Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO TERMINATE A CURRENT LEASE AGREEMENT WITH THE LAKE ERIE GOLF CAR COMPANY AND TO ENTER INTO A NEW AGREEMENT WITH LAKE ERIE GOLF CAR COMPANY FOR THE LEASING OF NEW GOLF CARS AT THE ELLSWORTH MEADOWS GOLF CLUB.
Executive Summary: The Administration is requesting City Council's approval to end the current 5-year lease agreement with the Lake Erie Golf Car Company, and then enter into a new 7-year lease agreement with the Lake Erie Golf Car Company for the lease of new golf cars at the Ellsworth Meadows Golf Club. The new contract period will commence on October 1, 2013 and conclude December 31, 2020.
Body
Legislative History
8/5/09 Resolution # 09-77: A Resolution authorizing and directing the City Manager to enter into a contract with the Lake Erie Golf Car Company for the lease of golf cars to use at the Ellsworth Meadows Golf Club. The contract lease period is effective from November 23, 2009 -December 31, 2014.
Purpose & Explanation
The City of Hudson (Ellsworth Meadows Golf Club) is currently under a 5-year lease agreement with the Lake Erie Golf Car Company. The current lease provides for 70 golf cars per year at an annual cost of $65,940.
With the current golf car lease expiring in 2014, along with the desire to improve upon the current golf car model in terms of battery life and operating efficiency, Trent Wash, Ellsworth Meadows Golf Club Manager/Superintendent sought proposals recently for leasing golf cars from three companies:
Lake Erie Golf Cars: 7 yr. lease (70 new E-Z-Go cars) at $57,750 per year, total = $404,250. Southeast Golf Cars: 7 yr. lease (70 new Club Car cars) at $66,500 per year, total = $465,500. Empire Auto Leasing: 10 yr. lease (70 used Club Car cars) Years 1-7 total = $430,920.
Upon Trent's review of the proposals submitted, Trent believes the best proposal is from the Lake Erie Golf Car Company. In summary, the Lake Erie Golf Car Company is suggesting that we end their current lease agreement that expires in November 2014, and then enter into a new seven (7) year lease agreement at an annual cost of $57,740. The Lake Erie Golf Car Company proposal includes the following highlights: New 70 cart fleet of E-Z-Go TXT 48 volt system (improved battery performance over the current 36 volt system) carts. Included with the fleet are canopy, windshields, rain covers and hub caps and 70 battery chargers. All with full maintenance service and new batteries installed at the end of year four.
Timing Considerations
The City Manager will enter into a new lease agreement with the Lake Erie Golf Car Company following City Council's approval.
Fiscal Impact
X Currently Budgeted
Supplemental Appropriation Required
Appropriation Not Required.
By ending the current lease agreement and then entering into a new lease agreement, the Ellsworth Meadows Golf Club will save approximately $19,180 in 2013, and then $8,190 in 2014 due to the difference in the annual value of the lease terms.
Suggested Action
Recommendation
After reviewing the positive impacts of entering into a new lease agreement at this time, staff recommends that City Council approve the Resolution authorizing and directing the City Manager to enter into an agreement with the Lake Eric Golf Car Company, 26565 Miles Rd., Suite 200, Warrensville Heights, Ohio 44128 for the right to provide golf cars at the Ellsworth Meadows Golf Club.
Submitted by,
A. Bales, City Manager
S. Schroyer, Asst. City Manager
T. Wash, Ellsworth Meadows Golf Club Manager/Superintendent