HomeMy WebLinkAbout20110800.tiff RESOLUTION
RE: APPROVE EQUIPMENT LEASE AND AUTHORIZE CHAIR TO SIGN - POWER
EQUIPMENT COMPANY
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, the Board has been presented with an Equipment Lease between the
County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld
County, on behalf of the Department of Public Works, and Power Equipment Company,
commencing March 23, 2011, with further terms and conditions being as stated in said lease,
and
WHEREAS, after review, the Board deems it advisable to approve said lease, a copy of
which is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Weld County, Colorado, that the Equipment Lease between the County of Weld, State of
Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the
Department of Public Works, and Power Equipment Company be, and hereby is, approved.
BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized
to sign said lease.
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 28th day of March, A.D., 2011, nunc pro tunc March 23, 2011.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, CO RADO
ATTEST: • ./.\-
-. � � yG
Barbara Kirkmeyer, Chair
Weld County CIe �(EP , 1G &,�
1
Sean P. rn ay, Pro-Tem
BY: w� / ��Y:1�/,gin: �4, 6
Deputy Clerk to the"s
ham F. Gar is
APPS) DASTEFORM: EXCUSED
David E. Long
, - tounty4ttorney \),.
Douglas'Radema9her
P//may✓��/�
Date of signature: _` ' ' /
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t i 2011-0800
3. EG0064
J
‘e(t. MEMORANDUM
COLORADO
TO: Clerk to the Board DATE: March 24, 2011
FROM: Pat Persichino, Director of Public Works
SUBJECT: Agenda Item
Equipment Lease with Option to Purchase with Power Equipment Company for a 2008 Bomag
MPH364R Recycler in the amount of$16,500 per month.
Attached is the Lease Agreement.
M Francie\Agenda Item-I Jot
2011-0800
POWER EQUIPMENT LEASE
EQUIPMENT COMPANY With Option to Purchase
POWLR ISUJPM[Mtt0
The following Lease is made by and between Power Equipment Company(Owner)whose address is 500 E.62nd.Avenue,P.O.Box 28,Denver,CO
30201,and WELD COUNTY(Lessee),whose address is:P.O.BOX 758,GREELEY,CO 80631
1.Lease:Owner agrees to lease the Lessee the following items(the"Equipment")subject to the terms and conditions set forth below.
EQUIPMENT DESCRIPTION •SERIAL NUMBER aRENTAL RATE [EQUIPMENT VALUE
2008 Bomag MPH364R Recycler Stock#C8093 109A23001401 $16,500.00
per month
?.JOB LOCATION:The Equipment shall be used at the following job location,unless otherwise agreed to in writing by Owner.Job Location:,,,_County
3.LEASE TERM:The term of this lease shall commence on the date of delivery,currently scheduled for Wednesday,March 23,2011,and shall continue
intil terminated by lessee.
1.RENT:Lessee agrees to pay rent to Owner at the above address for the Equipment in Monthy Installments of$16,500.00,net due upon receipt of
',lams OF OPERATION:Lessee agrees to operate the Equipment no more than 176 hours per month.If the Equipment is operated more than the
stated hours,Lessee agrees to pay additional rent of$93.75 per hour or part thereof.Such additional rent is due net upon invoice.
3.DELIVERY AND POSSESSION:Lessee shall take possession of the Equipment at the Denver,Colorado facility of Power Equipment Company and shall
my all charges for loading,unloading,and transportation of the Equipment to the job location and its return to Owner's possession at the Owners location.
-essee shall inspect the Equipment within forty-eight hours after taking possession.Unless Lessee within that time gives written notice to the Owner
specitying any objection to the Equipment,it shall be conclusively presumed that the Lessee has fully inspected the Equipment,has found the Equipment in
toad condition and repair,and has accepted the Equipment.
r.ADDITIONAL RENT:If the Equipment has not been returned to Owner at the expiration of the term,Lessee agrees to pay rent from the expiration of the
erm until the Equipment is delivered to Owner's possession.Such rent shall be computed and paid on a monthly basis,at the same pro rata rate and upon
he same terms as the original term of this Lease,
3.USE:Lessee shall:(a)Use the Equipment in a careful and proper manner,and not permit the Equipment to be neglected or abused or to be used for any
)urpose for which it is not designed or intended;(b)Comply with all laws,ordinances and regulations relating to the transportation,possession,use,or
naintenance of the Equipment;(c)Keep affixed all Owner or Manufacturer supplied labels,plates,warning or other markings in a proper and appropriate
;lace on the Equipment;(d)Cause the Equipment to be operated by trained and competent employees only,knowledgeable in the function,operation and all
safety features of the Equipment;and(e)Pay all expenses of operation.
3.REPAIR AND MAINTENANCE:Lessee agrees to keep the Equipment in good repair and perform all manufacturers recommended periodic maintenance
3t Lessee's sole expense,and to return the Equipment in good repair and at the termination of this Lease.For the purpose of this Lease,"good repair"shall
Wean in full operating condition and working order,with all parts of the Equipment in the substantially equivalent condition as when the Equipment was
Jelivered to the Lessee.Lessee at its sole expense shall repair or replace any and all parts,mechanisms,or devices required to keep the Equipment in good
'epair.Any replacement parts incorporated into the Equipment shall immediately become the property of the Owner.In the event the Equipment for any
'eason is not in good repair when returned to the Owner,Lessee agrees to pay all reasonable charges and expenses incurred by the Owner in repairing the
;quipment.
10.ADDITION OF ACCESSORIES:Lessee will not,without the written consent of the Owner,Install any accessories or devices on the Equipment if such
nstallation will impair the originally-intended function or use of the Equipment.Such items installed on the Equipment shall automatically become the
roped)/of the Owner unless such item can be removed without in any way affecting the function,use or appearance of the Equipment.Any damage to the
Equipment caused by the removal of such items shall be repaired at Lessee's expense.
It.PERSONAL PROPERTY:The Equipment is,and shall at all times remain,personal property.If all or any part of the Equipment is attached lo,imbedded
nor permanently resting upon any real property or any building thereon,or attached in any manner to what is permanent,by means of cement,plaster,nails,
tolls,screws or otherwise,the Equipment shall nonetheless remain personal property.
12.INSPECTION BY OWNER:Lessee shall,whenever requested,advise Owner of the exact location of the Equipment.Owner and its representatives may,
or the purposes of inspection,at all reasonable limes,enter upon any job,building or place where the Equipment is located.Owner may remove the
Equipment without notice to the Lessee if,in the opinion of the Owner,the Equipment is being used beyond its capacity or in any other manner improperly
tared for or abused.
13.TITLE,ASSIGNMENTS,AND ENCUMBRANCES:All of this Equipment shall remain personal property and title thereto shall remain in Owner
exclusively.Neither this Lease,nor the Lessee's rights hereunder shall be assignable except with the Owner's written consent.Lessee shall not lease,
sublease,mortgage or otherwise encumber or part with possession of the Equipment or any part thereof,except with the written consent of the Owner.
-essee shall keep the Equipment free from any and all liens and claims,and shall not do or permit any act or omission whereby Owner's title or rights may
3e encumbered or impaired.Lessee agrees to pay all license fees and taxes applicable to the Lease,other than income taxes and personal property taxes
Ind license fees on the Equipment.The Lessee shall also provide all permits,if any,necessary for the installation,movement and operation of the
Equipment or any parts thereof.
14.WARRANTIES:It is expressly agreed that,except as stated below,THE OWNER HAS MADE AND MAKES NO EXPRESS OR IMPLIED WARRANTIES
1S TO ANY MATTER WHATSOEVER,INCLUDING WITHOUT LIMITATION,THE CONDITION OF THE EQUIPMENT,ITS MECHANTABILITY,OR ITS
rITNESS FOR ANY PARTICULAR PURPOSE.ANY DEFECT IN,OR UNFITNESS OF THE EQUIPMENT SHALL NOT RELIEVE THE LESSEE FROM THE
)BLIGATION TO PAY RENT OR ANY OBLIGATION UNDER THIS LEASE.Lessee represents that it is skilled and experienced in the use and operation of
he Equipment,and makes the selection and decision on whether to lease on the basis of Lessee's own judgment,without reliance on any statements or
representations by Owner.It is expressly agreed that Lessee shall take the equipment as is,except as stated herein.It is further agreed that Owner extends
to warranties or guarantees for new Equipment.Owner shall extend and transfer unto Lessee all of the vendor's warranties and guarantees,if any,for new
Equipment.
14.WARRANTIES Continued:Notwithstanding any failure of the vendor to honor any warranty or guarantee,Lessee agrees to maintain the Equipment in
good repair,as described herein,and to make all rental payments required herein.
15.INSURANCE:During NI times the equipment is in Lessee's possession.Lessee shall keep the Equipment insured against all risks of loss or damage
from every cause whatsoever for not less than the full replacement value of the Equipment as determined by Owner,and shall carry public liability,
:ontractual liability,and property damage insurance covering the Equipment,its operation and use.All such insurance shall be in the form and amount and
with companies approved by the Owner,and shall designate Owner and Lessee as Insureds under such policy.Lessee shall pay the premium for such
nsurance,and shall deliver to Owner a copy of such policy or a certificate of Insurance executed by the Insurer prior to taking possession of the Equipment.
Such policies shall explicitly provide that the insurer shall give Owner Thirty days written notice before the policy in question shall be altered or cancelled.The
Proceeds of such insurance,at the option of the Owner,shall be applied:(a)toward the replacement,restoration,or repair of the Equipment,or(b)toward
payment of the obligations of the Lessee hereunder.If,within ten days following notice by the Owner to the Lessee,the Owner has failed to receive policies
r certificates of Insurance In accordance with this paragraph,the Owner shall,at Owner's option,have the right to(a)declare this Lease in default and
exercise 8s remedies as set forth below,or(b)procure such Insurance,In which event Lessee shall reimburse Owner for the cost of procuring insurance.
Mich amount shall be payable in its entirety on the next rental payment date or within thirty days,whichever Is sooner.
16.INDEMNITY:The Lessee shall indemnify the Owner against,and shall hold the Owner harmless from,any and all claims,actions,suits,proceedings,
osts,expenses,damages,and liabilities,Including attorneys'fees,arising out of,connected with or resulting from the Equipment,Including without limiting the
generality of:the manufacture,selection,delivery,possession,use,operation,or return of the Equipment.
17.DEFAULT:If Lessee falls to perform any obligation required herein or to pay any sum when due,or if an attachment is levied against the Equipment or
attempted by a creditor of the Lessee,or if the condition of the affairs of the Lessee or any guarantor changes so as to,in the sole opinion of the Owner,
aignificanty increase the Owner's risk of loss,the Owner shall have the right to exercise one or more of the following remedies:(a)To declare the entire
amount of rent hereunder immediately due and payable as to any and all items of Equipment,without any notice or demand to the Lessee;(b)To sue for and
•ewver all rents,and other payments then accrued,or thereafter accruing with respect to any or all items of Equipment(c)To take possession of the
Equipment,without demand or notice,wherever the same may be located,without any court order or other process of law.The Lessee hereby waives any
damage occasioned by such taking of possession.Such taking of possession shall not constitute a termination of this lease unless the Owner expressly so
notifies the Lessee in writing;(d)To terminate this Lease to any or all items of Equipment;(e)pursue any other remedy at law or in equity.Notwithstanding
any such repossession or other action,which Owner may take,the Lessee shall remain liable for the full performance of all obligations under this Lease,In
the event Owner regains possession of the Equipment,Owner may relet the Equipment fora term and at a rental which may be equal to,greater than,or
ess than the rental and term herein provided.Any rental payments received under the new Lease for the period prior to the expiration of this Lease,less
Owner's expenses of taking possession,storage,reconditioning and releasing,shall be applied on Lessee's obligations here-under,and Lessee shall remain
iable fa the balance of the unpaid aggregate rental set forth above.Lessee's liability shall not be reduced by reason of any failure of the Owner to relet.
_essee hereby agrees to pay all expenses,including all attorneys'fees and expenses,which may be incurred by Owner in enforcing this agreement,or in
:denting the rent provided herein,or in repossessing the Equipment.
18.INTEREST AND ATTORNEYS FEES:In the event that any amount due under the terms of this Lease is not paid when due,Lessee agrees to pay
Owner,in addition to all amounts due,interest at the rale of 24%per annum,together with at costs,expert witness fees,and reasonable attorneys'fees
named in collection these amounts.
19.CHOICE OF LAW AND FORUM:This agreement shall be enforced and construed pursuant to the laws of the State of Colorado.Any action to enforce,
nterprel,construe,or collect damages under this Lease,or for any claims arising our of the manufacture,sale,selection,use,operation,maintenance,or
teak'of the Equipment,shall be brought in the District Court for the City and County of Denver,Colorado.Owner and Lessee,and any guarantors of this
_ease,hereby agree to the jurisdiction of such court.
20.GENERAL CONDITIONS:(a)Time Is of the essence to this Lease,(b)Owner's failure at any time to require strict performance by Lessee of any of the
provisions of this Lease shall not waive or diminish Owner's right thereafter to demand strict compliance therewith or with any provision.(c)Waiver of any
default shall not waive any other default.(d)My alteration or modification of this Lease shall be in writing and signed by the Owner and Lessee,(e)This
Lease constitutes the entire agreement of the parties,and supersedes all prior representations or agreements between the pantos.
21.OPTION TO PURCHASE:(a)At any time during the term of this Lease,Lessee shag have the option to purchase the Equipment forthe price of$0.00
together with the higher of simple interest on this amount at the rate of 2.00%over the floating prime rate of JPMorgan-Chase or 8.00%.b)The price shall
also include all charges for repairs to the Equipment made by Owner,at Owner's standard rates for such parts or services,(c)Lessee shall be given a credit
against this price for 100%of all Term Rent paid by Lessee,and interest shall be computed on the declining balance of the price.(d)So long as this option is
exercised during the Term,the price shall be reduced by the following amounts:(d.1)100%of all Term Rent paid by Lessee and received by the Owner
luring or prior to the sixth month of the Term;(d.2)80%of alt Term Rent paid by Lessee end received the Owner during seventh,eighth or ninth months of
the Term;and(d.3)60%of all Term Rent paid by the Lessee and received by the Owner during the tenth,Seventh and twelfth months of the Term.(e)This
option to purchase shall terminate at the end of the term of this lease.Lessee shall thereafter have no right to purchase the Equipment,nor will Lessee be
entitled to any credit or other consideration for rent paid.
22.OTHER CONDITIONS:Customer to pick up unit at PECO yard In Denver.100%of rental to apply towards reduction of principal balance of new
SOMAS MPH 122-2,which will be delivered to Weld County as soon as possible(by approximately 5110/11)
POWE EQUIP' NT COMPANY,Owner WELD OUNTY,Lessee
By: � - By: Jt S!L //K.,CI7Gcc t.
Title:J�U1J II a ' air Ti e: Barbara Kir ,meyer, f ai r
P Board of Weld County Commissioners
MAR 2 g 2011
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