City of Lawrence

Finance Department

MEMORANDUM

DATE:	September 13, 2012
TO:	David L. Corliss
	City Manager
FROM:	Alan D. Landis
	Purchasing Specialist

GOLF CART LEASE – PARKS AND RECREATION DEPARTMENT – B1253

On September 11, 2012, Parks and Recreation Department opened bids for the lease of 62 golf carts and 8 utility vehicles.  The existing four year lease is up in November.

Four bids were received from three vendors, please see attachment.

E-Z-Go provided the low bid.  The price per cart indicated on the attachment is the price that the vendor will accept as payment for the vehicle after the lease period.  It is anticipated that the City will return the carts to the vendor at the end of the lease to avoid high repair costs after the factory warranty has expired. If purchase is desired at the end of the lease, under E-Z-Go’s bid, the City will pay Fair Market value for the carts. Staff recommends accepting the annual lump sum payment for all 70 vehicles for $56,714 with the Fair Market value purchasing option at the end of the lease.     

Staff also recommends rejecting E-Z-Go’s 4 year maintenance agreement option. All needed maintenance will be covered under the factory warranty on the carts.

Recommendation Action:

Award bid for 70 golf vehicles for the Parks and Recreation Department to E-Z-Go for $56,714 per year for the next four years.  (Municipal Golf Course Fund)

cc:	Cynthia Wagner	Ernie Shaw	Karen Risner
	Diane Stoddard	Mark Hecker	Darin Pearson
	Bobbie Walthall	John Morris	Diane Trybom