Loading...
HomeMy Public PortalAboutAB 18-305 PNC Equipment Lease Res 18-25McCALL CITY COUNCIL 216 East Park Street AGENDA BILL McCall, Idaho 83638 Number AB 18-305 Meeting Date November 29, 2018 AGENDA ITEM INFORMATION  SUBJECT: Request the Adoption of Resolution 18-25 Authorizing the Golf Equipment Lease Agreement, Lease-Purchase Agreement, and Non-Appropriations Addendum with PNC Equipment Finance, LLC Department Approvals Initials Originator or Supporter   Mayor / Council     City Manager /    Clerk     Treasurer /    Community Development     Police Department     Public Works     Golf Course EM Originator  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: Staff presented the information regarding the leasing of equipment for the McCall Golf Course maintenance at the November 8, 2018 Council Meeting. After reviewing the information, the Council requested some additional information such as the number of hours each machine has and the amount of time and money being spent to maintain that equipment. Staff has provided an update (attached) to the listed equipment. On a number of these pieces, the parts to fix the equipment, if the parts can be located, cost more than the equipment is worth. In many cases, staff is using used parts to keep the equipment running. The shop has shelves full of used parts that have been scavenged off mowers which have been junked. The staff mechanic estimates 70% of his time is spent on keeping the equipment running. This includes an additional 8 hours a week over his 40 hours. This keeps him away from helping with other golf course projects and/or mowing which is a requirement of his position as well. Staff proposes two lease agreements for approval: (1) a true 5-year lease for the mowers, and (2) a 5-year lease-to-own agreement for the work vehicles and rollers. The leased-to-own equipment should last at least 10 years. If the original plan of purchasing three new mowers is chosen over the lease options, staff would be required to continue replacing the old equipment with used equipment. Attached is the equipment package, and a list of old equipment to be traded, and the Resolution authorizing the Equipment Lease Agreement and Non-Appropriations Addendum.  RECOMMENDED ACTION: Adopt Resolution 18-25 Authorizing the Golf Equipment Lease Agreement, Lease-Purchase Agreement and Non-Appropriations Addendum with PNC Equipment Finance, LLC and authorize the Mayor to sign all necessary documents.  RECORD OF COUNCIL ACTION  MEETING DATE ACTION  11/8/18 Council requested additional information on mechanic time/costs