Resolution 2018-30466 RESOLUTION NO. 2018-30466
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
FINANCE AND CITYWIDE PROJECTS COMMITTEE, AT ITS JUNE 29, 2018
MEETING, AND OF THE CITY MANAGER, AND WAIVING, BY 5/71" VOTE, THE
COMPETITIVE BIDDING REQUIREMENT, FINDING SUCH WAIVER TO BE IN
THE BEST INTEREST OF THE CITY, AND AUTHORIZING THE
ADMINISTRATION TO NEGOTIATE AN AGREEMENT WITH TCF EQUIPMENT
FINANCE, THE CITY'S CURRENT PROVIDER, FOR THE LEASE OF GOLF
CARTS, UTILITY CARTS AND GPS EQUIPMENT FOR THE MIAMI BEACH
GOLF CLUB AND THE NORMANDY SHORES GOLF CLUB, FOR A PERIOD OF
FOUR (4) YEARS, IN AN AMOUNT NOT TO EXCEED $240,000.00 ANNUALLY,
SUBJECT TO THE ADOPTION OF THE FY 2018/2019 OPERATING BUDGET;
AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE
THE FINAL NEGOTIATED AGREEMENT.
WHEREAS, at the May 16, 2018 City Commission meeting, a discussion regarding the
renewal options for the golf cart lease agreement for the Miami Beach Golf Club and Normandy
Shores Golf Club was referred to the Finance and Citywide Projects Committee ("FCWP"); and
WHEREAS, the golf cart lease agreement with TCF Equipment Finance is up for a
renewal at the end of 2018 and the Contractor has presented the City with two (2) options which
are not within the same price terms as the current contract; and
WHEREAS, at the June 29, 2018 FCWP meeting, the Administration presented the
contractor's proposed options as follows:
A. Option # 1: 36-Month Lease Term — Fleet Replacement with Acid/Lead Batteries
The Miami Beach Golf Club and Normandy Shores Golf Club current cart fleets operate
on acid/lead batteries. Under this option, the replacement of the golf club cart fleets will
be the same; however, the current annual lease payments, in the amount of$207,031.80,
would be increased by $1,291.67 per month, for a total annual cost of $222,531.84
($18,544.32 monthly). From experience over the last contract term, the Administration
has determined that these acid/lead batteries have a lengthy charge time and the
warranty does not last the life of the offered lease.
B. Option # 2: 48-Month Lease Term — Fleet Replacement with of Lithium Batteries (The
Administration's preferred option)
TCF Equipment Finance, through the provider E-Z Go, has offered the City with a new
option to have both golf course fleets operated by lithium batteries. Under this option, the
lease term would be 48 months and the lease payments would be $18,062.36 per month,
which is more than the current lease payment, but $481.96 less than the monthly lease
payment under Option # 1. It is expected that the lithium batteries would additionally save
the City approximately $1,537.79 per month in labor and energy, bringing the cost to a
monthly lease payment of approximately $16,524.57, and that this approach under
Option #2 would yield the following additional benefits:
1. Energy Savings: While consuming only half the energy necessary to charge a fleet of
golf cars, the City will also realize nearly 50% savings on its electrical bills;
2. Operational Savings: The lithium battery is a maintenance free battery, which means
no watering, no corrosive protection, and less time/money on parts and labor;
3. Reduced Charge Time: Charging a lithium battery from 0%-100% takes about 4
hours compared to the 8-10 hour charge time of the traditional lead acid batteries;
4. Weight Reduction: The lithium battery takes nearly 275 lbs off the car, leaving
significantly lighter tread on the course and drastically decreasing the weight per
square inch on the turf, thereby reducing compaction and damage; and
5. Warranty: The Lithium battery is warranted for 5 years and does not decrease in
performance over time; and
WHEREAS, during the June 29, 2018 FCWP meeting, the FCWP recommended Option
#2, with a waiver of the competitive bidding requirement; and
WHEREAS, the City Manager is recommending that the City waive the competitive
bidding requirement, and approve a lease agreement with TCF Equipment Finance, the City's
current provider, for the E-Z Go equipment referenced above.
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby approve the recommendation of the Finance and Citywide Projects
Committee at its June 29, 2018 meeting, and of the City Manager, and waive, by 5/7'h vote, the
competitive bidding requirement, finding such waiver to be in the best interest of the City, and
authorize the Administration to negotiate an agreement with TCF Equipment Finance, the City's
current provider, for the lease of golf carts, utility carts and GPS equipment for the Miami Beach
Golf Club and the Normandy Shores Golf Club, for a period of four (4) years, in an amount not
to exceed $240,000.00 annually, subject to the adoption of the FY 2018/2019 Operating Budget;
and further authorize the Mayor and City Clerk to execute the final negotiated agreement.
PASSED and ADOPTED this 12th day of September, 2018.
Dan Gelber, Mayor
ATTEST:
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Rafael E. Granado, City Clerk
APPROVED AS TO
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MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 12, 2018
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
FINANCE AND CITYWIDE PROJECTS COMMITTEE, AT ITS JUNE 29, 2018
MEETING, AND OF THE CITY MANAGER, AND WAIVING, BY 5/7TH VOTE, THE
COMPETITIVE BIDDING REQUIREMENT, FINDING SUCH WAIVER TO BE IN
THE BEST INTEREST OF THE CITY, AND AUTHORIZING THE
ADMINISTRATION TO NEGOTIATE AN AGREEMENT WITH TCF EQUIPMENT
FINANCE, THE CITY'S CURRENT PROVIDER, FOR THE LEASE OF GOLF
CARTS, UTILITY CARTS, AND GPS EQUIPMENT FOR THE MIAMI BEACH GOLF
CLUB AND THE NORMANDY SHORES GOLF CLUB, FOR A PERIOD OF FOUR
(4) YEARS, IN AN AMOUNT NOT TO EXCEED $240,000.00 ANNUALLY, SUBJECT
TO THE ADOPTION OF THE FY 2018/2019 OPERATING BUDGET; AND
FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE
FINAL NEGOTIATED AGREEMENT.
RECOMMENDATION
City Commission accept the recommendation of the Finance and Citywide Projects Committee at its June 29,2018
meeting and waiving,by 517th vote,the competitive bidding requirement,finding such waiver to be in the best interest
of the City, and approving and authorizing the City Manager to execute an agreement between the City and TCF
Equipment Finance, for the lease of golf carts, utility carts and GPS for the Miami Beach Golf Club and the
Normandy Shores Golf Club,for a period of four(4)years,in an amount not to exceed $240,000.00 annually,subject
to final negotiation of the agreement by the Administration, and legal review and form approval of the final negotiated
agreement by the City Attorney.
ANALYSIS
At the May 16, 2018 City Commission meeting, a discussion regarding the renewal options for the golf cart lease
agreement for the Miami Beach Golf Club and Normandy Shores Golf Club was referred to the Finance and
Citywide Projects Committee("FCWP").
The golf cart lease agreement with TCF Equipment Finance is up for a renewal at the end of 2018 and the
Contractor has presented the City with two (2) options which are not within the same price terms as the current
contract.Since the City will be renewing the contract under different terms,a waiver of bid will be necessary.
Option#1: Replacement 36-Month Term of Acid/Lead Batteries(Least Favorable)
The Miami Beach Golf Club and Normandy Shores Gott Club current cart fleets operate on acid/lead batteries.
Exhibit A shows that the replacement of the golf club cart fleets will be the same; however, the monthly cost will
Page 490 of 1802
increase by$1291.67. From experience over the last contract term,these acid/lead batteries have a lengthy charge
time and the warranty does not last the life of the offered lease.
Option#2: Replacement 48-Month Term of Lithium Batteries(Most Favorable)
TCF Equipment Finance has offered the City of Miami Beach with a new option to have both golf course fleets
operated by lithium batteries. As indicated on Exhibit A, this 48-month lease will be a monthly fee of $18,062.36,
which is more than the current lease, but$481.96 less than Option# 1. It is expected that with the benefits outlined
below, the lithium batteries would additionally save the City approximately$1,537.79 a month in labor and energy,
bringing it to a monthly total of$16,524.57(estimated):
1. Energy Savings While consuming only half the energy necessary to charge a fleet of golf cars,the City will also
realize nearly 50%savings on electrical bills.
2. Operational Savings: The lithium battery is a maintenance free battery. More specifically this means no
watering,no corrosive protection,and less time/money on parts and labor.
3. Reduced Charge Time: Charging a lithium battery from 0%-100%takes about 4 hours compared to the 8-10
hour charge time of the traditional lead acid batteries.
4. Weight Reduction: The lithium battery takes nearly 2751bs off the car leaving significantly lighter tread on the
course and drastically decreases the weight per square inch on the turf,reducing compaction and damage.
5. Warranty:The Lithium battery is warranted for 5 years and does not decrease in performance over time.
During the June 29,2018 FC WP meeting, a discussion was held and the committee recommended a bid waiver for
Option#2,replacement 48-Month term of lithium batteries.
TCF Equipment Finance has a proven track record and is providing an energy efficient and effective solution at a low
cost.
Budget
This lease agreement will begin in FY 18/19.The budget for this agreement is subject to the adoption of the FY 18/19
Budget.
City Manager's Recommendation
Based upon the foregoing, the City Manager recommends that the Mayor and City Commission waive the formal
competitive bidding requirement,by a 5/71hs vote, as permitted under Section 2-367(e)of the City Code, as being in
the best interest of the City.
Amount 1 $129,401.16 Account 1 Miami Beach Golf Club 011-0970-000323
Amount 2 $87,347.16 Account 2 Normandy Shores Golf Club 011-0975-
000323
Legislative Tracking
Parks and Recreation
ATTACHMENTS:
Description
❑ E4iibit A— Lease Monthly Cost Comparison
o Resolution
Page 491 of 1802
EXHIBIT A
Miami Beach Golf Club & Normandy Shores Golf Club
Monthly Cost Comparison
Golf Cart and Utility Vehicle Fleet
OPTION#1 OPTION#2
Current Replacement Replacement
Agreement 36 Month Term 48 Month Term
Acid/Lead Batteries Acid/Lead Batteries Lithium Batteries
MBGC Golf Carts $5,810.20 $6,763.24 $6,840.00
MBGC Utility Carts and GPS $4,941.54 $4,400.37 $3,943.43
Total MBGC $10,751.74 $11,163.61 $10,783.43
NSGC Golf Carts $5,580.85 $6,496.27 $6,570.00
NSGC Utility Carts $920.06 $884.44 $708.93
Total NSGC $6,500.91 $7,380.71 $7,278.93
Total for Both Clubs $17,252.65 $18,544.32 $18,062.36
Projected Labor Savings N/A N/A $240.00
Projected Energy Savings N/A N/A $1,297.79
Total Savings N/A N/A $1,537.79
Adjusted Grand Total $17,252.65 $18,544.32 $16,524.57
Page 492 of 1802