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TO: Mayor Richard C. Irvin
FROM: Jason Bauer, P.E., Assistant Director of Public Works, Assistant City Engineer
DATE: December 30, 2021
SUBJECT:
A resolution authorizing the Director of Purchasing to enter into a four-year lease agreement at an annual cost of $28,548 with Club Car, LLC for GPS equipment for the golf carts at Phillips Park Golf Course located in Ward 3.
PURPOSE:
To enhance the golfing experience at the Phillips Park Golf Course (PPGC), the Visage system will be installed on the 61 Club Car golf carts leased to the PPGC by Nadler Golf, an authorized Club Car vendor. The Visage system will allow for graphical representation of the golf course and provide golfers with accurate distances to allow for a more enjoyable golfing experience.
BACKGROUND:
This decision package was approved during the development of the 2022 budget. GPS equipment included as a feature is becoming more common and installing this equipment will allow the PPGC to be more competitive with the many other golfing options in the region. In addition to aiding golfers by providing accurate distances along the course, the Visage system provides a flyover of each hole, and has a "Start/Stop" feature which causes the cart to stop when it travels in areas that are restricted on the course (driving too close to the green, areas under repair, days when only driving on the cart paths is permitted, etc.). The system also allows for the creation of a geo-fence, which renders the cart inoperable if it enters or leaves a pre-determined action zone. The Visage system also comes equipped with Bluetooth speakers that can be connected to a rider's phone for music or other audio material; the speakers are directed inward to the cart to minimize distractions to other golfers. While these are only some of the highlights, a breakdown of the Visage system features is included as exhibit 1.
DISCUSSION:
In researching options for the addition of this equipment, it was determined that this was a sole source selection. Any installation of non-Club Car approved equipment could void any warranty or even potentially limit the items that could be addressed under the City's current maintenance agreement with Nadler. Further, Visage is the only equipment that provides the "Start/Stop" feature compatible with gas powered Club Car golf carts used at Phillips Park.
This was budgeted in 2022 for $35,868 per year. This was a budget number identified during the budget cycle and is the standard price for the Visage system annual lease based on the number of carts at PPGC and the selected features. Recently, Club Car, LLC informed the City that a special was underway, reducing the price to $28,548 per year if the agreement was executed prior to the end of 2021. The City was able to obtain a two-week extension of the lower rate, which represents a savings of $7,320 annually, or $29,280 over the span of the four-year lease, essentially getting four years for the cost of three. Due to the time constraints of the provided two-week extension for the reduced price, staff recommended that this item be brought directly to the Committee of the Whole as New Business as the time constraints do not allow for discussion at the sub-committee level. If approved at C.O.W. on 1/4/22, and at the City Council Meeting on 1/11, the City would be within the two week extension timeframe and would secure the lower pricing for the duration of the four-year lease. Any delays would result in a loss of the savings. This is a locked rate and will be the same for each year of the four-year lease (no annual escalation).
The 2022 budget includes $35,868 in account 510-4442-451.39-03 for this expenditure. As previously discussed, the actual rate of $29,548 is under budget due to the end of year promotion offered by Club Car.
The four-year lease will align with the City's current Club Car lease with Nadler Golf, which covers 2022, 2023 and has additional renewal options for 2024 and 2025. Staff researched the advantages of leasing versus purchasing directly and due to the continual maintenance and software upgrades that are included in the lease, it is not financial or practical to own the equipment.
IMPACT STATEMENT:
Leasing these units will enhance the golf experience at PPGC, improve pace of play, provide PPGC staff with improved control over golf cart management, reduce the potential for theft and improve competitiveness for PPGC amongst other courses in the region. No adverse impacts are anticipated.
RECOMMENDATIONS:
I request the proposed resolution be adopted.
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution authorizing the Director of Purchasing to enter into a four-year lease agreement at an annual cost of $28,548 with Club Car, LLC for GPS equipment for the golf carts at the Phillips Park Golf Course located in Ward 3.
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, this leased equipment will enhance the golfing experience at the Phillips Park Golf Course, and
WHEREAS, this leased equipment will allow staff with better management tools over the existing fleet, and
WHEREAS, this is a sole source purchase, as this equipment offers features that no other competitor offers for the model golf cart currently utilized at the Phillips Park Golf Course, and
WHEREAS, the annual cost of the lease is $28,548, which is within the budgeted amount of $35,868 for this expenditure and is available in account 510-4442-451.39-03; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: the Director of Purchasing is hereby authorized to enter into a four-year lease agreement at an annual cost of $28,548 with Club Car, LLC for GPS equipment for the golf carts at the Phillips Park Golf Course located in Ward 3.