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HomeMy WebLinkAbout024 - 03/15/1983 - AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT BETWEEN THE CITY AND MERIT FINANCIAL CORP. F ORDINANCE NO. 24 , 1983 OF THE COUNCIL OF THE CITY OF FORT COLLINS BEING AN ORDINANCE AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT BETWEEN THE CITY OF FORT COLLINS AND MERIT FINANCIAL CORP. FOR THE LEASE AND OPTION TO PURCHASE CERTAIN EQUIPMENT WHEREAS, the City is authorized under the provisions of Title 31, Chapter 15, part 8, C.R.S. 1973, as amended, 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 Merit Financial Corp. whereby Merit Financial Corp. will lease to the City the following described equipment: Quantity Description 19 Police Patrol cars 1 42" Industrial Sweeper i5 Gas-powered golf carts 1 Minolta 320 copy machine 1 Rogers turf sweeper 1 Olathe turf sweeper 1 3-Wheel utility vehicle 1 1/2 Ton Pickup 1 Tow-behind paver 1 3/4 Ton Cab/Chassis 1 Utility body for 3/4 T. Cab/Chassis 1 Passenger Van 25 Police light bars 15 Unitrol control panels 25 Motorola syntors (8 channel ) 25 Motorola chargers 1 Motorola 4 channel mitrek w/outside speaker 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 Corp. 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 Corp.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 Merit Financial Corp. the following equipment: QUANTITY DESCRIPTION 19 Police Patrol cars 1 42" Industrial Sweeper 15 Gas-powered golf carts 1 Minolta 320 copy machine 1 Rogers turf sweeper 1 Olathe turf sweeper 1 3-Wheel utility vehicle 1 1/2 Ton Pickup 1 Tow-behind paver 1 3/4 Ton Cab/Chassis 1 Utility body for 3/4 T. Cab/Chassis 1 Passenger Van 25 Police light bars 15 Unitrol control panels 25 Motorola syntors (8 channel ) 25 Motorola chargers 1 Motorola 4 channel mitrek w/outside speaker The agreement shall be for an original term from the date of execution of the agreement through December 31, 1983. The agreement shall provide for renewable one year terms as follows: RENEWABLE ONE YEAR ITEM TERMS Police Patrol cars December 31, 1986 42" industrial sweeper December 31, 1986 Gas-powered golf carts December 31, 1986 Minolta 320 copy machine December 31, 1986 Rogers turf sweeper December 31 , 1986 Olathe turf sweeper December 31, 1986 3 Wheel utility vehicle December 31, 1986 -2- 1/2 Ton Pickup December 31, 1987 Tow-behind paver December 31, 1987 3/4 Ton Cab/Chassis December 31, 1987 Utility body for 3/4 T. Cab/Chassis December 31 , 1987 Passenger Van December 31, 1987 Police light bars December 31, 1988 Unitrol control panels December 31, 1988 Motorola syntors (8 channel ) December 31 , 1988 Motorola chargers December 31, 1988 Motorola 4 channel mitrek w/outside speaker December 31, 1988 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 Corp.will total the sum of the principal , Three Hundred Sixty-Two Thousand Five Hundred Dollars ($362,500.00) plus interest at a fixed rate equal to 8.744 %. 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 terms, 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 des- cribed equipment, be, and they hereby are, appropriated in the funds of the respective departments' acquiring said equipment. -3- Introduced, considered favorably on first reading, and ordered pub- lished this 1st day of March A.D. 1983, and to be presented for final passage on the 15th day of Mar A.D. , 1983. co - ' ATTEST: Assistant Ma City Clerk Passed and adopted on final reading this 15th day of March A.D. 1983. Mayor 77 ATTEST: City Clerk -4-