HomeMy WebLinkAbout04/01/2015 6G 40
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Golf Cart Lease Agreement with Study Session Date: March 25, 2015
Yamaha Motor Corporation, U.S.A. for Gold COUNCIL MEETING Date: April 1, 2015
Mountain Golf Course Department: Parks & Recreation
Presenter: Jeff Elevado
Phone: (360) 473-5428
SUMMARY: Parks and Recreation staff with assistance from Columbia Hospitality's Golf staff
requested proposals from four golf cart fleet vendors. The staff recommendation is to enter into a 48
month lease with Yamaha Motor Corporation, U.S.A. for 2015 model year golf carts as follows:
120 two-person fleet carts, 3 beverage carts and 4 four-passenger carts for a monthly amount of
$7,550.00. Total annual lease amount: $90,597.00. Total Lease Cost through 48 months:
$565,835.00. The Yamaha cart fleet proposal represents and annual estimated savings of$19,500
over the existing golf cart agreement owning to lease price, estimated maintenance costs and fuel
efficiency. The cost over the 4 year lease is recouped by rental revenue collected from Gold
Mountain golfers. In 2014 gross cart rental revenue was $440,701. The Yamaha cart lease proposal
significantly reduces the age of Gold Mountain's'golf cart fleet and has the potential to increase cart
rental as well as green fee revenue.
ATTACHMENTS: 1) Cart Lease Proposal Worksheet; 2) Master Lease Agreement
FISCAL IMPACTS (Include Budgeted Amount): Cart lease expense is budgeted in the Golf Fund.
STUDY SESSION AGENDA: ❑ No Presentation 0 Full Presentation
STUDY SESSION ACTION: ❑ Consent Agenda ® General Business ❑ Public Hearing
RECOMMENDED MOTION:
1) Move to approve Lease Agreement between Yamaha Motor Corporation and the City for golf
carts and authorize the Mayor to finalize and execute the agreement with substantially the
same terms and conditions as presented, and further,
2) Authorize the Mayor, or designee, to extend the cart pad lease with Alexander Cart Rentals,
Inc. until December 31, 2015, at no additional charge in consideration of Alexander Cart
Rentals Inc.'s agreement to termination of the golf cart rental agreement with Columbia
Hospitality.
COUNCIL ACTION: [Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action
Form Updated 01/07/15