Approval is requested for the award of a three-year contract to E-Z-Go Textron of San Leandro for the lease of fifty golf carts for the Department of Parks and Recreation.

For many years, golf carts were rented to patrons at the Sunnyvale Golf Course and Sunken Gardens Golf Course by the golf shop licensee, Art Wilson Golf Shops. In April 1999, however, Art Wilson Golf Shops filed for bankruptcy. Since that time, the Department of Parks and Recreation has operated the golf shops, including providing rental golf carts to patrons through a short-term lease agreement. The cart fleet currently provided through this agreement is aging and not serviceable for the coming year.

Staff is currently identifying and evaluating options for operation of the golf shops which has historically included golf cart rentals, driving range services, tournament scheduling, reservations activities and merchandise sales. Options being considered are the selection of another Professional Golf Association (PGA) golf shop licensee, operation by a golf course management firm and operation by the Department of Parks and Recreation.

In the meantime, the most cost effective method for providing golf carts for patrons is to continue to lease them until staff has sufficient information and experience to make an informed decision about golf shop operation at the two Sunnyvale golf courses.

Prior to initiating a purchase request, Parks and Recreation staff considered whether electric or gas-powdered golf carts would best meet the City’s needs. After April 1, 2000 all golf carts sold in California will be required by legislation to be of the electric type. Although electric carts are energy efficient and preferred for air quality improvement, their use would require the construction of a cart barn and battery charging facility at Sunnyvale Golf Course. The estimated cost of such a facility is $150,000 to $200,000. This cost may eventually be met by a new licensee, a golf course management firm or by the City if it is determined that Parks and Recreation Department Staff will continue to provide golf services on a long-term basis.

Therefore, staff recommends gas-powered carts which have been used at Sunnyvale golf courses for over thirty years. Newer models fully meet all existing Environmental Protection Agency and Air Resources Board requirements. In addition, the use of gas-powered carts would not require any changes to cart storage and operations facilities.

Bid specifications for gas-powered carts were prepared by Parks and Recreation and Purchasing staff, and Invitation for Bids #F9907-17 was distributed to seven local firms known to lease golf carts. Three bids were received:

*Total cost for the lease of fifty carts for three years.

The apparent low bidder, Yamaha Golf Cars of California, Inc., offers golf carts that fail to meet bid specifications and, therefore, must be deemed non-responsive. Staff recommends award of contract to the second low bidder, E-Z-Go Textron.

Total cost to the City for a three-year lease will be $119,716. Funds are available in Parks and Recreation Account #644422.

Based upon historic golf cart usage and the current fee schedule with inflationary adjustments, staff estimates a net return of approximately $700,000 from golf cart rentals during the three-year term of the lease agreement.

As previously mentioned, staff is currently developing and evaluating options for the operation of the golf shops. Any suggested option will likely result in additional operational costs; however, it is too early in the process to identify these new costs with any certainty.

It is recommended that Council award a three-year contract in an amount not to exceed $119,716 to E-Z-Go Textron of San Leandro for the lease of golf carts and authorize the Purchasing Officer to issue a purchase order to that effect.

Prepared by:

Elaine Wesely
Purchasing Officer

Reviewed by:

Mary Bradley
Director of Finance

Reviewed by:

Robert Walker
Director of Parks and Recreation

Approved by:

Robert S. LaSala
City Manager