6.5 Lease-Purchase Agreement Golf Carts
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
03/23/2009 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: APPROVED FOR
NO: 6 AGENDA:
FINANCE & ADMINISTRATION
ITEM
NO. 5
BY:
BY: Rod Franz
Page 1
ITEM: Resolution No. 09-6610
A Resolution authorizing the Mayor to execute a lease-purchase agreement with UMB Banc Leasing for
the purchase of golf carts.
BACKGROUND:
On February 2, 2009 the City Commission authorized the purchase of 22 golf carts from E-Z Go. The
cost of the carts will be $37,782.The capital budget for the Golf Course is $24,000, and was intended
to cover the first year of a three-year lease-purchase for those carts.
Staff requested proposal for a lease-purchase from a number of financial institutions. Considering the
current financial challenges facing the course, the lease was requested for a total of $30,000, with
payments due at the end of June, 2010 and June 2011.
We received three bids, as follows:
Institution Cost of Financing
Bank of Tescott $ 2,513.55
First Bank Kansas $ 2,513.54
UMB Banc Leasing $ 2,281.78
The low bid from UMB Banc Leasin g is equivalent to an interest rate of 4.25%. The cash
requirements from the Golf Course fund will be:
2009: $ 7,782.00
2010: $16,140.89
2011: $16,140.89
FISCAL NOTE:
The course budget for capital items this year is $24,000. The reduced amount in 2009 is intended to
provide the course with some additional margin this year.
COMMISSION ACTION:
Adopt Resolution No. 09-6610 authorizing the Mayor to execute a lease purchase agreement with
UMB Banc Leasing.