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County discovers $95,000 balloon payment on equipment lease; procurement review and policy checks proposed
Summary
County staff reported a previously signed equipment lease carried a $95,000 balloon payment at term rather than a transfer/owning option. Administration said it will engage contract renewal and route future contracts to corporate counsel for review; commissioners requested reviewing the county procurement policy for required attorney review.
County staff told commissioners that a previously signed equipment lease carries an unexpected $95,000 balloon payment due at the end of the term rather than transferring ownership at nominal cost.
The lease, signed before the current administrator’s tenure, set annual payments of $22,862. County staff said they received a bill from FirstBank for the $95,000 balloon amount and that the agreement’s fine print required returning the equipment unless a balloon payment was made. The county reported negotiating to renew the contract for four additional annual payments while county counsel reviews options.
Commissioners said the contract language may have been misrepresented and urged that corporate counsel review contracts going forward. The interim administrator said it is standard practice to route contracts to the county attorney; commissioners discussed updating the procurement policy to require explicit legal review of contracts to avoid similar surprises.
No formal vote to pay the balloon or terminate the lease was recorded at the meeting. Staff said they will return with the contract renewal details, attorney review and proposed procurement-policy changes.
