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HomeMy WebLinkAbout061 - 05/03/1988 - AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT FOR THE LEASE/PURCHASE OF VEHICLES AND EQUIP ORDINANCE NO. 61, 1988 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT FOR THE LEASE/PURCHASE OF VEHICLES AND EQUIPMENT 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 Leasing) to lease to the City the following described equipment: QUANTITY DESCRIPTION 3 ea. 1988 Chevrolet S-10 Extended Cab Pickups 1 ea. 1988 One Ton Cab/Chassis w/Platform Lift & Body 1 ea. 1988 One Ton Cab/Chassis w/Utility Body 1 ea. 1988 Backhoe and WHEREAS, the City Council has determined that the City is in need of the above listed equipment in order that the same may be used by various City departments; and WHEREAS, the City Council has determined that it is in the best interest of the City to lease said equipment from MNC Leasing, which is providing financing for the acquisition of said equipment; and WHEREAS, the City desires to enter into an equipment lease agreement with MNC Leasing with respect to the leasing of said equipment. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Manager be, and he hereby is, authorized to enter into a lease/purchase agreement for the above described equipment in accordance with the following terms and provisions: The City shall lease from MNC Leasing the following equipment : QUANTITY DESCRIPTION 3 ea. 1988 Chevrolet S-10 Extended Cab Pickups 1 ea. 1988 One Ton Cab/Chassis w/Platform Lift & Body 1 ea. 1988 One Ton Cab/Chassis w/Utility Body 1 ea. 1988 Backhoe This agreement shall be for an original term from the date of execution of the agreement through December 15, 1995. The agreement shall provide for renewable one-year terms as follows: ITEM RENEWABLE ONE YEAR TERMS 1988 Chevrolet S-10 Pickups December 31 , 1992 1988 One Ton Cab/Chassis w/Platform December 31 , 1992 1988 One Ton Cab/Chassis w/Utility Body December 31, 1992 1988 Backhoe December 31, 1994 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 One Hundred Twenty-four Thousand Seventy-five Dollars ($124,075. ) plus interest at a fixed rate equal to 7.95%. •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 forms, the City shall be deemed to have exercised the option to said equipment. This agreement shall not be a pledge of the City's revenues. Section 2. That all proceeds necessary to purchase said above described equipment, be, and they hereby are, appropriated in the funds of the respective departments acquiring said equipment. Introduced, considered favorably on first reading and ordered published this 19th day of April , A.D. 1988, and to be presented for final passage on the 3rd day of May, A.D. 1988. Mayor ATTEST- City Clerk QS Passed and adopted on final reading this 3rd day of May, A.D. 1988. Mayor ATTEST: City Clerk