Explanation
Background: This ordinance is to authorize the Director of the Recreation and Parks Department to enter into a continued lease agreement in 2021 for the lease-purchase payments of the golf riding cars with PNC Equipment Finance, LLC and Lake Erie Golf for the lease-purchase payments and maintenance of the golf riding cars; to authorize the expenditure of $295,680.00 from the Recreation and Parks Operation Fund; and to declare an emergency.
This arrangement was approved as a waiver of the relevant provisions of Columbus City Code 329 relating to competitive bidding by Ordinance #1150-2020. In 2020, with the current social distancing mandates, the Golf Division researched best practices of open facilities to accommodate the requirements. Permitting golf carts for single riders only was a safe way for the Golf Division to provide the use of the carts while still maintaining a six foot space for golfers during the state wide restrictions. Single riders significantly reduce the number of golfers able to be served and creates a shortage for the demand. The Golf Division reached out to its current supplier to discuss additional carts for the golf courses to utilize since single riders potentially reduces the cart availability in half.
The contract 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: An emergency is being requested due to the Golf Courses expecting increased Spring 2021 participation and need for carts, and the need for the first lease payment to be made April 1, 2021.
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 from and within the 2021 Recreation and Parks operating budget to meet the financial obligations of this lease. This piece of legislation is contingent upon passage of the 2021 operating budget.
Title
To authorize the Director of the Recreation and Parks Department to enter into a contract with PNC Equipment Finance and Lake Erie Golf for new carts to be delivered for the Spring 2021 season with payments continuing from the July 2020 agreement through December 31, 2025; to authorize the expenditure of $295,680.00 from the Recreation and Parks Operation Fund; and to declare an emergency. ($295,680.00)
Body
WHEREAS, permitting golf carts for single riders only is a safe way for the Golf Division to allow golfers to maintain a six foot space during the state wide restrictions; however, single riders significantly reduce the number of golfers able to be served and creates a shortage for the demand so the Golf Division reached out to its current supplier to discuss additional carts for the golf courses to utilize; and
WHEREAS, it was determined that the best solution was to authorize the Director of Recreation and Parks to terminate the existing lease agreement, previously authorized by ordinance number 0037-2020, and to enter into a new lease agreement and terms per 1150-2020 in the amount of $295,680.00 for the 2021 lease-purchase payments to PNC Equipment Finance, LLC for the increased number of golf riding cars; and
WHEREAS, this is contingent on 2021 operating budget being passed by council.
WHEREAS, it necessary to authorize the expenditure of 295,680.00 from the Recreation and Parks Operation Fund 2285; and
WHEREAS, an emergency exists in the usual daily operation of the Recreation and Parks Department in that it is immediately necessary to authorize the Director to enter into a new lease agreement for the lease-purchase payments of the golf riding cars as the payment is due April 1, 2021, thereby preserving the public peace, property, health, safety, and welfare; NOW, THEREFORE
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Recreation and Parks Department be and is hereby authorized to enter into a continued lease agreement in 2021 for the lease-purchase payments of the golf riding cars with PNC Equipment Finance, LLC and Lake Erie Golf for the lease-purchase payments and maintenance of the golf riding cars.
SECTION 2. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 3. This is contingent on 2021 operating budget being passed by council.
SECTION 4. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 5. That for the purpose stated in Section 1, the expenditure of $295,680.00, or so much thereof as may be necessary to pay the cost thereof, be and is hereby authorized from the Recreation and Parks Operation Fund 2285.
SECTION 6. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.