Explanation
Background: This ordinance authorizes the City Auditor to set up a certificate in the amount of $311,850.00 for the 2017 purchase order for lease payments to PNC Equipment Finance, LLC. This is the second year’s payment of the five-year modification/extension of the golf riding cars for the Recreation and Parks Department’s six municipal golf courses which was modified/extended by authorization of the Recreation and Parks Commission on June 10, 2015 and approved by Columbus City Council Ordinance Number 1485-2015 on June 8, 2015. Lake Erie Golf Cars will continue all maintenance services.
There were three separate lease-purchase agreements and service contracts: 1) 2011-2015; 2) 2012-2016; and
3) 2013-2017 which were modified and extended. This modification accomplished the following:
--Combined all three lease-purchase/service agreements into one;
--Extended this modified lease-purchase/service agreement by an additional five years for a term of 2016-2020;
--Exchanged existing cars assigned to each golf course with 385 all new 2015 manufactured riding cars;
--Locked in the monthly cost per car by the last bid price (in lease #3) of $101.25;
--Assigned ownership of the seven ADA riding cars to the Division at no charge (not included in the new PNC payment schedule) with refurbishing (fitted with new batteries), maintenance and care still covered by Lake Erie Golf Cars, LLC; and
--Enabled a realized savings of $88,761.00 in 2015 as well as providing for multiple years savings (potential increases of the yearly rates of future bids throughout the extended time period).
All other terms and conditions of the lease to purchase agreements and services contracts remain the same. This agreement/contract extension was in the best interest of the City.
Payment for each year of the lease continues to be subject to annual approval by City Council and a yearly purchase order certified by the Auditor’s Office for one year at a time. The total ...
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