Explanation
Background: As previously approved 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 2022 lease agreement payments, which is the second year of the lease; 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 expenditure of $295,680.00 from the Recreation and Parks Operation Fund for the 2022 lease-purchase payments to PNC Equipment Finance, LLC and Lake Erie Golf for the lease and maintenance of 385 golf riding carts as the payment is due as soon as possible, 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 2022 Recreation and Parks operating budget to meet the financial obligations of this lease.
Title
To authorize the expenditure of $295,680.00 from the Recreation and Parks Operation Fund for the 2022 lease-purchase payments to PNC Equipment Finance, LLC and Lake Erie Golf for the lease and maintenance of 385 golf riding carts; and to declare an emergency. ($295,680.00)
Body
WHEREAS, Ordinance #1150-2020 authorized the Department of Recreation and Parks, Golf Division, to enter 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; and
WHEREAS, it is necessary to authorize the expenditure of $295,680.00 from the Recreation and Parks Operation Fund 2285 for the 2022 lease agreement payments; 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 expenditure of funds for the lease agreement with PNC Equipment Finance, LLC and Lake Erie Golf as the payment is due as soon as possible, 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 Recreation and Parks golf division is entering the second year of a lease agreement with PNC Equipment Finance, LLC and Lake Erie Golf for the lease-purchase payments and maintenance of 385 golf riding carts.
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. 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 for the 2022 season.
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 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.