Submitted By: Julie Johnson
presenter
Presentation By: Julie Johnson
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Department: Recreation and Parks
FORMAL TITLE:
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Resolution 2026-12 authorizing the City Manager, Assistant City Manager or Chief Financial Officer to execute Lease-Purchase Agreements with PNC Equipment Finance, LLC, for 82 new golf carts and one new beverage cart for Ocala Golf Club in an amount not to exceed $566,238
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place, .
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
Ocala Golf Club is a City-owned 18-hole golf course managed by Indigo Sports, LLC (formerly Billy Casper Golf). Indigo Sports, LLC, is contractually obligated to procure all equipment necessary for the normal course of operation of the Golf Club, including golf cart leases, in accordance with the Annual Budget presented to the City of Ocala as part of the City’s annual budget process. When the City of Ocala is named as a party to contracts related to such procurements, City approval is required.
Ocala Golf Club maintains a fleet of 82 golf carts and one beverage cart. The current EZ-Go golf cart lease-purchase agreements with PNC Equipment Finance, LLC (Lease Nos. 1154950-2 and 1154950-3) will expire on April 15, 2026. E-Z Go has committed to repurchasing the golf carts and beverage cart at the conclusion of the current lease term.
FINDINGS AND CONCLUSIONS:
Indigo Sports, LLC, obtained quotes from multiple golf cart manufacturers using their national discount contracts. Quotes received for the acquisition of a new fleet of carts for Ocala Golf Club under a 48-month lease-purchase, each with a guaranteed buyback provision at the end of the lease term, are as follows:
|
Manufacturer |
Monthly Lease Payment |
|
EZ GO |
$7,484.12/month |
|
Club Car |
$7,491.54/month |
|
Yamaha |
$7,742.00/month |
Based on the Golf Cart Lease Analysis prepared by Indigo Sports, LLC, acquisition of the fleet through E-Z-GO represents the best value for Ocala Golf Club, based not only on the lowest monthly payment but also on factors including warranty, service support, vendor reputation, and product quality. E-Z-GO has obtained a written commitment from Revel Golf Cars to purchase the golf carts and beverage cart at the conclusion of the lease term. Indigo Sports, LLC recommends a 48-month lease-purchase for E-Z-GO gas carts at a fixed interest rate of 6.0%, and staff concurs with the evaluation, scoring, and recommendation.
To begin the manufacturing process for the fleet, E-Z Go requires the Council to signify acceptance of the expenditure amount by executing the Quote attached hereto. Once the fleet has been delivered, the City will be required to execute formal Lease-Purchase Agreements substantially in the form of the sample Lease-Purchase Agreement attached hereto.
This item seeks Council’s authorization for the City Manager, Assistant City Manager, and/or Chief Financial Officer to negotiate, enter into, execute, and deliver Lease-Purchase Agreements for the 82 golf carts and one beverage cart on behalf of the City of Ocala up to the expenditure threshold set forth herein. Any Lease-Purchase Agreement negotiated shall first be subject to form and legality review and approval by the City Attorney.
FISCAL IMPACT:
The cost to lease the carts is included in Indigo Sports, LLC’s, annual operating budget. The annual lease amount is $89,809.44. The total contract amount is calculated as follows:
48-month lease payments $359,237.76
End-of-Lease Balloon $207,000.00
Total Contract Amount $566,237.76
PROCUREMENT REVIEW:
These services were procured in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
The Lease-Purchase Agreements will first be reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny
RESOLUTION 2026-12
A RESOLUTION BY THE CITY OF OCALA, FLORIDA, AUTHORIZING THE CITY MANAGER, ASSISTANT CITY MANAGER, OR CHIEF FINANCIAL OFFICER TO EXECUTE LEASE-PURCHASE AGREEMENTS BETWEEN THE CITY OF OCALA AND PNC EQUIPMENT FINANCE, LLC, FOR GOLF CARTS AND A BEVERAGE CART FOR OCALA GOLF CLUB AS SET FORTH HEREIN
WHEREAS, Lessee, a body politic and corporate duly organized and existing as a political subdivision of the State of Florida (“State”) is authorized by the laws of the State to purchase, acquire and lease certain equipment and other property for the benefit of the Lessee and its inhabitants and to enter into contracts with respect thereto; and
WHEREAS, pursuant to applicable law, the governing body of the Lessee (“Governing Body”) is authorized to acquire, dispose of and encumber real and personal property, including, without limitation, rights and interest in property, leases and easements necessary to the functions or operations of the Lessee.
WHEREAS, the Governing Body hereby finds and determines that the execution of one or more Lease Agreements or lease schedules (“Leases”) in the amount not exceeding the amount stated above for the purpose of acquiring the property (“Equipment”) to be described in the Leases is appropriate and necessary to the functions and operations of the Lessee.
WHEREAS, PNC Bank, National Association (“Lessor”) shall act as Lessor under said Leases.
NOW, THEREFORE, BE IT RESOLVED BY THE CTY COUNCIL OF THE CITY OF OCALA, FLORIDA, in regular session duly assembled as follows:
1. Either one of the City Council President OR City Manager OR Assistant City Manager OR Chief Financial Officer (each an “Authorized Representative”) acting on behalf of the Lessee,is hereby authorized to negotiate, enter into, execute, and deliver one or more Leases in substantially the form set forth in the document presently before the Governing Body, which document is available for public inspection at the office of the Lessee. Each Authorized Representative acting on behalf of the Lessee is hereby authorized to negotiate, enter into, execute, and deliver such other documents relating to the Lease as the Authorized Representative deems necessary and appropriate. All other related contracts and agreements necessary and incidental to the Leases are hereby authorized.
2. By a written instrument signed by any Authorized Representative, said Authorized Representative may designate specifically identified officers or employees of the Lessee to execute and deliver agreements and documents relating to the Leases on behalf of the Lessee.
3. The aggregate original principal amount of the Leases shall not exceed the amount stated above and shall bear interest as set forth in the Leases and the Leases shall contain such options to purchase by the Lessee as set forth therein.
4. The Lessee’s obligations under the Leases shall be subject to annual appropriation or renewal by the Governing Body as set forth in each Lease and the Lessee’s obligations under the Leases shall not constitute general obligations of the Lessee or indebtedness under the Constitution or laws of the State.
5. As to each Lease, the Lessee reasonably anticipates to issue not more than $10,000,000 of tax-exempt obligations (other than “private activity bonds” which are not “qualified 501(c)(3) bonds”) during the fiscal year in which each such Lease is issued and hereby designates each Lease as a qualified tax-exempt obligation for purposes of Section 265(b) of the Internal Revenue Code of 1986, as amended.
6. This resolution shall take effect immediately upon its adoption and approval.
NAMES AND TITLES OF AUTHORIZED REPRESENTATIVES/LEASE SIGNORS
Ire Bethea, Sr Pete Lee Ken Whitehead Janice Mitchell
City Council President City Manager Assist. City Manager Chief Fin. Officer
This resolution adopted this ______ day of ______________________, 2026.
ATTEST: CITY OF OCALA
By: By:
Angel B. Jacobs Ire J. Bethea Sr.
City Clerk President, Ocala City Council
Approved as to form and legality:
By: _________________________________
William E. Sexton
City Attorney