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HomeMy WebLinkAbout047 - 04/21/1987 - AUTHORIZING AGREEMENT FOR LEASE/PURCHASE OF VEHICLES AND EQUIPMENT ORDINANCE NO. 47, 1987 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 provide for the payment of said property from any available municipal income; and WHEREAS, the City has received a proposal from First Continental Financial Corporation whereby First Continental Financial Corporation will lease to the City the following described equipment: QUANTITY DESCRIPTION 19 1987 Police patrol cars 1 1987 Toro diesel riding mower 1 1987 Toro gas riding mower 5 1987 4-door Sedans and WHEREAS, the City Council has determined that the City is in need of the above listed equipment in order that they 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 First Continental Financial Corporation, which is providing financing for the acquisition of said equipment; and WHEREAS, the City desires to enter into an equipment lease agreement with First Continental Financial Corporation with respect to the leasing of said equipment; and WHEREAS, the terms of the equipment lease agreement will provide as follows: The City shall lease from First Continental Financial Corporation the following equipment: QUANTITY DESCRIPTION 19 1987 Police patrol cars 1 1987 Toro diesel riding mower 1 1987 Toro gas riding mower 5 1987 4-door sedans This agreement shall be for an original term from the date of execution of the agreement through October 31, 1992. The agreement shall provide for renewable one year terms as follows: ITEM RENEWABLE ONE YEAR TERMS 1987 Chevrolet Police Patrol Cars December 31, 1991 1987 Toro riding mower, diesel December 31, 1992 1987 Toro riding mower, gas December 31, 1992 1987 4-door sedans December 31, 1992 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 Continental Financial Corporation will total the sum of the principal $316,000 plus interest at a fixed rate equal to 6.225%. 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 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 enter into a lease/purchase agreement for the above described equipment in accordance with the terms and provisions set forth herein above in the approximate principal amount of $316,000 plus interest at a fixed rate equal to 6.225%. Section 2. That all proceeds to the City from the above mentioned lease/purchase agreement which are necessary to purchase said above described equipment, be, and they hereby are, appropriated in the funds of the respective departments acquiring said equipment. -2- Introduced, considered favorably on first reading and ordered published this 17th day of March, A.D. 1987, and to be presented for final passage on the 21st day of April , A.D. 1987. a ,o ATTEST: City Clerk Passed and adopted on final reading this 21st day of April , A.D. 1987. ar ATTEST: r City Clerk -3-