Title
Bid No. 2018-099 - Lease Agreement for Golf Carts and Golf Maintenance Equipment.
(Authorize the City Manager to finalize and execute a 48-month lease agreement with Mission Golf Cars, an authorized dealer for EZGO Corporation, through Buy Board Contract No. 529-17, sponsored by the Texas Association of School Boards, in the total lease agreement amount of $310,347.84.)
Body
Name of Department
Parks and Recreation
Project/Budgeted Amount
$310,347.84
Sum of Bid/Bid Amount
$310,347.84
The City of Mesquite leased golf carts in August 2014 through a fair market value lease program. Typically, the agreement is renewed every four years based on the terms of the lease and the lifespan of the equipment. Leasing carts rather than buying is an industry standard because of high use and depreciation of the equipment. The City also utilizes a cart maintenance program to ensure the highest value is obtained for the fleet at lease renewal time.
The City will be leasing 72 carts and 3 utility units to assist with course maintenance for a 48-month term. The beverage cart, from the previous lease, was in adequate condition to re-lease for a reduced amount and shorter term of 36-months.
The lease is made available through Mission Golf Cars, an authorized dealer for EZGO Corporation, through the BuyBoard Cooperative Purchasing System Contract No. 529-17, and includes an increase of $827.59 per month from the last agreement. Payments are budgeted in the Golf Course operating budget and offset by golf cart fees.
Recommended/Desired Action
Staff recommends that the City Council authorize the City Manager to enter into a 48-month lease agreement with Mission Golf Cars.
Attachment(s)
EZGO Lease Proposal
Drafter
Elizabeth Harrell
Head of Department
Elizabeth Harrell