TC Ord. No. 1983-39• ti
TOWN OF AVON
ORDINANCE NO.#83-39
SERIES OF 1983
AN ORDINANCE AUTHORIZING EXECUTION OF CERTAIN
EQUIPMENT LEASE AGREEMENTS
BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF
AVON, COLORADO:
Section 1. That certain Equipment Lease Agreement,
together with its exhibits A, B, and C, copies of which
agreement is attached hereto as Addendum I, and the terms of
each are hereby approved, and the acquisition of the municipal
properties described therein are hereby authorized.
Section 2. The Mayor and Town Clerk are hereby authorized
and directed to execute said Equipment Lease Agreement.
INTRODUCED, PASSED ON FIRST READING, APPROVED AND ORDERED
POSTED, THIS 22nd day of November , 1983 and a public hearing
on this ordinance shall be held at the regular meeting of the
Town Council of the Town of Avon, Colorado, on the 13th day
of December, 1983 at 7:30 p.m. in the municipal building of the
Town of Avon, Colorado.
Allan R. Nottingh , Mayor
ATTEST:
1
Patricia J. D4jle, Town
INTRODUCED, PASSED ON SECOND READING, APPROVED AND ORDERED
POSTED THIS 13th day of December-, 1983.
Allan R. Nottingham, ayor
ATTEST:
Patricia J. Do e, Town C jerk
• _ ADDENDUM I
Lease No. 88207
EQUIPMENT LEASE AGREEMENT
(Municipal ease)
The Lease is made this 22nd ~day.of November
19$3 between Colorado National Leasing, Inc., a Colorado
corporation ("Lessor"), and the Town of Avon ("Lessee").
In consideration of the mutual :covenants and promises
herein set forth, the parties agree,as follows:
1. LEASE. Lessor hereby leases to Lessee, and Lessee
hereby leases and hires from Lessor; the property, machinery
and equipment (..it pAe Equaipment
Description (Ex)lib
hereof).
2. TERM. This Lease shall commence on the date hereof
and unless provided any
- expire 5 y Y
item of the Lquinment.
3. -RENT. Rent for the Equipment shall be in the
amount set forth in the Equipment Lease Schedule (Exhibit pay
B attached hereto and made a part hereof). Lessee s Lessor such rant in the amounts and at the times set forth
on Exhibit B at the office of Lessor in Golden, Colorado, or
to such other person anti/or at such other place as Lessor
may from time to time designate in writing.
4. USE. Lessee shall use the Equipment in aacareful
and proper manner and shall comp y w
governmental laws, ordinances and 'regulations in any way
relating to the possession, use orb-maintenance of the
Equipment. If at any time during 'the term hereof Lessor
supplies Lessee-with labels, plates or other markings,
stating that the Equipment is owned by Lessor, Lessee shall
affix the same to a prominent place on the Equipment.
5. LESSEE'S INSPECTION; WARRANTY DISCLAIMER.
(a) Lessee shall inspect,the Equipment within
forty-eight'(48) hours after receipt thereof. Unless Lessee
within such period of time gives written notice to Lessor,
specifying any defect in or other proper objection.to the
Equipment, Lessee agrees that it shall be conclusively pre-
sumed'-as between Lessor and Lessee, - that Lessee has fully
inspected and acknowledged that the Equipment
condition and repair, and that Lessee is satisfied with and
has accepted the Equipment in such good condition and
repair. At or prior to expiration of such inspection
period, Lessee shall execute and deliver to Lessor the
Certificate of Acceptance. Exhibit C attached hereto and-
made a part hereof).
(b) Lessor hereby assigns to Lessee for and during
the term of this Lease all manufacturer's warranties and
guarantees, express or implied, with respect to the
Equipment, to the extent such warranties and guarantees are
assignable. Lessee acknowledges'that it selected each item
of Equipment based on its own analysis and investigation
from vendors chosen by Lessee and further acknowledges that
Lessor made no representations or warranties in connection
with the Equipment or vendors.LESSOR'MAKES NO WARRANTY,
EXPRESS OR IMPLIED, WITH RESPECT TO THE EQUIPMENT AND
EXPRESSLY DISCLAIMS ANY WARRANTY- RCGARDING THE
-1-
RECEIVED MAY 21 1984
MERCHANTABILITY OF THE EQUIPMENT, ITS FITNESS FOR A
PARTICULAR PURPOSE, ITS DESIGN, CONDITION OR WORKMANSHIP AND
THE ENFORCEABILITY OF ANY WARRANTY OR GUARANTEE. OF THE
MANUFACTURER OF THE EQUIPMENT.
6. LESSOR'S'INSPECrION. Lessor shall at any and all
times during business hours have the right to enter into and
upon the premises where the Equipment may be located for, the
purpose of inspecting the same or observing its use.
7. ALTERATIONS. Without the prior written consent of
Lessor, Lessee shall not mace any alterations, additions or
improvements to the Equipment.
8. REPAIRS. Lessee, at its own cost and expense,
shall keep the Equipment in good repair and condition and
shall bear all expenses of the maintenance and operation of
the Equipment.
9. INSURANCE; LOSS AND DAMAGE; AGREED OPTION PRICE.
Lessee shall keep the Equipment insured against all risks or
loss or damage by fire and such other risks as are covered
by endorsement commonly known as supplemental or extended
coverage for the greater of the fair market value thereof or
the "Agreed Option Price" set forth, ' in Exhibit B attached
hereto with respect to the Equipment. Lessee shall also
carry public liability and property damage insurance
covering the Equipment in amounts not less than $200,000 in
respect of bodily injury or death to any person, not less
than $500,000 in respect of any one accident, and not less
than $100,000 in respect of property damage. All such
liability insurance shall insure both Lessor and Lessee and
all such property damage insurance 'shall name Lessor as loss
payee as its interest may appear. Lessee may effect such
coverages under its blanket policies. No loss or damage to
the Equipment or any part thereof shall impair any obliga-
tion of the Lessee under this LeasF.- which shall continue in
full force and effect. In the event of loss or damage of
any kind whatever to any item of Equipment, the proceeds of
such insurance shall be applied to-any item or Equipment:
(a•) To place the same in good repair, condition and
working order, or replace the same with like Equipment in
good repair, condition and workingiorder; or
(b) If, in the reasonable judgment of Lessor, the
Equipment is determined to be lost, stolen, destroyed or
damaged beyond repair, Lessee shall pay Lessor therefor in
cash, to the extent the insurance proceeds paid to Lessor
may be insufficient, the Agreed Option Price set forth in
Exhibit B determined as of the date of the last full rental
payment made by Lessee, plus interest on such Agreed Option
Price at the rate set forth in Exhibit B from the date of
the last full rental payment until; the date of payment -for
the Equipment. Upon such payment this Lease shall terminate
with respect to the Equipment so paid for and Lessor will
thereupon execute and deliver to Lessee a bill of sale~~
transferring such~Equipment to Lessee "AS-IS-WHERE-IS,"
WITHOUT WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO ANY
MATTER WHATSOEVER.
10. SURRENDER. Except as provided in paragraph 20
hereof, upon the 'expiration or earlier termination of this
Lease, Lessee shall (unless Lessee has purchased the
Equipment pursuant to paragraphs 9 or 19 hereof) return the
saine to Lessor in good repair, condition and working order,
ordinary dear and tear resulting from proper use thereof
excepted, by delivering, at Lessee's sole cost and expense,
possession of the Equipment to Lessor at such place as
Lessor may designate.
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11. TAXES AND LIENS.
(a) Lessee agrees to pay and to indemnify and hold
Lessor harmless from all license, sales, use, personal pro-
perty or other taxes together with any penalties, fines or
interest thereon imposed or levied with respect to the
Equipment or the ownership, delivery, lease, possession,
use, operation, sale or the disposition thereof, or upon the
rentals or earnings arising therefrom.
(b) Lessee shall not directly or indirectly
create; incur, assume or suffer to exist any security
interest, lien or encumbrance on or with respect to any item
of Equipment or any interest therein. Lessee shall
promptly,.at its expense, take such action as may be
necessary to discharge any such security interest, lien or
encumbrance as and when the same shall arise.
12. LESSOR'S PAYMENT. In case of the failure of the
Lessee to procure or maintain insurance on the Equipment,
pay taxes on or with respect to the,Equipment or maintain
the Equipment free and clear of any security interests,
liens and encumbrances, as herein specified, Lessor shall
have the right, but not be obligated, to effect,such
insurance, to pay such taxes and discharge such security
interest, liens and encumbrances and the cost thereof shall
be repayable to Lessor with the next installment of rent.
13. DEFAULT. If the Lessee shall fail to pay the rent
due and payable under Exhibit H attched hereto within ten
(10) days after the"same is due and payable, or if the
Lessee shall fail to observe, keep"or perform any.other pro-
vision of this Lease for a period of ten.(10) days after
receipt of written notice thereof, Lessor shall have the
right to exercise any one or more of the following remedies:
(a) To terminate this Lease and to sue for and
recover all rents and other payments then accrued and unpaid
hereunder and all rents and other payments which will accrue
during the then current fiscal year of Lessee.
(b) To retain all rentals and to take possession
of any or all items or Equipment, without further demand or
notice and without any court order or other process of law-,
and either to remove the same or to lease the same to.others.
14. TERMINATION FOR NON-APPROPRIATION.
Notwithstanding anything herein to'the contrary, if Lessee
does not appropriate funds for any fiscal year of Lessee
during the term-hereof sufficient to pay the amounts due
hereunder in such fiscal year and Lessee has exhausted all
funds legally available for payments due under this Lease,
Lessee may, by „mitten notice given to Lessor no later than
ten (10) days after adoption of the-budget for such fiscal
year, thereupon terminate this Lease. Upon such ter-
mination, Lessee shall return the Equipment to Lessor in
accordance with paragraph 10 hereof and pay all rents and
.other payments due to Lessor for periods prior to the date
the Equipment is s,o returned to Lessor. If Lessee ter-
ease under the provisions of this paragraph
minates this Lease'
#14, Lessee may not, during the remaining"term of this
Lease, replace the Equipment subject to this Lease with like
kind or similarly functional Equipment or acquire the use of
replacement Equipment of any kind during the remaining term
of this Lease.
15. ASSIGNMENT. Without the prior "written consent of
Lessor, Lessee shall neither assign, transfer, pledge or
hypothecate this Lease, the Equipment or any part thereof,
or any interest.therein, nor sublet any item of Equipment.
It is understood that Lessor contemplates assigning this
Lease or interests in the Equipment and that Lessor's"
-3-
assignee may also assign the same. All rights of Lessor
hereunder may be assigned, transferred, or otherwise
disposed of, either in whole or in part, without notice to
Lessee; provided, however that no assignment of this Lease
or any interest therein shall be made except subject to the
rights granted to the Lessee by virtue or this Lease; and
provided further that no assignee of Lessor shall be obli-
gated to perform any duty, covenant or condition required to
be performed by Lessor under the terms of this Lease.
16. PERSONAL PROPERTY. The Equipment is, and shall at
all times be and remain, personal property notwithstanding
that the Equipment may be affixed or attached to, or
imbedded in, or permanently resting,upon,,real property or
any building thereon, or attached in any manner to what is
permanent as by means of cement, plaster, nails, bolts,
screws or otherwise.
17. INDEMNITY; LIMITS OF LIABILITY. Lessee hereby
assumes liability for and agrees to;indemnify and hold
Lessor harmless from and against any and all debts, liabili-
ties, obligations, claims and expenses, including court
costs and attorney's fees, incurred by or asserted against
Lessor in connection with, arising out of or incident to the
ownership, delivery, lease, possession, use, operation, con-
dition, sale or other disposition of any item of Equipment.
Lessor is not responsible for any repairs or service to the
Equipment or any defects therein. Lessor shall not be
liable for any consequential, incidental or special damages
of any character as a result of or arising out of th•e lease
of the Equipments or any, item thereof, including loss of
profits, property damage or lost production, whether suf-
fered by Lessee or any other person.
18. INTEREST. Should Lessee fail to pay any part of
the rent herein reserved or any other sum required by Lessee.
to be paid to Lessor, within 10 days after the due date
thereof, Lessee shall pay to the Lessor interest on such
delinquent payment from the due date until paid 'at the rate
of 18% per annum.
19. OPTION. Provided Lessee is not in default in the
performance o-,= its obligations hereunder, Lessee shall have-
the option, at any time after one year from the commencement
of this lease to purchase the Equipment for an amount equal
to the Agreed Option Price thereof set forth in Exhibit B at
the date of the last full rental payment, plus interest on
such Agreed Option Price at the rate set forth in Exhibit B
from the date of the last full rental payment until the date
of payment for the Equipment. Such option to purchase the
Equipment shall be exercised by the payment of the Agreed
Option Price plus interest as herein provided to Lessor at
Lessor's office in Goiden,'Colorado. If Lessee exercises
the option to purchase the Equipment, title thereto shall
thereupon become vested in Lessee and Lessor will thereupon
execute and deliver to Lessee a bill of sale transferring
such Equipment to Lessee "AS-IS-WHERE-IS", WITHOUT WARRANTY,
EXPRESS OR IMPLIED, WITH RESPECT TO ANY MATTER WHA'T'SOEVER.
20. EXPIRATION. If Lessee shall comply with all pro-
visions of this-Lease on its part to be kept and performed,
then upon the expiration or this Lease, all right, title and
interest of Lessor in the Equipment subject to this Lease
shall vest in and become the property of Lessee, and Lessor
will thereupon execute and deliver to Lessee a bill of sale
transferring such Equipment to Lessee, "AS-IS-WHERE-IS",
WITHOUT WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO ANY
MATTER WHATSOEVER.
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21. TAX EXE:mp,rIVN. The "Rent", "Interest", "Agreed
Option Price" and other-computations set forth in thin Lease
and exhibits attached hereto have been fixed and computed
upon the assumption that the amount designated as "Interest"
will be exempt Erom federal income taxation and (if so noted
on Exhibit e) state income taxation in the hands of the
Lessor and its assignees. If it is determined that such
"Interest" payments are not so exempt, then the items of
"Rent", "Interest", "Agreed Option Price" and related com-
putations payable by the Lessee to Lessor'hereuhder shall be
adjusted so as to provide Lessor with the amount of such
items as shall equal, on an after tax basis, the amount
thereof set forth in this Lease and Exhibits attached
hereto. -The method and timing of the payment of-such
adjustment shall be as mutually agreed upon promptly
following notice to Lessee of the need for such adjustment.
22. FINANCIAL STATEMENTS. Lessee shall furnish to
Lessor, within sixty (60) days after the end of each fiscal
quarter of Lessee, financial statements of Lessee which
shall include a balance sheet and statement of revenue and
expense of Lessee for the quarter and the year to date and
such other information and reports as Lessor shall reaso-
nably request. All such 'financial statements shall be cer-
tified to be true and correct by the appropriate officer of
Lessee.
23. CLAIMS. Lessor hereby appoints and constitutes
Lessee as its agent and attorney-in-fact during the term of
this Lease to assert and enforce, at the sole cost and
expense of the Lessee, whatever claims and rights the Lessor
may. have as owner of the Equipment against any vendors,.
manufacturers, suppliers or contractors in respect thereof.
24. NON-WAIVER. No waiver of any of the Lessee's
obligations under this Lease-shall be deemed to take place.
unless such waiver has been made in writing and signed by
the Lessor. Failure to exercise any remedy which Lessor may
have under this Lease or any other acquiescence by the
Lessor in any default by the Lessee shall not constitute a
waiver of any obligation of Lessee hereunder, including the
obligation as to which Lessee is in default.
25. CONCURRENT REMEDIES. No right or remedy conferred
upon or reserved to the Lessor in this Lease is exclusive of
any other right or remedy provided or permitted-herein by
law or equity; but each shall be cumulative of any other
right or remedy given hereunder, or now or hereafter
existing at law or in equity or by statute or otherwise, and
may be enforced concurrently therewith, or from time to
time.
26. MODIFICATION. This Lease constitutes the entire
agreement between Lessor and Lessee and shall not be-
amended, altered or modified except in a writing signed by
the parties hereto.
27. NOTICES. All notices required or permitted
hereunder shall be sufficient if delivered personally or
mailed to the parties at the address hereafter set forth or
at such other address as either party may designate in
writing from time to time. Any such notice shall be effec-
tive 48 hours after it has been deposited in the United
States mail, duly addressed and with postage prepaid.
28. GOVERNING LAW. This Lease and other instruments
or documents executed by the parties hereto, and the rights
and duties or the parties hereto, shall be construed and
enforced in accordance with the laws of the State of
Colorado.
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29. TIME. Time is of the essence of this Lease and
each and all of its provisions.
30. SEVERAB.ILITY. If any provision in this Lease or
the application of such provision to any person or cir-
cumstance shall be invalid, illegal or unenforceable, the
remainder of this Lease or the application of such provision
to persons or circumstances other than those to which it is
invalid, illegal or unenforceable shall not be affected
thereby.
IN WITNESS WHEREOF, the parties hereto have executed
this Lease the day and year first above written.
LESSOR:
COLORADO NAT A LEASING, INC.
Bldg. 51, Suite 150
14142 Denver West Pkwy.
Golden, CO 80401
LESSEE:
TOWN OF AVON
By i~ KfGa~I'~'
Title: mayor
ATTACHMENTS :
Equipment Description (Exhibit A)
Certificate of Acceptance - (E hibit E)
Equipment Lease Schedule (Exhibit C)
Opinion of Counsel
Incumbancy Certificate
-6-
Lease # 88207
EXHIBIT A
EQUIPMENT DESCRIPTION
A. EQUIPMENT LEASED:
.1-- Orion 30 foot Transit Bus
S/N 2B1119771D5526827
B. TERM: Unless sooner terminated as set forth in the Lease,
the'term of this Lease respecting each item of equipment
listed on this schedule shall commence upon acceptance by
Lessee and shall continue for five (5) years from
commencement date.
C. RENT: As rent for said equipment, Lessee shall pay Lessor
the sum of $137,750, payable in installments as follows:
10 consecutive semi-annual payments of $13,775 in arrears
commencing on July 1, 1984 which said installments
of rental include interest at a rate of 9.0% per annum on
the Agreed Option Price.
D. LOCATION: The above described,equipment shall be located
at Town of Avon, Avon, Colorado
and shall not be removed therefrom without the prior written
consent of Lessor.
APPROVED AND AGREED TO THIS 7th DAY OF February ,
1984 as a schedule to that certain Lease dated the 13th
day of December , 1983.
COLORADO NATION,4L LEASING, INC.
By LESSOR
TOWN OF AVON
By )
ESSEE
EXHIBIT B
CERTIFICATE OF ACCEPTANCE
The undersigned hereby certifies that it has received,
inspected, approved and hereby accepts delivery of the following
equipment upon the terms.and conditions set forth herein and in
that Equipment Lease Agreement dated November 22, 19 84
between the undersigned and Colorado National Leasing, Inc., a
Colorado corporation:
1. Description of Equipment:
1 - Orion 30 Foot Transit Bus
2. Cost:
The cost of the equipment is $109,500.
The undersigned further certified that the foregoing
equipment is in good order and condition,. and conforms to the
specifications applicable thereto.
The execution of this Certificate will in no way relieve
or decrease the responsibility of the manufacturer of the
equipment for any warranties it has made with respect to the same.
The undersigned hereby requests Colorado National Leasing,
Inc. to process payment in the amount of $109,500 to the vendor.
Dated: December 13, 1983
TOWN OF AVON
Lessee
ATTEST:
Patricia J. Do e, Town C erk
LEASE f 8P2C7
EXHIBIT C
EQUIPMENT LEASE SCHEDULE
PAYMENT PENT DESIGNATED REDUCTION OF BALANCE OF AGREED
NO. PAVIENT INTEREST PRINCIPAL PRINCIPAL OPTION PRICE
"IITIAL BALANCE
1C9,500.00
112,785.00
1
13,P38.48
5,445.50
8,392.98
101,107.02
103,772.71
2
13,P38.4P
4,E77.27
8,961.21
92,145.81
94,256.82
3
13,F3E.c8
4,309.05
9,529.43
P2,616.37
84,237.33
4
13,P38.48
3,74O.F2
10,097.66
72,51P.71
73,714.24
5
13,838.48
3,172.59
10,665.P9
61,852.83
62,687.54
6
13,P38.4P
2,604.37
11,234.11
50,618.72
51,157.24
7
13,83P.48
2,036.14
11,F02.34
38,816.38
39,123.34
8
13,P.38.4P
1,467.92
12,370.56
26,445.81
26,585.8.3
9
13,638.48
899.69
12,93P.79
13,507.02
13,544.72
10
13,8317.48
331.47
13,507.01
.01
.01
JNLESS SOONER,
TERMINATED AS SET
FORTH IN TH
E LEASE, THE
TERM OF THIS L
EASE RESPECTING EACH
ITEM OF-EQUIPM
ENT SHALL COMMENCE
ON•-1/1/84
AND EXPIRE ON 12/31/89
AS PENT FOR
;AID EQUIPMENT
, LESSEE SHALL PAY LESSOR. THE
arrears
SUt1 OF S 138,380.00- PAYABLE IN'INSTALLI:IENTS
+S FOLLOWS: 10
emi-annual-
.PAYMENTS OF g
13,838.00
COMMENCING.ON'
7/1/84 WHICH
;AID INSTALLMENTS OF RENT INCLUDE INTEREST AT THE RATE OF 9.0 ° PER ANNUM ON THE BALANCE
>F PRINCIPAL.
• LAW OFFICES
COSGRIFF. DUNN & FRENCH. P. -C.
. P. O. BOX 340
VAIL, COLORADO 81 658
(303) 476-7552
PETER COSGRIFF
JOHN W. DUNN
ROBERT H. S. FRENCH
STEPHEN C. WEST
TIMOTHY H. BERRY
DAVID H. MILLER February 7, 1984
ARTHUR A. ASPLANALP, JR.
JOHN B.'WOOD
Colorado National Leasing, Inc.
14142 Denver West Parkway
Building 41, Suite 150
Golden, Colorado 80401
Re: Equipment Lease Agreement
Gentlemen:
LEADVILLE OFFICE:
P. O. BOX I I
LEADVILLE, COLORADO 60461
1303) 488.1885
BRECKENRIDGE OFFICE:
P. O. BOX 586
BRECKENRIDGE, COLORADO 80424
(303) 453-2901
We have acted as counsel to the Town of Avon in
connection with the execution and delivery of Equipment
Lease Agreement, Lease No. 88207, including the Equipment
Lease Schedule, Exhibits and Certificates attached thereto,
between Colorado National Leasing, Inc.,.a Colorado
corporation, and town of Avon, pursuant to which the Town of
Avon has agreed to lease the equipment referred to in the
Equipment Lease Agreement on the terms therein contained.
In rendering this opinion, we have examined copies
of the Equipment Lease Agreement, and the Equipment Lease
Schedule as well as such other documents, record's,.certifi-'
Cates and legal matters as we have deemed relevant and
necessary as a basis for our opinion hereinafter set forth.
Based on the foregoing, it is our opinion that:
1. The Town of Avon has all the requisite power
and authority to lease, the property which is the subject of
the Equipment Lease Agreement and has all, requisite power
and authority to enter into such Equipment Lease Agreement,
each Equipment Lease Schedule and the Certificate of Accep-
tance attached thereto.
2. The Equipment Lease Agreement and the Equip-
ment Lease schedule have been duly authorized, executed and
delivered by the Town of Avon and constitute the legal,
valid and binding obligations of the Town of Avon,
enforceable against the Town of Avon in accordance with
their respective terms.
Colorado 0 -)nal Leasing Page February 6, 1984
3. The execution, delivery and performance by the
Town of Avon of the Equipment Lease Agreement, the Equipment
Lease Schedule and the Certificate of Acceptance will not
violate or contravene any provision of the existing Colorado
or federal law or any order of any court or governmental
agency having jurisdiction, the Town-Charter, or any-
mortgage, indenture, security agreement or other instrument
to which the Town of Avon is a party or by which it, or any
of its property, is bound.
Yours very truly,
COSGRIFP, DUNN & FRENCH, P. C.
John W. Dunn
r
JWD:kem:M5
cc: Mr. James
0 •
MEMORANDUM
TO: Richard D. Blodgett
FROM: William D. James
DATE: November 14, 1983
RE: Ordinance for Lease/Purchase of Orion Bus
Please find attached the ordinance necessary to authorize the
lease/purchase of the Orion bus.
Also attached are the standard lease/purchase agreement and
appropriate exhibits as required by the Town and Colorado
National Leasing. These are the same documents we have used in
the past. In fact, I prepared these documents in order to speed
up the process and have asked both the Town Attorney and Colorado
National Leasing to review said documents. The reason I prepared
these documents is because the bus could be delivered on December
15th and the effective dates of the ordinance will be December 20th.
Recommended Action:
Pass Ordinance No.83-39series of 1983 on first reading.
cc: John Dunn
Colorado National Leasing, Attention: Mike Brown
Avon; CO 81620 (303) 949-4280
TO: Richard Blodgett
FROM: Norm Wood
Bill James
DATE: 10/19/83
A-final purchase price for a 30 foot Orion Bus has, been negotiated
with American Coach Sales. The final purchase price of $108,000.00
is based upon..the special equipment and options list obtained-from
Beaver Creek Transit with the only changes being a larger engine
and heavier transmission which Bob McIlveen has indicated he will
require on future purchases.
A purchase order has been forwarded to American Coach Sales for the
amount of $109,500.00 which includes $1500.00 for delivery to the
Town of Avon.. The purchase order also includes a penalty clause
deducting $100.00 per day for delivery after December 15,1983 and
.$400.00 per day for delivery after December 31, 1983.
The purchase order is contingent upon the Town Council authorizing
funding of the bus prior to October 27, 1983.
The two best quotes on financing we have received are as follows:
for $109,500:
Total Financing-'-
Annual
1984
Cost
Payment:
Budget_
Colorado
National Leasing
5 years
@
9%'
$ 136,382
$ 27,277
$ 22,500
7,years
@
12%
162,370
23,197
22,500-
Borg-Warn
er
Leasing Corp.
5 years
@
11%
$ 142,848
$ 28,569
$ 22,500
7-years
@
11%
157,492
22,499
22,500
Eventhough, the quote from Borg-Warner Leasing Corporation meets our
budgeted amount for 1984, we-believe that the 9% for 5 years as
proposed by Colorado National Leasing is more acceptable for the Town.-
The difference of $4,178 in annual payments could be made up from
operating costs in the transit system, if-major repairs..are not needed
during the year, or from other revenues in either the General Fund or
private contributions in the Transit Fund. Other quotes from Teasing
companies for five years were running between 10.5% to 12%, and there
was only one other company that might go out seven years.
Page two--
Longer term financing (seven years) seems
amounts greater than $500,000.--
Therefore, we-recommend that the Director
to-arrange financing of $109,500 for purc
Colorado-National-Leasing Corporation for
to be only available on
of Finance be authorized
base of a new bus through
5 years @ 99.
r s
STATE OF COLORADO )
COUNTY OF EAGLE ) SS
TOWN OF AVON )
NOTICE IS HEREBY GIVEN OF A PUBLIC HEARING BEFORE THE TOWN
COUNCIL OF THE TOWN OF AVON, COLORADO, AT 7:30 P.M. ON THE
13th DAY OF December , 1983 AT THE MUNICIPAL BUILDING,
400 BENCHMARK ROAD, AVON, COLORADO FOR THE PURPOSE OF CONSIDERING
THE ADOPTION OF ORDINANCE NO. 083-39, SERIES OF 1983:
AN ORDINANCE AUTHORIZING EXECUTION OF A CERTAIN EQUIPMENT LEASE
AGREEMENT
A copy of said Ordinance is attached hereto and is also on file
at the office of the Town Clerk and may be inspected during
regular business hours.
Following this hearing, the Council may consider final passage of
this Ordinance.
This notice given and passed by order of the Town Council of the
Town of Avon, Colorado.
Dated this 23rd day of November
TOWN
1983.
BY
Patricia J.
POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON ON
November 28, , 1983.
THE MAIN ENTRANCE OF THE POST OFFICE,
THE MAIN ENTRANCE TO CITY MARKET,
THE PESTER GAS STATION; AND
THE MAIN LOBBY IN THE MUNICPAL BUILDING