HomeMy WebLinkAbout088 - 07/19/1983 - AUTHORIZING THE CITY MANAGER TO AMEND AN AGREEMENT BETWEEN THE CITY AND MERIT FINANCIAL CORPORATION ti
ORDINANCE NO. 88 , 1983
OF THE COUNCIL OF THE CTTY—OF FORT COLLINS
AUTHORIZING THE CITY MANAGER TO AMEND AN
AGREEMENT BETWEEN THE CITY OF FORT COLLINS
AND MERIT FINANCIAL CORPORATION FOR THE LEASE
AND OPTION TO PURCHASE CERTAIN EQUIPMENT
WHEREAS, the City is authorized under the provision 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 provide for the payment of said property
from any available municipal income; and
WHEREAS, the City has entered into an Agreement with Merit Financial
Corporation whereby Merit Financial Corporation is leasing certain equip-
ment to the City; and
WHEREAS, the City has determined that it is in need of a cargo van and
a step van in order that they may be used by various City departments; and•
WHEREAS, the City Council has decided that it is in the best interests
of the City to lease said equipment from Merit Financial Corporation which
is providing financing for the acquisition of said equipment; and
WHEREAS, the City desires to amend the existing equipment lease
agreement with Merit Financial Corporation with respect to the leasing of
said additional equipment; and
WHEREAS, the terms of the equipment lease agreement will provide as
follows:
The City shall lease from Merit Financial Corporation
the following equipment:
QUANTITY DESCRIPTION
1 Cargo van
1 Step van
The agreement shall be for the original terms from the
date of the execution of the agreement through December 31,
1983. The agreement shall provide for renewable one year
terms as follows:
EXPIRATION DATES
OF RENEWABLE
ITEM ONE YEAR TERMS
Cargo Van December 31, 1984, 1985, 1986
Step Van December 31, 1984, 1985, 1986
The City shall make equal quarterly payments for each
of the consecutive terms of such agreement.
The City shall lease the equipment for the original
term and all successive renewal terms, the payment to Merit
Financial Corporation will total the sum of the principal ,
Twenty-One Thousand Five Hundred and Ten Dollars ($21,510)
plus a fixed net effective interest rate of 8.751 percent
per annum.
The City shall have the option to purchase the equip-
ment 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 the equipment and have all right,
title and interest to said equipment.
This agreement shall not be a pledge of the City' s
revenues.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS:
Section 1. That the City Manager be, and he hereby is, authorized to
amend and execute the lease/purchase agreement for the above described
equipment in accordance with the terms and provisions set forth herein
above.
Section 2. That all proceeds necessary to purchase said above de-
scribed equipment be, and they hereby are, appropriated in the General
Fund.
introduced, considered favorably on first reading, and ordered pub-
lished this 5thday of July, A.D. 1983, and to be presented for final
passage on the 19thday of July , A.D. 1983.
()r�
May
ATTEST: (�
City Clerk
-2-
Passed and adopted on final reading this 19th day of July A.D.
1983.
ASSISTANT: Mayor
ATTEST:
-
City Clerk
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