HomeMy WebLinkAbout157 - 11/03/1981 - AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT BETWEEN THE CITY AND THE MERIT FINANCIAL CO ORDINANCE NO 157, 1981
OF THE COUNCIL OF THE CITY OF FORT COLIINS
BEING AN ORDINANCE AUTHORIZING THE CITY MANAGER
TO ENTER INTO AN AGREEMENT BETWEEN THE CITY OF
FORT COLLINS AND THE MERIT FINANCIAL CORPORATION 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
WHEREAS, the City has received a proposal from the Merit Financial
Corporation whereby the Merit Financial Corporation will lease to the
City, with the option to purchase, the following described equipment
QUANTITY DESCRIPTION
I Trencher
and
WHEREAS, the City Council has determined that the City is in need of
the above listed equipment in order that it 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 the equipment from Merit Financial Corpora-
tion which is providing financing for the acquisition for the aforemen-
tioned equipment, and
WHEREAS, the City desires to enter into an equipment lease agreement
with the Merit Financial Corporation with respect to the leasing of the
equipment, and
WHEREAS, the terms of the equipm-nt lease agreement will provide as
follows
The City shall lease from Merit Financial Corporation, with an option
to purchase, the following equipment
QUANTITY DESCRIPTION
I Trencher
at a cost of $22,031 45
The agreem_nt shall be fov an original term from the date of
eAecution of the agreement through Deceoiber 31 , 1981 The
agreement %hall provide for d renewable one-year tern as follows
• RENEWA9LE
ONE YEAR
ITEM TEPf1
Trencher December 31 , 1984
The City shall make equal quarterly payments for each of the
consecutive terns of such agreement
If the City shall lease the equipment for the original term and
all successive renewal terms, the payment to Herit Financial
Corporation will total the sum of the principal , plus interest at
a fixed rate equal to 13 449%
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 deered to have exercised the option to purchase
the equipmont and have all right , title and interest to the
equipment
This agreement shall not be a pledge of the City' s revenues
NOW, THEREFORE, 8E IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS, that the City Manager be, and he hereby is, authorized to enter
into a lease/purchase agreement of the above described equipment in accor-
dance with the terms and provisions set forth above
Introduced, considered favorably on first reading, and ordered pub-
lished this 20th oay of October, A D 1981 , and to be presented for final
passage on the 3rd day of November, A D 1981
1
Mayo!
ATTEST
lti C�1�
City Clerk
1931 Passea and adopted on final reading this 3rd day of November, A D
qllayur
ATTEST r
i
City Clem
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