HomeMy WebLinkAboutContract 42138 -` YA M A H A CITY SECRETARY
CONTRACT NO. 42� -3
SHORT-TERM/SPECIAL EVENTS RENTAL AGREEMENT
1. TERM
This short-term /special events rental agreement (hereinafter this "Agreement") is entered into between
YAMAHA GOLF-CAR COMPANY (hereinafter"YGC") and Customer as follows:
Customer: City of Ft. Worth
Address: 4200 So. Freeway#2200 Ft. Worth, TX 76115
Purpose: Short-Term Rental for ZBoaz
Delivery date: August 1, 2011
Return date: Month-to-Month rental
Equipment 55 Yamaha YDRE and 3 Yamaha G23E
2. PAYMENT
The monthly rental for the Equipment delivered under this Agreement(hereinafter,togetherwith any
Optional Equipment delivered under this Agreement and any attachments, accessories and parts,the"Equipment"), as more
specifically identified in Exhibit"A", is$60.00/month/car&$75.00/month/utilty to be paid within 30 days of invoice date. All
applicable sales taxes(if any)will be calculated and presented to Customer on each YGC invoice.A delivery charge of
$0.00 shall be added to Customer's first invoice. Total monthly charge shall be$3,525.00 for fifty-five(55)golf cars and
three(3) utility cars.
3. RISK OF LOSS OR INJURY
(a)Effective upon delivery of the Equipment,and until the Equipment is returned to Yamaha as provided herein,Customer relieves Yamaha of
responsibility for all risk of physical damage to or loss or destruction of the Equipment, howsoever caused. During the continuance
of this Agreement,Customer shall, at its own expense, cause to be carried and maintained casualty insurance with respect to each
item of Equipment and shall maintain sufficient reserves to provide self-insurance coverage for public liability. All policies with
respect to such insurance shall name Yamaha as loss payee. The amount of the casualty insurance shall be the full replacement
value of the Equipment,and the amount of public liability reserve shall be sufficient to fully cover Customer's liability exposure under
the Texas Tort Claims Act,Tex. Gov't Code§101.001 et seq.
(b) Customer shall bear the entire risk of loss, theft, destruction or damage to the Equipment from any cause whatsoever. In the event of
damage to Equipment,Customer shall immediately place the same in good repair and operating condition.
(c)Upon delivery of the Equipment, Customer and an agent of YGC will inspect the equipment and a Condition Report shall be completed by
the YGC agent to document the condition of such Equipment. Customer will notify Yamaha of any Equipment that is not in
reasonably satisfactory condition.At Yamaha's option, any Equipment reasonably designated as unsatisfactory will be deleted from
this Agreement with an appropriate adjustment to rent or replaced by Yamaha with equipment which is reasonably satisfactory to
Customer. Equipment is warranted only in accordance with the manufacturer's warranty,if any.
4. RETURN OF EQUIPMENT
At the end of this Agreement,the Equipment shall be inspected by an agent of Yamaha and a final Condition Report shall be completed by such agent to
determine the condition of such Equipment in comparison to the Condition Report completed on initial delivery.Customer agrees to pay Yamaha its full
retail value(to reflect depreciation)for any Equipment not returned at the end of this Agreement. Further, am aha for any
Excess Wear and Tear(as defined below) or other damage to the Equipment, including physical inten9led
wear and tear
whether noted on the final Condition Report or subsequently discovered. VK
br
Excess Wear and Tear consists of:
(a)Tires which are damaged,gouged,or cut so as to be in an unsafe operating condition; RY
(b)Missing tire(s)or wheel(s), including spare if originally included; FT. r�
(c)Bent,twisted,dented,dinged,or gouged bumper(s);
(d)Any missing part(s)or accessory that was originally delivered with the Equipment or any cIled or optional
accessories requiring any modifications for installation;
(e)Any mechanical repairs on any components or suspension which may be required due to abuse, accident, negligence or the lack of proper
maintenance,or any repairs required which are not considered"normal wear and tear." (� i 1��
5. MISCELLANEOUS TERMS --�----- y
(a)Customer further agrees: Authoriaatiox
1.To ensure that all Equipment operators are at least 18 years of age; �,
2.To ensure that seating and loading capacity requirements are followed; I ► .
3.To remove key from Equipment when not in use. .___. ..- V,
(b)The headings of this Agreement of for convenience of reference only and sl a' not be used in the interpretation of this Agreement.
(c)Customer shall not sublease any of the Equipment except in the ordinary course of its business or assign any of its rights under this
Agreement.Customer shall keep the Equipment at the location to which Yamaha delivers the Equipment.
C ER YAMAHA, OLF AR OMPANY
BY: BY: c, OR r
TITLE: Y TITLE: President �O°°°non°"°,0��
DATE: I( I( DATE S/p12o/� kae� �t
APPRt �I Attested by: �`
o ` n
FORMA D LEGALITY: ,^ ►�� � 00
��� C I I'���(>✓ Marty Hendrix, Cky Sm'etary P
A.QCICTe
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 8/9/2011
DATE: Tuesday, August 09, 2011 REFERENCE NO.: P-11276
LOG NAME: 13P11-0220 GOLF CARS EJH
SUBJECT:
Authorize Execution of a Long—Term Lease Agreement with Yamaha Motor Corporation, U.S.A., for Golf
and Utility Cars and Execution of Seasonal Rental and Service Agreements with Yamaha Golf—Car Company
for the Parks and Community Services Department for a Combined Total Amount of$254,000.00 for the First
Year(COUNCIL DISTRICTS 2, 3, 4, and 8)
RECOMMENDATION:
It is recommended that the City Council authorize execution of a long—term lease Agreement with Yamaha
Motor Corporation, U.S.A. for golf and utility cars and seasonal rental and service Agreements with Yamaha
Golf—Car Company for the Parks and Community Services Department for a combined total amount of
$254,000.00 for the first year, with payments due 30 days after the receipt of the invoices.
DISCUSSION:
Staff recommends a long—term lease with Yamaha Motor Corporation, U.S.A. for golf and utility cars and
seasonal rental and service Agreements with Yamaha Golf—Car Company for the Parks and Community
Services Department based on the low bid unit prices as listed below.
Quantity and Description Monthly/Unit 48 Month
Price Total
Lease of 188 Golf Cars $10,682.16 $512,743.68
Lease of 60 Golf Cars with Tow Bar $3,409.20 $163,641.60
Lease of 9 Utility Cars $1,013.40 $48,643.20
Lease of 4 Full Beverage Cars $699.28 $33,565.44
Rental of 30 Golf Cars for Peak Period $1,950.00 $54,600.00*
Extended Warranty If Available N/A N/A
Labor During Regular Hours as Needed –Estimated 300 Hours $65.00/Hour $19,500.00
Over 48 Month Lease Period
Labor Overtime Hours as Needed —Estimated 20 Hours Over 48 Month $65.00/Hour $1,300.00
Lease Period
One Time Trip Charge for Repairs as Needed (Estimated 20 total one time$58.00 $1,160.00
trips)
Repair Parts (Estimated Expenditures) $210.00 $10,080.00
Rental of Golf Cars for Z. Boaz(month—to—month) $3,525.00 $42,300.00**
* 36 Month Total (April l thru October 31 for four years)
** 12 Month Total
The Parks and Community Services Department(PACS), Municipal Golf Division will use these Agreements
to lease and service golf and utility cars that will be rented to patrons and utilized by golf course staff at most
of the City golf courses. A 48—month lease with sell—back option will be executed with Yamaha Motor
Corporation, U.S.A. A seasonal rental agreement for additional cars to meet increased demand between April
and October and a service agreement for all of the cars will be executed with Yamaha Golf—Car Company to
provide seasonal vehicles, obtain repairs, maintenance, and parts not covered under the standard
manufacturer's warranty. Future years costs will be approximately $211,000.00 per year.
During the previous year, revenue of$1,323,751.00 was generated from golf car rental fees for the Golf
Enterprise Fund.
The Invitation to Bid(ITB) consisted of detailed specifications describing the minimum requirements of the
golf and utility cars. PACS evaluated the bids and the demonstration golf cars submitted and concluded that
Yamaha presented the lowest bid meeting the specifications of this ITB.
BID ADVERTISEMENT: This bid was advertised in the Fort Worth Star—Telegram on May 25, 2011 and
June 1, 2011. The Purchasing Division solicited 361 vendors from the City's purchasing database system;
four bids were received.
BID TABULATION: See attached bid tabulation.
PRICE ANALYSIS —The unit price for the golf,beverage, and utility cars has increased by five percent
from the previous unit price approved by the City Council on May 20,2008 (M&C P-10784 (Revised)). The
increase in price is due to increased manufacturing costs and higher cost for shipping. Staff has reviewed
prices received from the low bidder and considers them fair and reasonable.
AGREEMENT TERM—Upon the City Council's approval, these agreements shall begin August 15, 2011
and expire on August 14,2015.
M/WBE—A waiver of the goal for M/WBE subcontracting requirements was requested by the Purchasing
Division and approved by the M/WBE Office because the purchase of goods or services is from sources
where subcontracting or supplier opportunities are negligible.
Because of the on—going operational evaluation process related to Z. Boaz Golf Course,golf and utility cars
for that course will be rented from Yamaha Golf—Car Company on a month—to—month basis using a separate
Agreement. PACS will rent 55 golf cars and three utility cars for Z. Boaz for a total of$3,525.00 per month,
which equates to an annual cost of$42,300.00. Because operational concerns necessitate a different approach
for that course, the dollar amounts in this M&C only reflect the expense of providing cars for a single year
during the evaluation process. If the decision is made to continue operating Z. Boaz, another M&C will be
brought forward seeking authority for a long—term agreement for that course as well.
Golf courses are classified as Citywide Special Use Facilities. Meadowbrook Golf Course is located in
COUNCIL DISTRICT 4, Pecan Valley Golf Course is located in COUNCIL DISTRICT 3, Rockwood Golf
Course is located in COUNCIL DISTRICT 2 and Sycamore Creek Golf Course is located in COUNCIL
DISTRICT 8.
FISCAL INFORMATION:
The Financial Management Services Director certifies chat funds are available in the current operating
budget, as appropriated, of the Municipal Golf Fund.
B QN\11-0220\EJH
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
PE39 531510 0804110 $338.36
PE39 531510 0804120 $6.704.60
PE39 531510 0804130 $349.64
PE39 531510 0804310 $225.20
PE39 531510 0804320 $3.860.03
PE39 531510 0804330 $174.82
PE39 531510 0804410 $337.80
PE39 531510 0804420 $3.626.38
PE39 531510 0804430 $174.82
PE39 531510 0804220 $934.16
PE39 531510 0804510 $112.60
PE39 531510 0804420 $1,652.42
CERTIFICATIONS:
Submitted for City Manager's Office by: Karen Montgomery (6222)
Originating Department Head: Lena Ellis (8517)
Additional Information Contact: Jack Dale (8357)
E.J. Harbin (8356)
ATTACHMENTS
1. Bid Tab 11-0220.1df
2. DEPARTMENTAL RECOMMENDATION LETTER.pdf
3. PE-5ZZZZZ-080ZZZZ.12df
4. WAIVER 11-0220.12df