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The roll call vote was taken as follows: <br />AYES: Councitmembers - Brozosky, McGovern and Sullivan <br />NOES: None <br />ABSENT: Mayor Nosterman <br />ABSTAIN: None <br /> <br />6d <br /> thorize the City Mana( er to execute a lease purchase a;Irsement with Bank of America <br />for oolf course maintenance e~uioment. (SR 05:105) <br /> <br /> Dave Iremonger, Financial Sen/ices Manager, presented the staff report. <br /> <br /> Ms. McGovern wanted the community to be aware that the total cost of leased <br /> equipment is $697,844 but with the actual summary of terms as shown for the life of the five- <br /> year lease, the City could be paying $761,000. <br /> <br /> Vice Mayor Brozosky invited public comments. <br /> <br /> Vanessa Kawaihau, a Happy Valley resident, believed the Regional Water Control <br /> Board's report required the operating costs for the golf course were to be funded from the <br /> Established Enterprise Fund. She asked if there was a guarantee that the Established <br /> Enterprise Fund would pay for these costs so that General Fund dollars are not used. <br /> <br /> Mr. Fialho stated that the Enterprise Fund receives revenue funding from two <br />predominant soumes: green fees and through the General Fund. In September, staff plans to <br />submit to Council for its consideration a golf course budget that contemplates a six-month <br />operating budget cycle as the fiscal year runs from July to June of each year. Over time as the <br />course matures and as play continues and gains in popularity, there would be less subsidy from <br />the General Fund and more revenue derived from green fees. <br /> <br /> Ms. McGovern noted that this would not be the last request for the City to pumhase <br />equipment to open the golf course. In addition to what staff is proposing to present to Council <br />with regard to the operating budget for the golf course, she asked if staff would provide a fiscal <br />report on what it would cost the City to open the golf course. <br /> <br /> Mr. Fialho stated that Council would be receiving a complete operating budget for the <br /> golf course in addition to a pro-forma and recommendation from the Parks and Recreation <br /> Commission regarding green fees for the golf course and all of the other ancillary activities <br /> associated with this operation. He noted that "enterprise' is another term for an operation in the <br /> City, similar to the City's water and sewer operations, where generally the revenues derived <br /> from these operations fund the activities of that enterprise. He was hopeful that over time, the <br /> revenue derived from green fees would support the operation of the golf course. Initially this <br /> would not be the case and the General Fund would subsidize the operational costs of the golf <br /> course. <br /> <br /> Ms. McGovern considered the furniture and the cost to open the golf course differently <br /> as opposed to the ongoing operating budget. She was looking forward to seeing the total <br /> picture rather than agreeing to spend amounts of money one at a time. She was looking for a <br /> vision for the golf course. <br /> <br /> Mr. Iremonger pointed out that there are significant funds in the budget that have been <br /> approved by Council for the construction of the golf course, start up costs, equipment, and tools <br /> <br />Pleasanton City Council 11 05/03/05 <br />Minutes <br /> <br /> <br />