TITLE
Consider a memorandum/resolution authorizing a lease agreement for the procurement of greens and fairways mowers for Stonetree Golf Course.
SUMMARY
DATE: May 16, 2017
TO: Ronald L. Olson, City Manager
FROM: Brett Williams, Executive Director of Community Services
SUBJECT: Lease agreement for Stonetree Golf Course mowing equipment
BACKGROUND AND FINDINGS:
Stonetree Golf Course requires daily maintenance of the turf grass on the fairways and greens. The maintenance of turf grass is done utilizing specialized equipment. This equipment is subject to excessive usage to maintain the mowing routines associated with golf course turf grass. Fairways and greens mowers are utilized in excess of 2,400 hours per year. Due to the high amount of usage placed on these specialized pieces of equipment, they experience maintenance issues at a greater frequency than typical mowing equipment.
Stonetree Golf staff identified cost savings related to maintenance by changing the approach taken to procure mowing equipment. The change involved leasing mowing equipment as opposed to the traditional method of procurement via outright purchase. This change in approach results in staff having access to modern, up-to-date equipment that is under warranty for the duration of the lease. In addition, the lease option allows the financial burden to be distributed over four years.
THE ALTERNATIVES CONSIDERED:
Staff could utilize the outright purchase method for procuring mowing equipment. The outright purchase approach would result in a fiscal impact of $155,940.47 for the current fiscal year at a minimum. Two additional CO-OP quotes for the outright purchase of the equipment were obtained and would result in a fiscal impact of $163,563.12 and $163,246.76, respectively. The City would own the equipment and would have a warranty for two years. This method would require a budget increase for the golf course in the amount of $141,709 for fiscal year 2016-2017.
The other al...
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