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R-1692 - 01/09/2018 - GOLF - Resolutions Supporting Documents ITEM #6.E.4) BOARD OF TRUSTEES MEETING VILLAGE OF SAMUEL E. DEAN BOARD ROOM OAK B RBUTLER GOVERNMENT CENTER 1200 OAK BROOK ROAD OAK BROOK, ILLINOIS 630-368-5000 AGENDA ITEM Regular Board,of Trustees Meeting of January 9th, 2018 SUBJECT: Award of Contract- Golf Cart Fleet Replacement FROM: Sean Creed, Golf Course Superintendent/Manager fG BUDGET SOURCE/BUDGET IMPACT: Program#833 (Golf Cart Operations) RECOMMENDED MOTION: I move that the Village Board waive further bidding since the National Intergovernmental Purchasing Alliance (NIPA) already conducted the bid process for Golf Cart Replacement, and issue a Purchase Order to E-Z-Go Textron Inc., Augusta, Georgia, in the amount of$40,901.22 to purchase a new utility cart fleet, and approve Resolution R-1692. I move that the Village board approve Resolution R-1692 and authorize a six-year lease agreement with E-Z-Go Textron Inc. for its golf cart fleet at$49,572.60 per year for a total of$297,435.60. Back2round/History: The process of golf cart fleet replacement started in August of 2017. Carts were brought in for demo by our members and the cart from E-Z-Go was the over whelming winner.Ride, comfort, seat position, storage for golf equipment were all considered. Staff also chose this cart due to its faster"topping off'charging capability and its overall less charging time at night. Our current fleet requires 8-10 hours for a total recharge time compared to only 4-5 hours for these new lithium battery packs. These are significant savings of electrical costs for the Village. This particular cart also has the estimated run time of 54 holes vs.the standard lead acid battery system of 36 holes. Finance Director,Jason Paprocki,conducted a cost analysis on the outright purchase of the fleet versus the lease/purchase over a six-year term. Three options were evaluated: purchase the entire fleet outright,lease the entire fleet,or purchase the utility fleet and lease RG BOT AGENDA Page 1 the golf cart fleet. It was determined that the most beneficial scenario for the Village was to purchase the utility cart fleet and enter into a six-year lease for the golf cart fleet. Lease/ All All Purchase Lease Purchase 2018 590,473.82 556,405.70 5415,331.22 2019 549,572.60 556,405.70 50.00 2020 S49,572.60 556,405.70 S0.00 2021 $49,572.60 556,405.70 50.00 2022 S49,572.60 S56,405.70 S0.00 2023 549,572.60 556,405.70 S0.00 Total 5338,336.82 5338,434.20 5415,331.22 The utility cart fleet consists of six carts for a total of$53,951.22. The Village will be receiving a trade-in value of$13,050 for its old utility cart fleet, bringing to total utility cart replacement cost to$40,901.22. Staff recommends the purchase of the six utility carts since we can maintain them to last 8-10 years which results in savings of nearly $28,000 when this process starts over again at the end of the lease period. The golf cart fleet consists of seventy(70)carts for a total lease payment of$49,572.60 per year, and a total of$297,435.60 over the six-year lease. The Golf Course will be trading in its existing fleet to reduce the total lease cost. A purchase of the entire fleet for$415,331.22 would likely require a loan from the General Fund. When the Golf Course purchased carts in 2012, it borrowed $245,197 from the General Fund at an interest rate of 1.5%, for a total of$252,583.56 over four years. Recommendation: I move that the Village Board waive further bidding since the National Intergovernmental Purchasing Alliance(NIPA)already conducted the bid process for Golf Cart Replacement, and issue a Purchase Order to E-Z-Go Textron Inc.,Augusta, Georgia, in the amount of$40,901.22 to purchase a new utility cart fleet, and approve Resolution R-1692. I move that the Village board approve Resolution R- 1692 and authorize a six-year lease agreement with E-Z-Go Textron Inc. for its golf cart fleet at$49,572.60 per year for a total of$297,435.60. BOT AGENDA Page 2 RESOLUTION 2018-SC-GOLF-R-1692 A RESOLUTION APPROVING THE WAIVER OF COMPETITIVE BIDDING AND AUTHORIZING THE EXECUTION OF PURCHASE ORDER AND LEASE AGREEMENT BY AND BETWEEN THE VILLAGE OF OAK BROOK AND E-Z-GO TEXTRON, INC. IN REGARD TO THE REPLACEMENT OF UTILITY AND GOLF CARTS WHEREAS,the Village's utility and golf cart fleet("Fleet')used by the Oak Brook Golf Course was last replaced in 2012; and WHEREAS, on behalf of its members, the National Intergovernmental Purchasing Alliance ("N/PA')already conducted the bid process for Golf Cart Replacement and E-Z-Go Textron of Lake Zurich, Illinois ("E-Z-Go')was selected as the successful bidder; and WHEREAS, E-Z-Go has provided the Fleet in the past and staff has been satisfied with the Fleet; and WHEREAS, because NIPA has selected E-Z-Go,and the Village is a member of NIPA,Village staff has recommended that the Village waive competitive bidding and approve a Purchase Order and six-year Lease Agreement for E-Z-Go to replace the Fleet; and WHEREAS, the President and Board of Trustees, being fully advised in the premises, have determined that it is in the best interests of the Village and its residents to so waive competitive bidding and to approve the Purchase Order and Lease Agreement for the Fleet. NOW THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows: Section 1: Recitals. The foregoing recitals are hereby incorporated into, and made a part of, this Resolution as the findings of the President and Board of Trustees of the Village of Oak Brook. Section 2: Waiver of Competitive Bidding Requirements. The advertising and bidding requirements for the purchase of the Fleet shall be,and they are hereby,waived in accordance with Section 1-7-4 of the Village Code. Section 3: Approval of the Purchase Order. The President and Board of Trustees hereby approve the Purchase Order regarding the purchase of six utility carts by and between the Village and E- Z-GO in an amount of$40,901.22 in a form acceptable to the Village Manager and Village Attorney. Section 4: Approval of the Lease Agreement. The President and Board of Trustees hereby approve the six-year Lease Agreement regarding the leasing of 70 golf carts by and between the Village and E-Z-GO in an amount of$49,572.60 per year in a form acceptable to the Village Manager and Village Attorney. Section 5: Authorization and Execution of the Purchase Order and Lease Agreement. The Village President and Village Clerk shall be,and hereby are,authorized to execute the final Purchase Order and Lease Agreement on behalf of the Village. Section 6: Effective Date. This Resolution shall be in full force and effect upon passage and approval in the manner provided by law. Resolution 2018-SC-GOLF-R-1692 Golf Car Fleet Replacement Page 2 of 3 APPROVED THIS 91h day of January, 2018 Gopal G. Lalmalani Village President PASSED THIS 91h day of January, 2018 Ayes: Nays: Absent: ATTEST: Charlotte K. Pruss Village Clerk Resolution 2018-SC-GOLF-R-1692 Golf Car Fleet Replacement Page 3 of 3 EXHIBIT A Golf Cart Replacement 2018 Fleet Lease WT)/Utility Cash PorCw Total Monthly Tatal Yearly TOW Estimated Totals Due, Estimated Totals Due Total wkhoutGps wMaps Fleet(NETDOWN) $118.03 $9,262-10 $49,572.60 $297,435.60 2018 $90,473.82 2018 $108,500.22 2019 $49,572.60 2019 $67,599.00 Shuttle 4 $9,259.05 $0.00 $0.00 $9,259,05 ZUG 549,572.60 2023 567,5913.00 Shuttle 4 $9,259.05 $0.00 $0.00 $9,259.05 2021 $49,572-60 2021 $67,599.00 Hauler Pro $8,113.12 $0.00 $0.00 $8,113.12 2022 $49,572.60 2022 $67,599-00 CH 8006 $6,609.50 $0.00 $0.00 56,609.50 2423 549,572.60 21023 %7,599.W CH 800G S6,609,SO $0.00 Sao[) $6,609.50 $338,336.82 $446,495,22 Refresher Oasis $14,101.00 $0-00 $0.00 $14,101.00 $351,386.82 Utility Trade Value: $13,050-00 Total Purchase/Spend: $338,336,82 L REVIEW OF CONTRACTS Awarding Agency: Type of Contract: Department: Program/Account Number- L F . Awarded Contract Price: Budgeted mount: . D • [1 Under$20,000 Q $500,001 - $1,000,000 $20,000 -$500,000 [] Over$1,000,000 D i.r G 4e-r Fr_CLr'k Pl_A U, M-r- - LW f- Name: xSeah eeo( Date: Name: Date: Name: Date: Name: Date: 1 1,3 r7 Three (3) Originals signed by other party Date/Initials M Original provided to staff member for other party Date/Initials i Original provided to Official Files Date/Initials Village of Oak Brook I Approved by Board of Trustees- Date/inhialsr