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CITY COUNCIL AGENDA COMMUNICATION |
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| | | | | | | | | AGENDA DATE: | February 12, 2019 |
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| | | | | | | | | SUBJECT: | Authorize the City Manager to Execute a Five-Year Lease Agreement with PNC Equipment Finance, LLC through the National Intergovernmental Purchasing Alliance (NIPA) in an Annual Lease Amount of $110,400 for One Hundred (100) Golf Carts for The Courses at Watters Creek. |
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| | | | | | | | | STAFF RESOURCE: | David Angeles, Assistant Director, Parks and Recreation
Jeff Holt, Golf Services Manager, The Courses at Watters Creek |
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| | | | | | | | | PREVIOUS COUNCIL ACTION: | On November 10, 2015, City Council authorized the City Manager to execute a four-year lease agreement with PNC Equipment Finance, LLC through BuyBoard Cooperative Purchasing in an annual lease amount of $106,693 for one hundred five (105) EZGO Golf Carts and one (1) Beverage Cart for The Courses at Watters Creek. |
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| | | | | | | | | ACTION PROPOSED: | Authorize the City Manager to Execute a Five-Year Lease Agreement with PNC Equipment Finance, LLC through the National Intergovernmental Purchasing Alliance (NIPA) in an Annual Lease Amount of $110,400 for One Hundred (100) Golf Carts for The Courses at Watters Creek. |
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| | | | | | | | BACKGROUND
The Courses at Watters Creek golf cart fleet is nearing expiration of the warranty period on key components and is seeking to replace the existing fleet lease with a new lease. The current lead-acid battery golf cart fleet was structured under a forty-eight (48) month lease agreement with the option to renew the fleet at thirty-six (36) months. The current fleet is one hundred five (105) golf carts. The proposed new fleet would use lithium batteries, allowing for a sixty (60) month lease agreement with the option to renew the fleet at forty-eight (48) months. The Lithium Battery is fully guaranteed for five years and is maintenance free. The Lithium Battery fleet has a higher energy efficiency, shorter charge requirement, and is lighter than the lead acid battery fleet currently in use. The Courses at Watters Creek staff feels that moving to a Lithium Battery cart with a lower maintenance requirement will allow for a fleet of One Hundred (100) carts in this lease cycle.
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| | | | | | | | BUDGETARY IMPACT
The annual lease amount for one hundred golf carts is $110,400. The total (60 month) amount of the golf cart lease is $552,000. Golf cart lease expenses were planned for in The Courses at Watters Creek FY19 operating budget.
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| | | | | | | | STAFF RECOMMENDATION
Authorize the City Manager to Execute a Five-Year Lease Agreement with PNC Equipment Finance, LLC through the National Intergovernmental Purchasing Alliance (NIPA) in an Annual Lease Amount of $110,400 for One Hundred (100) Golf Carts for The Courses at Watters Creek.
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| | | | | | | | MOTION
I make a motion to authorize the City Manager to execute a five-year lease agreement with PNC Equipment Finance, LLC in an annual lease amount of $110,400 for one hundred (100) golf carts for The Courses at Watters Creek.
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