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CITY COMMISSION AGENDA ITEM |
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Department: |
Parks and Recreation |
Commission Meeting Date: December 13, 2016 |
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Staff Contact: |
Mark Hecker, Assistant Director Parks & Recreation |
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Recommendations/Options/Action Requested: |
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Authorize the City Manager to sign a 48 month lease agreement with E-Z-GO Division of Textron Inc. for 62 golf cars for use at Eagle Bend Golf Course. Payments would total $198,400 over the full term of the lease. |
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Executive Summary: |
Over the past four years, Eagle Bend Golf Course has leased 62 golf cars from E-Z-GO for rental to patrons. The rental on these cars generates gross revenue of more than $175,000 annually. The current four-year lease on these vehicles expires December 31, 2016. In pricing future golf car leases options, E-Z-GO again provided the best pricing available using prices from the cooperative purchasing agreement with the National Intergovernmental Purchasing Alliance (Contract No. 130795). The Department has a history of success with E-Z-GO at Eagle Bend, and E-Z-GO continues to be the most cost effective provider of leased golf cars and utility vehicles for the City.
The recommended lease would establish a 48 month term beginning January 2017 and expiring December 2020. The current expiring lease also established a 48 month term. The City leases 62 carts under both the current and proposed agreements. |
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Strategic Goal Area: |
Other |
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Fiscal Impact (Amount/Source): |
The agreement establishes four installment payments of $49,600 due each year of the lease, totaling $198,400 over the full 48 month term. The full cost of the proposed lease is $24,217 more than the current lease. Compared to the current contract which was bid in 2012, the proposed lease costs 13.9 percent more than the current lease. This translates to an annual inflationary rate of approximately 3.5 percent over the past four years. The attached table (Comparison of Lease Rates) provides a direct comparison of the two agreements.
Funds are available for this lease payment in the Eagle Bend Golf Course Operating Budget. |
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Attachments: |
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Reviewed By: (for CMO use only) |
☐TM ☐DS ☐CT ☒BM |