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A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF POMPANO BEACH, FLORIDA, APPROVING AND RATIFYING THE MAYOR’S AND CITY MANAGER’S APPROVAL OF A MUNICIPAL MASTER LEASE AGREEMENT BETWEEN THE CITY OF POMPANO BEACH AND YAMAHA MOTOR FINANCE CORPORATION, U.S.A. FOR THE LEASE OF 144-DR2E LITHIUM GOLF CARS; PROVIDING AN EFFECTIVE DATE.
(Fiscal Impact: Monthly lease payments of $5,930.48 over 48 months)
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(Staff Contact: Allison Feurtado)
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Summary Explanation/Background:
This is a request for ratification by the City Commission for a Master Lease Agreement between the City of Pompano Beach, Florida and Yamaha Motor Finance Corporation, USA. The main purpose of this lease is to finance 144 DR2E AAC Lithium Golf Cars for the City’s municipal golf course. The contract needed to be executed in order for the City to secure inventory distribution within the allotted scheduled time of delivery.
The Golf course is in dire need of a new fleet of golf cars to replace the aging fleet. Yamaha had held these cars on reserve for the City due to limited availability and high demand for the product. Yamaha could not guarantee their continued availability and pricing beyond March 16, 2023. In order to secure and save the City money and delivery of the fleet, we determined it was in the best interest of the City to execute the lease. Staff was able to negotiate a trade in value for the existing golf car fleet with Yamaha to reduce the cost of the new cars. The Finance Department conferred with the City’s financial advisor as to the reasonableness of the lease terms relative to market conditions.
Origin of request for this action: Finance
Fiscal impact and source of funding: The lease is for 48 months, with monthly lease payments of $5,930.84. Funds are budgeted in account #001-3960-576-44-10.
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