Title
Resolution authorizing the execution of an Assumption of Liability and Guaranty Agreement by and among the City of Coral Gables (“City”), the Biltmore Hotel Golf Management, LLC (“Manager”) and the Biltmore Hotel Limited Partnership (“Biltmore”); authorizing a “piggyback” lease agreement for golf carts under Section 2-978 of the Procurement Code attached as Exhibit “A” to the Assumption of Liability and Guarantee Agreement; further appropriating funds from the Biltmore Fund to pay the cost of golf carts under the lease agreement.
Body
In order to replace the current lease on golf carts for City golf courses including the Biltmore Golf Course expiring November 10, 2010, the Parks and Recreation Department and the Procurement Division of Finance obtained a “piggyback” lease agreement through the National Intergovernmental Purchasing Association (National IPA). This National IPA lease agreement is based on a competitive solicitation by the City of Tucson, Arizona and a subsequent amendment to allow for leasing using the original bid price amortized over a 4 year lease term. Section 2-978 of the Procurement Code authorizes the use of other governmental unit contracts, otherwise known as “piggyback” contracts for the purchase of supplies and services, which have resulted from a formal competitive bid process.
The National IPA lease agreement commenced on December 22, 2008 for an initial one (1) year term with an option to renew for four (4) additional years with the contract terminating on December 22, 2013. However, the “piggyback” lease term for the City of Coral Gables begins at the effective date of the “piggyback” and is not based on the remaining time allowed on the original Tucson agreement. The interest rate on a four (4) year lease through this “piggyback” is fixed at 4.69%. The monthly lease payment under the “piggyback” is $61.37 per golf cart, which is 2.5% lower than what the City currently pays monthly at $62.91 under its present lea...
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