Fillable Printable Club Car Lease Agreement - Ontario
Fillable Printable Club Car Lease Agreement - Ontario
Club Car Lease Agreement - Ontario
AFFECTS
Wards 1 & 5
CITY OF HAMILTON
COMMUNITY SERVICES DEPARTMENT
Recreation Division
Report to:
Chair and Members
Emergency &
Community Services
Committee
Submitted by:
Joe-Anne Priel
General Manager
Community Services
Department
Date: February 26, 2008
Prepared by:
Coralee Secore, Ext. 4689
SUBJECT: Lease Agreement with Club Car Inc. for the Supply of Golf Cars for the
Hamilton Civic Golf Courses (ECS08014) (Ward 1 & 5 )
RECOMMENDATION:
(a) That the City of Hamilton enter into a Lease Agreement with Club Car Inc., 1741
Bishop Street, Cambridge, Ontario for the supply of 122 golf cars, at a cost of
$259,616 (exclusive of applicable taxes), for the Hamilton Civic Golf Courses
(King’s Forest and Chedoke).
(b) That the terms of the Lease Agreement, between the City of Hamilton and Club
Car Inc., 1741 Bishop Street, Cambridge, Ontario for the supply of 122 golf cars,
for the Hamilton Civic Golf Courses (King’s Forest and Chedoke), begin on April
1, 2008, and terminate on November 15, 2011, or at the end of the 2011 golf
season.
(c) That the Mayor and City Clerk be authorized and directed to execute the Lease
Agreement, between the City of Hamilton and Club Car Inc., 1741 Bishop Street,
Cambridge, Ontario for the supply of 122 golf cars for the Hamilton Civic Golf
Courses (King’s Forest and Chedoke), in a form satisfactory to the General
Manager of Community Services and the City Solicitor.
Joe-Anne Priel
General Manager,
Community Services Department
SUBJECT: Lease Agreement with Club Car Inc. for the Supply of Golf Cars for the
Hamilton Civic Golf Courses (ECS08014) (Ward 1 & 5) – Page 2 of 4
EXECUTIVE SUMMARY:
The purpose of Report ECS08014 is to seek Council’s approval for a new four-year
Lease Agreement with Club Car Inc. to lease 122 golf cars for the Hamilton Civic Golf
Courses, King’s Forest and Chedoke Courses.
BACKGROUND:
The current Lease Agreement for golf cars expired at the end of the 2007 golf season.
A tender was issued seeking bids to supply 122 new golf cars for purchase or a yearly
lease. Two bids were received from EZGO and Club Car Inc., who quoted pricing for
both purchase and lease options. Club Car Inc., was the lowest bidder for both options.
Golf car rentals for both courses financially generate $460,673 annually and are integral
to the golf course operation and overall golf course business plan.
Club Car Inc., supplied the last fleet of golf cars. Staff was satisfied with the quality of
the cars and service provided.
ANALYSIS/RATIONALE:
Corporate Services Department staff undertook an analysis of lease versus own and
agreed with leasing at this time based on the cost comparison.
Golf Course staff reviewed the lifecycle analysis of the golf cars based on the ridership,
market niche (beginner golfer) and course layout (hilly terrain and lack of car paths) and
concluded the four-year lease option provides the best return on the overall
performance of the golf course.
Based on the Club Car Inc., being the lowest bidder, staff recommends the approval of
this Lease Agreement and its execution by the Mayor and City Clerk.
ALTERNATIVES FOR CONSIDERATION:
No alternatives are supported at this time as they would negatively impact the golf
experience and the financial business plan of the golf course.
SUBJECT: Lease Agreement with Club Car Inc. for the Supply of Golf Cars for the
Hamilton Civic Golf Courses (ECS08014) (Ward 1 & 5) – Page 3 of 4
FINANCIAL/STAFFING/LEGAL IMPLICATIONS:
Financial:
Table 1 below lists the price schedule of the Leasing Costs for the supply and delivery
of 122 golf cars. All prices are exclusive of applicable taxes.
Table 1:
LEASING COSTS
Year Club Car EZGO
Leasing 2008 $64,904.00 $83,294.28
Leasing 2009 $64,904.00 $83,294.28
Leasing 2010 $64,904.00 $83,294.28
Leasing 2011 $64,904.00 $83,294.28
Total for Lease $259,616.00 $333,177.12
Annual costs are divided as follows: King’s Forest Golf Course (50 cars) $26,600 and
Chedoke Golf Course (72 cars) $38,304 and is included as part of the annual operating
budgets.
Staffing:
There are no staffing implications associated with the recommendations of Report
ECS08014.
Legal:
Legal Services will prepare the required Lease Agreement.
POLICIES AFFECTING PROPOSAL:
The recommendations are consistent with the City of Hamilton’s Purchasing Policy,
Section 4.4(2)(a), that notes City Council must approve budgetary funding for any
procurement of a value greater than $250,000.
RELEVANT CONSULTATION:
Finance and Corporate Services Department, Financial Services Division, Purchasing
Section.
SUBJECT: Lease Agreement with Club Car Inc. for the Supply of Golf Cars for the
Hamilton Civic Golf Courses (ECS08014) (Ward 1 & 5) – Page 4 of 4
Finance and Corporate Services Department, Finance and Administration Division,
Finance Section.
City Manager’s Office, Legal Services Division, Administration Section.
CITY STRATEGIC COMMITMENT:
By evaluating the “Triple Bottom Line”, (community, environment, and economic
implications) we can make choices that create value across all three bottom lines,
moving us closer to our vision for a sustainable community, and Provincial interests.
Evaluate the implications of your recommendations by indicating and completing the
sections below. Consider both short-term and long-term implications.
Community Well-Being is enhanced. ; Yes No
Golf cars are an integral part of the servicing the golf community.
Environmental Well-Being is enhanced. ; Yes No
The golf cars have limited impact on the environment.
Economic Well-Being is enhanced. ; Yes No
Golf cars contribute to the overall financial performance of the golf course operations.
Does the option you are recommending create value across all three bottom
lines? ; Yes No
Do the options you are recommending make Hamilton a City of choice for high
performance public servants? Yes ; No
