HomeMy WebLinkAbout086 - 08/17/1993 - AUTHORIZING THE PURCHASE AGENT TO ENTER INTO A LEASE PURCHASE AGREEMENT FOR A KODAK 2110 COPIER ORDINANCE NO. 86, 1993
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE PURCHASING AGENT TO ENTER
INTO A LEASE/PURCHASE AGREEMENT FOR A
KODAK 2110 COPIER
WHEREAS, the City is authorized under the provisions of Title 31, Article
15, Part 8, C.R.S. , to acquire necessary equipment and other property for its
governmental and proprietary purposes under the provisions of a rental or
leasehold agreement with an option to purchase such equipment or property and to
provide for the payment of said property from any available municipal income; and
WHEREAS, the obligation to make lease payments under such an agreement is
subject to annual appropriation and does not constitute a "multiple-fiscal year
direct or indirect debt or other financial obligation" of the City within the
meaning of Article X, Section 20(4) (b) of the Colorado Constitution; and
WHEREAS, Section 8-160(e) of the City Code authorizes the Purchasing Agent
to procure additional services from a successful bidder who was awarded a
contract by the City within the preceding 24 months without an additional
competitive process, provided the price of the service was not higher than the
previous award; and _
WHEREAS, the City has a Lease/Purchase Agreement with Municipal Services
Group Inc. that was entered into less than 24 months ago; and
WHEREAS, the City has received a proposal to lease to the City the
equipment set forth in Section 1 below on the terms and provisions set forth in
said Section 1 from Municipal Services Group Inc. , which is the same rate as the
existing Lease/Purchase Agreement between the parties; and
WHEREAS, the City Council has determined that it is in the best interest
of the City to enter into a lease-purchase agreement so structured; and
WHEREAS, the City Council has determined that the lease payments in a sum
not exceeding $4,474 per quarter are reasonable and proper and represent the fair
rental value of the subject equipment, and sufficient funds to make the lease
payments for 1993 are appropriated and available in the City's 1993 budget.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS
as follows:
Section 1. That the Purchasing Agent be, and hereby is, authorized to
enter into a lease-purchase agreement for the equipment described below and in
accordance with the following terms and provisions:
(a) The original term of the lease/purchase agreement shall be from
the date of execution of the agreement through December 31, 1993.
The agreement shall provide for renewable one-year terms thereafter,
through the weighted, average useful life of the Kodak 2110 copier
subject to annual appropriation of funds needed for lease payments.
The total lease term, including the original and all renewal terms, shall
not exceed the weighted average useful life of the copier, and the final
term shall end on August 31, 1996.
(b) The City shall make equal quarterly payments throughout the
term of such agreement but subject to annual appropriation of the
funds needed for such payments.
(c) If the City leases the copier for the original term and all
successive renewal terms, the total payments for the copier will not
exceed the total sum of $48,780 plus interest at a fixed rate not to
exceed 6.02% per year, which is a reasonable amount.
(d) The City shall have an option to purchase the copier on any
quarterly payment date of any term. The option to purchase shall be
exercised by paying the quarterly payment due on said date and the
unpaid principal due after said date.
(e) If the City renews the agreement for all the renewal terms and
makes all payments during said terms, the City shall be deemed to
have exercised the option to purchase the copier.
(f) The City's obligation to make lease payments under the
agreement shall be subject to annual appropriation.
Section 2. That each budget adopted by the City during the term of the
agreement shall contain the information required by Section 29-1-103(3)(d) ,
C.R.S. .
Section 3. That in order to comply with generally accepted accounting
principles for the accounting of leases, the amount to be provided to the City
under the lease-purchase agreement is hereby appropriated for fiscal year 1993
as unanticipated revenue in the appropriate funds for the acquisition of the
copier in accordance with the terms and provisions of the lease-purchase
agreement.
Introduced, considered favorably on first reading, and ordered published
this 3rd day of August, A.D. 1993, and to be presented for final passage on the
17th day of August, A.D. 1993.
or
ATTEST: p
"oa �e
City Clerk Q
Passed and adopted on final reading this 17th f August, A 993.
ATTEST: Mayor
�LLI
City Clerk