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HomeMy WebLinkAboutRFP - 8345 LEASE PURCHASE FINANCING 2016Addendum 1 Page 1 of 2 ADDENDUM NO. 1 SPECIFICATIONS AND CONTRACT DOCUMENTS Description of BID 8345: Lease Purchase Financing 2016 OPENING DATE: 3:00 PM (Our Clock) October 14, 2016 To all prospective bidders under the specifications and contract documents described above, the following changes/additions are hereby made and detailed in the following sections of this addendum: Exhibit 1 – Questions & Answers Please contact Doug Clapp, CPPB, Senior Buyer at (970) 221-6776 with any questions regarding this addendum. RECEIPT OF THIS ADDENDUM MUST BE ACKNOWLEDGED BY A WRITTEN STATEMENT ENCLOSED WITH THE BID/QUOTE STATING THAT THIS ADDENDUM HAS BEEN RECEIVED. Financial Services Purchasing Division 215 N. Mason St. 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6775 970.221.6707 fcgov.com/purchasing Addendum 1 Page 2 of 2 EXHIBIT 1 – QUESTIONS & ANSWERS 1. Would you please clarify Section 1.2 and 1.4 of your Master Lease Purchase Agreement. Will the City allow Lessor to be listed as lien holder on the City’s titled vehicles? No 2. Is there a statutory restriction from allowing the Lessor to be listed as Lien Holder on your vehicle titles thus the creation of the “naked legal title” structure? If Lessor does not have a security interest in the vehicles and the titles are held in trust what keeps the City of having a duplicate title issued in order to dispose of the vehicle outside of the Escrow Agent’s control. There is not a statutory restriction to allowing the Lessor to be listed as Lien Holder on the vehicle titles, however this would add additional administrative burden to the process. The Lessor does have a secured interest in the vehicles pursuant to the terms of the Master Lease Purchase Agreement and Escrow Agreement. All vehicle title certificates are deposited in escrow with a Power of Attorney executed by the City which the Escrow Agent is to use to assign the certificates of title to the Lessor under clearly defined circumstances. Although theoretically the City may be able to circumvent the process to dispose of a vehicle outside the Escrow Agent’s control, the City is committed to honor its commitments and obligations. 3. In regards to reviewing the City’s Master Lease Purchase Agreement, will the City accept the following: • Remove Paragraph 8.3 Default by Lessor. No. • In Exhibit D to the Master Lease-Purchase Agreement contains a section 17 that indicates that the Lessee and Lessor agree that Lessor shall have a security interest in the Escrow Account, which is granted by the Lessee to secure payment of all sums due to the Lessor under the Lease, and that for such purpose, the Escrow Agent “agrees to act as agent for the Lessor in connection with the perfection of such security interest and agrees to note, or cause to be noted, on all books and records relating to the Escrow Account, the Lessor’s interest therein.” Would the City allow the addition that the Escrow Agent agrees to denote the escrow account as such “subject to lessor’s security interest.” The City will consider amending the Escrow Agreement to denote the escrow account as “subject to Lessor’s secured interest” subject to the Escrow Agents concurrence to incorporate such language.