AGENDA ITEM SUMMARY

Consider approval of a Lease with Yamaha Motor Corporation, U.S.A., Commercial Customer Finance, for 55 new 2015 EFI Yamaha Golf Cars, Gas Drive, equipped as specified in the attached Proposal dated October 26, 2014, for use at the Griffin City Golf Course, including 2 free-use loaner cars. Pursuant to the Yamaha Trade-In program, all 55 2012 cars will be exchanged for these new cars. The Lease is designated as a "tax-exempt" issue for 2014; however, payments will be made in the years 2015 through 2018 in the total annual obligation of $39,930.00, plus reimbursement of ad valorem taxes. Dr. Brant Keller, Director of Public Works and Utilities, will address.   Approved

This is a continuance of the Yamaha Golf Car Trade-In Program begun several years ago. Title to the cars remains in Yamaha during the Lease and monthly lease payments of $3,327.51 per month (55 cars @ $60.50 per month) for total annual obligation of $39,930.00 per lease year, includes an interest component at 4.20%. All vehicles will be covered by Yamaha's Factory Maintenance program, including in the per cart pricing. In addition to the base rental per month, the City will reimburse the Lessor for annual ad valorem taxes on the Equipment, estimated at $3,900.00.

Staff recommends approval.

Monthly lease obligations for January through June 2015 have been appropriated in the Golf Course budget. Future appropriation for the remainder of the 2015 Lease and subsequent renewal years (2016, 2017 & 2018) will require appropriation in future annual budgets.