HomeMy Public PortalAboutAB 18-289 Equipment Lease DiscussionMcCALL CITY COUNCIL 216 East Park Street
AGENDA BILL McCall, Idaho 83638
Number AB 18-289
Meeting Date November 8, 2018
AGENDA ITEM INFORMATION
SUBJECT:
Golf Equipment Lease Discussion
Department Approvals
Initials
Originator
or
Supporter
Mayor / Council
City Manager
Clerk
Treasurer
Community Development
Police Department
Public Works
Golf Course
COST IMPACT:
$85,980 annually for 5 years
Parks and Recreation
FUNDING SOURCE:
CIP – General Fund Property Tax Dollars
Airport
Library
TIMELINE:
Information Systems
Grant Coordinator
SUMMARY STATEMENT:
City Council has been funding golf course equipment yearly, but it only replaces a couple of pieces per year. Council recommended that staff investigate leasing options. Staff looked
at multiple options and is presenting Council with the best plan to replace old equipment and keep the fleet in better condition; therefore, saving maintenance dollars into the future.
In the FY19 CIP the golf department has $86,000 for three pieces of new equipment. One trim mower/snow blower with a cab that we use year-round. We also had money to purchase two new
greens mowers. It was suggested to staff at one of the budget meetings to look into leasing as we seem to be on the 15-year replacement plan.
Since we started looking at leasing, we have had to park 2 of our work vehicles because we can no longer get parts for them and we parked 2 mowers, moved the engine out of one and borrowed
another from another golf course to get through the summer. The age of the equipment at the golf course range from the oldest being a 1980 model to the newest being a 2007. For $86,000
a year for 5 years and a trade in of old equipment valued at $16,800, the City can lease a new fleet which would include 10 mowers, 6 work vehicles and two rollers to replace the older
ones. We would still keep the new Rough mower that we purchased last year and the used fairway mowers we purchased the year before.
Staff proposes two leases: one being a true 5-year lease for the mowers and the other being a 5-year lease purchase for the work vehicles and the rollers. They should last at least 10
years. If we stay with the original plan to purchase the three pieces, Staff would continue to replace broken equipment with less broken equipment. Attached is the equipment package,
and a list of old equipment to be traded.
RECOMMENDED ACTION: Direct staff how to proceed either with the lease option at $86,000 a year funded by the CIP – General Fund property taxes OR go with the original plan to purchase
three pieces of equipment funded by the FY19 CIP – General Fund property taxes.
RECORD OF COUNCIL ACTION
MEETING DATE
ACTION