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HomeMy WebLinkAbout085 - 05/16/1989 - AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT FOR THE LEASE-PURCHASE OF A COPY MACHINE ORDINANCE NO. 85, 1989 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT FOR THE LEASE/PURCHASE OF A COPY MACHINE 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 long-term rental or leasehold agreement with an option to purchase such equipment and to provide for the payment of said property from any available municipal income; and WHEREAS, The City has received a proposal from Maryland National Leasing Corporation (MNC) to lease to the City the following described equipment: QUANTITY DESCRIPTION 1 Each .090 Xerox Copy Machine 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 to upgrade the existing copy machine; and WHEREAS, the City Council has determined that it is in the best interest of the City to lease the Equipment from MNC Leasing, which is providing financing for the acquisition of the Equipment; and WHEREAS, the City desires to enter into an equipment lease agreement with MNC Leasing with respect to the leasing of the Equipment; and WHEREAS, the City Council has determined that the lease payments in the sum of Four Thousand Six Hundred Ten and 01/100 ($4,610.01) per quarter are reasonable and proper and represent the fair rental value of the Equipment. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: That the Purchasing Agent be, and he hereby is, authorized to enter into a lease/purchase agreement for the certain equipment in accordance with the following terms and provisions: The City shall lease one (1) 1090 Xerox Copy Machine, hereinafter referred to as the "Equipment", from MNC Leasing. This agreement shall be for an original term from the date of execution of the agreement through December 31, 1989. The agreement shall provide for two (2) renewable one-year terms and a final term of less than one (1) year, through the life of the Equipment. The total period of the lease shall not exceed three (3) years. The City shall make equal quarterly payments for each of the consecutive terms of such agreement. If the City shall lease the Equipment for the original term and all successive renewal terms, the payment to MNC Leasing will total the sum of the principal , Forty-Eight Thousand Seven Hundred Thirty and No/100 ($48,730.00) plus interest at a fixed rate equal to 8.03%. The City shall have an option to purchase 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. If the City shall renew the agreement for all the renewal terms, the City shall be deemed to have exercised the option to purchase said Equipment at the end of the lease. This 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. Introduced, considered favorably on first reading, and ordered published this 2nd day of May, A.D. 1989, and to be presented for final passage on the 16th day of May, A.D. 1989. Mayor ATTEST: "�City Clerk Passed and adopted on final reading this h day of May, A.D. , 1989. Mayor ATTEST: City Clerk