiration of our current agreement. The company has offered to replace all of our existing fleet (62 carts and 8 utility vehicles) with new vehicles and provide free weekly service on these vehicles beginning on May 28, 2008. For the City’s early renewal, E-Z-GO has agreed to maintain their current annual lease rate through October of 2012. This current lease agreement originated in 2004. Therefore, if approved, we would be able to hold the lease cost at the 2004 price through the 2012 golf season and get all new equipment in the process. Eagle Bend has had E-Z-GO equipment since the course opened in 1998. Staff has always been happy with the dependability of their product and the maintenance program that keeps their carts operational.  We feel that this is a very good deal for a good product, and will allow us to continue a relationship that has been very successful for us.

 

  • Project/Item Funding.  The annual lease payment for these two leases total $42,979.08 per year (62 carts $36,266.28, 8 utility vehicles $6,712.80) and are budgeted in the golf course operating budget.  The revenue produced from these carts in 2007 was $212,430.

 

  • Action Request.  Authorize the City Manager to sign new lease agreements with E-Z-GO to extend the current golf cart and utility vehicle agreements though October of 2012.