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THE CITY OF <br /> <br />pL£AS&NTON <br /> <br />6D <br /> <br />City Council <br />Staff Report <br /> <br /> May 3, 2005 <br />Finance Department <br /> <br />SUBJECT <br /> <br />AUTHORIZE THE CITY MANAGER TO EXECUTE A LEASE <br />PURCHASE AGREEMENT WITH BANK OF AMERICA FOR GOLF <br />COURSE MAINTENANCE EQUIPMENT <br /> <br />STAFF RECOMMENDATION: <br /> <br />That the City Council authorize the City Manager to execute a lease/ <br />purchase agreement with Bank of America to purchase maintenance <br />equipment for Callippe Preserve Golf Course. <br /> <br />SUMMARY <br /> <br />The grow-in phase of Callippe Preserve Golf Course continues to accelerate <br />as additional golf holes are seeded, or are prepared for grassing. The golf <br />course operator, CourseCo, has prepared a list of equipment (Exhibit A) <br />required for both the remaining grow-in period and regular maintenance of <br />the golf course once it is open for play. At the City's request, CourseCo <br />solicited lease rates from three (3) companies to finance the proposed <br />equipment. Bank of America submitted the more favorable leasing terms, <br />offering a rate of 3.39% for a 60-month equipment lease/purchase. The total <br />cost of leased equipment is $697,844, requiring quarterly payments of <br />$38,083 over a lease period of five years. The initial payment would be due <br />prior to the golf course opening and is already budgeted in the total project <br />cost approved by the Council. All other quarterly payments would be an <br />operating expense of the golf course. The equipment becomes the property <br />of the City at the end of the five-year lease term. <br /> <br />SR:05:105 <br />Page 1 <br /> <br /> <br />