HomeMy WebLinkAbout076 - 05/02/1989 - AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT FOR THE LEASE-PURCHASE OF COMPUTER EQUIP ORDINANCE NO. 76, 1989
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT
FOR THE LEASE/PURCHASE OF COMPUTER EQUIPMENT AND SOFTWARE
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
1 lot Digital Equipment Corporation and related hardware
1 lot Moore Governmental System, Inc. Software
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
City computer system; 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; and
WHEREAS, the City Council has determined that the lease payments in
the sum of Forty-two Thousand Eight Hundred Forty One Dollars (E42,841) per
quarter are reasonable and proper and represent the fair rental value of
the subject equipment.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the Purchasing Agent 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 Equipment.
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 four (4) renewable one-year terms and
a final term of less than one (1) year. The total period of the
lease shall not exceed five (5) 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 , Seven Hundred Thousand Dollars
($700,000) 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 purcnase 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.
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 18th day of April , A.D. 1989, and to be presented for final
passage on the 2nd day of May, A.D. 1989.
Mayor
ATT
City Clerk
Passed and adopted on final reading this
-2/nd day of May, A.D. , 1989.
Mayor
TTEST:
City Clerk