Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO TERMINATE A CURRENT AGREEMENT AND TO ENTER INTO A NEW AGREEMENT WITH PNC EQUIPMENT FINANCE, LLC FOR LEASING OF NEW GOLF CARTS FOR THE ELLSWORTH MEADOWS GOLF COURSE; AND DECLARING AN EMERGENCY.
Executive Summary: This Resolution will provide authorization for the City Manager to terminate an existing 7-year agreement with PNC Equipment Finance, LLC and enter into a new 5-year agreement with PNC Equipment Finance for leasing of a new 70-cart fleet for Ellsworth Meadows Golf Club.
Body
Legislative History
Resolution No. 13-141, authorizing a 7-year lease agreement with PNC Equipment Financing, LLC for the 2014-2020 golf seasons.
Resolution No. 13-142, authorizing a 7-year agreement with Lake Erie Golf Cars for supply, maintenance, and repair of golf carts.
Purpose & Explanation
In 2013 the Golf Advisory Board suggested that when negotiating the next golf cart fleet, that we ask for a 7-year term versus a 5-year term. This strategy was to try and reduce our annual expenses by stretching out the lease. In 2013, a new agreement was reached with a 7-year term (reducing our annual expense by $8,190.00) a savings of $57,330.00 over 7 years. This new lease also contained a clause that required Lake Erie Golf Cars to supply the Ellsworth golf cart fleet with new batteries after year 3, knowing that the original batteries would never make it to year 7.
The golf course fleet is now at the timing of having the cart batteries replaced per the lease agreement. We have been recently approached by Lake Erie Golf Cars to change the current lease agreement. They have voiced that they would not like to replace the batteries now, because of the high cost factor to them to do so. They have proposed to supply Ellsworth Meadows with an entire new fleet of 70 golf carts, for a new 5-year lease (at the same price as the extended 7-year lease rate). This option would be of value to the golf course for three reasons: 1.) we receive a ne...
Click here for full text