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CITY COMMISSION AGENDA ITEM |
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Department: |
Parks & 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 58 month lease agreement with E-Z-GO Division of Textron Inc. for eight utility vehicles for use at Eagle Bend Golf Course. Payments would total $59,615 over the full term of the lease. |
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Executive Summary: |
Over the past four years, Eagle Bend Golf Course has leased eight utility vehicles for maintenance staff, driving range picker and beverage cars. The current four-year lease on these vehicles expires December 31, 2016. In pricing future leases options, E-Z-GO again provided the best pricing available using prices from its 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 utility vehicles for the City.
The current expiring lease established a 48 month term and the proposed lease would establish a longer term of 58 months. The City leases eight 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 proposed lease would begin January 2017 and expire October 2021, with five installment payments of $11,923 due each year of the lease, totaling $59,615 over the full term.
The proposed new lease is more favorable than the current lease. Comparing the monthly equivalent cost, the City will save $48 per month under the proposed agreement. The length of the proposed lease is 10 months longer than the current lease though; as a result the City’s total cost under the proposed lease is $7,991 more than the current lease. To provide a direct comparison of the proposed lease rate to the current, costs are calculated in the attached table (Comparison of Lease Rates) as a monthly equivalent cost.
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 |