TC Ord. No. 1990-030 0
ORDINANCE NO. 90-3
SERIES OF 1990
AN ORDINANCE AUTHORIZING EXECUTION OF CERTAIN EQUIPMENT
LEASE AGREEMENT
BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON,
COLORADO:
Section 1. That certain Equipment Lease Agreement, together
with Exhibits, copy of the agreement is attached hereto as Addendum I,
and the terms of this agreement are hereby approved and 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 9th day of May, 1990, 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 22nd day of May, 1990, at
7:30 p.m. in the Municipal Building of the Town of Avon, Colorado.
TOWN OF AVON, COLORADO
Gloria McRory, Mayor Tem
INTRODUCED, PASSED ON SECOND READING, APPROVED AND ORDERED
POSTED this 22nd day of May, 1990.
Allan R. ~Nottingh
,,offi, Mayor
;A
C N B : COLORADO NATIONAL
%4U e LEASING, INC.
Agreement No. 88210
EQUIPMENT PURCHASE AGREEMENT
(Municipal Purchase Agreement)
This Agreement is made this 30th day of April , 1990 bet-
ween Colorado National Leasing, Inc., a Colorado Corporation whose
address is 950 Seventeenth St., Denver, Colorado 80202 ("Seller") and
Town of Avon
whose address is P.O. Box 975, Avon, Colorado 81620
("Purchaser").
1. PURCHASE AND SALE. Seller, upon the terms and conditions
contained in this Agreement, hereby agrees to purchase from the vendor
or manufacturer the property described on Exhibit "A" attached hereto
(tie "Equipment"). Seller and Purchaser hereby further agree that,
immediately upon Seller's purchase of the Equipment, Seller shall sell
the Equipment to Purchaser and Purchaser shall purchase the Equipment
from Seller.
2. TERM. This Agreement shall commence on the date hereof and
unless sooner terminated as provided herein, shall expire upon the
payment by Purchaser of the last Payment called for by this Agreement.
3. PAYMENTS. Payments for the Equipment shall be in the amounts
set forth in the Equipment Payment Schedule (Exhibit B attached hereto
and made a part hereof). Purchaser shall pay Seller such payments in
the amounts and at the times set forth on Exhibit B at the office of
Seller in Denver, Colorado, or to such other person and/or at such
other place as Seller may from time to time designate in writing.
4. SECURITY AGREEMENT, To secure the payment of all of
Purchaser's obligations to Seller under this Agreement, Purchaser'
grants to Seller a security interest in the Equipment (whether now
owned or hereafter acquired) and in all additions, attachments,
accessions, and substitutions to or for the Equipment. Purchaser
agrees to execute such additional documents, including financing sta-
tements, affidavits, notices and similar instruments, in a form satis-
factory to Seller, which Seller deems necessary or advisable to
establish and maintain its security interest in the Equipment.
5. TITLE TO EQUIPMENT. Title to the Equipment and any and all
additions, repairs, replacements, or modifications to such Equipment
shall be in the name of Purchaser and Seller shall have no right,
title or interest in the Equipment or any additions, repairs, replace-
ments or modifications thereto except as set forth in the Agreement.
950 Seventeenth Street
Suite 2400
Denver, Colorado 80202
(303) 629-7750
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6. USE. Purchaser shall use the Equipment in a careful and
proper manner and shall comply with all applicable governmental laws,
ordinances and regulations in any way relating to the possession, use
or maintenance of the Equipment.
7. PURCHASER'S INSPECTION; WARRANTY DISCLAIMER.
(a) Purchaser shall inspect the Equipment within forty-eight
(48) hours after receipt thereof. Unless Purchaser within such period
of time gives written notice to Seller, specifying any defect in or
other proper objection to the Equipment, Purchaser agrees that it
shall be conclusively presumed, as between Seller and Purchaser, that
Purchaser has fully inspected and acknowledged that the Equipment is
in good condition and repair, and that Purchaser is satisfied with and
has accepted the Equipment in such good condition and repair. At or
prior to expiration of such inspection period, Purchaser shall execute
and deliver to Seller a Certificate of Acceptance in the form attached
as Exhibit C hereto.
(b) Seller hereby assigns to Purchaser all manufacturer's
warranties and guarantees, express or implied, with respect to the
Equipment, to the extent such warranties and guarantees are
assignable. Purchaser acknowledges that it selected each item of
Equipment based on its own analysis and investigation from vendors
chosen by Purchaser. Seller made no representations or warranties in
connection with the Equipment or vendors. SELLER MARES NO WARRANTY,
EXPRESS OR IMPLIED, WITH RESPECT TO THE EQUIPMENT AND EXPRESSLY
DISCLAIMS ANY WARRANTY REGARDING THE 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.
8. SELLER'S INSPECTION. Seller 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.
9. ALTERATIONS. Without the prior written consent of Seller,
Purchaser shall not make any alterations, additions or improvements to
the Equipment.
10. REPAIRS. Purchaser shall keep the Equipment in good repair
and condition and shall bear all expenses of the maintenance and
operation of the Equipment.
11. INSURANCE; LOSS AND DAMAGE; AGREED TERMINATION VALUE.
Purchaser shall keep the Equipment insured against all risks of loss
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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 Termination Price" set
forth in Exhibit B attached hereto with respect to the Equipment.
Purchaser shall also carry liability and property damage insurance
covering the Equipment in amounts not less than $150,000 in respect
to bodily injury or death to any person in a single occurrence and not
less than $400,000 in respect to bodily injury or death to two or more
persons in a single occurrence and not less than $150,000 in respect
to property damage. All such liability insurance shall insure both
Seller and Purchaser and all such property damage insurance shall name
Seller as Loss Payee as its interest may appear. Purchaser may effect
such coverage under its blanket policies. No loss or damage to the
Equipment or any part thereof shall impair any obligation of the
Purchaser under this Agreement, 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 of Equipment:
(a) To place the same in good repair, condition and working
order, or replace the same with like Equipment in good repair, con-
dition and working order; or
(b) If, in the reasonable judgment of Seller, the Equipment
is determined to be lost, stolen, destroyed or damaged beyond repair,
Purchaser shall pay Seller therefor in cash, to the extent the
insurance proceeds paid to Seller may be insufficient, the Agreed
Termination Value set forth in Exhibit B determined as of the date of
the last full payment made by Purchaser, plus interest on such Agreed
Termination Value at the rate set forth in Exhibit B from the date of
the last full payment until the date of such termination payment.
• 12. TAXES AND LIENS.
(a) Purchaser agrees to pay and to indemnify and hold Seller
harmless from all license, sales, use, personal property 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) Purchaser 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 with the
exception of the security interest granted by paragraph 4 of this
Agreement.
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13. SELLER'S PAYMENT. In case of the failure of the Purchaser
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 spe-
cified, Seller shall have the right, but shall not be obligated, to
effect such insurance, to pay such taxes, to discharge such security
interest, liens and encumbrances or to do any other thing that it
deems necessary or advisable to preserve or protect the value of the
Equipment, and the cost thereof shall be repayable to Seller with the
next scheduled payment.
14. DEFAULT. If the Purchaser shall fail to make any Payment
within five (5) days after the same is due and payable, or if the
Purchaser shall fail to observe, keep or perform any other provision
of this Agreement for a period of ten (10) days after receipt of writ-
ten notice of such failure, Seller shall have the right to exercise
any one or more of the following remedies:
(a) To terminate this Agreement and to sue for and recover
all Payments then accrued and unpaid hereunder and all Payments which
will accrue during the then current fiscal year of Purchaser.
(b) To retain all Payments and to take possession of any or
all items of Equipment, without further demand or notice and without
any court order or other process of law, and either to remove the same
on to resell the same to others.
(c) To exercise any and all other rights available to a
secured creditor under applicable law.
15. TERMINATION FOR NON-APPROPRIATION. It is the Purchaser's
intention to make all Payments as required under this Agreement. The
Purchaser represents that the Equipment and its use is essential to
the performance of a necessary governmental function of the municipa-
lity. A statement of essential functions, funding sources, and esti-
mated useful life of the Equipment are described by Purchaser in
Exhibit D and are made a part of this Agreement. However, if
Purchaser does not appropriate funds for any fiscal year of Purchaser
during the term hereof sufficient to pay the amounts due hereunder in
such fiscal year and Purchaser has exhausted all funds legally
available for payments due under this Agreement, Purchaser may, by
written notice given to Seller no less than thirty (30) days after
adoption of the budget for such fiscal year, terminate this Agreement
with respect to Payments due beyond the end of the then current fiscal
year. Upon such termination, Purchaser shall immediately convey and
deliver the Equipment to Seller and pay all Payments due to Seller for
periods prior to the date the Equipment is so conveyed and delivered
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to Seller, and Seller may exercise all its rights under paragraph 14
of this Agreement.
If the provisions of the previous paragraph are utilized by
Purchaser, Purchaser agrees not to purchase, lease or rent Equipment
performing functions similar to those performed by the Equipment, and
agrees not to permit functions similar to those performed through the
use of the Equipment to be performed by any agency or entity hired by
Purchaser until the end of the stated and contemplated term of this
Agreement. The restrictions imposed by this paragraph shall not apply
if the Equipment, after conveyance by Purchaser to Seller, shall be
sold by Seller for a net amount equal to or greater than the then
applicable Termination Value as set forth in Exhibit B. If the net
amount received from such sale or disposition is less than the
Termination Value, Purchaser may pay to Seller the amount of such
deficiency, in which case the restrictions imposed by this paragraph
shall not apply.
Nothing contained in this Agreement shall constitute a
pledge of the general tax revenues, funds or monies of Purchaser
except amounts appropriated for the purpose of making Payments for the
current fiscal year.
16. ASSIGNMENT. Without the prior written consent of Seller,
Purchaser shall neither assign, transfer,
Agreement, the Equipment or an Pledge or hypothecate this
Seller may assign this Agreement portinthereof, r any interest
terests in the Equipment, andin.
Seller's assignee may also assign the same. All rights of Seller
hereunder may be assigned, transferred, or otherwise disposed of,
either in whole or in part, without notice to Purchaser; pe,
however that no assignment of this Agreement or any interestvtherein
shall be. made except subject to the rights granted to the Purchaser by
virtue of this Agreement; and provided further that no assignee of
Seller shall be obligated to perform any duty, covenant or condition
required to be performed by Seller under the terms of this Agreement.
17. 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 o ly rests
upon, real property or any building thereon, or attached einanymanner
to what is permanent as by means of cement, plaster, nails, bolts,
screws or otherwise.
18. INDEMNITY; LIMITS OF LIABILITY. Purchaser hereby assumes
liability for and agrees to indemnify and hold Seller harmless from
and against any and all debts, liabilities, obligations, claims and
expenses, including court costs and attorney's fees, incurred by or
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• •
asserted against Seller in connection with, arising out of or incident
to the ownership, delivery, possession, use, operation, condition,
sale or other disposition of any item of Equipment. Seller is not
responsible for any repairs or service to the Equipment or any defects
therein. Seller shall not be liable for any consequential, incidental
or special damages of any character as a result of or arising out of
this Agreement, or any item thereof including loss of profits, pro-
perty damage or lost production, whether suffered by Purchaser or any
other person.
19. INTEREST. Should Purchaser fails to pay any part of the
Payments herein reserved or any other sum required by Purchaser to be
paid to Seller, within 10 days after the due date thereof, Purchaser
shall pay to the Seller interest on such delinquent Payment from the
due date until paid at the rate of 18%.
20. OPTION. Provided Purchaser is not in default in the perfor-
mance of its obligations hereunder, Purchaser shall have the option,
at any time after one year from the commencement of this agreement to
terminate the Agreement by paying to Seller an amount equal to the
Agreed Termination Value thereof set forth in Exhibit B at the date of
the last full payment, plus interest on such Agreed Termination Value
at the rate set forth in Exhibit B from the date of the last full
payment until the date of termination of the this Agreement. Such
option to terminate this Agreement shall be exercised by the payment
of the Agreed Termination Value plus interest as herein provided to
Seller at Seller's office in Denver, Colorado.
21. TAX EXEMPTION. The "Payment", "Interest", "Agreed
Termination Value" and other computations set forth in this Agreement
and exhibits attached hereto have been fixed and computed upon the
assumption that the amount designated as "Interest" will be exempt
from federal income taxation and state income taxation in the hands of
the Seller and its assignees. If it is determined that such
"Interest" payments are not so exempt, then the items of "Payment",
"Interest", "Agreed Termination Value" and related computations
payable by the Purchaser to Seller shall be adjusted so as to provide
Seller with the amount of such items as shall equal, on an after tax
basis, the amount thereof set forth in this Agreement and Exhibits
attached hereto. The method and timing of the payment of such adjust-
ment shall be as mutually agreed upon promptly following notice to
Purchaser of the need for such adjustment.
22. FINANCIAL STATEMENTS. Purchaser shall furnish to Seller,
within sixty (60) days after the end of each fiscal year of Purchaser,
financial statements of Purchaser which shall include a balance sheet
and statement of revenue and expense of Purchaser for the quarter and
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the year to date and such other information and reports as Seller
shall reasonably request. All such financial statements shall be cer-
tified to be true and correct by the appropriate officer of Purchaser.
23. NON-WAIVER. No waiver of any of the Purchaser's obligations
under this Agreement shall be deemed to take place unless such waiver
has been made in writing and signed by the Seller. Failure to exer-
cise any remedy which Seller may have under this Agreement or any
other acquiescence by the Seller in any default by the Purchaser shall
not constitute a waiver of any obligation of Purchaser hereunder,
including the obligation as to which Purchaser is in default.
24. CONCURRENT REMEDIES. No right or remedy conferred upon or
reserved to the Seller in this Agreement 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.
25. MODIFICATION. This Agreement constitutes the entire
agreement between Seller and Purchaser and shall not be amended,
altered or modified except in a writing signed by the parties hereto.
26. NOTICES. All notices required or permitted hereunder shall
be sufficient if delivered personally or mailed to the parties at the
address set forth herein or at such other address as either party may
designate in writing from time to time. Any such notice shall be
effective 48 hours after it has been deposited in the United States
mail, duly addressed and with postage prepaid.
27. GOVERNING LAW. This Agreement and other instruments or
documents executed by the parties hereto, and the rights and duties of
the parties hereto, shall be construed and enforced in accordance with
the laws of the State of Colorado.
28. TIME. Time is of the essence of this Agreement and each and
all of its provisions.
29. SEVERABILITY. If any provision in this Agreement or the
application of such provision to any person or circumstance shall be
invalid, illegal or unenforceable, the remainder of this Agreement 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.
30. ASSIGNMENT BY SELLER. No assignment or reassignment of any
of Seller's right, title or interest in this Agreement or the
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Equipment shall be effective unless and until Purchaser shall have
received a duplicate original counterpart of the document by which the
assignment or reassignment is made, disclosing the name and address of
each such assignee; provided, however, that if such assignment is made
to a bank or trust company as paying or escrow agent for holders of
certificates of participation in the Agreement, it shall thereafter be
sufficient that a copy of the agency agreement shall have been depo-
sited with Purchaser until Purchaser shall have been advised that such
agency agreement is no longer in effect. During the Agreement term
Purchaser shall keep a complete and accurate record of all such
assignments in form necessary to comply with the United States
Internal Revenue Code, Section 103(j), and the regulations, proposed
or_ existing, from time to time promulgated thereunder.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement the day and year first above written.
SELLER:
COLORADO NATIONAL LEASING, INC.
By
950 Seventeenth St., Ste. 2400
Denver, Colorado 80202
PURCHASER:
Town of Avon
By T- ,
ATTACHMENTS:
Resolution No. 90-3 of the Town of Avon
Equipment Description (Exhibit A)
Equipment Agreement Schedule (Exhibit B)
Certificate of Acceptance (Exhibit C)
Statement of Essential Functions (Exhibit D)
Opinion of Counsel
Addendum
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Agreement No. 88210
EXHIBIT A
MUNICIPAL PURCHASE AGREEMENT
Agreement Schedule No. 88210
EQUIPMENT LIST
Vendor
Description
Pierce Fire Apparatus 1990 Pierce 4 Dr. Dash Custom
1250 GPM Pumper (Pierce #E-5377)
•
Agreement No. 88210
EXHIBIT B
SCHEDULE OF PAYMENTS
Date of Agreement April 30, 1990
Commencement Date
Principal Amount Due $190,224.00
Fiscal Year 1990
Total
Amount
Amount
Remaining
Due Payment
Attributable
Attributable
Principal
Date Amount
to Principal
to Interest
Balance
SEE ATTACHED SCHEDULE INCORPORATED HEREIN BY REFERENCE
The attached Schedule is accepted and acknowledged as part of this
Agreement between Town of Avon
Termin-
ation
Value
Purchaser
and Colorado National Leasing, Inc. , Seller
BILLING INVOICES SHALL BE SENT AS FOLLOWS:
(MUST BE COMPLETED EVEN IF THE INVOICE ADDRESS IS UNCHANGED FROM
THE ABOVE BUSINESS ADDRESS)
Town of Avon
P.O. Box 975
Avon, CO 81620
Attn:
Colorado NationaZeLM'ing, i nc .
By
Title
Town of Avon Purchaser
By
Dated
r~
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Agreement No. 88210
Payment
Due
Rent
Number
Date
Payment
Initial
Balance
1
5/1/91
36,237.42
2
5/1/92
36,237.42
3
5/1/93
36,237.42
4
5/1/94
36,237.42
5
5/1/95
36,237.42
6
5/1/96
36,237.42
7
5/1/97
36,237.42
EXHIBIT "B-1"
EQUIPMENT PURCHASE SCHEDULE
TOWN OF AVON
Designated Reduction of Balance of Agreed
Interest Principal Principal Option Price
190,224.00 193,457.81
14,761.38
21,476.04
168,747.96
171,616.68
13,094.84
23,142.58
145,605.38
148,080.67
11,298.98
24,938.44
120,666.94
122,718.28
9,363.75
26,873.67
93,793,27
92,336.76
7,278.36
28,959.06
64,834.21
65,936.39
5,031.13
31,206.29
33,627.92
34,199.59
2,609.50
33,627.92
0.00
0.00
UNLESS SOONER TERMINATED AS SET FORTH IN THE PURCHASE
CONTRACT, THE TERM OF THIS PURCHASE CONTRACT RESPECTING
EACH ITEM OF EQUIPMENT SHALL COMMENCE ON
AND EXPIRE ON AS PAYMENT FOR SAID
EQUIPMENT, PURCHASER SHALL PAY SELLER THE SUM OF
$253,661.94 PAYABLE IN annual INSTALLMENTS AS
FOLLOWS: 7 PAYMENTS OF $36,237.42 IN
arrears COMMENCING ON 5/1/91 WHICH SAID
INSTALLMENTS INCLUDE INTEREST AT THE RATE OF 7.76%
PER ANNUM.
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Agreement No. 88210
EXHIBIT C
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 Purchase Agreement dated April 30, 1990 between
the undersigned and Colorado National Leasing, Inc., a.Colorado cor-
poration:
1. Description of Equipment:
See Exhibit A attached hereto and
by reference made a part hereof
2. Cost:
The cost of the equipment is $ 190,224.00
The undersigned further certifies that the foregoing equip-
ment is in good order and condition, and conforms to the specifica-
tions 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 190,224.00
to the vendor.
Dated: J
own oc von
urchas
0
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Agreement No. 88210
EXHIBIT D
Statement of Essential Functions
Funding Sources and Estimated Useful
Life of Equipment
The essential functions performed by the Equipment described in
Exhibit "A" shall be as follows:
This firetruck is essential equipment for the Town of Avon to be
used by the fire department. -
The specific funding sources utilized to make payments under this
Agreement shall be as follows:
From the 1990 budget, general funds and public safety department
The estimated useful life to the Purchaser of the Equipment described
in Exhibit "A" is as follows:
Seven plus years
TOWN OF AVON
Dated:
By:
Title: X Mayor
0 r
ADDENDUM TO EQUIPMENT PURCHASE AGREEMENT
DESIGNATION OF AGREEMENT AS A
QUALIFIED TAX-EXEMPT OBLIGATION
This Addendum is made a part of that certain Equipment Purchase
Agreement No. 88210 dated as of April 30 19 90
"Agreement") by and between . (the
Purchaser, and COLORADO NATIONAL LEASING, INC., as Seller, forsthe
purpose of designating the Agreement as a "qualified tax-exempt obli-
gation" for purposes of Section 265(b)(3) of the Internal Revenue Code
of 1986. With respect to such designation, the Purchaser hereby
agrees, warrants, and represents as follows:
1. The Agreement is designated by Purchaser as a "qualified
tax-exempt obligation" for purposes of Section 265(b)(3) of the
Internal Revenue Code of 1986.
2. The property which is subject to the Agreement will be
owned and operated by the Purchaser in performance of its public pur-
poses; said property will not be subject to the use or control of any
entity other than Purchaser.
3. Purchaser agrees that it has not designated and will not
designate more than $10,000,000 of tax-exempt obligations during the
current calendar year as qualified tax-exempt obligations. Purchaser
reasonably expects to issue no more than $10,000,000 of tax-exempt
obligations during the current calendar year.
4. For purposes of Paragraph three (3) of this Addendum, the
amount of tax-exempt obligations stated as either issued or designated
as qualified tax-exempt obligations includes tax-exempt obligations
issued by all subordinate entities of Purchaser, as provided in
Section 265(b)(3)(E) of the Internal Revenue Code of 1986.
OF EX EXECUTED THIS.1 ' 25th DAY OF May 19 90
ECUTION AND DELIVERY OF THE AGREEMENT. THE DATE
PURCHASER:
TOWN OF AVON
By:
Title: Ma or
SELLER:
COLORADO NATIONAL LEASING, INC.
By:
Title:
• •
COLORADO NATIONAL LEASING, INC.
950 Seventeenth Street, Suite 2400
Denver, Colorado 80202
IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF OUR PURCHASE AGREEMENT
NUMBER 88210 , THE EQUIPMENT WILL BE INSURED AS FOLLOWS:
INSURANCE HAS BEEN/WILL BE OBTAINED FROM:
N/A
AGENT'S NAME
Y 950 S. Cherry St., Ste. 800, Denver, CO 80222
AGENT'S ADDRESS
(303) 757-5475
AGENT'S PHONE (INCLUDE AREA CODE)
/1 Colorado Inter
INSURANCE COMPANY
rnmental Risk Sharing Agency
THE AGENT NAMED ABOVE WILL PROVIDE BOTH PHYSICAL DAMAGE COVERAGE
AGAINST "ALL RISKS" OF DIRECT PHYSICAL LOSS OR DAMAGE IN THE AMOUNT OF
$ 200,000.00 WITH COLORADO NATIONAL LEASING, INC. NAMED AS LOSS PAYEE
AND LIABILITY COVERAGE FOR AT LEAST $1,000,000 COMBINED SINGLE LIMIT.
THE POLICY WILL PROVIDE FOR THIRTY (30) DAYS NOTICE TO COLORADO
NATIONAL LEASING, INC. IN THE EVENT OF CANCELLATION OR ALTERATION.
TOWN OF AVON
PURCHASER SIGNATURE
• •
ESCROW AGREEMENT
Town of Avon ("Avon"), Colorado National Leasing, Inc. ("CNL")
and FirstBank of Avon ("Escrow Agent") hereby agree, each in consider-
ation of the premises and each in consideration of the promises and
undertakings of the others hereunder, that the Escrow Agent shall
deal as follows with the amount of approximately $190,224 which may
hereafter be deposited with it subject to this Escrow Agreement:
1. The Escrow Agent shall notify Avon of the receipt of the
above described deposit in Escrow, if made, with reasonable
promptness.
2. The amount deposited in Escrow hereunder shall be held by the
Escrow Agent Certificate of Deposit styled as follows:
FirstBank of Avon, Escrow for Colorado National Leasing, Inc./
Town of Avon. The deposited amount shall be collateralized in
accordance with appropriate regulations concerning public
monies. Interest of 7.2 %,shall be credited to such account
until December 1, 1990, afterwhich interest shall be applied
at prevailing money market rates until time of withdrawl. If
the monies are withdrawn prior to December 1, 1990, standard
certificate of deposit early withdrawl penalties will be
assessed.
3. The Escrow Agent shall pay out funds from the Escrow Account
in accordance with written instruction received from time to
time signed by CNL and Avon
4. Interest accruing on the balance maintained by the Escrow
Agent in the Certificate of Deposit shall be paid over monthly
to Avon in such manner as may be agreed upon between the Escrow
Agent and Avon.
5. If any balance remains in the Escrow account created hereby
on January 31, 1991, said balance and interest, as provided
in paragraph 4 shall be paid over by.the Escrow Agent to
Avon, provided however, that Avon will be entitled to the
payment of any such balance only upon receipt by the Escrow
Agent, of a sworn statement signed by an officer of Avon that
Avon has finally and unconditionally accepted all equipment
to be leased from CNL, and that it has no further rights to
return any part of such equipment or to receive refunds
therefore, and receipt of notice from CNL that Avon has
executed a Certificate of Acceptance covering all equipment.
6. At such time as no balance remains in the escrow account
established hereunder, this Escrow Agreement shall terminate
and the Escrow Agent shall have no further duty or liability
hereunder.
• •
7. Statements of the Escrow Account established hereunder shall
be rendered monthly to CNL and Avon provided that no liability
of the part of the Escrow Agent shall arise by reason of its
inadvertent failure to deliver such Statement.
Dated at Avon, Colorado this 25th day of May 19 90
TOWN OF AVON
By:
COLORADO NA NAT, LE NG, INC.
By:
FIRSTBANK OF AVONy
By :
L
'Z'
• •
AGREEMENT CONCERNING DEPOSIT IN ESCROW
Avon and Colorado National Leasing, Inc. ("CNL") hereby agree
as follows concerning payments to be made by the Escrow Agent from
the Efrom the Escrow Account established under the above Escrow
with Agreement with FirstBank of Avon.
1. Upon completion of all its documentation requirements in
connection with the execution of Equipment Lease Agreement
Number 88210 between the parties, CNL will deposit the full
amount of the cost of the Equipment covered by said Lease,
less the amount that has been paid by CNL to date to
purchase equipment covered by the Lease, into the Escrow
Account under the said Escrow Agreement.
2. Upon receipt of proper invoices from the vendor accompanied
by appropriate authorization by Avon of payment to the said
vendor by CNL, CNL will, upon receipt of documents whereby
Avon unconditionally accepts the equipment for which funding
is requested, direct the Escrow Agent to pay over to said
vendor from the Escrow Account sufficient funds to pay such
invoice of invoices.
3. The Escrow
deposit in
or term of
no duty of
Dated this 30th day
Agent is not a party to this Agreement concerning
Escrow, is not charged with notice of any provision
any Agreement between Avon and CNL, and shall have
inquiry concerning the same.
of May 1 19 90
TOWN OF AVON
By:
COLORADO NATI NAL L ING, INC.
By:
• •
Form 8038-GC Consolidated Information Return for Small Tax-Exempt
Governmental Bond Issues, Leases and Installment Sales
(Rev. October 1989) OMB No. 1545-0720
► Under Section 149(e) ► For calendar year ending 19 Exo,res 05/31/92
000artmeM of the Treasury
internist Revenue serv,ce (Use Form 8038-G if the Issue price of the Issue Is $100,000 or more.)
Reporting Authority Check box if Amended Return ►
1 issuer's name 2 issuers emotoyer iaenur cation numoer
Town of Avon 84-0771088
3 NumOer and street
P.O. Box 975
4 City or town, state. and ZIP code
Avon, Colorado 81620
Description of Obligations
S Total issue price of all small tax-exempt governmental obligations issued during the calendar year . . 5 190 , 2 24 00
6 Check the box that most nearly approximates the weighted average maturity of the obligations:
a ❑ Less than 5 years
b T3 From 5 to 10 years
c ❑ More than 10 years
7 Check the box that most nearly approximates the weighted average interest rate on the obligations:
a ❑ Less than 5%
b ❑ From 5% to 10%
c ❑ More than 10%
8 Total issue price of the obligations reported on line 5 that are:
a Obligations issued in the form of a lease or installment sale . . . . . I 8a 1 190 , 2 2 4 00
b Obligations designated by the issuer under section 265(bx3)(BXixlll) . . . . 8b 190 , 224 00
a
c Obligations issued to refund prior issues . . . . . . . . . 8c N/A
d L
oans made from the proceeds of another tax-exempt obligation 8d U / G
- T_ [ _ i
Under penalties of perjury. i declare that I have examined this return and accompanying schedules and statements. and to the nest of my knowieoge and betlef.
Please they are true. correct, and Complete.
Sign WN OF A
Here 6-11-20 ' Mayor
$ighatore of o t: Date Type or pnnt name and Nle
General Instructions
(Section references are to the Internal
Revenue Code unless otherwise noted.)
Paperwork Reduction Act Notice
We ask for this information to carry out the
internal Revenue laws of the United States.
We need it to ensure that you are complying
with these laws. You are required to give us
this information.
The time needed to complete and file this
form varies depending on individual
circumstances. The estimated average time
is:
Recordkeeping . . . 3 hrs., 21 min.
Learning about the
law or the form . . . . .1 hr., 34 min.
Preparing the form. 2 hrs., 37 min.
Copying, assembling, and
sending the form to IRS . .16 min.
If you have comments concerning the
accuracy of this time estimate or
suggestions for making this form more
simple. we would be happy to hear from
you. You can write to either the Internal
Revenue Service. Washington, OC 20224,
Attention: IRS Reports Clearance Officer.
T FP: or the Office of Management and
Budget. Paperwork Reduction Project
(1545.0720), Washington. OC 20503.
Item You Should Note
A governmental unit is required to file this
form for all small tax-exempt governmental
ool gations on which it pays interest. These
obligations include bonds, leases and
installment sales.
Purpose of Form
Form 8038-GC is to be used by issuers of
tax-exempt governmental obligations to
provide IRS with the information required by
section 149(e) and to monitor the
requirements of sections 141 through 150.
Who Must File
Each issuer must file Form 8038-GC for all
tax•exemot governmental bonds. leases and
installment sales issued during the calender
year, with an issue price of less than
$100.000. Form 8038-G is filed to report
each issue of governmental obligations with
issue prices of 3100.000 or more.
When To File
File Form 8038-GC on or before February
15th after the close of the calendar year in
which the issue is issued. Form 8038-GC
must be completed based on the facts as of
the close of the calendar year.
Late filing.-A Form 8038-GC filed after
the due date may be granted an extension
of time to file under section 3 of Rev. Proc
88.10, 1988.1 C.8. 635. if it is determined
that the failure to file to a timely manner is
not due to willful neglect. A late Form
STATE OF COLORADO - UNIFORM CO CIAL CODE
SECURITY AGREEMENT
Debtor:
Name:
Town of Avon
Address:
Residence
No. Street City State Zip Code
Business 400 Benchmark Road Avon Colorado 81620
No. Street City State Zip Code
Secured Party: Colorado National Leasing, Inc.
Address: 950 17th St., SUite 2400, Denver Colorado 80202
No. Street City State Zip Code
Debtor, for consideration, hereby grants to Secured Party a security interest in the following property, and any and all property of like type now owned or hereafter
acquired by Debtor, together with all additions, accessions, substitutions, proceeds and products therefrom, including natural increase of livestock, all herein called the
"Collateral":
To secure payment of the indebtedness evidenced by one certain promissory note - of even date herewith, payable to the Secured Party, or order, as follows:
$190,224.00 payable to Secured Party in annual payments in arrears, each in the amount
of $36,237.42.
and all other liabilities of Debtor to Secured Party, absolute or contingent, due or to become due, now existing or hereafter arising including liabilities arising because of
funds advanced in the future at the option of Secured Party, all herein called the "OBLIGATIONS".
DEBTOR EXPRESSLY WARRANTS AND COVENANTS:
The Collateral is used or bought primarily for:
❑ Personal, family or household purposes;
❑ Use in farming operations;
XX Use in business.
That Debtor's residence is as stated above, and the Collateral will be kept at
Location 400 Benchmark Road, Avon County Eagle State Colorado
If any of the Collateral is crops, oil, gas, or minerals to be extracted or timber to be cut, or goods which are or are to become fixtures, said Collateral concerns the following
described real estate situate in the County of and State of Colorado, to-wit:
The undersigned acknowledge receipt of a copy of this Security Agreement on dote hereof, and agree that it includes and is subject to the ADDITIONAL PROVISIONS on the
reverse side hereof, the same being incorporated herein by reference.
Debtor:
Town of Avon
Dated this day of 19
c~ '
B
0
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
22ND DAY OF MAY, 1990, AT THE TOWN HALL FOR THE PURPOSE
OF CONSIDERING THE ADOPTION OF ORDINANCE NO. 90-3, SERIES OF
1990:
AN ORDINANCE AUTHORIZING EXECUTION OF 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 is given and published by order of the Town Council
of the Town of Avon, Colorado.
Dated this 8th day of May, 1990
TO OF A~ON ON, COLORADO
B Y • %'i C~,2
Patricia/J.,11g1le, Town lerk
POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN
OF AVON ON MAY 9th, 1990:
The Avon Post office in the Main Lobby
The City Market in the Main Lobby
The Coastal Mart, Inc.; and
The Avon Municipal Building in the Main Lobby
® 9
S'L'ATE OF COLORADO )
COUNTY OF EAGLE ) SS.
TOWN OF AVON )
The Town Council of the Town of Avon, in Eagle County, Colorado, met in
continued regular session, in full conformity with law and the Charter, ordinances and rules
of the Town, at the Town Hall, being the regular meeting place of the Council, on Friday,
May 25, 1990, at the hour of 11:30 a.m. Upon roll call, the following were found to be
present, constituting a quorum:
Mayor:
Allan R. Nottingham
Mayor Pro Tern:
Other Councilmembers:
Absent:
Gloria McRory
Mike Bennett
Jerry Davis
dr~"V- IL
David Garton
Jim Stovall
Albert Reynolds
constituting all the members of the Town Council.
There were also present:
Town Clerk:
Town Attorney:
Patricia J. Doyle
John Dunn
Thereupon, the following proceedings, among others, were had and talon:
Mayor
Nottingham introduced in typewritten form an
ordinance, which ordinance was thereupon read by title, copies thereof having been distributed
to all members of the Council and to those members of the public in attendance, and which
ordinance is as follows:
pravedejn\0IW WAnenavrd May 21, IM 14M