The Park and Recreation Department will use this Agreement to lease and purchase grounds maintenance equipment for Rockwood Park Golf Course. Staff will use the equipment to maintain the golf course property. A lease to purchase option will be executed with Professional Turf Products, L.P. through TCF Equipment Finance, a division of TCF National Bank, for the equipment as well as repairs, maintenance, and parts not covered under the standard manufacturer's warranty.
These pieces of mowing equipment are necessary to maintain the turf at the new golf course at Rockwood Park to the standard golfers are accustomed to. All pieces of proposed equipment have a life expectancy of 7 to 10 years.
COOPERATIVE PURCHASE - State law provides that a local government purchasing an item under a Cooperative Purchasing Agreement satisfies state laws requiring that the local government seek competitive bids for purchase of the item. Texas Association of School Boards, Inc. BuyBoard (BuyBoard) contracts have been competitively bid to increase and simplify the purchasing power of government entities. PRICE ANALYSIS – Professional Turf Products, L.P. is offering units with savings up to 20 percent on new equipment. The unit prices are 14 percent lower than the previous prices approved by City Council on October 22, 2005 (M&C P-10252). The prices have been reviewed by Staff and deemed fair and reasonable based on current market values. The first payment of $4,596.00 will be paid on September 1, 2016.
ADMINISTRATIVE CHANGE ORDER - An administrative change order or increase may be made by the City Manager in the amount up to $50,000.00 and does not require specific City Council approval as long as sufficient funds have been appropriated.
M/WBE OFFICE - A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Purchasing Division and approved by the M/WBE Office, in accordance with the BDE Ordinance, because the purchase of goods or services is from sources where subcontracting or supplier opportunities are negligible.
LEASE TERM - The lease of the equipment will be for a period of 60 months at a monthly rate of $4,596.00 and will begin upon execution of the contract. The lease purchase option financing is subject to a 3.59 percent interest rate. The Lease-Purchase agreement allows the City to purchase the equipment for one dollar ($1.00) at the end of lease. |