Title
Resolution to Approve Exercising the Purchase Option of the City’s Golf Car Lease Agreement with Club Car to Purchase 60 Golf Cars at a Cost of $54,000.00, Appropriate $30,000.00 from the Golf Enterprise Fund, and Allow for the Resale of up to 60 Golf Cars (8 Votes Required)
Memorandum
Attached for your review and action is a resolution to approve exercising the purchase option of the City’s Golf Car Lease Agreement with Club Car to purchase 60 golf cars currently at the Leslie Park Golf Course at a cost of $54,000.00, appropriate $30,000.00 from the Golf Enterprise Fund for a portion of the purchase, and to allow the resale of up to 60 golf cars.
The current golf car lease with Club Car expires on December 1, 2008. The terms of the lease offer the City an option to purchase the cars at the conclusion of the lease agreement. The cost to purchase the cars is $900.00 per car for a total cost of $54,000.00 for the 60 cars. Club Car has accepted an extension of this lease option until January 31, 2009, contingent on City Council approval to exercise the purchase option of the agreement. If Council does not approve exercising the purchase option, the lease will expire with Club Car immediately.
The fair market value of the cars is $1,500.00 to $2,500.00 per car depending on the condition of each car. The City has received two preliminary offers, $1,700.00 and $1,800.00 per golf car, from golf car companies to purchase the cars. City staff estimates 56 golf cars are in saleable condition with 4 cars cosmetically damaged.
If Council approves exercising the purchase option of the lease agreement, the purchase would need to occur by January 31, 2009. The purchase would allow the City to have cars through the remainder of the 2008 golf season for use as long as the course stays open. Given the current conditions of the cars being purchased, 30 of the 60 cars would be sold prior to the start of the 2009 season, the 4 cosmetically damaged cars would be ...
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