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HomeMy WebLinkAbout082 - 07/20/1982 - AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT FOR THE LEASE AND OPTION TO PURCHASE CERTAIN r ORDINANCE NO 82 , 1982 OF THE COUNCIL OF THE CITY OF FORT COLLINS BEING AN ORDINANCE AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT FOR THE LEASE AND OPTION TO PURCHASE CERTAIN EQUIPMENT WHEREAS, the City is authorized under the provisions of Title 31, Chapter 15, Part 8, CRS 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 _ WHEREAS, the City has received a proposal from Merit Financial Corp whereby they will lease to the City the following described equipment QUANTITY DESCRIPTION 1 Police POSSE System and WHEREAS, the City Council has determined that the City is in need of the above listed equipment, and WHEREAS , the City Council has determined that it is in the best interest of the City to lease the equipment from Merit Financial Corp which is providing financing for the acquisition or the aforementioned equipment, and WHEREAS, the City desires to enter into an equipment lease agreement with respect to the leasing of the 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 1 Police POSSE System The Agreement shall be for an original term from the date of execution of the agreement through August 1 1987, at a cost Of $158,831 00 The agreement shall provide for a renewable one-year term as follows RENEWABLE ONE YEAR ITEM TERM Police POSSE December 31 1982 December 31, 1983 December 31 , 1984 December 31 , 1985 December 31, 1986 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 the lessor will total the sum of the principal , plus interest at a fixed rate equal to 11 687% 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 the 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 of the above described equipment in accordance with the terms and provisions set forth above Section 2 That all proceeds necessary to purchase said above des- cribed equipment be and they hereby are appropriated in the General Fund for acquisition of said equipment Introduced, considered favorably on first reading, and ordered pub- lished this 6th day of July, A D 1982 , and to be presented for final passage on the 20th day of July, A D 1982 Mayor ATTEST 14"� &A�h City Clerk -2- Passed and adopted on final reading this 20th day of July , A D 1982 hiayo r ATTEST I�t"V�� City Clerk -3-