2008/02/13 Council Agenda Packet

EVERETT CITY COUNCIL AGENDA.ITEM COVER SHEET 'ROJECT TITLE: fwo Golf Car Lease Consent COUNCIL BILL# Assumption Agreements with -X- Action Originating Department Parks National City Commercial First Reading Contact Person Paul Kaftanski Capital Company,LLC. Second Reading Phone Number Ext 8335 Third Reading FOR AGENDA OF 2-13-08 Public Hearing Initialed by: Department Head CAA Council President 74 Location Preceding Action Attachments Department(s) Approval Legion Memorial and Budget Committee Lease Assumption Administration Walter Hall Golf Courses 1-9-08 documents Legal Parks Amount Budgeted $51,269.24 Fund 440 Expenditure Required $51,269.24 Fund 440 Budget Remaining $51,269.24 Fund 440 Additional Required $ -0- DETAILED SUMMARY STATEMENT: The previous golf course management company,Billy Casper Golf(BCG),was contracted in 2003 to manage Legion Memorial and Walter Hall Golf Courses. The Agreement was renegotiated with BCG and approved by Council on December 28,2005. The revised Agreement(Exhibit A Golf Course Standards and Performance Measures,section F,Golf Carts,paragraph 2)requires the City to assume any existing golf cart lease for Everett's courses"...if for any reason BCG is no longer managing the golf course." The Agreement with BCG terminated on September 30,2007.(Premier Golf Centers LLC took over as the golf course management company on October 1,2007.) On the termination date of the BCG Agreement,there were two operating leases in existence with National City Commercial Capital Company,LLC:the first for 17 EZGO golf cars at Walter E Hall and the second for 36 EZGO golf cars at Legion. The total monthly lease cost for these 53 golf cars total$2722.08. Lease PFG432840003 (17 EZGO golf cars)expires in July 2009 and lease PFG432830003 (36 EZGO golf cars)expires in August 2009. The golf business strategy developed in October 2006 assumed the continuation of these payments until their expiration dates if BCG's Agreement was not in effect at any time prior to the expiration of the leases. The total payment for the two leases through their expiration date is$45,402.24. Additionally, operating lease property taxes due for 2008 and 2009 are estimated to be$5,867 bringing the total financial commitment attributed to the lease assumptions to an amount not to exceed$51,269.24 on or before the lease expiration dates. To assume the two operating lease agreements,the City must enter into assumption agreements with National City Commercial Capital Company LLC, RECOMMENDATION (Exact action requested of Council): Authorize the Mayor to sign two golf car lease assumption agreements with National City Commercial Capital Company, LLC. :) C:\Documents and Settings\SuClark\Desktop\Feb 13 Council\Golfcartleaseassumption2-13-08 revised.doc2/6/200810:00:18 AM