July 13, 2004

SUBJECT: Award of Bid No. F0304-66 for Electric Golf Carts to be Rented to Patrons at the Sunnyvale Golf Course

Approval is requested for the award of a three-year contract to Yamaha Golf-Car Company for the lease of sixty electric golf carts for the Department of Parks and Recreation Golf Services Division.

The Department of Parks and Recreation has operated the golf shop at the Sunnyvale Golf Course since 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.

For the past few years, the City has leased gas-powered golf carts for patron usage (RTC 99-527 and RTC 03-186). However, 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 gas-powered golf carts to electric required the construction of a cart barn and battery charging facility at the Sunnyvale Golf Course (RTC 01-405). This facility is scheduled for completion in late July 2004.

Bid specifications for the lease of sixty electric golf carts were prepared by Department of Parks and Recreation and Purchasing staff. Leasing the carts was determined to be more beneficial than purchase due to the heavy usage the carts are expected to receive over the next three years. Purchasing the vehicles would require an expenditure of approximately $200,000; and it is anticipated that the carts would have minimal market value at the end of three years due to excessive wear and tear.

Invitation for Bids No. F0304-66 was advertised on the City’s Internet site and broadcast to potential suppliers through the DemandStar by Onvia public procurement network.

Sealed bids were received and publicly opened on May 26, 2004. Three bids were received.

Bidder	Total Bid*
E-Z-Go Textron, Inc., of San Leandro, CA	$116,069
Yamaha Golf-Car Company of Newman, GA	$121,587
Club Car, Inc., of Benicia, CA	$160,769
*Total cost for the lease of sixty carts for three years.

The bid submitted by E-Z-Go Textron was incomplete and, therefore, non-responsive. Staff has determined that the golf carts offered by Yamaha Golf-Cart Company meet City specifications. Although Yamaha Golf-Car Company is headquartered in Newman, Georgia, service will be provided out of its Oakley, California, facility.

FISCAL IMPACT

Total cost to the City will be $121,587 for the three-year lease of sixty electric golf carts, including sales tax and warranty, and delivery to the Sunnyvale Golf Course. Funds are available in Parks and Recreation Department Service Delivery Plan 645300 - Provide Rental Golf Cars.

It is recommended that Council award a three-year contract, in substantially the same form as the attached draft and in an amount not to exceed $121,587, to Yamaha Golf-Cart Company for the lease of sixty electric-powered golf carts.

Prepared by:

Elaine Wesely
Purchasing Officer

Reviewed by:

Mary J. Bradley
Director, Finance

Reviewed by:

Robert Walker
Director, Parks and Recreation

Approved by:

Amy Chan
City Manager

Draft Lease Agreement (.pdf format)