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HomeMy WebLinkAboutC30290 - DWGR - Lease Agmt 176 Golf Carts & 3 Beverage Carts Contract No. C30290 CITY OF PALM DESERT STAFF REPORT REQUEST: APPROVE THE LEASE AGREEMENT BETWEEN THE DESERT WILLOW GOLF RESORT AND CLUB CAR, INC., IN THE AMOUNT OF $829,850.56 FOR A TERM OF 48 MONTHS FOR THE PURPOSE OF PROCURING 176 GOLF CARTS AND 3 BEVERAGE CARTS SUBMITTED BY: Catherine Walker, Senior Management Analyst APPLICANT: Club Car, Inc. 2220 Railroad Street Corona, CA 92880 DATE: October 28, 2010 CONTENTS: National Intergovernmental Purchasing Alliance Information Bid Proposal Recommendation By Minute Motion: Approve the Lease Agreement for golf carts for the Desert Willow Golf Resort, in the amount of $829,850.56 (includes tax and interest), from Club Car, Inc. Funds a�.e available in Golf Course Expenses, Account No. 520-4195-495- 8091. � ° Executitie Summary The new lease agreement would provide 176 golf carts and 3 beverage carts for a term of 48 months. The balloon payment at the end of the term will allow Desert Willow the ability to negotiate the next golf cart lease with consideration given to the trade-in value of the existing fleet of carts. The lease also contemplates special considerations that include as a gasoline utility vehicle, and three golf maintenance vehicles. The total value in special considerations is approximately $76,000. The parameters of the lease are as follows: � EQUIPMENT NO. OF COST PER BALLOON TOTAL CARTS MONTH PAYMENT Golf Carts 176 $ 71.92 $ 950.00 $ 774,780.16 Bevera e Carts 3 $ 342.85 $ 1,900.00 $ 55,070.40 TOTAL $ 829,850.56 Staff Report Goif Carts for the Desert Willow Golf Resort October 28, 2010 Page 2 of 3 Backaround The previous four-year lease agreement for golf carts 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 golf carts and utilizes their trade-in value as part of the negotiation for new golf carts. 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 cover all expenses relating to the procurement of new carts, service, maintenance, replacement carts, and golf cart parts. The high volume of golf rounds requires constant maintenance and repair. When carts are not available play can be adversely affected. The City would like to enter into a lease agreement with Club Car, Inc. 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 which 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 aovernmental aaencies, 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 Club Car Inc. lease agreement (please refer to attached materials). The current golf carts utilized by the Desert Willow Golf Resort are Club Car, Inc. Desert Willow has received superior performance and service from Club Car, Inc. over the last four years. Several customer service and maintenance benefits include a comprehensive warranty that addressed any issues as they presented themselves over G:kda\Cathy Walker\Word Data\DW Golf Carts.doc Staff Report Golf Carts for the Desert Wiilow Golf Resort October 28, 2010 Page 3 of 3 the term of the lease. In previous experience with other golf cart companies issues with the carts were not readily resolved, and Desert Willow often incurred the cost of repair. Club Car, Inc. also has an IQDM program that allows on-board computers to send reports to maintenance software that can be reviewed by Desert Willow staff as well as the Club Car maintenance company. This type of software has only been provided by Club Car, and provides for the seamless continuation of operations and play at the Desert Willow Golf Resort. If approved the carts will be leased through Electric Car, which is the local dealer for Club Car, Inc. Staff recommends approval of the lease agreement between the Desert Willow Golf Resort and Club Car, Inc. for the lease of 176 golf carts and 3 beverage carts for a term of 48 months. 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 No appropriation is required; funding is available in the current Desert Willow budget. Submitted By: , Catherine Walker, Sr. Management Analyst rtin Alvarez, R development Manager Department Head: CITY COUNCILA�`ION �� G APPROVED DFNiED 7'!�l , RECEIVED OTHER sti McCarthy, ACM f developmen MEET G DA j� � � - � ' AYES: �'�S�Y7 t/�CC.Y�7�� 'Z��;���/ � ���" � r)Ei�c NOES:-l�C�ryJ� � Paul S. Gibson, Director of Finance ABSENT: ��j�� � AI3STAIN: ��� VERIF[ED BY: ���v� (�'1 / " A val: Original on File with City Clerk's Oftice -,��2 t;� ;. o n M. Wohlmuth, City Manager � G:\rda\Cathy Walker\Word Data\DW Golf Carts.doc Club Car Agreement Page 1 of 1 , � �� � . � ��� � �.� � � . � - � „ � ., . ,.,�.�- �, . ,�. ;. ��,��C��`��,I�L� P''� �� . �.� �,�: � ; � � � ry � ` a ._� ��. $ �. :. � � ��_ a�c�r�� aecau�us a����r����Ts cc��-rA�-r�s � _.; � ,, , ��, � u�� ' �� w � II ' �'���� i,�; � �,! �t �� � ���� �I�� '� �,� � !y ,,;� '�� ��� . I � �`il��d�ll�� '' �i oip*j�q ; . ,. <, ,a ,. ii��l' � �� ���� . � � ' , Golf, Transportation, � � �,��;�,,p � ��= � , � ,, �,� and Utility Vehicles L �� �. . ..:• �''., ; ". � `° � . ` Competitively Solicited and Awarded by: .„,,, City of Tucson, AZ , ��, ii ¢�� " Cantract Highlights; a � � "' • Contract Term: December 23, 2008 - December 22, 2013 " "' " • Award includes: � Golf Cars � Hospitality Vehicles �������� � �� � �:�: �, + i ° • � � ,�+ � Turf Utility � Carryall Utility Select Agreement � � Transportation Vehicles � Low Speed Vehicles ', ��' • Free Goods Program • Trade-ins of golf, transportation and utility vehicles are accepted for both Club Car products and competitive products • Operating Leases and Conditional Sales Contracts are available through Club Cars 3rd party preferred lenders with terms up to 60 months • Please visit Club Cars website at htt�://www.clubcar.com/resources/solutionsnetwork/Pages/default aSpX Natianal Intergovernrners�at Rurchasing Ailiance Con�pany t p,;:0?�`J:=>l:{:jaE'�C:ircEe,Suii:r3 275, ��'ertii^d.rcfif,TiU�?il2 i _(t;€I-�;s.e(;;5fj��8-;i)77 ': i��foii,n<itiori<jl�:a_c,�c http://www.nationalipa.org/clubcar.html 10/13/2010 Club Car Dealer Locator Page 1 of 1 � �ir�d�D��ier E3zt2t�u is ys�ur r�ear�sz dea(er laoatian. �lub Car d�Y3t.�C�'SS: ._b�.:3:' . ti,;+ita k;arh.:.'a C:A iJSR 9's�i 0�t Phonet 4y�,�1-�'f3':�-,:€�i7;i F�x: S�6es Cur�taot: B�;virl Heiz�:>g . Em3iC ;�rsvld Y��-;rzo�.4'���lu!>GEts.t;;srr, L'oc� le 7a3a �':�r;7 t �rt=+,� :s,b'_-..:i_ Ai f;aF;p:iyht zi}tC"I:;b i:r<;,ir_c-AI::iidht>re<e�re-c�q_ http://products.adtrack.com/00421/C1ubCar/dealerlocator.asnx �ni��i�n�n Club Car,Inc. � �� 2220 Railroad Street Corona,Ca.92880 (951)735-4675 (951)735-7358 Fax Darrell Souza October 19, 2010 Desert Willow Golf Resort 38-995 Desert Willow Drive Palm Desert, Ca. 92260 dsouza@desertwillow.com Dear Darrell, Per your request please find the following proposal for 2011 Precedent Excel Golf Cars. The proposal is based upon Bid Terms and Conditions provided by The City of Palm Desert and Desert Willow Golf Resort. You will find that the equipment meets the specifications outlined in the Bid Terms and Conditions. Desert Willow Golf Resort will need to make the sum of their remaining payments and balloon payment on current lease cars. Payment of the remaining payments and balloon will transfer ownership of your current fleet over to Desert Willow Golf Resort at which point they will be used as trade ins against the new fleet. The trade-in amounts have been applied to the new deal in order to lower the monthly payments. The trade-in vehicles are as follows: Fleet Cars— 164 2007 Precedent Professional Marshall Cars—4 2007 Precedent Professional Cafe Express Beverage — 3 2007 Cafe Express Deluxe Villager 6 — 3 2007 Villager 6 Electric Transporter Turf II Electric— 2 2007 Turf II Electric Utility Turf II Gas — 2 2007 TurF II Gas Utility - Again, these trade-in vehicles have been applied to lower the new monthly payment. All cars must be in fleet running condition with normal wear and tear being expected. New Fleet (172) New 2011 Club Car Precedent EXCEL Electric Golf Cars, beige in color and equipped with all standard accessories i.e. Top, Sweater Basket, etc. and includes the following optional accessories: Custom Nameplate; Information Holder; Sand Bottle (2 per car); Wheel Covers; Number Decals (2 per car); Ball & Club Cleaner; Beverage Cooler; Rear Tow Plate; Split Windshield; Delivery and set-up at Desert Willow Golf Resort. (4) New 2011 Club Car Precedent EXCEL Electric Golf Cars (ranger cars), red in color and equipped with all standard accessories i.e. Top, Sweater Basket, etc. and includes the following optional accessories: Custom Nameplate; Wheel Covers; Beverage Cooler; Rear Tow Plate; Split Windshield; Delivery and set-up at Desert Willow Golf Resort. (3) New 2011 Cafe Express Beverage Units, blue in color and equipped with the following accessories; Upper Cabinet; Lower Cabinet; Four Bottle Caddy; �� Ingersoll�land Scorecard Holder; Food Warmer; Cafe Express Humidor; Canopy Top; Windshield; Delivery and set-up at Desert Willow Golf Resort. Precedent Professional Municipal Lease Club Car proposes a lease through Ingersoll-Rand Financial Services (IRFS) for the following term (176 Precedent Professional Golf Cars (Fleet and Ranger Cars)): 48 Months - $71.92 per car per month Balloon Payment of$950.00 per car (Includes Tax) Cafe Exnress Municinal Lease Club Car proposes a lease through Ingersoll-Rand Financial Services (IRFS) for the following term (3 Cafe Express Beverage Units): 48 Months - $342.85 per car per month Balloon Payment of$1,900.00 per car (Includes Tax) SPECIAL CONSIDERATIONS As part of the Municipal Lease, Desert Willow Golf Resort will receive the following ancillary vehicles. (1) (1) One Turf 2 gasoline utility vehicle, with a green front body, equipped with a driving range enclosure and a range picker bumper mount. This vehicle has a retail value of$10,890.32. (2) (4) Four Transporter 6 gas transport vehicles, with green body and equipped with a fold down rear seat. These vehicles have a total retail value of$36,766.59. (3) (3) Three Turf 2 (1 gas and 2 electric) utility vehicles, equipped with green front body; headlights; for use by golf maintenance, These vehicles have a total retail value of $29,008.41. (4) IQDM &CDM: Desert Willow Golf Resort will receive one each for the testing and diagnostics of the golf cars (5) Parts and Service Manual: Desert Willow Golf Resort will receive one parts and one service manual for the fleet golf cars. (6) 80 Spare sand bottles and holders (7) 20 spare coolers and brackets (8) 20 spare ball and club cleaners and brackets (9) 6 casual tow bars (10) All cars will be numbered Sincerely, Acknowledgement: Desert Willow Golf Resort Signature: David R. Herzog Title: Territory Sales Manager Date: 10/19/2010 2:32:53 PM Page 1 Desert Willow Cafe Express IPA Compound Period ......... : Monthly Nominal Annual Rate.... : 4.810 % CASH FLOW DATA __ _ Event Date Amount Number Period End Date 1 Loan 12/01/2010 16,505.36 1 2 Payment 01/01/2011 342.85 48 Monthly 12/01/2014 3 Payment 01/01/2015 1,900.00 1 AMORTIZATION SCHEDULE - Normal Amortization Date Payment Interest Principal Balance Loan 12/01/2010 16,505.36 2010 Totals 0.00 0.00 0.00 1 01/01/2011 342.85 66.16 276.69 16,228.67 2 02/01/2011 342.85 65.05 277.80 15,950.87 3 03/01/2011 342.85 63.94 278.91 15,671.96 4 04/01/2011 342.85 62.82 280.03 15,391.93 5 05/01/2011 342.85 61.70 281.15 15,110.78 6 06/01/2011 342.85 60.57 282.28 14,828.50 7 07/01/2011 342.85 59.44 283.41 14,545.09 8 08/01/2011 342.85 58.30 284.55 14,260.54 9 09/01/2011 342.85 57.16 285.69 13,974.85 10 10/01/2011 342.85 56.02 286.83 13,688.02 11 11/01/2011 342.85 54.87 287.98 13,400.04 12 12/01/2011 342.85 53.71 289.14 13,110.90 2011 Totals 4,114.20 719.74 3,394.46 13 01/01/2012 342.85 52.55 290.30 12,820.60 14 02/01/2012 342.85 51.39 291.46 12,529.14 15 03/01/2012 342.85 50.22 292.63 12,236.51 16 04/01/2012 342.85 49.05 293.80 11,942.71 17 05/01/2012 342.85 47.87 294.98 11,647.73 18 06/01/2012 342.85 46.69 296.16 11,351.57 19 07/01/2012 342.85 45.50 297.35 11,054.22 20 08/01/2012 342.85 44.31 298.54 10,755.68 21 09/01/2012 342.85 43.11 299.74 10,455.94 22 10/01/2012 342.85 41.91 300.94 10,155.00 23 11/01/2012 342.85 40.70 302.15 9,852.85 24 12/01/2012 342.85 39.49 303.36 9,549.49 2012 Totals 4,114.20 552.79 3,561.41 25 01/01/2013 342.85 38.28 304.57 9,244.92 26 02/01/2013 342.85 37.06 305.79 8,939.13 27 03/01/2013 342.85 35.83 307.02 8,632.11 28 04/01/2013 342.85 34.60 308.25 8,323.86 10/19/2010 2:32:53 PM Page 2 _ _ - -- Desert Willow Cafe Express IPA Date Payment Interest Principal Balance 29 05/01/2013 342.85 33.36 309.49 8,014.37 30 06/01/2013 342.85 32.12 310.73 7,703.64 31 07/01/2013 342.85 30.88 311.97 7,391.67 32 08/01/2013 342.85 29.63 313.22 7,078.45 33 09/01/2013 342.85 28.37 314.48 6,763.97 34 10/01/2013 342.85 27.11 315.74 6,448.23 35 11/01/2013 342.85 25.85 317.00 6,131.23 36 12/01/2013 342.85 24.58 318.27 5,812.96 2013 Totals 4,114.20 377.67 3,736.53 37 01/01/2014 342.85 23.30 319.55 5,493.41 38 02/01/2014 342.85 22.02 320.83 5,172.58 39 03/01/2014 342.85 20.73 322.12 4,850.46 40 04/01/2014 342.85 19.44 323.41 4,527.05 41 05/01/2014 342.85 18.15 324.70 4,202.35 42 06/01/2014 342.85 16.84 326.01 3,876.34 43 07/01/2014 342.85 15.54 327.31 3,549.03 44 08/01/2014 342.85 14.23 328.62 3,220.41 45 09/01/2014 342.85 12.91 329.94 2,890.47 46 10/01/2014 342.85 11.59 331.26 2,559.21 47 11/01/2014 342.85 10.26 332.59 2,226.62 48 12/01/2014 342.85 8.93 333.92 1,892.70 2014 Totals 4,114.20 193.94 3,920.26 49 01/01/2015 1,900.00 7.30 1,892.70 0.00 2015 Totals 1,900.00 7.30 1,892.70 Grand Totals 18,356.80 1,851.44 16,505.36 10/19/2010 2:32:18 PM Page 1 _ _ _ Desert Willow IPA Loan Golf Cars _ _ _ _ Compound Period ......... : Monthly Nominal Annual Rate.... : 4.810 % CASH FLOW DATA Event Date Amount Number Period End Date 1 Loan 12/01/2010 3,915.47 1 2 Payment 01/01/2011 71.92 48 Monthly 12/01/2014 3 Payment 01/01/2015 950.00 1 AMORTIZATION SCHEDULE - Normal Amortization Date Payment Interest Principal Balance _ ___ _ _ Loan 12/01/2010 3,915.47 2010 Totals 0.00 0.00 0.00 1 01/01/2011 71.92 15.69 56.23 3,859.24 2 02/01/2011 71.92 15.47 56.45 3,802.79 3 03/01/2011 71.92 15.24 56.68 3,746.11 4 04/01/2011 71.92 15.02 56.90 3,689.21 5 05/01/2011 71.92 14.79 57.13 3,632.08 6 06/01/2011 71.92 14.56 57.36 3,574.72 7 07/01/2011 71.92 14.33 57.59 3,517.13 8 08/01/2011 71.92 14.10 57.82 3,459.31 9 09/01/2011 71.92 13.87 58.05 3,401.26 10 10/01/2011 71.92 13.63 58.29 3,342.97 11 11/01/2011 71.92 13.40 58.52 3,284.45 12 12/01/2011 71.92 13.17 58.75 3,225.70 2011 Totals 863.04 173.27 689.77 13 01/01/2012 71.92 12.93 58.99 3,166.71 14 02/01/2012 71.92 12.69 59.23 3,107.48 15 03/01/2012 71.92 12.46 59.46 3,048.02 16 04/01/2012 71.92 12.22 59.70 2,988.32 17 05/01/2012 71.92 11.98 59.94 2,928.38 18 06/01/2012 � 71.92 11.74 60.18 2,868.20 19 07/01/2012 71.92 11.50 60.42 2,807.78 20 08/01/2012 71.92 11.25 60.67 2,747.11 21 09/01/2012 71.92 11.01 60.91 2,686.20 22 10/01/2012 71.92 10.77 61.15 2,625.05 23 11/01/2012 71.92 10.52 61.40 2,563.65 24 12/01/2012 71.92 10.28 61.64 2,502.01 2012 Totals 863.04 139.35 723.69 25 01/01/2013 71.92 10.03 61.89 2,440.12 26 02/01/2013 71.92 9.78 62.14 2,377.98 27 03/01/2013 71.92 9.53 62.39 2,315.59 28 04/01/2013 71.92 9.28 62.64 2,252.95 10/19/2010 2:32:18 PM Page 2 __ _ _ __ ___ ___ Desert Willow IPA Loan Golf Cars . _. __ Date Payment Interest Principal Balance 29 05/01/2013 71.92 9.03 62.89 2,190.06 30 06/01/2013 71.92 8.78 63.14 2,126.92 31 07/01/2013 71.92 8.53 63.39 2,063.53 32 08/01/2013 71.92 8.27 63.65 1,999.88 33 09/01/2013 71.92 8.02 63.90 1,935.98 34 10/01/2013 71.92 7.76 64.16 1,871.82 35 11/01/2013 71.92 7.50 64.42 1,807.40 36 12/01/2013 71.92 7.24 64.68 1,742.72 2013 Totals 863.04 103.75 759.29 37 01/01/2014 71.92 6.99 64.93 1,677.79 38 02/01/2014 71.92 6.73 65.19 1,612.60 39 03/01/2014 71.92 6.46 65.46 1,547.14 40 04/01/2014 71.92 6.20 65.72 1,481.42 41 05/01/2014 71.92 5.94 65.98 1,415.44 42 06/01/2014 71.92 5.67 66.25 1,349.19 43 07/01/2014 71.92 5.41 66.51 1,282.68 44 08/01/2014 71.92 5.14 66.78 1,215.90 45 09/01/2014 71.92 4.87 67.05 1,148.85 46 10/01/2014 71.92 4.60 67.32 1,081.53 47 11/01/2014 71.92 4.34 67.58 1,013.95 48 12/01/2014 71.92 4.06 67.86 946.09 2014 Totals 863.04 66.41 796.63 49 01/01/2015 950.00 3.91 946.09 0.00 2015 Totals 950.00 3.91 946.09 Grand Totals 4,402.16 486.69 3,915.47 10/19/2010 2:32:18 PM Page 3 _ _ _ _ . _._ Desert Willow IPA Loan Golf Cars Last interest amount increased by 0.12 due to rounding. LIMITED LIFETIME WARRANTY FOR 2011 PRECEDENT�`BY CLUB CAR� WARRANTY: CLUB CAR, INC., (CLUB CAR) hereby warrants its new 2011 Precedent golf car purchased from CLUB CAR or an authorized distributor, dealer, or agent shall be free from defects in material and workmanship under normal use and � c service for the period as stated in years below, as terms are defined herein, and subject to the provisions, limitations and ° �° � exclusions contained in this warranty. � d � L O _ U d � VEHICLE MAIN FRAME uPETIME' SUSPENSION defined as Steering Gearbox,Steering Column,Shocks,and Leaf Springs. 4 4 4 MAJOR ELECTRONICS defined as Onboard Computer(OBC),Solid State Speed Controller,and Battery Charger. 4 4 4 8V BATTERY Four Years or 1000 Rounds or 20,000 Energy Units(EU's)as recorded by the OBC,whichever first occurs. 4 4 4 PEDAL GROUP defined as Pedal Group,Brake Cluster Assemblies,and Brake Cables 4 4 4 SEATS defined as Seat Bottom,Seat Back,and Armrests 4 4 4 CANOPY SYSTEM deflned as Canopy,Rear Canopy Supports,Drainage System and Structural Accessory Module 4 4 4 POWERTRAIN defined as Gasoline Engine,Electric Motor,Gasoline and Electric Transaxle,Starter Generator,Air Intake,Exhaust System, 3 3 3 and Torque Converter(Drive and Driven). BODY GROUP defined as Beauty Panels,and Front and Rear Underbody. 3 3 3 ALL REMAINING COMPONENTS Options,and Accessories supplied by CLUB CAR,not specified otherwise. 2 2 2 IF THE WARRANTY REGISTRATION FORM IS NOT COMPLETED AND RETURNED TO CLUB CAR AT THE TIME OF THE ORIGINAL RETAIL SALE, PURCHASER MUST PROVIDE PROOF OF DATE OF PURCHASE WITH ANY WARRANTY CLAIM. EXCLUSIONS: Excluded from any CLUB CAR warranty is damage to a golf car or component resulting from a cause other than a defect including poor maintenance,neglect, abuse, accident 8 collision,maintenance adjustments, unreasonable or unintended strain or use, improper installation of accessories, installation of parts or accessories that are not original equipment,nonapproved alteration,and acts of god.Also excluded from any CLUB CAR warranty are all fuses,filters,decals (except safety decals),lubricants,routine wear items such as the charger plug and receptacle,brake shoes, belts,brushes,bushings,cosmetic deterioration, and items which deteriorate,fade or fail due to exposure or ordinary wear and tear. Transportation expenses for warranty services are also excluded from this warranty. VOIDING OF WARRANTY: THIS AND ANY OTHER WARRANTY SHALL BE VOID IF THE GOLF CAR IS ABUSED OR USED IN AN UNINTENDED MANNER OR SHOWS INDICATIONS THAT IT HAS BEEN ALTERED IN ANY WAY, INCLUDING, BUT NOT LIMITED TO, MODIFICATION OF THE SPEED GOVERNOR, BRAKING SYSTEM, STEERING,TRANSAXLE,OR OTHER OPERATING SYSTEMS OF THE CAR TO CAUSE IT TO PERFORM OUTSIDE CLUB CAR SPECIFICATIONS.THE WARRANTY IS LIKEWISE VOID IF THE CAR INVOLVED SHOWS INDICATIONS THAT REASONABLE OR NECESSARY MAINTENANCE AS OUTLINED IN THE OWNER'S MANUAL AND MAINTENANCE AND SERVICE MANUAL WAS NOT PERFORMED AT THE TIME AND IN THE MANNER SPECIFIED IN SUCH MANUALS. SOLE REMEDY: CLUB CAR's liability under this limited warranty,or in any action whether based upon warranty,contract,negligence,strict product liability or otherwise,shall be the repair or replacement, at CLUB CAR's option, of the golf car or component thereof that CLUB CAR deems to be defective. Replacement shall mean furnishing, during the applicable limited warranty period, a new golf car or factory-reconditioned vehicle or component thereof that is identical or reasonably equivalent to the warranted product or component at no cost to the purchaser.Repair shall mean remedying a defect in the golf car or component thereof at no cost to the purchaser during the applicable limited warranty period. If CLUB CAR elects to repair the golf car, it may provide factory-reconditioned parts or components.All parts and components replaced under warranty shall become the property of CLUB CAR. DISCLAIMER: THIS LIMITED WARRANTY IS EXCLUSIVE. CLUB CAR MAKES NO OTHER WARRANTY OF ANY KIND, EXPRESSED OR IMPLIED. ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WHICH EXCEED THE OBLIGATIONS OR TIME LIMITS STATED IN THIS WARRANTY ARE HEREBY DISCLAIMED BY CLUB CAR AND EXCLUDED FROM THIS WARRANTY. THE PURCHASER ANO CLUB CAR EXPRESSLY AGREE THAT THE SOLE REMEDY OF THE REPLACEMENT OR REPAIR OF THE DEFECTIVE GOLF CAR OR COMPONENT THEREOF IS THE SOLE REMEDY OF THE PURCHASER. CLUB CAR MAKES NO OTHER REPRESENTATION OR WARRANTY OF ANY KIND, AND NO REPRESENTATIVE, EMPLOYEE, DISTRIBUTOR OR DEALER OF CLUB CAR HAS THE AUTHORITY TO MAKE OR IMPLY ANY REPRESENTATION, PROMISE OR AGREEMENT,WHICH IN ANY WAY VARIES THE TERMS OF THIS WARRANTY. NO CONSEQUENTIAL DAMAGES: IN NO EVENT SHAIL CLUB CAR BE LIABLE FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES INCLUDING, BUT NOT LIMITED TO, LOSS RELATED TO PROPERTY OTHER THAN THE GOLF CAR,LOSS OF USE,LOSS OF TIME,INCONVENIENCE,OR ANY OTHER ECONOMIC LOSS. Some states allow neither limitation on the duration of an implied warranty nor exclusions or limitation of incidental or consequential damages.Therefore,the above limitations or exclusions may not apply to you. This warranty gives you specific legal rights,and you may also have other rights,which vary from state to state. INFORMATION: For further information contact WARRANTY SERVICES,CLUB CAR,INC.,P.O.Box 204658,Augusta,Georgia 30917-4658,U.S.A.,706-863-3000. WARRANTY TRANSFER: To transfer any remaining warranty coverage from the original owner to a subsequent purchaser,the vehicle must be re-registered by an Authorized Club Car Distributor or Dealer with the Warranty Department at Club Car, Inc.All transferred Warranties must take place within the first three years of the original in service date of the vehicle.'The Limited Lifetime section of the warranty coverage applies to the original purchaser or lessee only,and subsequent registered owners will assume a four-year coverage period based on the original in service date. WARNING: Any modification or alteration of any golf car beyond factory specifications, including those that affect the weight distribution,stability,or speed of the golf car, can cause serious personal injury or death. Rev 04/04