(A) Lease defined. A LEASE is a contract for the use of equipment or other supplies, or real property under which title does not pass to the town unless there is a purchase option where title may pass to the town at some future time. A lease period shall be restricted to a maximum of 20 years.
(B) Entering a lease. A lease may be entered into provided if:
(1) It is in the best interest of the town;
(2) All conditions for renewal and costs of termination are set forth in the lease;
(3) The lease is not used to circumvent normal procurement procedures; and
(4) The lease contains appropriate non-appropriation language.
(C) Lease with purchase option. A purchase option in a lease may be exercised only if the lease containing the purchase option was awarded under competitive sealed bidding or competitive sealed proposal, or the leased supply or facility is the only supply or facility that can meet the town’s requirements as determined in writing by the purchasing agent.
(D) Option provisions. When a contract is to contain an option for renewal, extension, or purchase, notice of such provision shall be included in the solicitation. Exercise of the option is always at the town’s discretion only and not subject to agreement or acceptance by the contractor.
(Ord. 2012-16, passed 11-15-2012; Am. Ord. 2017-06, passed 5-18-2017; Am. Ord. 2019-13, passed 1-16-2020; Am. Ord. 2024-02, passed 3-21-2024)