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THE CITY OF 13 =' - , em CITY COUNCIL AGENDA REPORT pLEASANTON, October 5, 2021 Operations Services TITLE: AUTHORIZE THE CITY MANAGER TO EXECUTE A FIVE-YEAR LEASE PURCHASE AGREEMENT WITH US BANCORP FOR GOLF COURSE MAINTENANCE EQUIPMENT IN THE AMOUNT NOT-TO- EXCEED OF $159,095 SUMMARY To assure that the Callippe Preserve Golf Course is operated as cost efficiently as possible, City staff, in cooperation with CourseCo, the course operator, regularly review equipment needs and replacement schedules to determine required inventory and replacement timing. Starting in 2010, staff entered into multi-year agreements for maintenance equipment replacements for the Callippe Preserve Golf Course to manage cash flow and the integration of new equipment, with the last one occurring in July 2018. Staff is now recommending the next routine phase of equipment replacement. After reviewing various acquisition options, including purchase, staff is again recommending a five-year lease purchase agreement to acquire required equipment as it represents the best alternative of utilizing ongoing golf course revenues to cover equipment acquisition costs. RECOMMENDATION Authorize the City Manager to execute an Equipment Lease-Maintenance Equipment agreement with US Bancorp (Attachment 1) in the total amount of$159,095 for Callippe Preserve Golf Course maintenance equipment. FINANCIAL STATEMENT The quarterly lease payment for equipment acquisition will be $7,954.46 ($31,817.84 annually) at an interest rate of 1.94%. Quarterly lease payments will begin January 5, 2022 and end October 7, 2026. Total interest paid on the $151,273.23 amount will be $7,821.60 for a total amount paid of$159,095. Callippe Preserves annual budget includes equipment lease payments that are funded from course revenues.