Commission Item Summary f
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COMMISSION ITEM SUMMARY '
Condensed Title:
Request For Approval To Award A Contract To ShowTurf, LLC., Pursuant To Invitation To Bid(ITB)No.
38-10-11 For Lease Of Golf Course Turf Maintenance Equipment For The Miami Beach Golf Club,For A
Period Of Forty-Eight(48)Months,With Monthly Installments of$7,521.38 For The First Lease Schedule
Beginning On October 1,2011,And Monthly Installments Of$3,804.46 For The Second Lease Schedule
Beginning April 1,2012, For A Total Annual Amount Of$135,910.08,And Authorize The Mayor And City
Clerk To Execute A Four Year Master Lease Agreement With Deere Credit, Inc.In The Total Amount Of
$543,640.32.
Key Intended Outcome Supported:
Increase Satisfaction with Recreational Programs
Supporting Data(Surveys,Environmental Scan,etc.): Parks and Recreation appeared as one of
the most important areas affecting residents 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 approve the award of contract and execution of lease agreement?
Item Summa /Recommendation:
The ITB was issued on July 28,2011 with an opening date August 18,2011.BidSync issued bid notices to
7 prospective bidders, and Bidnet issued bid notices to (18) prospective bidders, additionally, the
Procurement Division sent notices to two (2) prospective bidders. The notices resulted in the receipt of
three(3) bids from the following firms: ShowTurf, LLC; Horizon; and Hector Turf.
The purpose of this ITB is to establish a 48-month Lease Agreement, by means of sealed bids, to a
qualified bidder for the lease of all new Golf Course Turf Maintenance Equipment for the Miami Beach Golf
Club. Two lease terms were specified as follows:
• 48-month lease for Items 1 through 16 listed above, for delivery on October 1, 2011.
• 48-Month lease for Items 17 through 21 listed above, for delivery on April 1,2012.
The lowest and best bid was submitted by ShowTurf, LLC. The Parks and Recreation Administration
stated that after reviewing the three(3)bids they feel comfortable awarding a contract to the lowest overall
responsive bidder,ShowTurf,LLC.,for items 1 through 16 to be delivered on October 18t,2011,and items
17 through 21 to be delivered on April 181,2012.
APPROVE THE AWARD OF CONTRACT AND AUTHORIZE EXECUTION OF LEASE AGREEMENT
Advisory Board Recommendation:
N/A
Financial Information:
Source of Amount Account
Funds: 1 $135, 910.08 Parks and Recreation Fund Account No. 011-0940-00312
OBPI Total $135,910.08 ARR 12
Financial Impact Summary: -
City Clerk's Office Legislative Tracking: DEERE CREDIT, INC.
Gus Lopez Procurement Division Director @ 6641
Si n-Offs•
�Depooment Dlr c A stan City Manager City Manager
GL H PDW JMG
TAAGENDA 01119-14-11MTB-38-10-11 Lease of Golf Course Turf Summary.doc
MIAMIBEAC AGENDA ITEM39 DATE�L!Z!
/01AMIBEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: September 14, 2011 0�
SUBJECT: REQUEST FOR APPROVAL TO AWARD A CONTRACT TO SHOWTURF,
LLC., PURSUANT TO INVITATION TO BID (ITB) NO. 38-10-11 FOR LEASE
OF GOLF COURSE TURF MAINTENANCE EQUIPMENT FOR THE MIAMI
BEACH GOLF CLUB, FOR A PERIOD OF FORTY-EIGHT (48) MONTHS,
WITH MONTHLY INSTALLMENTS OF $7,521.38 FOR THE FIRST LEASE
SCHEDULE BEGINNING ON OCTOBER 1, 2011, AND MONTHLY
INSTALLMENTS OF $3,804.46 FOR THE SECOND LEASE SCHEDULE
BEGINNING APRIL 1, 2012, FOR A TOTAL ANNUAL AMOUNT OF
$135,910.08, AND AUTHORIZE THE MAYOR AND CITY CLERK TO
EXECUTE A FOUR YEAR MASTER LEASE AGREEMENT WITH DEERE
CREDIT; INC. IN THE TOTAL AMOUNT OF $543,640.32.
ADMINISTRATION RECOMMENDATION
Approve the award of contract and authorize the execution of leases.
KEY INTENDED OUTCOME SUPPORTED
Increase satisfaction with recreational programs.
FUNDING
$135,910.08/Year Parks and Recreation Fund Account No. 011-0970-000323
The Parks and Recreation Department annual budget is $138,000; by awarding the
contract to the lowest total bid, the City realizes annual cost savings of $2,089.92 per
year.
BACKGROUND
The Parks & Recreation Department's Golf Courses Division currently has a lease for
Toro turf maintenance equipment distributed by Hector Tun`, and financed through
Siemens Financial Services, which provides the majority of the turf grooming equipment
used to maintain the Miami Beach Golf Club. That lease expired on January 10, 2011.
At the January 19, 2011, Commission meeting the Administration submitted a resolution
seeking authorization to extend the lease, on a month-to-month basis until such time as
the ITB was issued. It was noted that the issuance of the ITB for the golf course
equipment was being temporarily delayed in order to permit the Administration to fully
RECEIVED
APR 12 2012
40 DEERE CREDIT, INC.
Commission Memo
September 14,2011
ITB-38-10-11 Lease of Golf Course Turf
Page 2 of 5
examine a potential corporate sponsorship opportunity that could augment the required
equipment list, obtain the equipment at a reduced price and/or provide the City revenue
as a result of an agreed upon sponsorship package.
To this end the Administration had discussions with various potential corporate partners
for the provision of golf course turf maintenance equipment, as well as other multi-task
maintenance equipment that could be utilized throughout the city. These potential
partners included Cub-Cadet, John Deere and Toro. Although substantive discussions
were held, and there may be opportunities for partnerships in the future, none of the
corporations were able to commit to a workable sponsorship at this time. It should be
noted however, that components of the John Deere leasing package which will result in
a substantial savings to the City, can be attributed in part to the relationship built with
the John Deere team during our corporate sponsorship discussions.
ANALYSIS
The purpose of this ITB is to establish a 48-month Lease Agreement, by means of
sealed bids, to a qualified bidder for the lease of all new.Golf Course Turf Maintenance
Equipment for the Miami Beach Golf Club.
The Bidder's lease price includes a minimum 900-hour use time per equipment, per
year. The Vendor is responsible for any/all pickup, delivery, and transportation charges
should an equipment replacement and/or maintenance that must be provided at a
location other than the City's designated facility, including all equipment pickup
transportation at the end of the 48-month lease or after any extended lease use period.
Any equipment(s) which must be removed from the City's designated facility/premises
for service, in excess of twenty-four (24) hours, will be replaced with another similar unit
within forty eight (48) hours at no additional cost to the City. Preventive/Routine
Maintenance such as cleaning, greasing and lubrication, and oil change maintenance,
will be performed by the City. See below a list of the equipment included in the lease:
Quantity
1. John Deere 2500E E-Cut Hybrid Riding Greens Mower—Gas 6 each
2. John Deere Gator TX Turf Utility complete with Linex Under-Coating
Rust Protection. 8 each
3. John Deere 1200 Hydro Rake 2 each
4. John Deere 220 E-Cut Hybrid 4 each
5. John Deere Aercore 800 Aerator 1 each
6. John Deere 22B Walk Greens Mower Trailer 4 each
7. John Deere 997 Commercial L.C. Diesel Max-Frame Z-Trak with
72-inch Side Discharge 7-Iron PRO Deck 2 each
8. RYAN Jr. Sod Cutter 1 each
9. Wiedenmann Super 500 Multi-Purpose Sweeper 1 each
10. DMI Speed Rollers 2 each
11. John Deere set of greens Tender Conditioners/Drives for 2500EG 1 each
12. Buffalo K Debris Blower 1 each
13. John Deere Set of Vertical Cutting Units for the 2500EG 1 each
14. AGRI-Metal Roller Set for the John Deere 2500 1 each
15. Custom Spiker Set for the John Deere 2500 1 each
RECEIVED
APR 12 2012
41
DEERE CREDIT, INC.
Commission Memo
September 14,2011
ITB-38-10-11 Lease of Golf Course Turf
Page 3 of 5
16. 5-Gang Mowing Unit 1 each
17. John Deere 8700 Precision Cut Fairway Mower QA7 2 each
18. John Deere Pro Gator 2020A With Vicon Attachment 1 each
19. John Deere HD200 Select Spray With Hose Reel Attachment
Complete With Foam Marker Kit 1 each
20. Dakota 410, with Top Dresser Mounted on a John Deere Pro
Gator 2020A 1 each
21. John Deere 7200 Precision Cut Trim And Surrounds Mower 2 each
Two lease terms were specified as follows:
0 48-month lease for Items 1 through 16 listed above, for delivery on October 1,
2011. As an alternate option, bidders were requested to submit pricing for a 48-
month lease for Items 1 though 15 listed above, for delivery on October 1, 2011.
® 48-Month lease for Items 17 through 21 listed above, for delivery on April 1,
2012.
BID PROCESS
The ITB was issued on July 28, 2011, with and opening date of August 18, 2011.
BidSync issued bid notices to seven prospective bidders, and Bidnet issued bid notices
to (18) prospective bidders. Additionally, the Procurement Division sent notices to two
(2) prospective bidders. The notices resulted in the receipt of three (3) bids from the
following firms: Show Turf, LLC; Horizon; and Hector Turf.
On August 18, 2011, the Procurement Division sent the bids received to the following
individuals for evaluation:
• Kevin Smith, Parks and Recreation Director
o Steve Farrell, Director of Golf for the Miami Beach and Normandy Shores Golf
Clubs
® Alberto Pozzi, General Manager of PCM
s Carlos DaCruz, Office Associate V
The Individuals evaluated the three (3) bids received. The lowest and best bid was
submitted by ShowTurf, LLC. The Parks and Recreation Administration stated that after
reviewing the three (3) bids they feel comfortable awarding a contract to the lowest
overall responsive bidder, ShowTurf, LLC., for items 1 through 16 to be delivered on
October 18, 2011, and items 17 through 21 to be delivered on April 1g', 2012.
BID TABULATION
The following Table provides the bid tabulation results for all three (3) responses to ITB
No. 38-10/11:
RECEIVED
APR 12 2012
42 DEERE CREDIT, INC.
V
Commission Memo
September 14,2011
ITB-38-10-11 Lease of Golf Course Turf
Page 4 of 5
SHOW TURF HORIZON *HECTOR TURF
Lease
Term Monthly Total Monthly Total Monthly Total
I" Lease 48
Items 1-16 Months $7,521.38 $361,026.24 $9,637.06 $462,578.88 $7,924.71 $380,386.08
Personal Property
Taxes $0 $32,406.28 $28 499.34
Total 13t Lease $361,026.24 $494,985.16 $408,885.42
Alternate to 181 48
Lease Items 1-15 Months $7,171.72 $344 242.56 $9,096.80 $436,646.40 $7,478.19 $358,953.12
Personal Property
Taxes $0 $30,588.96 $27,093.53
Total Alternate to
181 Lease $344,242.56 $467,235.36 $386,046.65
2nd Lease 48
Items 17-21 Months $3,804.46 $182,614.08 $4,853.96 $232,990.08 $3,171.81 $152,246.88
Personal Property
Taxes $0 $15,954.72 $11 169.01
3 �.5i =?
Total.2"d Lease $182;614.08 $248 944.80 63j415.89
Ffrst nd$econsi lase TdtA 6
Jfems 7tirou`h 21 �, ;640.32 g 16748 92 96 7 ' 572301,31
/0,S 7Z iro
*Hector Turf failed to submit an itemized price list of the equipment for Items 1 through
21 and was deemed non-responsive.
The Master Lease Agreement has been reviewed by the City's Chief Financial Officer
relative to the interest rates of financing, and the predetermined percentage of the
residual value.
SHOWTURF, LLC
ShowTurf, LLC. is a full-line John Deere Golf& Turf Distributor. They serve the golf and
sports turf market in Southern Florida, Southern Georgia, Hilton Head and the
Caribbean. Some of their clients include Parkland Golf and Country Club, Boca West
Country Club, Indian Creek Country Club, and La Gorce Country Club, among others.
Their leasing agent is John Deere Credit, Inc., owned by John Deere Financial.
It should also be noted that:
• John Deere Financial/Manufacturer owns the equipment directly; therefore, they
will not pass on the cost for Personal Property Tax to a Municipal Government.
This represents an additional cost savings of approximately $30,000 to the City.
In our previous lease with Toro's financial representative, Siemens Financial, we
were required to pay property tax in excess of$26,000 for the 48 month lease.
DECEIVED
APR 12 2012
43 1)EEIR E CR-EDIT, II,C.
Commission Memo
September 14,2011
ITS-38-10-11 Lease of Golf Course Turf
Page 5 of 5
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• John Deere has agreed to include rust-preventing under coating at no additional j
cost on the Turf Utility Vehicles. This is very important due to the fact the golf
course frequently uses salt water from the lakes for irrigation.
• John Deere is providing the new 2500E-Series, Hybrid Riding Mowers, which
offers fuel economy, reduces the noise of mower operations and a significant
reduction in the chance for hydraulics leaks that can damage the putting greens.
• John Deere has reduced the residual buy back option from 20% of the original
lease value proposed during sponsorship discussions, down to 17.5% on all or
any individual item.
CONCLUSION
Based on the analysis of the bids received, the Administration recommends that the City
award a contract to ShowTurf, LLC., pursuant to ITB 38-10-11 For Lease of Golf Course
Turf Maintenance Equipment For the Miami Beach Golf Club.
TAAGENDA 1201119-14-11UTB-38-10-11 Lease of Golf Course Turf MEMO.doc
RECEIVED
APR 12 2012
DEERE CREDIT, INC.
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