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CM-2017-1290 - 1/13/2017City of Round Rock 221 East Main Street Round Rock, Texas 78664 ROUND ROCK Signature Copy TEXAS City Manager Item: CM -2017-1290 File Number: CM -2017-1290 Consider authorizing the pay-off of a Lease/Loan Agreement with Wells Fargo Equipment Finance, Inc. for equipment at Forest Creek Golf Club. The Finance Department is requesting authorization for a one time pay-off of a Lease/Loan Agreement acquired by CCA Silband/GolfCorp/Round Rock, Inc, dba Forest Creek Golf Club while they were the Management company responsible for running the Forest Creek Golf Club. The equipment purchased under this agreement are a a 2005 Multipro Spray Pro 1250, 2012 Turf Cat 628D Mower, 2011 ProFlex 120 Contour Mower, 2013 Jacobsen GK IV Greens Mower, 2013 Jacobson GK IV Greens Mower and 2011 Toro Sand Pro 5040/ Tooth Rake all located at Forest Creek Golf Club and the property of The City of Round Rock. CCA Silband/GolfCorp/Round Rock, Inc., dba Forest Creek Golf Club is no longer the management company for the Forest Creek Golf Club with Kemper Sports Management taking over the management responsibilities as of January 1, 2017 and the Finance Deartment has determined that it is in the best interest of the City to pay-off this agreement. 'T'�t POLI p4S 0.m t'i Nt iS '995 305,gi City Manager `/�-ih " `r. L_ Date " J City of Round Rock Page 1 Printed on 1112117 ani � ,+ LO ?y LO WC,)Q� 0 o NoZ m coQ. 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L: U-) > 00 Lr) x d 0' (L) Luh a)�Q i-OµZ> W L- rn (oxra�o LL O 0- > , U U) ,� C Z r-u O U 0 O Q' Q L y C LC L .1� 3 0 C:) 0 0 ++ CL U LnE 1C 0 Lb C: o c. ra O 3 C 0 N LL ' • � GoJ O U C C 0E V +� p 0Q ra � I- :3 C ZOO -4r -j W O p U �C ), Q M O L U C LU p0 0)CQ ra a) Z , i L- O mfo OU Cn..LLv 61� v'aC z dj C LL O (a O E O C LD �2:U- a� N a10i Nfu co U �'C W 't(AQQQca,* L-7 v G m a O U_ G ti 3 �0 U v va v Q� m U N Z > 3 3 rp O QJ Ln O L An ti a . aQ] U 4 Ql y k p � L � O N QJ C O � Z; Ln U_ Q1 p G U N U _ Q) Q - Zr- y O y Ol � G OU O O Q1 �p O m C Q) i C a E c � ul L va 3 Ln c v m Qi =ate y GJ •4; � G L 3 ) o Q c°)Ln Qj I—n Qj QLm � :3 ' Ln.Rm 3 U L QJ N `° a rz �1 N a •� O �O M O N Q N 41 "S i �l y O 1�—GN Stephanie Sandre From: Ric Bowden <rbowden@roundrocktexas.gov> Sent: Tuesday, December 13, 2016 2:22 PM To: wfef@wellsfargo.com Subject: FW: Forest Creek 001-0487751-700 Assumption Sorry, I meant to also ask for whatever paperwork is required to assume the loan/lease into the City's name before we pay off the amount so once paid the equipment will belong to the City of Round Rock. Thanks, E.E. (Ric) Bowden, CPPB, CTCM Contract Administrator City of Round Rock Texas 221 East Main Street Round Rock, TX 78664 0-512-218-5459 C-512-517-7461 rbowden@roundrocktexas.gov From: Ric Bowden Sent: Tuesday, December 13, 2016 2:01 PM To:'wfef@wellsfargo.com' <wfef@wellsfargo.com> Subject: RE: Forest Creek 001-0487751-700 Assumption The City has decided to payoff this amount as quickly as we can get City Manager approval. With the plan to pay it on or before February 1 will a January monthly payment be required? To top all this off I'm going to need a formal statement showing the payoff, no January payment and that it's ok for the City to pay this account so I can take it to our CM for approval. Thanks, E.E. (Ric) Bowden, CPPB, CTCM Contract Administrator City of Round Rock Texas 221 East Main Street Round Rock, TX 78664 0-512-218-5459 C-512-517-7461 rbowden@roundrocktexas.gov From: wfef@wellsfargo.com [mailto:wfef@wellsfargo.com] Sent: Monday, December 12, 2016 10:36 AM To: Ric Bowden <rbowden@ round rocktexas.gov> Cc: imussery@aol.com; Andrew.A.Smith@wellsfargo.com; Joseph.T.Stitt@wellsfargo.com Subject: RE: Forest Creek 001-0487751-700 Assumption Good morning, Attached is the requested payoff. There is currently a prepayment penalty, which is $888.01 in this figure (2% of principal). Have a nice rest of your day. Thank you for contacting Wells Fargo Equipment Finance. If you have further questions, please contact us at (866)726-4714 or wfefCabwellsfargo.com. Alex McSherry Account Services Representative Account Services Wells Fargo Equipment Finance 1 600 South 4`h Street I MAC N9300-100 I Minneapolis, MN 55415 Tel 866-726-4714 1 Fax 866-687-5578 wfef@wellsfargo.com This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. Thank you for your cooperation. From: Ric Bowden[mailto:rbowden(a)roundrocktexas.gov] Sent: Monday, December 12, 2016 9:51 AM To: WFEF Cust Service Subject: AM RE: Forest Creek 001-0487751-700 Assumption The City of Round Rock has not decided if we are going to assume this loan or just pay it off, I need to know the pay off balance as of January 1, 2017 and if there are any fines or fees for paying off this loan early. Thanks, E.E. (Ric) Bowden, CPPB, CTCM Contract Administrator City of Round Rock Texas 221 East Main Street Round Rock, TX 78664 0-512-218-5459 C-512-517-7461 rbowden@roundrocktexas.gov From: wfef@wellsfargo.com imailto:wfef@wellsfargo.com] Sent: Monday, December 12, 2016 9:37 AM To: imussery@aol.com; Ric Bowden <rbowden@roundrocktexas.Rov> Cc: Andrew.A.Smith@wellsfargo.com; Joseph.T.Stitt@wellsfargo.com Subject: RE: Forest Creek 001-0487751-700 Assumption Good morning, To begin the review of the transfer/assumption, please complete the attached and return with all needed documents directly to our MARTI dept. at WFEFMMMARTIChandler@wellsfargo.com. They will review to see if this can be accommodated and process the assumption. Have a great rest of your day! Thank you for contacting Wells Fargo Equipment Finance. If you have further questions, please contact us at (866)726-4714 or wfef(a)wellsfarao.com. Alex McSherry Account Services Representative Account Services Wells Fargo Equipment Finance 1 600 South 4th Street I MAC N9300-100 I Minneapolis, MN 55415 Tel 866-726-4714 1 Fax 866-687-5578 wfef@wellsfargo.com This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. Thank you for your cooperation. From: Stitt, Joseph T Sent: Friday, December 09, 2016 2:21 PM To: WFEF Cust Service Cc: Smith, Andrew A. Subject: AM Forest Creek 001-048775-700 Assumption Hello Can you please assist the customer with starting the MARTI process for this contract. Per the below, the customer has found someone to assume his contract. Thanks! Joe Stitt Account Manager- BBG Wells Fargo Equipment Finance 1 600 South 4th Street, 10th Floor I MAC N9300-100 I Minneapolis, MN 55415 Tel 612-316-1617 1 Fax 866-424-8411 josei)h.t.stitt@wellsfargo.com From: Smith, Andrew A. Sent: Friday, December 09, 2016 9:06 AM To: Stitt, Joseph T Subject: FW: Forest Creek Joe, Can you help me on this one. Looks like our customer sold his course and the city of Round Rock will be assuming our loan. Can you send Ric Bowden below the MARTI application so he can get started on it. Thanks, Drew From: jmussery@aol.com [mailtoJmussery@aol.com] Sent: Friday, December 09, 2016 8:53 AM To: Smith, Andrew A. Subject: Forest Creek Drew, hope all is well with you. Last March we did financing on some maintenance equipment at Forest Creek. The account number is 001-048775-700. 1 am ending my involvement at Forest Creek at year end, and the City of Round Rock will be assuming that financing. The contact on this with the City is Ric Bowden 512-218-5459 rbowden(a-)roundrocktexas..qov. . Could you please pass this along to whoever would handle this assumption so they can contact and work with Ric on that. Please give me a call with any questions. Appreciate it. Mike 512-347-1244 City of Round Rock IOUND ROCK EXAS Agenda Item Summary Agenda Number: Title: Consider authorizing the pay-off of a Lease/Loan Agreement with Wells Fargo Equipment Finance, Inc. for equipment at Forest Creek Golf Club. Type: City Manager Item Governing Body: City Manager Approval Agenda Date: 1/13/2017 Dept Director: Susan L. Morgan, CPA, CFO Cost: $45,309.49 Indexes: Attachments: Payoff Fax Coversheet_0010487751700_1212201638017 Department: Finance Department Text of Legislative File CM -2017-1290 Consider authorizing the pay-off of a Lease/Loan Agreement with Wells Fargo Equipment Finance, Inc. for equipment at Forest Creek Golf Club. The Finance Department is requesting authorization for a one time pay-off of a Lease/Loan Agreement acquired by CCA Silband/GolfCorp/Round Rock, Inc, dba Forest Creek Golf Club while they were the Management company responsible for running the Forest Creek Golf Club. The equipment purchased under this agreement are a a 2005 Multipro Spray Pro 1250, 2012 Turf Cat 628D Mower, 2011 ProFlex 120 Contour Mower, 2013 Jacobsen GK IV Greens Mower, 2013 Jacobson GK IV Greens Mower and 2011 Toro Sand Pro 5040/ Tooth Rake all located at Forest Creek Golf Club and the property of The City of Round Rock. CCA Silband/GolfCorp/Round Rock, Inc., dba Forest Creek Golf Club is no longer the management company for the Forest Creek Golf Club with Kemper Sports Management taking over the management responsibilities as of January 1, 2017 and the Finance Department has determined that it is in the best interest of the City to pay-off this agreement. The cost to pay-off this agreement is $45,309.49. The pay-off includes a pre -payment penalty of $888.01; however, it is still more cost effective for the City to pay off the lease due to a high interest rate of 7.25%. Golf Course Fund City of Round Rock Page 1 Printed on 111212017