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that have already been purchased, The equipment and furniture is included in the budget that <br /> had previousty been approved by Council. <br /> <br /> Ms. McGovern asked if Council would be asked to approve additional leases or one time <br /> costs as these costs have already been approved. <br /> <br /> Mr. Iremonger clarified that the equipment lease is necessary for the remaining grow-in <br /> period. Staff invisions using this equipment to maintain the golf course for the next five years. <br /> <br /> In response to an inquiry by Mr. Brozosky, Mr. Iremonger clarified that staff is asking <br /> Council to authorize the City Manager to execute a lease pumhase agreement for golf course <br /> maintenance equipment. The funding has already been included in the overall golf course <br /> project budget. <br /> <br /> Mr. Sullivan noted that the staff report summary indicated that the initial payment would <br /> be due prior to the golf course opening and is already budgeted in the total project costs <br /> approved by the Council. <br /> <br /> Mr. Iremonger said that is correct. Staff was aware that the equipment would be needed <br /> during the grow-in period and not when the golf course was opened. This consideration was <br /> given in the budget that was approved by Council to make the first several lease payments. <br /> When the golf course is opened for public play, the operating budget will be used to make the <br /> remainder of the $38,000 quarterly payments. <br /> <br /> In response to an inquiry by Mr. Sullivan, Mr. Fialho clarified that Council would be <br /> presented a complete financial picture before any more money is spent on operating expenses <br />' - for the golf course. He noted that the reason this matter is being presented to Council now is <br /> because it is considered a grow-in phase and the grow-in phase is considered a capital <br /> improvement, which has already been budgeted. <br /> <br /> Mr. Sullivan believed the grow-in phase occurs while the grass is growing but before the <br /> golf course is open. Therefore, the costs associated with the grow-in phase have been <br /> budgeted with the construction budget that Council has already approved. <br /> <br /> Mr. Fiaiho said that was correct. <br /> <br /> Mr. Brozosky clarified that the funding that is already included in the budget is essentially <br /> the lease payment of $38,000, and the total cost of $700,000 for the equipment is not included <br /> in the budget. <br /> <br /> Mr. Fialho said that was correct. <br /> <br /> Mr. Iremonger pointed out that Bank of America is offering an excellent lease rate of <br /> 3.39% for a 60-month equipment lease/purchase. He noted that this is typical of the golf course <br /> industry. <br /> <br /> Mr. Brozosky was concerned about the debt ratio and it being increased incrementally <br /> as equipment is needed. <br /> <br />.... Mr. Iremonger said staff has no plans to finance the furniture or kitchen equipment. He <br /> noted that these items are not considered a capital item because of the magnitude of the costs. <br /> <br /> Mr. Brozosky asked for the duration of the maintenance equipment. <br /> <br /> Pleasanton City Council 12 05/03/05 <br /> Minutes <br /> <br /> <br />