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HomeMy WebLinkAbout053 - 05/01/1984 - AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT FOR THE LEASE/PURCHASE OF VEHICLES AND EQUIP M ORDINANCE NO. 53, 1984 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 pro- perty 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 Merit Financial Cor- poration whereby Merit Financial Corporation will lease to the City the following described equipment: Quantity Description 1 20 ft. Rotary Mower 1 72" Toro Riding Mower 2 5 Gang Mowers 5 Police Patrol Cars 6 Autotherms 2 Compact Pickups 4 4-Door Sedans 3 2-Door Sedans 1 85 HP Ag Tractor 20 Computer Softboxes 20 Printers & Related Items 19 Printer Stands 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 Merit Financial Corpor- ation which is providing financing for the acquisition of said equipment; and WHEREAS, the City desires to enter into an equipment lease agreement with Merit Financial Corporation with respect to the leasing of said equip- ment; and WHEREAS, the terms of the equipment lease agreement will provide as follows: The City Shall lease from Merit Financial Corporation the fol- lowing equipment: Quantity Description 1 20 ft. Rotary Mower 1 72" Toro Riding Mower 2 5 Gang Mowers 5 Police Patrol Cars 6 Autotherms 2 Compact Pickups 4 4-Door Sedans 3 2-Door Sedans 1 85 HP Ag Tractor 20 Computer Softboxes 20 Printers & Related Items 19 Printer Stands 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 as follows: RENEWABLE ONE YEAR ITEM TERMS 20 ft. Rotary Mower December 31, 1988 72" Toro Riding Mower December 31, 1988 5 Gang Mowers December 31, 1988 Police Patrol Cars December 31, 1988 Autotherms December 31, 1988 Compact Pickups December 31, 1989 4-Door Sedans December 31, 1989 2-Door Sedans December 31, 1989 85 HP A9 Tractor December 31, 1989 Computer Softboxes December 31, 1989 Printers & Related Items December 31, 1989 Printer Stands December 31, 1989 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 Merit Financial Corporation will total the sum of the principal , Two Hundred Seventy-Eight Thousand Nine Hundred Sixty-Seven Dollars ($278,967.00) plus interest at a fixed rate equal to 8.689%. -2- 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 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 enter into a 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 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 17th day of A ril , A.D. 1984, and to be presented for final passage on the 1st day of May A.D. 1984. ayor ATTEST: City Passed and adopted on final reading this 1st day of May , A.D. 1984. mayor ATTEST: ty er c `— -3-