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Home My WebLink AboutC30341 - DWGR Xtnd Lease - Golf Cart GPS Contract No. C30341 CITY OF PALM DESERT STAFF REPORT REQUEST: APPROVE EXTENSION TO EXISTING LEASE AGREEMENT BETWEEN DESERT WILLOW GOLF RESORT AND GPSi LEASING, LLC FOR THE ONBOARD GOLF CART GLOBAL POSITIONING SYSTEM (GPS) SUBMITTED BY: Martin Alvarez, Director of Economic Development DATE: January 23, 2014 CONTENTS: GPSi Lease Agreement Recommendation By Minute Motion: 1. Approve a lease agreement extension between Desert Willow Golf Resort and GPSi Leasing, LLC in the amount not to exceed $8,507.00/month for the onboard golf cart global positioning system. Backqround In April of 2011, the City entered into a lease agreement with GPSi Leasing, LLC for the use of 181 onboard golf cart global positioning systems at Desert Willow Golf Resort. The agreement was in the amount of$10,168.00/month for a 4-year period, expiring at the end of 2014. Desert Willow Golf Resort sells over 80,000 annual rounds on golf on two golf courses and generates $6 million in golf green fees. The GPS is an integral part of play at Desert Willow and benefits not only the golfer, but the Desert Willow Golf Resort operations. The GPS provides golf cart tracking, communication with golfers and provides golfers with golf shot distances to bunkers, hazards and greens. The system also allows customers to contact the pro shop in the event of an emergency, issues weather alerts, allows Desert Willow control of the pace of play, and controls the location where golf carts can be driven (i.e. prohibits driving golf carts on gresns and desert areas). Discussion Although the term of the existing lease agreement does not expire until the end of 2014, staff has negotiated an extension to the lease agreement which would allow us to lower the monthly lease price and continue the use of the GPS for another 4 year term. The monthly cost of the lease has been reduced from $10,168.00 per month to $8,507.00 per month ($102,084.00/year). The lease extension agreement will save the City/Desert Willow Golf Resort $19,932.00 per year. The GPS has proven effective both for golfers and the golf course operator. If there are technological modifications (i.e. software) in the future, we will have the ability to have an upgrade to the existing system at no cost. When the golf cart lease expires in two years, the Contract No. C30341 Staff Report Desert Willow Golf Resort GPS Agreement Page 2 of 2 January 23, 2014 City will have the ability to reuse the existing GPS platform on new Club Car golf carts, which is the manufacturer of the existing golf carts. Staff recommends approval of the lease agreement extension until 2017. Fiscal Analvsis The cost of the GPS lease is covered under the Desert Willow operating budget. The new lease agreement will save the City/Desert Willow $19,932.00 per year. Submitted By: CTfY COUNCII.A�FION APPRUVED DENIED Mart' Alvarez �CE�D OTHER Dire tor of Economic Development MEET G AYE9t NOEBs AB3EN'1! Paul S. Gibson, Director of Finance AB3TAINt VERII+'IED 81h Osi�i�esi�FU�wMr Clq Ic�i Ot� roval: � n M. Wohlmuth, City Manager G:\rda\Martin Alvarez�2014\SR\DWGPSi-1-23-14.doc 5. Performance. Provided Customer has complied with all maintenance service obligations, Customer shall not be responsible for payment of rent during any full month or, shall prorate rent for any pa�tial month in which the System becomes inoperable due to a system-wide-failure as define below for any period of 30 days or more. The term "system-wide failure" is defined as follows: a situation during the time the Customer's course is open for business, where fifty percent(50%) or more of the golf cars equipped with the GPSL System do not have the System fully operational, i.e., no satellite signals, no communication with Customer's facilities, and/or failure to display distance measurement within normal operating parameters. System-wide failure shall not include golf cars that are not in service for reasons unrelated to the System or where the System is not operable due to vandalism or misuse. If GPSL fails to remedy a system-wide- failure in thirty (30) days, Customer(so long as Customer is not in default of this Agreement} shall receive a credit to be applied against the next monthly Payment, or at customer's option this Agreement may be terminated without further performance owing on Customer's part. GPSL will remove the system and release customer from any further liability under this Agreement. 6. Technoloqy Upqrade. Anytime after December 26, 2015, Customer has the option to upgrade to new and different golf car screen technology offered by GPS Industries; provided, however, that any upgrade shall be for a system with features equal to or greater than Customer's original system. Customer shall enter a new 48 month agreement at the then applicable pricing, terms and conditions. All of the other terms and conditions of the Agreement shall remain in full force and effect. The Effective Date of this Amendment shall be the date when the last of either GPSL or Customer executes this Agreement, as set forth herein. GPSI Leasing, LLC The City of Palm Desert S ig natu re Sig nature Print Name Print Name Title Date Title Date ZOf2 . �leet Change Out �Gp�. industries«� Wo rk O rd e r 1074 N.Orange Ave., Sarasota, FL 34236 (888)575-2901 Client Services __ . _ Course Information: ' order�ace: �2irnzo�3 _ Bill To: _-___ , _--__ Course Desert Wil{ow Golf Resort Course Comaci: Darrell Souza __ _ __ _ __ address: 38-995 Desert Willow Drive _ _ -- � - --- _ --� CityiS�.iZip: Palm Desert,CA 92260-1674 Ship To: _ .__ _ Phone/Fax: (760)346-0015 Coufse (760)346-7444 __ Golf Car Delivery Contact Person: _—_ _ �—-_ Name: �Requested Install Date: �_.__.��__ _ Phone: �D ___ . ___ _ _ . _ _ __.. Delivery Date of New Cars TBD ; _. _ __—�-_ _ Notes: (List any special requirements): --- _ _ ___ �_ _ _ Existing Fleet New Fleet # MDU Manuf. Pwr � Year Model ` # � Manuf. Pwr ! Year Model --- - - -— - -- 181 visage RT+ CC Elec Precedent 181 ! EZ Elec � 2014 TXT —__. - -- _ _ __—�- - _ - _ _ __ __ _ _ uan t Description Unit Price Price ___ _____ ___ _ _ _ _ _ 181 EZGO TXT Installation Kit $ 177.89 $ 32,198.09 _ _ _ _ _ _ _ ___ __ 181 On-Site Field Service Rep(assistance by 3-4 course staff required) $ 20.00 $ 3,620.00 -- ____ ---- 2 Travel and Expenses for Field Service Rep $ 1,000.00 $ 2,000.00 __ __ __ _.._ _.�.. __ . $ - _ _ _ __ __ _ __ $ - _ _ _ _-- _ $ - $ - ___ __ _ Sub-Tota� $ 37,818.09 50`7� Deposit reywred to release order. Shipping 8 Handling $ 450.00 , 7otal $ 38,268.09 Eslimate�All equipment and services are quoted based on intormation and lead-times provided at the time. Final billing is subject to adjustments based on the actual equipment and services provided.Prices quoted are valid for 30 days. Lead Time:It is the Customefs sole responsibiliry to provide GPSI with adequate notice to meet the ileet delivery date. GPSI tloes not stock materials tor tleet change outs.GPSI recommentls at least ninety(90)days notice The minimum FCO delivery time is sixry(60)days from GPSI's receipt of an accepted FCO Work Order.Submission of this order to Customer does not guarantee material or schedule availability.Final scheduling oi services depends on material lead-times and the backiog oi orders at the time ot order confirmation.In the event that the course does not provide GPSI with nofice of cart delivery date a min{mum of 30-0eys from submittal oi deposit,the tollowing FCO expedite tees shall apply (1)Material Expedite Fee-$250,(2)Labor Expedite Fee-$750,(3)Both Material and Labor Expedite-51,000. On-site Assistance bv Customer Staff: To reduce Customers FCO cost,this order is Onced based on GPSI providing 1 field service representative(FSR)to oversee and assist Customefs staH(3-4 people)with the fleet change ouL Customers staN members are essential to GPSI's ability to carry out the FCO in a timely manner.Final billing for GPSI's labor may be adjusted if actual on-site time exceeds 3-4 days(per standard 70-80 unit fleet size)due to insutticient staH panicipation.GPSI requests that Customer schedule the golt cars for delivery on Tuesday.Typically,GPSfs FSR will pla�to travel o�Monday,start the FCO on Tuesday and complete by the end of the week. Pavment Terms: For orders up to 31,500,GPSI will release work upon receipt and confirmation of the signed order;payment is then due on delivery. For orders of$1,500 or more, GPSI requires a signed purchase order or a 50%deposit payment prior to releasing work;final payment is due on delivery. GPSI reserves the right to hold orders for accounts that have open payables beyond terms. ACCEPTED BY: x Authorized Signalory Title Case# Pnnted Name Date