C2G-Award Contract Lease Golf Course Turf Maintenance Equipment For Normandy Sho\.
COMMISSION ITEM SUMMARY
Condensed Title:
Request For Approval To Award A Contract To Showturf, LLC, Pursuant To Invitation To Bid 45-
11/12, For Lease Of Golf Course Turf Maintenance Equipment For The Normandy Shores Golf Club,
For A Period Of Forty-Eight (48) Months, With Monthly Installments Of $8,567.48 With Lease
Schedule Beginning On August 27, 2012, And Authorize The Mayor And City Clerk To Execute A Four
Year Master Lease Agreement With John Deere Credit, Inc. In The Total Amount Of $411,239.04.
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 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.
Shall the Mayor and City Commission approve the award of contract and execution of lease
a reement?
Item Summary/Recommendation:
On June 1, 2012, Invitation to Bid (ITB) No. 45-11/12 was issued with an opening date of June 28,
2012. A Pre-bid conference to provide information to prospective bidders was held on June 12, 2012.
BidNet issued bid notices to 70 prospective bidders. Additionally, the Procurement Division notified 8
local contractors, via e-mail, which resulted in the receipt of two (2) bids: Hector Turf and Show Turf,
LLC.
An administrative review of the bidders' qualifications, experience, capability, and performance
evaluations was conducted. Based on the analysis of the two (2) bids received, the administration
unanimously recommended the lowest and best bidder, Show Turf, based on surveys, price, and past
performance in working with them on the Miami Beach Golf Club contract.
The current 48-month term lease agreement, awarded via piggyback memo through a State of Florida
contract, is $597,792.48. By approving the award of the new 48-month term lease agreement to Show
Turf, LLC., in the amount of $411,239.04, the City would save $186,553.44 over the lease term, and
approximately $46,638 per year. The City will realize savings in the amount of$ 59,190 from the FY
2012/2013 proposed current service level budget.
The Administration recommends Approving the Award and Authorize execution of Lease
Agreement
Advisory Board Recommendation:
Financial Information:
Source of
Funds: 1
Amount
$10,877.58
Account
Parks and Recreation Fund Account No. 011-0975-
000323
111"' t:j L+ 2 ~~~~~~~------~~----~--~~~~~~------------~ 0~ Total $10,877.58 Total remaining for FY 2011/2012
Financ1al Impact Summary: N/A
C!!Y Clerk's Office Legislative Tracking:
Raul Aguila, for Procurement Director
Si n-Offs:
Department Director
IAMlBEACH 77
AGENDA ITEM ---:G.........:;2::....;6-:=---
DATE 7-/~'-/2-
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
TO:
FROM:
DATE:
SUBJECT:
COMMISSION MEMORANDUM
Mayor Matti Herrera Bower and Members of the City Commission
Kathie G. Brooks, Interim City Manager /A ~
July 18, 2012 /
REQUEST FOR APPROVAL TO AWARD A CONTRACT TO SHOWTURF,
LLC., PURSUANT TO INVITATION TO BID (ITB) NO. 45-11/12 FOR LEASE
OF GOLF COURSE TURF MAINTENANCE EQUIPMENT FOR THE
NORMANDY SHORES GOLF CLUB, FOR A PERIOD OF FORTY -EIGHT (48)
MONTHS, WITH MONTHLY INSTALLMENTS OF $8,567.48 WITH LEASE
SCHEDULE BEGINNING ON AUGUST 27, 2012, AND AUTHORIZE THE
MAYOR AND CITY CLERK TO EXECUTE A FOUR YEAR MASTER LEASE
AGREEMENT WITH DEERE CREDIT, INC. IN THE TOTAL AMOUNT OF
$411,239.04.
ADMINISTRATION RECOMMENDATION
Approve the award of contract and authorize the execution of lease.
KEY INTENDED OUTCOME SUPPORTED
Increase satisfaction with recreational programs.
FUNDING
Funding will be provided from the following account for remainder of Fiscal Year
2011/2012:
$10,877.58 Parks and Recreation Fund Account No. 011-0975-000323
The Parks and Recreation Department proposed budget for 2012/2013 is $162,000. By
approving the award of the contract, the City will realize a savings of $59,190 from the FY
201.2/2013 proposed current service level budget.
The current 48-month term lease agreement, awarded via piggyback memo through a State
of florida contract, is $597,792.48. By approving the award of the new 48-month term lease
agreement to Show Turf, LLC., in the amount of $411,239.04, the City would save
$186,553.44 over the lease term, and approximately $46,638 per year.
ANALYSIS
The purpose of this bid is to establish a 48-month Lease Agreement/Contract, by means of
sealed bids to a qualified contractor for the Lease of all new Golf Course Turf Maintenance
Equipmentforthe Normandy Shores Golf Club.
78
Commission Memo
ITB 45-11/12 Lease of Golf Course Turf Equipment for NSGC
July 18, 2012
The Parks & Recreation Department's Golf Courses Division currently has a lease for Toro
turf maintenance equipment distributed by Hector Turf, and financed through Siemens
Financial Services, which provides the turf grooming equipment used to maintain the
Normandy Shores Golf Club and expires on August 28, 2012.
ITB PROCESS
On June 1, 2012, Invitation to Bid (ITB) No. 45-11/12 was issued with an opening date of
June 28, 2012. A Pre-bid conference to provide information to prospective bidders was held
on June 12, 2012. BidNet issued bid notices to 70 prospective bidders. Additionally, the
Procurement division notified 20 local contractors via e-mail, which resulted in the receipt of
two (2) bids from the following vendors:
1. Show Turf, LLC (Show Turf)
2. Hector Turf
An administrative review of the responsive bidders' qualifications, experience, capability,
and performance evaluations was conducted by the following individuals:
• David Duffy, PCM; and
• Carlos Da Cruz, Parks and Recreation Department.
Based on the analysis of the two (2) responsive bids received, the administration
unanimously recommended the lowest bidder, Show Turf, based on surveys, price and past
performance in providing turf equipment for the Miami Beach Golf Club.
BID TABULATION
The following table provides the bid tabulation for ITB No. 45-11/12:
Lease Pa ment
Personal Property
Taxes
Lease
Term
48
Months
SHOW TURF
Total
Lease
Term
47
HECTOR TURF*
Month I Total
$411,239.04 Months $10,218.65 $480,276.55
*Hector Turf submitted a 47-month lease with the last month included as part of the total lease
payment.
The terms and conditions of the Master Lease Agreement are the same as reviewed and
accepted for the 48-month lease of turf maintenance equipment for the Miami Beach Golf
Club with John Deere Financial, executed in October 2011.
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.
2
79
Commission Memo
ITB 45-11/12 Lease of Golf Course Turf Equipment for NSGC
July 18, 2012
Some of their clients include Parkland Golf and Country Club, Boca West Country Club,
Indian Creek Country Club, the Miami Beach Golf 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:
o 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.
o John Deere has agreed to include rust-preventing under coating at no additional
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.
o John Deere is providing the new 2500E-Series, Hybrid Riding Mowers, which
offers fuel economy, reduces the noise of mower operations and because the
Reel Motor is Electric, vs. a Hydraulic Reel motor there is no chance for
hydraulics leaks that can damage the putting greens.
o John Deere offers a residual buy back option of 20% of the original proposed
lease value.
CONCLUSION
Based on the aforementioned, the Administration recommends that the Mayor and City
Commission award a contract to Show Turf, LLC., pursuant to Invitation to Bid (ITS) No. 45-
11/12 for Lease of Golf Course Turf Maintenance Equipment for the Normandy Shores Golf
Club, for a period of forty-eight (48) months, with monthly installments of $8,567.48 with
lease schedule beginning on August 27, 2012, and authorize the Mayor and City Clerk to
execute a four year Master Lease Agreement with Deere Credit, Inc. in the total amount of
$411 ,239.04.
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