6B(4) Staff report on Blackthorn golf Course van lease

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~ ~ ~y~ Redevelopment Commission Staff Report Blackthorn Golf Course -Van lease 6/1/10 The current Van lease expired in May. Attached is Lease documentation for a new van to be used to support course operations. This vehicle is used for several purposes including, shuttling guests and volunteers for outings and tournaments, moving tables and chairs for hosted events, trips to bank, post office, City offices, appointments, golf shows and educational meetings. In the past, under previous management, some personal use of the van occurred resulting in an excess mileage fee as noted in the following paragraph. Going forward, Kitson and the City have agreed there will be no personal use of the van. This should eliminate any excess mileage fees at the end of the new Lease. The Lease term is 36 months, with payments of $379.54 each month. This payment is included in the current golf course budget. The Lease does include language concerning Charges for Late Payments (paragraph 25). You may recall City policy does not allow these types of charges, however the city's Legal Dept. has allowed it in this case. The rationale for allowing the Late Charges is the waiving of the excess mileage charge for the old van. This charge would have been $2,542.24 (15,889 miles @ $.16). The full charge is being waived, and more than offsets the cost of any Late Charges that maybe assessed under the new Lease.