HomeMy WebLinkAboutItem No. 16 PO Acquire Boats RV Resort Rehab #Z40007Text File
City of Lake Elsinore 130 South Main Street
Lake Elsinore, CA 92530
www.lake-elsinore.org
File Number: ID# 17-231
Agenda Date: 6/13/2017 Status: Consent AgendaVersion: 1
File Type: AgreementIn Control: City Council
Agenda Number: 16)
Page 1 City of Lake Elsinore Printed on 6/8/2017
REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Grant Yates, City Manager
Prepared by:Jason Simpson, Assistant City Manager
Date:June 13, 2017
Subject:Authorize the City Manager to Negotiate and Execute Purchase Orders
Acquiring Boats
Recommendation
Approve and authorize the City Manager to execute purchase orders of two (2) boats in the
amount not to exceed $58,000.00 for the RV Resort Rehabilitation Project (CIP PROJECT
#Z40007).
Background
Staff has researched several boat rental opportunities to capitalize on unique camping and
marketing experiences and incorporating these experiences into the construction of the RV
Resort Rehabilitation Project. For example, a boat rental for a typical day could be $100 per
hour and up to $650 per day for the rental of a boat at the boat launch. There is a market and
the reservation of boat rentals is a popular and hot camping amenity for the recreational vehicle
and camping world. Industry professionals have confirmed the demand for boat rentals in a not
so rugged setting can be a park amenity while simultaneously creating a site as a destination.
Discussion
Through Inland Auto, Boat, and RV there are several, new but older year boats they are offering
significant deep discounts off MSRP. This is a niche market and by offering a unique pontoon
or boat rentals and tours on Lake Elsinore, so visitors can enjoy the lake and surrounding views
at their own pace and while cruising along the water, sun bathing, and fishing. The anticipated
price for each boat (model years between 2015 to current) will range between $15,000 and
$35,000. It is in the City’s best interest to purchase these boats from a single supplier with
proven reliability. Therefore, it is requested that the City Council find that it is not in the City’s
best interest to go out to bid and authorize the City Manager execute purchase orders of two (2)
boats in the amount not to exceed $58,000.00.
In anticipation of these purchases staff will attempt to get multiple prices on compatible boat
rental vessels but in some cases multiple pricing may not be available. The timing of these
purchases will take place as soon as possible and the utilization and camp rental of the boats
Boats Rentals
June 13, 2017
Page 2
will be available by July 4th. In the end, the RV Resort will have several rental boats that will be
centrally located at the South end of the park near the lake. It is probable these boat rentals will
be very popular and in high demand. It can be anticipated that additional units may be needed
to stratify the demand and optimize the revenue opportunities of the boat launch facility. Once
this is fully realized, staff shall return to Council for additional authorization and subsequent
purchases.
Fiscal Impact
RV Resort Rehabilitation Project (CIP PROJECT #Z40007) is included in the Fiscal Year 16/17
– 2021/22 Capital Improvement Plan (CIP) budget. Staff estimates that the purchase cost will
be recovered through daily rental fees of up to $500 to $650 ($100 to $200 per hour) with a
return on investment of 1 to 2 years.