NEW BUSINESS  9.

COMMITTEE MEMORANDUM

HISTORY:

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 EZ-Go Carts is up for a renewal at the end of 2018 and the Contractor has presented the City with two (2) options that 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 if recommended by the FCWP.

ANALYSIS:

Option # 1: Replacement 36-Month Term of Acid/Lead Batteries (Least Favorable)

The Miami Beach Golf Club and Normandy Shores Golf 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 annual cost will increase by $1,291.67. From experience over the last contract term, these acid/lead batteries has 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)

EZ-Go Carts 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 an annual 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 should save the City approximately $1,537.79 in labor and energy, bringing it to an annual 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 275lbs 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.

If the Committee prefers to seek other options, the Parks and Recreation Department will work with the Procurement Department on bid specifications, while maintaining the current cart fleet at possibly a higher cost on a month-to-month agreement.

CONCLUSION:

Recommendation from the Finance and Citywide Projects Committee regarding the renewal options for the golf cart lease agreement for the Miami Beach Golf Club and Normandy Shores Golf Club.