Explanation
Background: As approved prior by Ordinance #1150-2020, the Golf Division has entered into a lease agreement with PNC Equipment Finance, LLC and Lake Erie Golf for the lease-purchase payments and maintenance of 385 golf riding carts with the lease agreement ending after the 2025 golf season. This ordinance will authorize the expenditure of $295,680.00 from the Recreation and Parks Operation Fund for the 2023 lease agreement payments; and to declare an emergency.
The lease agreement includes three parties:
· The City of Columbus
· PNC is the source of financing
o Golf cart lease agreements and payments would be with PNC
o Yearly legislation would occur to fund payments
· Lake Erie Golf is the golf cart maintenance company
o Lake Erie Golf would provide all cart maintenance for the duration of all contracts
o Lake Erie Golf does not receive payment for their contracted services
o At the end of our lease agreement with PNC, Lake Erie Golf gains ownership of all 385 carts
Principal Parties:
PNC, Equipment Finance
655 Business Center Drive
Horsham, PA 19044
Staysi Garcia Morillo, 267-960-4076
34-1880513
Lake Erie Golf
26565 Miles Road
Warrensville Heights, OH 44128
Danny Hayes, 614-808-5735
34-1880513
Emergency Justification: It is immediately necessary to authorize the Director to enter into a new lease agreement for the lease purchase payments of the golf riding carts as the payment is due April 1, 2023, thereby preserving the public peace, property, health, safety, and welfare.
Benefits to the Public: Golf carts are necessary to the operation of the golf courses.
Area(s) Affected: All six municipal golf courses.
Fiscal Impact: $295,680.00 is required and is budgeted within the 2023 Recreation and Parks Operating budget to meet the financial obligations of this lease. This piece of legislation is contingent upon passage of the 2023 operating budget.
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