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TO: Mayor Thomas J. Weisner
FROM: Jeff Schmidt, Golf Operations Manager
DATE: May 17, 2016
SUBJECT:
Resolution Authorizing the Execution of a New Golf Car Lease Agreement for Phillips Park Golf Course
PURPOSE:
To obtain City Council approval to enter into a lease agreement with Nadler Golf Car Sales, Inc., Aurora, IL for golf cars at Phillips Park Golf Course.
BACKGROUND:
Currently, Phillips Park Golf Course is in year 6 of a 7-year golf car lease with Nadler Golf Car Sales, Inc., Aurora, IL at $610 per car per year scheduled to end in December of 2017. We currently lease a golf car fleet of sixty-one model 2010 Club Car DS at Phillips Park Golf Course at a total cost of $37,210 per year.
DISCUSSION:
The Golf Division has been approached by Nadler Golf Car Sales, Inc. with a proposal to update our current golf car fleet with a newer used fleet of model 2012 Club Car Precedent i2 golf cars. The new lease proposal is for a (5) year lease term at a cost of $650.00 per car per year. Forty-two 2010 Club Car DS golf cars will be replaced with 2012 Club Car Precedent i2 golf cars in June 2016. In the spring of 2017, the remaining portion of our old fleet (19 cars) will be replaced with the same 2012 or newer Club Car Precedent i2 cars. This new lease will allow the Golf Division to continue the cost-savings measure of leasing used carts through 2020. Additionally, there is no guarantee that these carts will be available next year when our current lease runs out and as a bonus we get newer carts with upgrades, such as fold down windshields, molded in color body (this will actually save us money in body repairs) along with a 360 degree bumper system. In comparison, a 5-year lease for new 2016 Club Car Precedent i2 golf cars has been quoted at $1,130.00 per golf car per year, almost double the cost of used carts, this would be an additional cost of $29,280 to the Golf Fund every year for the term of the lease.
IMPACT STATEMENT:
By approving the proposed (5) year lease agreement the Phillips Park Golf course will continue the cost-savings measure of leasing used carts through 2020.
RECOMMENDATIONS:
That the City Council approve the (5) year lease agreement for sixty-one 2012 Club Car Precedent i2 golf cars proposed by Nadler Golf Car Sales, Inc., Aurora, IL for the Phillips Park Golf Course.
cc: Alderman O’Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Mesiacos, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing the Execution of a New Golf Car Lease Agreement for Phillips Park Golf Course.
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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, Nadler Golf Car Sales, Inc., has submitted a proposal to the City to replace the Phillips Park Golf Course with sixty-one (61) 2012 used Club Car Precedent i2 cars at a rate of $650.00 per car under a new five year lease; and
WHEREAS, pursuant to Aurora Code Section 2-335(a)(3) the desired product is provided by only one source in this situation; and
WHEREAS, $38,470.00 in funds are available in the 2016 budget and the division anticipates the 2017-2020 budgets will provide $39,650.00 for this expenditure in account 550-4442-451.39-03.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the City Council Authorizes entering into a new lease agreement with Nadler Golf Car Sales, Inc., Aurora, Illinois for sixty-one (61) golf cars at Phillips Park Golf Course for the Golf Division and does hereby further authorize its Purchasing Director to issue the necessary orders to implement purchase of the same