Fort Walton Beach Council agenda — 05-12-09 regular — reading text

PROVIDING FOR AN EFFECTIVE DATE. The Acting City Manager advised that Slater Bayliss of the Advocacy Group notified him that the legislation proposes to allow the Board of Trustees of the Internal Improvement Trust fund to accept and award bids for oil and gas leases on submerged lands underlying the territorial waters of the state.The Acting City Manager continued that since the area' s economy is dependent on both tourism and the military presence, an oil spill or encroachment on the Gulf of Mexico ranges would seriously impact the area' s sustainability. He informed that the legislation will go before the Senate for a vote later this week and requested City Council express its opinion by way of this resolution, and to act on it this evening. The Acting City Manager explained that the bill provides for structures to be no closer than 3 miles, so between 3 and 10 miles lands could be leased for exploration which would necessitate the placement of structures, with the risk of oil spills. Discussion ensued regarding the verbiage in Paragraph 5 of the resolution that states the City Council has evaluated the impact of a potential oil spill, and that the words ` has evaluated' be changed to `recognizes.' Mr. Patterson noted the difficult decision that exists as there is a gas basin under the gulf floor and not oil, and that the gas basin has to be drilled into and that the resolution states that the Council does not support drilling. Mr. Nabors moved to adopt Res. 2009 -15, amending the verbiage in Paragraph 5 of the resolution, replacing the words ` has evaluated' with the word ` recognizes.' Mr. Garvie seconded motion and it carried by a vote of 4 to 2 with Holmes, Reeves, Garvie, and Nabors in favor and Miller and Patterson opposed (Rynearson absent). CITY MANAGER REPORTS The Acting City Manager advised he received an e- mail from Slater Bayliss of The Advocacy Group in regards to the re -use water line and that there is a possibility there will be an addition to the grant funding. The Acting City Manager asked John Hofstad to review it and how it will affect the reuse line. The Acting City Manager also advised the City is in the process of discussing with Shalimar the possibility of providing Shalimar with building department services and that an interlocal agreement will come to Council for consideration at the next meeting. The Acting City Manager stated the City is pursuing the City of Destin as well in this endeavor. MAYORICOUNCIL COMMENTS Mr. Garvie noted this has been a very sad week for the City and the area with the deaths of two sheriff's officers. Mr. Reeves commented he supports the City Attorney when she brings an item forward that is worded properly but is uncomfortable with changes in verbiage and phrases and ` hacking' something together. 174 Regular Council 4 -28 -09 MAYOR/ COUNCIL ANNOUNCEMENTS ( CONT) Mr. Miller mentioned an experience with the City Attorney he felt violated a confidence that he thought was a client/attorney relationship regarding the issue of Mike Minich' s golf club account. He expressed the belief that Council needs to know the expectations of the City Attorney. Mike Minich, 106 Waynel Circle, mentioned a violation of the Charter with a councilman going directly to a department director and giving a directive without the knowledge of the City Manager; expressed that the issue is not appropriate to bring up under Council comments and should be placed on the agenda with time to be studied by other Council members. He described his conversation with the City Attorney regarding his golf course account where he explained he had paid for the rounds. He asked if there were any questions. The Mayor stated what has been brought up is not appropriate under Council comments and should be placed on the agenda. Mr. Miller said he will place it on the agenda. He requested the Acting City Manager to address Mr. Minich' s comment. The Acting City Manager stated he did not document the conversation with Mr. Miller, or any other Council member regarding a request to talk with a director, but advised his general policy is to give his consent if a Council member has a need to discuss something with a director. Mr. Holmes expressed his belief that the issue is something for Mr. Miller and the City Manager to discuss, and was unclear why it was being brought to Council as it has nothing to do with policy. The Mayor commented the appraisal and evaluation of the City Attorney needs to be an agenda item and it is inappropriate to do so without a formal agenda item. The Mayor mentioned his experience at Eglin to watch the Joint Striker fighter plane come in; that Valparaiso dropped out of the Okaloosa County League Of Cities because they felt the OCLOC did not support them as it should; the Habitat For Humanity home on Harbeson is a the excellent Earth Day event; the fantastic Musical Echoes certified all -green construction; Festival last weekend; and the fun City picnic last Saturday. ADJOURNMENT There being no further business, the meeting adjourned at 8: 54 pm. MAYOR: ATTEST: CITY CLERK Ive  CITY OF FORT WALTON BEACH MEMORANDUM To: Robert Mearns, Acting City Manager From: Gene Peters, Acting Golf Club Administrator Date: May 6, 2009 Subject: RFP 09 -116 Golf Cart Lease BACKGROUND: RFP 09 -116 was sent out on April 9, 2009 to solicit proposals for the golf cart lease operations at the Fort Walton Beach Golf Club. The current five year Lease Agreement has monthly principle interest payments of $ 8, 472 and a balloon payment of $ 128, 000 due at expiration on November 1, 2010. DISCUSSION: The Golf Club currently has 160 electric carts in the fourth year of the Lease Agreement. Approximately 25 carts are no longer in good working order with various mechanical and battery problems. The warranty for the batteries has expired and their replacement costs are estimated at 800 per cart. With 16 months left on the Agreement, the balloon payment requirement and the condition of the carts, it will best serve the City to solicit a new lease program. RFP 09 -116 stipulates quote options for a 36, 42 and 48 month lease program with no balloon payment and the return of the carts to the company after the expiration date. The City received proposals from the following two ( 2) firms: Club Car, Inc. -Augusta, Georgia E -Z Go- Augusta, Georgia The companies were evaluated on: 1) Capability of the Company ( 15%), 2) Past Performance ( 10 %), 3) Price ( 50 %), 4) Experience with Similar Services ( 15 %), and 5) Location of Business ( 10 %). The total scores from the evaluation with a possible 10 point maximum were as follows: Club Car 9. 625 ( cart model Precedent I -2) and E -Z Go 9. 10 ( cart model RXV -E) The low price quote from E -Z Go for model # TXT -PDS did not meet the 48 volt battery specification. The Evaluation Committee consisting of Brandy Wunker, Finance Director, William Worlds, Purchasing Agent and I met with David Mims, Territory Manager for Club Car, and negotiated the following upgraded benefits: 1) 36 to 42 month warranty on batteries; 2) 36 to 42 month warranty on electric motors; 3) 36 to 42 month warranty on all hubs; 4) Eliminate clause that all trade -ins must be able to run 9 holes at termination of lease; 5) City not liable for freight in returning carts at termination; 6) City may order 130 carts at proposal pricing; 7) Club Car to provide opportunity for the City to rent seasonal carts at a rate of $50 per cart per month; 8) Labor rate of $60 per hour for term of Agreement; 9) 30 day notice to deliver. With the availability of seasonal carts from Club Car and the cost factors for 160 electric carts, a request for 130 electric carts will be sufficient at this time. FINANCIAL INFORMATION: After review of the existing Lease Agreement and the condition of the carts after 40 months, staff recommends the City operate with a 42 month agreement to coincide with warranties and the like. Staff recommends the selection of the 42 month option from Club Car at the monthly unit price of $70. 50 for 130 electric carts and $ 107. 00 per month unit price for 4 gas utility carts for a total monthly cost of $9593. 00. The existing Lease Agreement monthly cost is $ 8472. 00. However, as of November 1, 2010, the City will have realized a cost savings of approximately 110, 000 with the elimination of the balloon payment. The annual new lease cost will be 115, 116 with an annual revenue projection of $740, 000 for the golf cart program. Sufficient funding is available in the current year budget to cover the additional monthly costs for the remainder of FY 2008 -09. In addition, appropriate funding requests will be submitted in the FY 2009 -2010 budgetary documents to meet the new lease requirements. RECOMMENDATION: Staff requests the City Council to: 1. Award RFP 09 -116 for 130 Electric Golf Carts and 4 Gas Utility Golf Carts to Club Car, Inc. of Augusta, Georgia in the total amount of $402, 906. 00 2. Authorize the City Manager to execute the contract WITH Club Cart, Inc.: SUBMITTED BY: Gene Peters Date Acting Golf Club Administrator REVIEWED AND CONCUR: Brandy Wunker Date Finance Director Sr REVIEWED FOR AGENDA: 7 Robert T. Mearns Date Acting City Manager 1. RFP 09 -116 2. Selection Committee Scoring Summary 3. Proposal Packages 4. Club Car, Inc. letter of benefit changes  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 May 4, 2009 To: City of Fort Walton Beach From: David Mims, Territory Manager Club Car, Inc. Re: Clarification/ Changes to Golf Car Proposal 1. Club Car, Inc. guarantees a labor rate of $60 per hour on any repair work that is needed during the term of the lease contract. 2. Club Car, Inc. will provide a forty -two month battery warranty to the City of Fort Walton Beach, exclusive of the energy unit and hour usage parameters. The City is responsible for keeping the batteries