Approval is requested for the amendment of an existing lease of fifty gas-powered golf carts currently in use at the Sunnyvale Golf Course. The requested amendment extends the lease up to eighteen months on a month-to-month basis.

The Department of Parks and Recreation Golf Services Division has operated the golf shop at the Sunnyvale Golf Course since the golf shop licensee filed for bankruptcy in April 1999. The rental of golf carts to patrons has been an important part of that operation. Nearly 14,000 golf cart rentals are provided each year which produces an annual revenue of approximately $330,000.

On December 14, 1999, Council awarded a three-year contract to E-Z-Go Textron of San Leandro for the lease of fifty golf carts (RTC 99-527).

Beginning in 2000, all golf carts sold in California must be electric. Although electric carts are energy efficient and preferred for air quality improvement, conversion from the current gas-powered golf carts to electric will require the construction of a cart barn and battery charging facility at Sunnyvale Golf Course.

On November 27, 2001, Council approved the design and construction of a Golf Cart Storage Building (RTC 01-405). Recently, at Council's request and as part of a review of all Capital and Special Projects in the context of the current budget crisis, staff reviewed and confirmed its need for this building.

Extension of the existing golf cart lease will allow the City to continue to provide golf carts for Sunnyvale Golf Course patrons until a competitive bid can be developed, issued and awarded and construction of a cart storage building can be completed.

Although State law now requires that only electric golf carts be sold in California, the extension of a lease for gas-powered carts is acceptable, provided that the lease was executed prior to 2000.

The cost to the City for the extension of the existing lease for fifty golf carts will be $3,072 per month, making a total of $55,296 for an additional eighteen months and a total of $175,012 for the original three-year lease plus an eighteen-month extension. These expenditures will be recovered through user fees. Funds are available in Parks and Recreation Activity 644680 - Prepare Golf Carts - Sunnyvale.

It is recommended that Council authorize the extension of an existing golf cart lease with E-Z-Go Textron on a month-to-month basis for a period not to exceed eighteen months and in an amount not to exceed $55,296.

1. Equipment Lease