REPORT TO COUNCIL
SUBJECT
Title
Modify a Blanket Purchase Order with Yamaha Motor Finance Corp USA for Electric Golf Cart Lease for the Sunnyvale and Sunken Gardens Golf Courses (F21-021)
Report
REPORT IN BRIEF
Approval is requested to amend an existing blanket purchase order with Yamaha Motor Finance Corp. of Newnan, GA for Electric Golf Cart Lease for the Sunnyvale and Sunken Gardens Golf Courses, increasing the not-to-exceed contract amount by $13,408.42 for a new not-to-exceed total contract amount of $298,806.82.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code, City Council approval is required for the procurement of goods and/or services exceeding $100,000 in any one transaction.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a "project" within the meaning of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonable foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
In January 2017, Council awarded a Municipal Master Lease Agreement to Yamaha Motor Finance Corp. for the lease of eighty (80) electric golf carts for a 48-month period for use by the Department of Public Works Golf Program at Sunnyvale and Sunken Gardens Golf Courses (RTC No. 16-1140).
During the lease period, Yamaha Motor Finance Corp. contacted the City and indicated that property taxes, not included in the original award amount, were required for the leased equipment. Staff reviewed the Master Lease Agreement and State law and concluded the City is responsible for the property taxes assessed for leased equipment. The City does not qualify for an exempt status for the property taxes since the golf carts are used for business purposes and not for City staff use. The City is currently deciding on a selection process for electric golf carts after this lease expires....
Click here for full text