HomeMy WebLinkAbout067 - 07/07/1992 - AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT FOR THE FINANCING BY LEASE PURCHASE OF L ORDINANCE N0. 67 , 1992
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE PURCHASING AGENT TO ENTER
INTO AN AGREEMENT FOR THE FINANCING BY
LEASE-PURCHASE OF LASER SPEED
DETECTION UNITS
WHEREAS, the City is authorized under the provisions of Title 31, Article
15, Part 8, C.R.S. , to acquire by ordinance necessary equipment and other
property for its governmental and proprietary purposes under the provisions of
a long-term 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 so long as said ordinance takes effect no sooner than
30 days after its passage and publication; and
WHEREAS, the City has received a proposal from SAFECO CREDIT CO. , INC. to
lease to the City the following described equipment:
One Laser Technologies Laser Speed Detection Unit, and
One Kustom Signal Laser Speed Detection Unit
hereinafter referred to as the "equipment"; and
WHEREAS, the City Council has determined that the City is in need of the
equipment in order that the same may be used by the Fort Collins Police
Department; and
WHEREAS, the City Council has determined that it is in the best interest
of the City to lease said equipment from SAFECO CREDIT CO. , INC. , which is also
providing financing for the acquisition of said equipment; and
WHEREAS, the City desires to enter into a lease-purchase agreement with
respect to the leasing and financing of said equipment; and
WHEREAS, the City Council has determined that the lease payments in the sum
of $781 .07 per quarter are reasonable and proper and represent the fair rental
value of the subject equipment, and sufficient funds to make the lease payments
for 1992 are appropriated and available.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS
as follows:
Section 1. That the Purchasing Agent be, and hereby is, authorized to
enter into a lease-purchase agreement for the above-described equipment in
accordance with the following terms and provisions:
(a) The agreement shall be for an original term from the date of
execution of the agreement through August 6, 1995. The agreement
shall provide for renewable one-year terms thereafter, through the
life of each item, contingent upon the appropriation of funds needed
for lease payments. The total lease term, including the original
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and all renewal terms, shall not exceed the useful life of the
property.
EQUIPMENT END OF FINAL TERM, IF RENEWED
2 Laser Speed Detection Units August 6, 1995
(b) The City shall make equal quarterly payments throughout the term of
such agreement.
(c) If the City leases the equipment for the original term and all
successive renewal terms, the payment to SAFECO CREDIT CO. , INC. ,
will total the sum of the principal , Eight Thousand Five Hundred
Five Dollars ($ 8,505.00) , plus interest at a fixed rate equal to
6. 11% per year, which is a reasonable amount.
(d) The City shall have an option to purchase any piece or combination
of pieces or all of the equipment 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 said equipment.
(f) The agreement shall constitute only a current expense of the City
and shall not be construed to be a debt or pledge of the City's
credit or revenues.
Section 2. That the effective date of this ordinance shall be August 6,
1992.
Introduced, considered favorably on first reading, and ordered published
this 2nd day of June, A.D. 1992, and to be presented for final passage on the 7th
day of July, A.D. 1992.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 7th day of July, A.D. 1992.
Mayor
ATTEST:
City Clerk