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HomeMy WebLinkAbout013 - 02/21/1989 - AUTHORIZING THE DIRECTOR OF PURCHASING AND RISK MANAGEMENT TO ENTER INTO AN AGREEMENT FOR THE LEASE- ORDINANCE NO. 13 , 1989 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE DIRECTOR OF PURCHASING AND RISK MANAGEMENT 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 or property and to provide for the payment of said property from any available municipal income; and WHEREAS, the City has received a proposal from General Electric Fleet Services, Inc. to lease to the City the following described equipment and vehicles: QUANTITY DESCRIPTION 1 ea. Walk-behind snowblower 1 ea. Portable cement mixer 15 ea. 1989 gas powered golf carts 1 ea. 1989 4-wheel drive truckster 1 ea. 1989 equipment trailer 26 ea. 1989 Police patrol cars/vans 16 ea. 2-way radios 25 ea. Police emergency light bars 2 ea. Police restraint cages 15 ea. Unitrols 4 ea. Police patrol car push bumpers 6 ea. MDTs (mobile computers) 1 ea. 1989 72" riding mower 1 ea. 1989 tow-type aerator 2 ea. 1989 3/4 ton utility trucks 1 ea. 1989 mini cargo van 1 ea. 1989 3/4 ton 4x4 utility truck 1 ea. 1989 3/4 ton utility truck 1 ea. 1989 backhoe/loader 3 ea. 1989 3-wheel utility trucksters 1 ea. 1989 1-1/2 ton dump truck 1 ea. 1989 street milling machine hereinafter referred to as the "equipment"; 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 General Electric Fleet Services, Inc. , which is also providing financing for the acquisition of said equipment; and WHEREAS, the City desires to enter into a lease agreement with respect to the leasing and financing of said equipment; and WHEREAS, the City Council has determined that the lease payments in the sum of $56,259.49 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 that the Director of Purchasing and Risk Management be, and he hereby is, authorized to enter into a lease/purchase agreement with General Electric Fleet Services, Inc. for the above described equipment in accordance with the following terms and provisions: The agreement shall be for an original term from the date of execution of the agreement through December 31, 1989. The agreement shall provide for renewable one-year terms thereafter, through the life of each item, as indicated below: ITEM END OF FINAL TERM, IF RENEWED Walk-behind snowblower December 31, 1991 Portable cement mixer December 31, 1991 1989 gas powered golf carts December 31, 1992 1989 4-wheel drive truckster December 31, 1992 1989 equipment trailer December 31, 1992 1989 Police patrol cars/vans December 31, 1992 2-way radios December 31, 1992 Police emergency light bars December 31, 1992 Police restraint cages December 31, 1992 Unitrols December 31, 1992 Police patrol car push bumpers December 31, 1992 MDTs December 31, 1992 1989 72" riding mower December 31, 1993 1989 tow-type aerator December 31, 1993 1989 3/4 ton utility trucks December 31 , 1993 1989 mini cargo van December 31, 1993 1989 3/4 ton 40 utility truck December 31, 1993 1989 3/4 ton utility truck December 31, 1993 1989 backhoe/loader December 31, 1995 1989 3-wheel utility trucksters December 31, 1995 1989 1-1/2 ton dump truck December 31, 1995 1989 street milling machine December 31 , 1995 The City shall make equal quarterly payments for each of the consecutive terms of such agreement. If the City leases the equipment for the original term and all successive renewal terms, the payment to General Electric Fleet Services, Inc. will total the sum of the principal , Nine Hundred Thousand Dollars ($900,000) , plus interest at a fixed rate equal to 7.58% per year. 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 renews the agreement for all the renewal terms and makes all payments during said terms, the City shall be deemed to have exercised the option to purchase said equipment. The agreement shall not constitute a pledge of the City's revenues. Introduced, considered favorably on first reading and ordered published this 7th day of February, A.D. 1989, d e presented for final passage on the 21st day of February, A.D Mayor ATTEST: , 4-" :� City Clerk ^�— Passed and adopted on final reading this t f February, A.D. , 1989. MaYr ATTEST: City Clerk