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HomeMy WebLinkAbout2011-11-02 PACKET 04.E.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 11/2/2011 PREPARED BY Administration Ryan Schroeder ORIGINATING DEPARTMENT DEPARTMENT HEAD COUNCIL ACTION REQUEST Consider entering into a purchase agreement with Club Car for 75 golf carts with a trade -in of 70 carts for a total purchase price of $175,564.25. STAFF RECOMMENDATION Authorize entering into the purchase agreement. BUDGET IMPLICATION $50,000 (2012/2013 budge $38,2 00.50 (Annually 2012 - 2016) BUDGETED AMOUNT ACTUAL AMOUNT SUPPORTING DOCUMENTS ® MEMO /LETTER: Memo from Bruce Anderson. ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ® OTHER: Proposal. ADMINISTRATORS COMMENTS (P , ( 97, il r ity Administrator Date COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER Oocument3 To: Honorable Mayor, City Council Members and City Administrator From: Bruce Anderson, Golf Course Manager Date: October 28, 2011 Subject: 2012 Golf Cart Purchase Background The 2012 -2016 budget reflect rental /lease line item of $50,000 per year for the purchase of (75) new golf carts for River Oaks Golf Course. Our current golf cart fleet which is a Club Car just finished year seven. As discussed with council in August of 2011, staff was looking at both options of gas carts or electric carts. Staff did meet with Wenzel Heating and Air Contractors for a bid amount to convert both buildings to meet ventilation and electrical requirements for electric carts, these cost would exceed $150,000. Cost savings average roughly $5,000 per year for electric versus gas carts. So the capital expense far out weighs the return on investment for the conversion. Staff and River Oaks Golf Course Customers did demo Club Car, EZ -GO and Yamaha Golf Carts. All agreed that Club Car was the most comfortable and best performing golf cart (from mechanical, comfort, service ability and reliability). Discussion The City of Cottage Grove is a member of the National Intergovernmental Purchasing Alliance Company and so is Club Car. IPA members include city/local governments, county government, state government and public /private education institutions. Membership allows River Oaks to purchase 2012 Club Car Golf Carts at a 51% discount (for 2011 pricing) off US suggested list price which would be a cost of $3,949.40 per cart plus windshields. A full (4) year factory warranty is included. River Oaks would like to purchase (75) carts from Club Car but trade in (70) of our existing fleet of (75). Trade in value would be $1,915.00 per cart or a fleet value of $134,050.00 for (70) carts. The remaining 5 carts would be used by starter /rangers and grounds maintenance staff for transportation. As part of the deal with Club Car and IPA, River Oaks would receive $8,250 in free goods or purchase (75) golf carts for the price of (73) golf carts (not including accessories like windshields). Golf cart revenues generate per season $190,000 to $225,000 a year (depending on weather). Action Requested Enter into a purchasing agreement with Club Car for (75) carts with a trade in of (70) carts. Total cost of (73) carts (2 carts free) would be $309,614.25 to include golf carts, transportation, set -up, windshields, baskets, tops, number decals, wheel covers and information holders. After trade in value of $134,050.00 the final cost is $175,564.25. Total yearly budget impact for years 2012 -2016 would be $38,200.50 (2012/2013 budget reflects $50,000). River Oaks Golf Course would own carts at the end of agreement. Note River Oaks staff did look into the option of purchasing a (2) year old fleet from Club Car. Savings would roughly be $1,000 per cart for used versus new. For the following reasons staff recommends the new fleet: warranty limited, reduction in trade in value of existing fleet by roughly $300 per cart ($21,000), loss of (2) years in life revenues (River Oaks will have to trade fleet in 5 years versus 7 years) also an increase in repairs due to (2) years of use. Y. OY,ill River Oaks Municipal • rId • •• 1 t t Equipment Proposal — (75) New 2012 Club Car Precedent Gasoline Golf Cars 1. L Loan Proposal Payment Schedule — Gasoline Golf Car Fleet 2. Warranty / Replacement Parts And Service 3 -5. Copy of Club Car New Fleet Golf Car Warranty Date of Quote: October 24, 2011 Salesperson: Andy Hochmuth Territory Sales Manager TO: River Oaks Municipal Golf Course Cottage Grove, MN WE ARE PLEASED TO SUBMIT THE FOLLOWING QUOTATION: Page 1. QTY DESCRIPTION UNIT PRICE EXTENSION PRICE 73 New 2012 Club Car Precedent gasoline-powered golf cars $3,949.40 $288,306.20 to be equipped as follows: 73 Color — Beige Included Included 73 Canopy tops- Beige Included Included 73 Seats — Beige Included Included 73 Sweater baskets Included Included 73 sets Wheel Covers Included Included 73 sets Number Decals Included Included 73 Hinged Windshield $113.60 $8,292.80 73 Information Holder $12.19 $889.87 74 Club Car Truck — Freight Charge $163.00 $12,062.00 1 Partial Freight Charge (left from free goods) $63.38 $63.38 Sub - Total: $309,614.25 Trade -In Vehicles: 70 2005 Club Car DS gasoline golf car <$1,915.00> <$134,050.00> Fleet Total: $175,564.25 "All pricing is per current NIPA national contract. With equipment purchases of $297,488.87, the City of Cottage Grove qualifies for $8,250.00 in free goods from Club Car. This amount has been utilized for the purchase of two additional new 2012 golf cars equipped same as above. All trade -in vehicles must be in good appearance with normal wear and tear accepted and in fleet running condition. Prices and finance proposals within this quotation are in effect for 30 days. State, local, and personal property taxes as applicable are not included. All credit terms must be approved prior to delivery. Customer must submit required credit information for credit approval. TERMS E.O.B. APPROX. DELIVERY DATE SHIPPED VIA LOAN I Cottage Grove, MN December, 2011 Club Car truck Accepted By: Title: Date: For Superior Golf Cars: 0 Title: Territory Sales Manager Thank you for your interest in Superior Golf Cars Page I.I. Skip Payment Loan Proposal Superior Golf Cars, through one of its preferred funding sources, proposes to finance to River Oaks Municipal Golf Course the golf car fleet equipment as described on the equipment proposal on Page 1. The loan rates are based on a December, 2011 delivery date with the first payment due in May, 2012. The loan rates as proposed are subject to normal credit approval. Tenn in Months: 59 months of skip payments Payment Per Car (75) Per Month: $ 84.89 (Monthly Total Fleet Payment: $ 6,366.75) (Full Year Annual Fleet Payment: $38,200.50) Payment months (Example): May, June, July, August, September, October (2012, 2013, 2014, 2015, 2016) Non - payment months (Example): December (2011) January, February, March, April, November, December (2012, 2013, 2014, 2015, 2016) This is a term -month capital loan without balloon payment contract. Upon final monthly payment, River Oaks Municipal Golf Course will be in ownership of the equipment as described on Page 1. The rates as quoted above are valid for 30 days River Oaks Municipal Golf Course Title Superior Golf Cars By Title: Territory Sales Manager Date: Date: Page 2. .•' A. Superior Golf Cars warrants to River Oaks Municipal Golf Course that its new 2012 Club Car Precedent gasoline golf cars are free from defects in materials and workmanship subject to the terms and conditions contained in the attached Club Car Limited Lifetime Warranty. Factory authorized replacement parts, service and warranty work is handled through Superior Golf Cars, a factory - authorized distributor. It is Club Car's objective that River Oaks Municipal Golf Course will receive professional, timely and systematic service. Club Car offers technical training seminars for golf course employees involved with golf car operations. These seminars are held at Club Car's manufacturing facility in Augusta, Georgia, and are conducted by professional educators. Employees will learn preventive maintenance and repair procedures to enhance the club's fleet operations. They will also enjoy sharing ideas and experiences with golf club and resort personnel from all over the world. In addition, Superior Golf Cars offers local service training conducted by a factory trained service technician. Page 3. ..o r •' r CLUB CAR, LLC ( "CLUB CAR') hereby warrants to the Original Purchaser or Lessee, as those terms are defined herein, and subject to the provisions, limitations and exclusions in this limited warranty, that its new vehicle or new component purchased from CLUB CAR or an Authorized Dealer or Distributor shall be free from defects in material and workmanship under normal use and service for the periods stated below, subject to the provisions, limitations and exclusions in this limited warranty. This limited warranty covers material, workmanship and repair labor cost as to those items specifically listed below for the periods specified. Such repair labor shall be performed only by CLUB CAR, its Authorized Dealers or Distributors, or a service agency approved by CLUB CAR. For repairs made by qualified technicians other than CLUB CAR's factory technicians or an Authorized Dealer or Distributor, CLUB CAR will provide only the replacement parts or components. IF THE WARRANTY REGISTRATION FORM IS NOT COMPLETED AND RETURNED TO CLUB CAR AT THE TIME OF THE ORIGINAL RETAIL SALE, PURCHASER MUST PROVIDE PROOF OF DATE OF PURCHASE WITH ANY WARRANTY CLAIM. 12L 12 V4 VEHICLE MAIN FRAME LIMITED LIFETIME* SUSPENSION: Steering gearbox, steering column, shocks, and leaf springs. 4 4 4 MAJOR ELECTRONICS: Onboard computer (OBC), solid state speed controller, and battery 4 4 4 charger. DEEP CYCLE BATTERY: Four years or 20,000 Energy Units as recorded by the OBC, whichever 4 4 4 first occurs. PREMIUM DEEP CYCLE BATTERY: FOUR YEARS OR 25,000 ENERGY UNITS AS RECORDED BY THE OBC, WHICHEVER FIRST OCCURS. 4 4 4 PEDAL GROUP: Pedal group mechanical assembly, brake cluster assemblies, and brake cables. 4 4 4 SEATS: Seat bottom, seat back, and armrest 4 4 4 CANOPY SYSTEM: Canopy, rear canopy supports, drainage system and structural accessory 4 4 4 module (SAM). POWERTRAIN: Gasoline engine, electric motor, MCOR, gasoline and electric transaxle, starter 3 3 3 generator, air intake, exhaust system, and torque converter (drive and driven). BODY GROUP: Beauty panels, and front and rear underbody. 3 3 3 ALL REMAINING COMPONENTS: Solenoid, GCOR, limit switches, voltage regulator, F &R switch, and options and accessories supplied by CLUB CAR, including components not specified 2 2 2 otherwise. Page 4. EXCLUSIONS: Excluded from any CLUB CAR warranty is damage to a vehicle or component resulting from a cause other than a defect including poor maintenance, neglect, abuse, accident and collision, maintenance adjustments, unreasonable or unintended strain or use, improper installation of accessories, installation of parts or accessories that are not original equipment including Club Car approved or non - approved GPS systems, non - approved alteration and acts of God. Also excluded from any CLUB CAR warranty are all fuses, filters, decals (except safety decals), lubricants, routine wear items such as the charger plug and receptacle, engine mounts, mats, pads, spark plugs, light bulbs, brake shoes, belts, brushes, bushings, drive buttons, cosmetic deteriorabon, and items that deteriorate, fade or fail due to exposure or ordinary wear and tear. The provisions of this limited warranty shall not apply to failure due to: 1) Abuse such as overcharging, undercharging, improper fluid levels, use of contaminated water in batteries (See "Water Quality" in owner's manual), loose wiring and fasteners, or rusted or corroded hardware. 2) Lack of proper maintenance such as preventive maintenance checks, proper rotation of vehicles in a fleet application, maintaining proper tire pressure and alignment and tightening loose wire connections as outlined in the owner's manual. 3) Damages caused by improper installation of the component. 4) Neglect, breakage, freezing, fire, explosion, wreckage, melted terminal posts, the addition of any chemical, or the operation of the battery in an uncharged condition (below half charge 1.200 specific gravity); the installation of the batteries in reverse or recharging in reverse, breakage of containers, covers, or terminal post, or batteries used in applications for which they were not designed. 5) A battery damaged by a defective charger or batteries in vehicles that do not receive proper charging. 6) Every vehicle must have an operational charger on its own circuit (Number of operational charger must equal the number of operational vehicles) 7) Vehicles charged by systems other than the CLUB CAR Charger. 8) Semiconductor parts such diodes and fuses that are vulnerable to electrical overloads (including lightning) beyond the control of CLUB CAR. 9) Charger DC cord set with plug, which is a wear item and subject to user abuse. Without limiting the generality of the foregoing in any way, and as part of its limited warranty exclusion, CLUB CAR does not warrant that its vehicle or components such as batteries, computer, controller or electrical device are suitable for use in any application other than in its products. As in the use of any vehicle, batteries, computer, controller or electrical device, a prudent owner will read and study the owner's manual, the operator instructions and the warning labels, and will exercise due care in working on or around vehicles, batteries or electrical devices. Transportation expenses for warranty services are also excluded from this warranty. VOIDING OF WARRANTY: THIS AND ANY OTHER WARRANTY SHALL BE VOID IF THE VEHICLE OR COMPONENT IS ABUSED OR USED IN AN UNINTENDED MANNER OR SHOWS INDICATIONS THAT IT HAS BEEN ALTERED IN ANY WAY, INCLUDING, BUT NOT LIMITED TO, MODIFICATION OF THE SPEED GOVERNOR, BRAKING SYSTEM, STEERING, TRANSAXLE, OR OTHER OPERATING SYSTEMS OF THE CAR TO CAUSE IT TO PERFORM OUTSIDE CLUB CAR SPECIFICATIONS. THE WARRANTY IS LIKEWISE VOID IF THE VEHICLE SHOWS INDICATIONS THAT REASONABLE OR NECESSARY MAINTENANCE AS OUTLINED IN THE OWNER'S MANUAL AND MAINTENANCE AND SERVICE MANUAL WAS NOT PERFORMED AT THE TIME AND IN THE MANNER SPECIFIED IN SUCH MANUALS. Page 5. SOLE REMEDY CLUB CAR's liability under this limited warranty or in any action whether based upon warranty, contract, negligence, strict product liability or otherMse, shall be the repair or replacement, at CLUB CAR's option, of the vehicle or component thereof that club car deems to be defective. Replacement shall mean furnishing, during the applicable limited warranty period, a new vehicle or factory- reconditioned vehicle or component thereof that is identical or reasonably equivalent to the warranted product or component at no cost to the purchaser. Repair shall mean remedying a defect in the vehicle or component thereof at no cost to the purchaser during the applicable limited warranty period. CLUB CAR reserves the right to test and recharge any component returned for adjustment. If CLUB CAR elects to repair the vehicle or component, it may provide factory- reconditioned parts or components. All parts and components replaced under warranty shall become the property of CLUB CAR. DISCLAIMER: THIS LIMITED WARRANTY IS EXCLUSIVE. CLUB CAR MAKES NO OTHER WARRANTY OF ANY KIND, EXPRESSED OR IMPLIED. ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE ARE HEREBY DISCLAIMED BY CLUB CAR AND EXCLUDED FROM THIS WARRANTY. THE PURCHASER AND CLUB CAR EXPRESSLY AGREE THAT THE SOLE REMEDY OF THE REPLACEMENT OR REPAIR OF THE DEFECTIVE VEHICLE OR COMPONENT THEREOF IS THE SOLE REMEDY OF THE PURCHASER. CLUB CAR MAKES NO OTHER REPRESENTATION OR WARRANTY OF ANY KIND, AND NO REPRESENTATIVE, EMPLOYEE, DISTRIBUTOR OR DEALER OF CLUB CAR HAS THE AUTHORITY TO MAKE OR IMPLY ANY REPRESENTATION, PROMISE OR AGREEMENT, WHICH IN ANY WAY VARIES THE TERMS OF THIS WARRANTY. In the event that another pre - printed warranty document, certificate or both offered by or through Club Car at the time of sale of this vehicle (each an "Additional Warranty Document') is deemed to conflict with the limitations or exclusions contained herein, the limitations and exclusions contained herein shall continue to apply to both this limited warranty statement and, to the maximum extent permitted by law, to each Additional Warranty Document NO CONSEQUENTIAL DAMAGES IN NO EVENT SHALL CLUB CAR BE LIABLE FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES INCLUDING, BUT NOT LIMITED TO, LOSS RELATED TO PROPERTY OTHER THAN THE VEHICLE, LOSS OF USE, LOSS OF TIME, INCONVENIENCE, OR ANY OTHER ECONOMIC LOSS. Some states allow neither limitation on the duration of an implied warranty nor exclusions or limitation of incidental or consequential damages. Therefore, the above limitations or exclusions may not apply to you. This warranty gives you specific legal rights, and you may also have other rights, which vary from state to state. HOW TO MAKE A WARRANTY CLAIM To make a warranty claim under this limited warranty, you must present the vehicle or defective component with evidence of proof of purchase date and number of energy units (if applicable) to an authorized CLUB CAR dealer. For warranty- related communication, contact Warranty Services, Club Car, 4125 Washington Rd., Evans, GA 30809, USA, 706.863.3000, WARRANTY TRANSFER: The original owner shall have the right to transfer any remaining warranty coverage to one subsequent purchaser only. For the original owner to transfer any remaining warranty coverage to a subsequent purchaser, the vehicle must be transferred by an Authorized Club Car Distributor or Dealer with the Warranty Department at Club Car. Such transfer must take place within the first three years of the original in service date of the vehicle. *The Limited Lifetime section of the warranty coverage applies to the original purchaser or lessee only, and the subsequent purchaser has a four -year coverage period based on the original in service date. No transfers of any remaining warranty coverage shall be permitted by any subsequent purchasers. WARNING: Any modification or alteration of any vehicle beyond factory specifications, including those that affect the weight distribution, stability, or speed of the vehicle, can cause serious personal injury or death.