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HomeMy WebLinkAbout13. 12-518 OCTOBER 23, 2012 12-518 RESOLUTION (CARRIED___7-0_____LOST________LAID OVER________WITHDRAWN________) PURPOSE: APPROVE PURCHASE OF GOLF CARTS FOR PARKS DEPARTMENT/LAKESHORE MUNICIPAL GOLF COURSE FROM LIBERTY BANK & TRUST COMPANY ($25,655.11) INITIATED BY: PURCHASING DEPARTMENT WHEREAS, the current lease for golf carts at Lakeshore Municipal Golf Course will expire on November 1, 2012; and WHEREAS, the lease provides the City with the option to purchase the leased carts at the expiration of the lease for the amount of $25,655.11; and WHEREAS, the current local market value of the golf carts exceed their purchase price as described in the lease; and WHEREAS, it is reasonably anticipated that these golf carts can thereafter be sold at a sales price in excess of their purchase price. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the proper City officials are hereby authorized and directed pursuant to Section 12-11 of the Oshkosh Municipal Code to purchase the 34 golf carts identified in the City’s expiring lease from: LIBERTY BANK AND TRUST COMPANY 6600 Plaza Drive New Orleans, LA 70127 Total: $25,655.11 BE IT FURTHER RESOLVED that the proper City officials are hereby authorized and directed to enter into an appropriate agreement for the purpose of same. Money for this purpose is hereby appropriated from: Acct. No. 5517-0630-7210-00000 Golf Fund – Motor Vehicles CITY HALL 215 Church Avenue P.O.Box 1130 Oshkosh,Wisconsin 54903-1130 City of Oshkosh I0 OfHKO/H TO: Honorable Mayor and Members of the Common Council FROM: Jon Urben, General Services Director DATE: October 15, 2012 RE: Approve Purchase-Golf Carts for Lakeshore Municipal Golf Course BACKGROUND Since 2007 the City of Oshkosh has leased golf carts from Tiziani Golf Cars for our Lakeshore Municipal Golf Course. The current lease is set to expire on November 1, 2012 and has a buy-out option for the 34 golf carts listed at$25,655.11. ANALYSIS City staff has concluded that the current market value of the golf carts exceeds their buy-out value. As such, City staff has determined it is in the City's best interest to exercise the buy-out option of the current lease, solicit offers to purchase the carts as one lot, and then utilize the dollars from the sale towards another multi-year golf cart lease program for Lakeshore Municipal Golf Course effective in 2013. FISCAL IMPACT The payoff amount for the buy-out option for the 34 carts is $25,655.11. Funding for this item would be charged to A/N#517-630-7210-00000. RECOMMENDATION Purchasing recommends the Common Council exercise the buy-out option of the current golf cart lease program for 34 golf carts for$25,655.11 to Liberty Bank and Trust Company. Respectfully Submitted, Approved: "1„, Jon Urben, General Services Manager Mark Rohloff, City Manager ~�