2008-26959 Reso Inc.RESOLUTION NO. 2008-26959
A RESOLUTION RESCINDING THE AWARD OF CONTRACT TO CLUB CAR,
INC., PURSUANT TO INVITATION TO BID N0.38-07/08, FOR THE LEASE OF
GOLF CARTS AND OTHER MISCELLANEOUS GOLF EQUIPMENT/
VEHICLES, FOR THE NORMANDY SHORES AND MIAMI BEACH GOLF CLUBS
(THE ITB), AND FURTHER APPROVING AWARD OF THE ITB TO THE
SECOND BIDDER, E-Z-GO, (IN THE SAME AMOUNT OF THE ORIGINAL
AWARD TO CLUB CAR, INC.); FURTHER APPROVING AND AUTHORIZING
THE MAYOR AND CITY CLERK TO RETROACTIVELY EXECUTE AN
EQUIPMENT LEASE AGREEMENT AND OTHER RELATED DOCUMENTS
WITH E-Z-GO IN THE TOTAL AMOUNT OF $209,330.28, FOR A PERIOD OF
THIRTY-SIX (36) MONTHS, WITH MONTHLY INSTALLMENTS OF $5,814.73
FOR THE NORMANDY SHORES GOLF CLUB; AND IN THE TOTAL AMOUNT
OF $237,850.20, FOR A PERIOD OF THIRTY-SIX (36) MONTHS, WITH
MONTHLY INSTALLMENTS OF $6,606.95 FOR THE MIAMI BEACH GOLF
CLUB .
WHEREAS, at the October 7, 2008, City Commission meeting, a bid was awarded to Club
Car, Inc., for the lease of golf carts and other miscellaneous golf equipment to be used at the City's
golf courses pursuant to Invitation to Bid No. 38-07/08 for the Lease of Golf Carts and Other
Miscellaneous Golf Equipment/ Vehicles (the ITB); and
WHEREAS, following the award of ITB to Club Car, Inc., the Administration and City
Attorney's Office reviewed the lease and other documents submitted by Club Car; and
WHEREAS, following extensive negotiations and discussions the parties have been unable
to reach agreement; and
WHEREAS, as documented in the attached correspondence from Club Car, Inc.
representative, Mr. Brad Haerlie, Director of Sales, Eastern US, dated December 1, 2008, Club Car,
Inc. has withdrawn from the bid process as a result of their inability to complete the required
financial transaction pursuant to the invitation to bid; and
WHEREAS, on December 2, 2008, the City and Club Car terminated negotiations: and
WHEREAS, after terminating negotiations with Club Car, the Administration contacted the
second bidder, E-Z-Go; and
WHEREAS, E-Z-Go has committed to providing the golf carts and other golf equipment/
vehicles included in the original ITB; has agreed to use the same terms and conditions that were
approved three (3) years ago for the lease that is currently in effect for the cart fleet at the Miami
Beach Golf Club; has agreed to reduce their bid price by $14,249.52 to match the price of the Club
Car award; and has agreed to provide a new or temporary fleet necessary to meet the grand
opening of the Normandy Shores Golf Club and then complete the order as soon as possible.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission here by rescinds the
award of a contract to Club Car, Inc., pursuant to Invitation To Bid No. 38-07/08, for the Lease of
Golf Carts and Other Miscellaneous Golf Equipment/Vehicles, forthe Normandy Shores and Miami
Beach Golf Clubs (the ITB); and further approves the award of the ITB to the second bidder, E-Z-
GO, (in the same amount of the original award to Club Car, Inc.); further approves and authorizes
the Mayor and City Clerk to retroactively execute an equipment lease agreement and other related
documents with E-Z-GO in the total amount of $209,330.28 for a period of thirty-six (36) months,
with monthly installments of $5,814.73 for the Normandy Shores Golf Club; and in the total amount
of $237,850.20, for a period of thirty-six (36) months, with monthly installments of $6,606.95 for the
Miami Beach Golf Club .
PASSED and ADOPTED this 10th day of December, 2008.
MAYO
A TEST: (1, ~ w Matti Herrera Bower
~1~"\
CITY CLERK
Robert Parcher
F:\rcpa\$ALL\Previous\KEVIN\Commission 2008\Dec. 10 08\Club Car Rescinding Contact Resoll.doc
APPROVED AS TO
FORM & LANGUAGE
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COMMISSION ITEM SUMMARY
t^nnripncPrl Title
Request to rescind a contract to Club Car, Inc., pursuant to Invitation To Bid No. 38-07/08 For The Lease
Of Golf Carts And Other Miscellaneous Golf Equipment/Vehicles to Club Car, Inc. and authorizing the
retroactive award to the second bidder, E-Z-Go.
Intended outcome 5u
I Increase Satisfaction with Recreational Programs ~
Supporting Data (Surveys, Environmental Scan, etc.):
Parks and Recreation appeared as one of the most important areas affecting resident's quality of life. Of
the 79% of residents and 82% of businesses rated the overall quality of the recreational programs and
facilities as excellent or good and 58% of residents stated that they go to recreational facilities a couple of
times a month or more. More recreational opportunities appeared as one of the changes residents would
make to make Miami Beach a better place to live, work, and play.
Issue:
Shall the Mayor and City Commission rescind the award to Club Car, Inc. and retroactively award it to E-Z-
Go?
Item Summary/KecommenaaL~on:
On October 7, 2008, the Commission awarded a bid to Club Car, Inc., for the lease of golf carts and other
miscellaneous golf equipment to be used at the City's golf courses. The Administration and City Attorney's
Office subsequently reviewed the leasing document and entered into negotiations with Club Car. Following
extensive negotiations the parties were unable to reach agreement. On December 1, 2008, Club Car, Inc.
withdrew from the bid process as a result of their inability to complete the required financial transaction
pursuant to the invitation to bid. On December 2, 20008, the City and Club Car terminated negotiations.
The Administration then contacted E-Z-Go and confirmed they were willing to provide the golf carts and
other equipment included in the original ITB; reduce their bid price by $14,249.52 to meet the price of the
Club Car award; agreed to the same terms and conditions that were approved three (3) years ago for the
lease that is currently in effect for the cart fleet at the Miami Beach Golf Club; and would provide a new or
temporary fleet necessary to meet the grand opening of the Normandy Shores Golf Club. The
Administration recommends the approval of this action.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account
Funds: 1 $209,330.28 Funding in the amount of $69,776.76 is included in the
adopted FY 08/09 General Fund Normandy Shores
Golf Club account # 011-0975-000323; the balance will
be included in the annual budget development process
in future ears.
2 $237,850.20 Funding in the amount of $79,283.40 is included in the
adopted FY 08/09 General Fund Miami Beach Golf
Club account # 011-0970-000323; the balance will be
included in the annual budget development process in
future ears.
OBPI Total $447,180.48
Lease for three 3 ears
Financial Impact Summary: The expense will be included in the annual budget development
rocess in future ears.
Ci Clerk's Office Le islative Trackin
Kevin Smith, Parks and Recreation Director @ 6643
Sign-Offs:
Department Director. Assist ty Manager City Manager
GL KS RC JMG
T:WGENDA\2008\December 10\Consent\Recidning Contract _Golf Carts summary.doc
m MIAMIBEACH
AGEIIJDA iITEM ~
DATE
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City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miomibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: December 10, 2008
SUBJECT: A RESOLUTION RESCINDING TF`(E AWARD OF CONTRACT TO
CLUB CAR, INC., PURSUANT TO INVITATION TO BID NO. 38-07/08,
FOR THE LEASE OF GOLF CARTS AND OTHER MISCELLANEOUS
GOLF EQUIPMENT/ VEHICLES, FOR THE NORMANDY SHORES
AND MIAMI BEACH GOLF CLUBS (THE ITB), AND FURTHER
APPROVING AWARD OF THE ITB TO THE SECOND BIDDER, E-Z-
GO, (IN THE SAME AMOUNT OF THE ORIGINAL AWARD TO
CLUB CAR, INC.); FURTHER APPROVING AND AUTHORIZING THE
MAYOR AND CITY CLERK TO RETROACTIVELY EXECUTE AN
EQUIPMENT LEASE AGREEMENT AND OTHER RELATED
DOCUMENTS WITH E-Z-GO IN THE TOTAL AMOUNT OF
$209,330.28, FOR A PERIOD OF THIRTY-SIX (36) MONTHS, WITH
MONTHLY INSTALLMENTS OF $5,814.73 FOR THE NORMANDY
SHORES GOLF CLUB; AND IN THE TOTAL AMOUNT OF
$237,850.20, FOR A PERIOD OF THIRTY-SIX (36) MONTHS, WITH
MONTHLY INSTALLMENTS OF $6,606.95 FOR THE MIAMI BEACH
GOLF CLUB .
ADMINISTRATION RECOMMENDATION
Adopt the Resolution
BID AMOUNT AND FUNDING
$209,330.28 (36 months) Funding is available from the FY 2008/09 General Fund
Normandy Shores Golf Club account # 011-0975-000323,
($69,776.76), and will be included in the annual budget
development process in future years.
$237,850.20 (36 months) Funding is available from the FY 2008/08 General Fund
Miami Beach Golf Club account # 011-0970-000323,
($79,283.40) and will be included in the annual budget
development process in future years.
KEY INTENDED OUTCOME SUPPORTED
Increase Satisfaction with Recreational Programs
Commission Memorandum
Golf Carts and Miscellaneous Equipment
December 10, 2008
Page 2
ANALYSIS
At the October 7, 2008, City Commission meeting, a bid was awarded to Club Car, Inc.,
for the lease of golf carts and other miscellaneous golf equipment to be used at the
City's golf courses pursuant to Invitation to Bid No. 38-07/08 for the Lease of Golf Carts
and Other Miscellaneous Golf Equipment/ Vehicles (the ITB). Specifically, the lease
would provide golf carts, and miscellaneous golf equipment vehicles for a period of
thirty-six (36) months, for the new Normandy Shores Golf Club, and the Miami Beach
Golf Club.
Following the award of bid to Club Car, Inc., the Administration and City Attorney's Office
reviewed the leasing agreement and other related documents provided by Club Car.
However, following extensive negotiations and discussions the parties have been unable
to reach agreement.
As documented in the attached correspondence from Mr. Brad Haerlie, Director of
Sales, Eastern US, dated December 1, 2008, Club Car, Inc. has withdrawn from the bid
process as a result of their inability to complete the required financial transaction
pursuant to the invitation to bid. On December 2, 2008, the City and Club Car
terminated negotiations.
After terminating the negotiations with Club Car, the Administration contacted the
second bidder, E-Z-Go. After discussing the matter E-Z-Go has committed to the
following:
• Provide the golf carts and other equipment included in the original ITB;
• Although E-Z-Go's submitted bid price was $ 14,249.52 over that submitted by
Club Car, Inc., E-Z-Go agreed to reduce their cost to match that of Club Car, Inc.;
• Has agreed to use the same terms and conditions that were approved three (3)
years ago for the lease that is currently in effect for the cart fleet at the Miami
Beach Golf Club;
• If time permitted E-Z-Go would provide the required new fleet necessary to meet
the grand opening of the Normandy Shores Golf Club in December and if time
became an issue E-Z-Go would provide a temporary fleet in order to meet the
opening date and switch the new fleet as soon as they were manufactured.
The City Attorney's Office has reviewed the current lease with E-Z-Go/ Textron for the
fleet at the Miami Beach Golf Club and determined the terms and conditions would be
acceptable for a new lease. It should also be noted that E-Z-Go is the City's current golf
cart provider and has been a good vendor to deal with. The response to the City's
request to be the vendor in lieu of Club Car, Inc. was excellent.
CONCLUSION
Based on Club Car, Inc., inability to provide a leasing agreement that is acceptable to
the City and in the best interest of the City, and the successful negotiations with the
second bidder, E-Z-Go to provide the required equipment at the same price as Club
Car's original bid submittal, in time to ensure the grand opening of the Normandy Shores
Golf Club is met, the Administration recommends the approval of this resolution.
C:\Documents and Settings\cmgrmaes\Local Settings\Temporary Internet Files\OLKDAC\Club Car Rescinding Contract
Award -Retroactive Award to EZ-GOll.doc
r;>.
December 1, 2008
City of Miami Beach
Attn: Mr. Kevin Smith
Director of Parks and Recreation
1700 Convention Center Drive
Miami Beach, FL 33139
Dear Mr. Smith,
Club Car, Inc.
4125 Washington Road
Evans, Georgia 30809
PO Box 204658
Augusta Georgia 30917
Tel (706) 863-3000
Toll free (800) 227-0739
Www.ClubCar.com
It is with regret that I write to inform you that Club Car Inc., has not been able to
secure a funding source who is agreeable to the terms required by the City of Miami
Beach pertaining to the golf car bid award for Normandy Shores Golf Club and
Miami Beach Golf Club.
Standard Municipal Lease documents were provided to the City of Miami Beach on
October 6, 2008 and returned to Ingersoll Rand Financial Services with revisions
made by Mr. Raul Aguila, Deputy City Attorney for the City of Miami Beach on
November 13, 2008. Significant changes were made to the standard documents
which were deemed not acceptable by our financial partners.
Per your advice, Club Car Inc., engaged in dialogue with Mears Motor Leasing to
see if we could fund the transaction through their firm. After many discussions with
their President, Mr. Jim Hartman, he was not able to become comfortable funding
this transaction without a guaranteed buy-back from Club Car Inc. at the back-end of
this lease. This is not a business practice that Club Car Inc., can enter into per
Sarbanes-Oxley accounting guidance.
We have asked other lending sources if they could move forward with this
transaction. with the language amendments requested by Mr. Aguila and none have
been willing to do so. If Mr. Aguila can not see fit to rescind his request for
document language amendments, Club Car Inc., will have to respectfully discontinue
efforts to fulfill this bid award from the City of Miami Beach.
Sincerely,
Brad Haerle
Director of Sales, Eastern US
706-228-7179 Office
706-373-7179 Cell
brad.haerle(a~clubcar.com
~~/ingerso!! Rand