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HomeMy WebLinkAboutC30360 - Lease Agmt Wlkng Green Mwrs & 1 Piece Golf Lift Equpmnt CITY OF PALM DESERT STAFF REPORT REQUEST: APPROVE THE LEASE AGREEMENT BETWEEN THE DESERT WILLOW GOLF RESORT AND TURF STAR IN THE AMOUNT OF $86,589.60 FOR A TERM OF 48 MONTHS FOR THE PURPOSE OF PROCURING EIGHT (8) WALKING GREENS MOWERS AND ONE (1) PIECE GOLF LIFT EQUIPMENT SUBMITTED BY: Catherine Walker, Senior Management Analyst APPLICANT: TurF Star 79-253 Country Club Drive Bermuda Dunes CA, 92203 DATE: November 18, 2010 CONTENTS: National Intergovernmental Purchasing Alliance Information Bid Proposal Recommendation By Minute Motion: Appro�e the Lease Agreement for walking greens mowers and lift equipment for the Desert Willow Golf Resort in the amount of $86,589.06 (includes tax and interest) from Turf Star. (contract rto. C30360) Funds are available in Golf Course Expenses, Account No. 520-4195-495- 8091. Executive Summary The new lease agreement would provide eight Toro walking greens mowers and one piece of Toro golf lift equipment for a term of 48 months. The current mowers utilized by the golf resort are Toro mowers, and have provided superior work and warranty performance. The parameters of the lease are as follows: Equipment No. of Mowers Per Unit Cost Total Walkin Mowers 8 $ 9,243.76 $ 73,950.00 GL-9 E ui ment Lift 1 $ 8,622.79 $ 8,622.79 Total $ 82,572.79 Trade in Value No. of Mowers Total Est.Value Walkin Mowers 8 $ 500 $4,000.00 Net Cost $ 7g�572.7g Interest Cost $ 8;016.81 Total Cost 9 $ 1,803.95/mts x 8mts $86,589.60 Staff Report Mowers for the Desert Willow Golf Resort November 18, 2010 Page 2 of 3 Backaround The previous four-year lease agreement for walking mowers at the Desert Willow Golf Resort has expired. As per the terms of the previous lease agreement, at the end of the four-year term, the Desert Willow Golf Resort purchases the existing mowers and utilizes their trade-in value as part of the negotiation for new walking mowers. The Desert Willow Golf Resort is a nationally recognized golf destination that accommodated over 83,134 rounds of golf in fiscal year 2009/2010 alone. The purpose for the lease agreement is to provide the golf resort with walking mowers for daily mowing of the approximately 6.2 acres of greens and lift equipment. The lift equipment provides for the safe and efficient on-going servicing of the mowers. The high volume of golf rounds requires constant maintenance and course repair. If the greens are not properly cared for, play will be adversely affected. The City would like to enter into a lease agreement with Turf Star through the National Intergovernmental Purchasing Alliance (IPA) Company program. National IPA is a cooperative purchasing organization, established through a collaborative effort of public agencies across the United States with the specific purpose of reducing procurement costs by leveraging group volume. The program is similar to the California Multiple Award Schedule (CMAS), which is a state program allowing public agencies to procure goods or services at prices that have been assessed to be fair, reasonable, and competitive. Public Contract Code Sections 10290 et seq. and 12101.5 include approval for local government agencies, including general law cities to use CMAS. National IPA aggregates purchasing volume of participating agencies in order to receive larger volume discounts from suppliers. Master agreements are publicly solicited and awarded through a Request for Proposals (RFP) process, and held by a principal procurement agency. National IPA serves as a government cooperative purchasing organization for agencies nationwide. Under the provisions set forth in the City of Palm Desert Municipal Code, section 3.30.260 other governmental aqencies, the City of Palm Desert is allowed to participate in the IPA program. The City may participate with other governmental agencies such as the State of California, County of Riverside, or any other cities, who have through a bidding process, determined to award or purchase, supplies, merchandise, or other items needed by the City which program of the other governmental agency allows participation by this city. The City of Palm Desert would utilize the competitively solicited and ultimate award by the City of Tucson, Arizona, the principal procurement agency, for the purposes of entering into the TurF Star lease agreement (please refer to attached materials). Staff recommends approval of the lease agreement between the Desert Willow Golf Resort and Turf Star for the lease of eight walking mowers and one piece of lift equipment for a term of 48 months. G:1rda\Cathy Walker\Word DatalStfDWMowers.doc Staff Report Mowers for the Desert Willow Golf Resort November 18, 2010 Page 3 of 3 The Desert Willow Golf Resort in conjunction with the Finance Department has thoroughly reviewed the proposed terms of the lease agreement, and has determined that the terms of the lease agreement are reasonable and proposed costs are in accordance with the previous agreement and current market conditions. The Finance Department and the City Attorney have determined that the National IPA program meets the provisions set forth in the City of Palm Desert Municipal Code and Purchasing Policy. Fiscal Analvsis The total net principal cost for the eight mowers and one piece of mower lift equipment is $78,572.79. The $78,572.79 will be financed through a municipal lease at a monthly lease payment of $1,803.95, which will result in an overall/inclusive cost for the equipment for the 48 month lease period of $86,589.60. No appropriation is required; funding is available in the current Desert Willow budget. Submitted By: Catherine Walker, Sr. Management Analyst artin Alvarez, Redevelopment Manager Department Head: CiTY COUNC7LAC'�'•I�ON � APPROVED ✓ nFNTF;n___` ,1� RF,CENED.�.,.,,,,_, „OTHER J i McCarthy C f development � MF,F.T.,I,�C DATE - - 1 AYF.S�' � ��GY14�i1 i' � i rf�; , NO1:S:��f�17� � Paul S. Gib , Direc r of Finance A��ENT: 1�1��� � A[3STAIN: ! � � V[;IZIFIF.D BY: � 1 �� Appt'OVaI: (3riginal on File with City •k's Office J h . Wohlmu , City Manager � G:1rda\Cathy Walker\Word DatalStfDWMowers.doc Toro Pricing and Ordering Page 1 of 1 , � .,�� r � � � h �� � �i;� � ,��� � NATIONALI PA► '�� �' �` , �,k . _ � ��� M HOME ABOUT US AGREEMENTS CONTACT US � � # � " � � ' �I V II� �il I 4` � ����� � C�o�snt on ft. ��"�� Parks and Golf Grounds , �` ,� Maintenance Equipment ��I �� Competitively Solicited and Awarded by: City of Tucson, AZ � � II � . Discount Structure: . • • • Products purchased with a traction unit; 21.8% discount off of Toro Commercial current year MSRP • Attachments, accessories sold without a traction unit: 20.5% ; � � � , , • discount off of Toro Commercial current year MSRP • Landscape Contract Equipment (LCE) available at 27% off Toro Select Agreement Landscape Contractor current year MSRP. • Compact Utility Equipment (Dingo) available at 17% off Toro Site Go! Works current year MSRP. Smart Value Program: In addition to the discount off of Toros Commercial list price, this agreement offers the Smart Value Program, a volume incentive program. Agencies will receive their choice of Toro Commercial Division goods. This may allow for Torop Protection Plus, additional attachments, or even a complete unit. For additional information, contact your locai Toro Commercial distributor. To find your local distributor, click here. National Intergovernmental Purchasing Alliance Company 1600 NJest9ate Circle, Suite J_75, Brentwood,TN 37027 ToII Free(866)408-3077 � infoC�nation�lioa.orn http://www.nationalipa.org/toropricing.html 11/9/2010 COMPANY INFORMATION �__ ��.�" S i -A� Company Name ��� --Z�� C��c.�.i,d�-��t„_s..3 C� � ��� � Address L'�.�,_v�.� �,r.,.�,s �.C� `�z.z.o 3 C��.u.. �--��oo� Q��`� r-`Z�C�b w-��.�,..i�C �c,�� ��-- ;on I Telephone Na , t :_*.�. t` a-��..�..._.. t� � � c_t� Signature Date � v�. LJ �t:��2.� Print Name �E12�t�ot� '�...Att-���`?`�� Title Page 4 of 6 The City of Palm Desert/Desert Wil}ow reserves the right to reject any and all bids r � � � �.?��5�' �°�� �•-: �,'. K�*��� �� #i �r �� �'a�� ,�� r��M��y � i '��� ���:.�t� ��� .�u � *��,,r� �� � 't�� ���;��ST� (800� 585-8001 www.turfsiaccom �;ti �� ,�,�� �� pF�, City af Palm Desert/Desert Wiliow Bid 11/3/2010 (National tPA pricing contract#0830Q4-01} Prices are subject to an estamated 3-5%increase after 11/30/2010 8 ea. Toro Flex 21 walking greens mower $8,491.73 $57,933.84 Grooved rollers Light kits Hour meters Whee!kits 14 bfaded reels Micro bedknife 1ea. Golf Lift GL-9 Equipment lift $7,929 Note:Turf Star is not able to supply installation $75,862.84 or electrical set up on this unit. Tax 8.75( ff tax exemption not taken) $6,638 Trade in 8ea. Toro 1d00 (Must be in good running conditionj ($500) ($4,000) Cash price(If tax exemption not taken) $78,500.84 Cash price{ If tax exemption taken) $71,862.84 Finante-Municiple lease($25d doc fee) ($1 buyout) (With tax) 36 month@$2,343.25/month 48 month @$1,803.95/month (Without tax) 3b month@$2,145.11/month 48 month @$2,552.41/manth � �9�zs�i��wntry th.n Dnve� )55 Ba�..n:trr._.: Sr,•te�ur.t sar.mv�Avr. 193a r_�i�y cowr ��e�?��,n i .. :�ni., ��t u..i'vh,�.�r�� _ ,�„�, . � BrrR.uAd Uunes.�A 92203 Bre.�.CR >2811 iresn¢CA 9R177 HaVw�d lA 945-05 [idvY�nC�rac lA 95741 l5,[n.CA l.u8t Fix 17G0�345429/ Fax(71a)99GS7Z9 F,tx,�559�277J 123 Fax(±10)7$53(�7S f-�i91�1 6l5 3448 f�,ix;lhUl/1a.=3L34 #_� :.. Warranty Toro Flex 21-Two years Golf Lift GL9-5 years Training Staff training when units are deiivered Recommended spare parts Non at ihis time.We are lotated just a few mites from the golf course and if we do not have the part we will have it in 24 hours. Delivery 6 weeks or Iess �PNC EQU}PMENT FiNAfVCE LEAS{NG APPLICATION Call Toll Free 800-263-9489 Ext 3�Fax Comple2ed and Signed AppUcaUon to 886-888-3685 IMPORTAMT lNFQRMATlQN:If you are applying for indi�idual lease or for join!lease with arwlher person(inGuding a jarrt accourtt or an accourtt that you and another persan wili use)complete a0 sedions providing irNamatbn about each irxfividual appticant,joird applica�t or user.if you are applyrc�g to guararNee the obtigations ot a business,complete all sectior�s prov�fing ir�formatron about yourseN.Persona providing Infom�atlo�who are nof Appifcsrns,Guerantors,or Company Authorfmd Signers shautd cwt aign this atabwnent L egai 8�niies+Nane OBA Nema Tax W�it�iicn No. Streat Address (no P.O.8o�res) Bilknp Addrsss (m P.O.Boxesl ❑Sofe ProWiatorshiP C'�'�01���P ❑Individuals apWY�91�Y 1a birek»ss papose leaee E�Location(if diMerarH Trom above):Street AddresalCilYlCae�lY/StatelYlP �J Ge�fltxl Pertne�'sNp CaKaa Phaw No. Fa�c Fb. ❑Lin�ted Pei7iership ( ) ( 1 n Ccrp.a Ltd.Liebi�ty Co. r�.e a� r��,s,� r��o�,� ►,ro.�r R�a c�s.�aa� �e or ory. s�e d aB. � is yar bw�ess adas tax axertpYt M'VE5 indica6e tez e�cempt reunWer. ❑NO ❑YES E-Meil Addreas J....._.. n on,x: Prkopat�Pwtr r»�r�x,w Troe 1�U�r�p oaa or e.a, s«iel seaxity A u. .citrzx, ❑YES �NO Horne Admese City Stale 7�P Home Ptwra ( ) BilAnp Address (i/dirterent) Ciy State ZIP Pnone ( 1 prw�paF7patr�erlOfiioar Tifb °/.O�rtrerNiip 6ste d BiRh Soaal Seauity fi U.S.Cidzen ❑YES []NO Fbme Arkkese Ciy SmDe ZIP Hame Phone ( ) Bipirg P�dOrese f if tlifterent) City State ZIP Phaie ( ) Plea�e1�Cat4lftB eqiipmwrt you aro plBttnMtp to acquire- Equiprnent Supplier Estimated To�l Equiprr�ent Costs:S Sh�cture: ❑Nominal(e.y.51)Purchase Opfbn Lease ❑Fair Market V�ue Purohaae dption L�se ❑Trac TERM: MonThs 8enk Referaice Nune 1�000�uNl.ar�OP�cer Pnone�o. ( ) Accourd�YPe" Accowb No. Curterk Balance Averape Balance(6 rtiordha) C7 Chedclrg ❑Swinpa G t.oan O Lhie af Crodk 3 i 'You:the"APDGarH"(bdh tertns indixle tl�a busiiaas enhity ea wed�dl d the a�6viduab,wnstl ebovel,oxtiy'!o us tt�at you aa appiyirg Ta aedit fa b�s reesa�s.end not fa per�onel.famity a tqusetnW iwrPoese.APqIceM autl�ariaes PHCEF,liC�ba PNC E�meM Fnwnct to obpin iMametim ttnm ottwrs con�rrng ApplicarN's vadd and trade sian3np,indu�r�p APD�K'�D���a� ropa�and dher roiwant infamw6on impedig tltia opplintion.and it Nfe Leaes is appa�ed,from Ume to time durinQ tl�e term d 1he Lease. 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