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13 <br /> THE CITY OF <br /> 111a M -12 CITY COUNCIL AGENDA REPORT <br /> PLEASANTON, <br /> November 7, 2023 <br /> Public Works <br /> TITLE: APPROVE THE PURCHASE OF GOLF COURSE MAINTENANCE <br /> EQUIPMENT INCLUDING UTILITY CARTS, MOWERS, AND A BUNKER <br /> RAKE, FOR CALLIPPE PRESERVE GOLF COURSE FROM DEERE AND <br /> COMPANY IN THE AMOUNT OF $380,127 <br /> SUMMARY <br /> To operate the Callippe Preserve Golf Course cost-efficiently, CourseCo — the golf <br /> course operator — and City staff regularly review equipment needs and replacement <br /> schedules to determine required inventory and replacement timing. Starting in 2010, <br /> staff entered into multi-year agreements for maintenance equipment replacements for <br /> Callippe Preserve Golf Course to manage cash flow and the integration of new <br /> equipment, with the last replacement of the current phase occurring in October 2021 . <br /> Staff is now recommending the next routine phase of equipment replacement; after <br /> reviewing various acquisition options, including leasing, staff recommends purchasing <br /> the required equipment as interest rates are high and would increase acquisition costs. <br /> RECOMMENDATION <br /> Approve the purchase of golf course maintenance equipment for Callippe Preserve Golf <br /> Course and authorize the City Manager to execute a purchase order with Deere and <br /> Company in the amount of$380,127. <br /> FINANCIAL STATEMENT <br /> This purchase would be funded by the golf course revenues. The Callippe Golf <br /> Operation and Maintenance Fund (410) has a sufficient fund balance to cover the total <br /> purchase cost of$380,127. Staff will present the necessary budget adjustment to the <br /> golf operating budget as part of the FY 2023/24 mid-year budget review process. <br /> BACKGROUND <br /> At the time the City was planning for the initial maintenance of the Callippe Preserve <br /> Golf Course, it was determined that maintenance equipment acquisition could be best <br /> achieved through a lease purchase option as this allowed lease payments to be made <br /> consistent with ongoing golf course revenues. To that end, the City entered into multi- <br /> year lease-purchase agreements in 2010, 2016, 2018, and 2021. <br /> In anticipation of the need to replace equipment acquired in 2005, CourseCo and City <br /> staff prepared an equipment replacement list representing the type and cost of the new <br /> equipment required to be purchased and determined it was best to replace the <br /> equipment in phases over a two-year period rather than all at one time. Phase I <br /> equipment was purchased in December 2010, Phase 11 equipment was purchased in <br />