HomeMy WebLinkAbout041 - 04/21/1981 - AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT BETWEEN THE CITY OF FORT COLLINS AND FIRST N (Alternative "B")
ORDINANCE NO 41 1981
OF THE COUNCIL OF THE C177-UF FORT COLLINS
BEING AN ORDINANCE AUTHORIZING THE CITY MANAGER
TO ENTER INTO AN AGREEMENT BETWEEN THE CITY OF
FORT COLLINS AND THE FIRST NATIONAL BANK FOR THE
LEASE AND OPTION TO PURCHASE CERTAIN EQUIPMENT
WHEREAS, the City is authorized under the provisions of Title 31,
Chapter 15, part 8, C R S 1973, as amended, 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
WHEREAS, The City has received a proposal from the First National Bank
whereby the First National Bank will lease to the City the following
described equipment
Quantity Description
18 1981 Chrysler Le Barons
and
WHEREAS, the City Council has determined that the City is in need of
the Chrysler Le Barons in order that they may be used as Police Department
patrol vehicles, and
WHEREAS, the City Council has determined that it is in the best
interest of the City to lease the equipment from Boettcher and Company,
which is providing financing for the acquisition of the aforementioned
equipment, and
WHEREAS, the City desires to enter into an equipment lease agreement
with the First National Bank with respect to the leasing of the equipment,
and
WHEREAS, the terms of the equipment lease agreement will provide as
follows
The City shall lease from First National Bank 18 1981
Chrysler Le Barons
The agreement shall be for an original term from the
date of execution of the agreement through December 31,
1981 The agreement shall provide for three (3)
renewable one-year terms from January 1 to December 31
of 1982, 1983, and 1984 The agreement shall provide
for a six month renewable term from January 1, 1985
through June 30, 1985
10
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
First National Bank will total the sum of the princi-
pal , One Hundred Forty-Six Thousand Seven Hundred
Ninety-Seven Dollars and 56/100 ($146,797 56), plus
interest at a fixed rate equal to 65% of the First
National Bank's prime rate
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 ending on June 30, 1985, the City shall
be deemed to have exercised the option to purchase the
equipment and have all right, title and interest to the
equipment
This agreement shall not be a pledge of the City's
revenues
Introduced, considered favorably on first reading, and ordered pub-
lished this 31st day of March , A D 1981, and to be resented for
final passage on the 21st ay�of—�{pri A.D 1981
ATTEST
City ClerK
Passed and adopted on final reading this 21st day of April ,
A D 1961 2 &
ATTEST Mayor
\
City ty
Clerk
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