Submitted By: Julie Johnson
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Presentation By: Julie Johnson
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Department: Recreation and Parks
FORMAL TITLE:
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Proposal from E-Z Go authorizing the manufacturing of 82 new golf carts and one new beverage cart for an aggregate expenditure not to exceed $566,238
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
Ocala Golf Club is a City-owned 18-hole golf course managed by Indigo Sports, LLC (formerly Billy Casper Golf). Indigo Sports, LLC, is contractually obligated to procure all equipment necessary for the normal course of operation of the Golf Club, including golf cart leases, in accordance with the Annual Budget presented to the City of Ocala as part of the City’s annual budget process. When the City of Ocala is named as a party to contracts relating to such procurements, City approval is required.
Ocala Golf Club maintains a fleet of 82 golf carts and one beverage cart. The current EZ-Go golf cart lease-purchase agreements with PNC Equipment Finance, LLC (Lease Nos. 1154950-2 and 1154950-3) will expire on April 15, 2026. E-Z Go has committed to repurchasing the golf carts and beverage cart at the conclusion of the current lease term.
FINDINGS AND CONCLUSIONS:
Indigo Sports, LLC, obtained quotes from multiple golf cart manufacturers using their national discount contracts. Quotes received for the acquisition of a new fleet of carts for Ocala Golf Club under a 48-month lease-purchase, each with a guaranteed buyback provision at the end of the lease term, are as follows:
|
Manufacturer |
Monthly Lease Payment |
|
EZ GO |
$7,484.12/month |
|
Club Car |
$7,491.54/month |
|
Yamaha |
$7,742.00/month |
Based on the Golf Cart Lease Analysis prepared by Indigo Sports, LLC, acquisition of the fleet through E-Z-GO represents the best value for Ocala Golf Club, based not only on the lowest monthly payment but also on factors including warranty, service support, vendor reputation, and product quality. E-Z-GO has obtained a written commitment from Revel Golf Cars to purchase the golf carts and beverage cart at the conclusion of the lease term. Indigo Sports, LLC recommends a 48-month lease-purchase for E-Z-GO gas carts at a fixed interest rate of 6.0%, and staff concurs with the evaluation, scoring, and recommendation.
To begin the manufacturing process for the fleet, E-Z Go requires the Council to signify acceptance of the expenditure amount by executing the Quote attached hereto. Once the fleet has been delivered, the City will be required to execute formal Lease-Purchase Agreements substantially in the form of the sample Lease-Purchase Agreement attached hereto.
In addition to Council’s approval of the quotes for the golf carts and beverage cart, staff also seeks Council’s authorization for the City Manager, Assistant City Manager, and/or Chief Financial Officer to negotiate, enter into, execute, and deliver Lease-Purchase Agreements for the carts on behalf of the City of Ocala via an accompanying resolution on the General Business portion of this Agenda. Any Lease-Purchase Agreement negotiated shall first be subject to form and legality review and approval by the City Attorney.
FISCAL IMPACT:
The cost to lease the carts is included in Indigo Sports, LLC’s, annual operating budget. The annual lease amount is $89,809.44. The total contract amount is calculated as follows:
48-month lease payments $359,237.76
End-of-Lease Balloon $207,000.00
Total Contract Amount $566,237.76
PROCUREMENT REVIEW:
These services were procured in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
This Agreement will be reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny