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