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THE CITY OF w ^ <br /> .„ "' '�'1 ; CITY COUNCIL AGENDA REPORT I �},{J <br /> pLE ASANTON, <br /> June 19, 2018 <br /> Operations Services <br /> TITLE: AUTHORIZE THE CITY MANAGER TO EXECUTE A LEASE <br /> PURCHASE AGREEMENT WITH US BANCORP FOR GOLF COURSE <br /> MAINTENANCE EQUIPMENT <br /> SUMMARY <br /> To assure that the Callippe Preserve Golf Course is operated as cost efficiently as <br /> possible, City staff, in cooperation with CourseCo, the course operator, regularly review <br /> equipment needs and replacement schedules to determine required inventory and <br /> replacement timing. To manage cash flow and the integration of new equipment, <br /> equipment replacement has been accomplished in regular phases with the last <br /> occurring in November 2015. Staff is now recommending another routine phase of <br /> equipment replacement. After reviewing various acquisition options, including purchase, <br /> staff is again recommending a five (5) year lease purchase agreement to acquire <br /> required equipment as it represents the best alternative of utilizing ongoing golf course <br /> revenues to cover equipment acquisition costs. <br /> RECOMMENDATION <br /> Authorize the City Manager to execute an Equipment Lease-Maintenance Equipment <br /> agreement with US Bancorp (Attachment 1) in the amount of $119,596.53 for Callippe <br /> Preserve Golf Course maintenance equipment. <br /> FINANCIAL STATEMENT <br /> The quarterly lease payment for equipment acquisition will be $6,590.60 ($26,362.40 <br /> annually) at an interest rate of 3.78%. Quarterly lease payments will begin October 29, <br /> 2018 and end July 31, 2023. Total interest paid on the $119,596.53 amount will be <br /> $12,220.21 fora total amount paid of $131,816.74. Callippe Preserves annual budget <br /> includes equipment lease payments that are funded from course revenues. <br />