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HomeMy WebLinkAboutbocc.res.114.1975RE: BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO RESOLUTION NO. 75-;/~ Computer Lease Option between the City of Aspen and Pitkin County ~TTE ST: Secretary ..~ WHEREAS, this Board has determined that it is necessary that the County of Pitkin, State of Colorado acquire the use of a computer system, and WHEREAS, the City of Aspen has recently purchased a com- puter system from Data General Corporation and desires to lease and grant an option to an undivided one-half (1/2) interest in said system to the County of Pitkin, and WHEREAS, both the City of Aspen and County of Pitkin are authorized pursuant to Section 29-1-203 C.R.S. 1973, and Section 13.5 of the Aspen Home Rule Charter to enter into intergovernmental contracts for the purposes of providing any function service or facility lawfully authorized to each of the cooperating govern- mental units, providing such contract receives the approval of the legislative bodies of the respective governments, and WHEREAS, the City of Aspen and the County of Pitkin have negotiated a lease-option agreement satisfactory to both parties (see Exhibit A attached hereto and incorporated herein by referenc~ NOW, THEREFORE, BE IT RESOLVED: That the Chairman of this Board be authorized to execute and deliver the form of lease ~ttached hereto as Exhibit A to the City of Aspen, and that the Secretary of this Board attest her signature thereon ratifying ~nd affirming the action of this Board in authorizing them to ~nter into such agreement. Dated: ~eCe~ ~j BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY 'gSt K. Shellman, Jr. Chairman LEASE OPTION AGREEMENT THIS AGREEMENT made by and between the CITY OF ASPEN, a Colorado Municipal Corporation and Home Rule City (hereinafter referred to as "Lessor"), and THE BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY COLORADO (hereinafter referred to as "Lessee"). WI TNE S S E T H: WHEREAS, Lessor has recently purchased a Computer System which is appropriate to service the needs of both Lessor and Lessee, and WHEREAS, Lessor has obtained a 'loan from the Bank of Aspen in the amount of one hundred twenty thousand dollars ($120,000.00), at six percent (6%) interest, for a term not to exceed five (5) years, and WHEREAS, Lessor and Lessee are authorized pursuant to Section 29-1-~03 C.R.S. 1973, and Section 13.5 of the Aspen Home Rule Charter to enter into intergovernmental contracts for the purpose of providing any function, service or facility lawfully authorized to each of the cooperating governmental units. NOW THEREFORE, in consideration of the covenants contained herein, the parties agree as follows: AGREEMENT TO LEASE 1.1 Lessor agrees to lease and Lessee agrees to rent an undivided one-half (1/2) interest in and to the computer system which the Lessor has recently purchased from Data General Corporation (hereinafter referred to as "the equipment"). The equipment is fully described in the following Data General Corporation documents, attached hereto and incorporated herein by reference: (a) Form 201 End User Blanket Quantity and Cumulative Discount Agreement; (b) Form 501 Program Availability Schedule; (c) Form 50lA Program Availability Schedule Amendment. 1.2 Lessor and' Lessee acknowledge that theequipment recently purchased by Lessor is appropriate to satisfy the needs of the parties hereto. TERM oF LEASE 2.1 The term of the lease shall be for a period of five (5) years commencing on , 1976, and continuing until , 1981, unless ter~inated earlier under the provisions of paragraphs 6.1 and 6.2. RENT 3.1 Lessee agrees that it will pay to Lessor fixed rental payments of $1,159.97 on the day of each month beginning , 1976, until , 1981. EXHIBIT A 3.2 Lessee acknowledges that the rental payments described in paragraph 3.1 are in addition to any expenses and obligations as set forth in that certain AS N/PITKIN JOINT USE " PE OF FACILITIES AGREEMENT" dated , 1976, entered into by the parties her~in. 3.3 Ail rents payable by Lessee under this Agreement shall be paid to Lessor at City Hall, Post Office Box Z, Aspen, Colorado, 81611 or at such other place as Lessor may direct. USE AND MAINTENANCE OF EQUIPMENT 4.1 The parties hereto acknowledge that the equipment which is the subject matter of this lease shall at all times during the term of this lease be subject to the joint use of Lessor and Lessee, and the parties agree to cooperate towards said joint use. The specific terms, conditions and obligations with regard to operating, programming, maintaining and utilizing the equipment are more fully set forth in the "CITY of ASPEN/PITKIN COUNTY JOINT USE OF FACILITIES AGREEmeNT" dated , 1976. It is expressly understood between Lessor and Lessee that this lease is subject to the terms, conditions and obligations of said joint use agreement and any written amendments thereto which may be agreed upon by the parties.. INSURANCE 5.1 Lessor agrees that it will at all times during the term of this lease keep the equipment insured at not less than the full insurable value thereof against loss by fire, explosion or such other risks as would be commonly insured against in view of the type of use and the nature of the equipment herein. Lessee agrees to reinburse Lessor fifty percent (50%) of the cost of said insurance. PERFORMANCE BY LESSEE 6.1 Should Lessee default (a) in the payment of any sum of money due hereunder beyond the tenth (10th) day after receipt by Lessee of a bill or statement therefor or other written notice from Lessor, or (b) in the performance of any other of its obligations under this Agreement for a continuous period of thirty (30) days after receipt by Lessee of written notice thereof from Lessor, then Lessor may at its option terminate this Agreement and take possession of any or all of the equipment, wherever situated, and sell, dispose of, lease or hold said equipment as Lessor at its option may decide. PERFORMANCE BY LESSOR 7.1 Should Lessor default in the performance of any of its obligations under this Agreement for a continuous period of thirty (30) days after receipt by Lessor of written notice from Lessee, Lessee may at its option terminate this Agreement at the end of such thirty (30) day period upon payment to Lessor of all sums due hereunder to date of such default. 7.2 Lessor agrees to promptly make all payments due on its promissory note to the Bank of Aspen and to comply with all other terms and conditions of said promissory note. Lessor further agrees that, during the period this Agreement remains in effect, it will not allow further liens, other than its secured promissory note to the Bank of Aspen, against the equipment without the written consent of Lessee. -2- OPTION TO PURCHASE 8.1 Lessor agrees that Lessee may at any time during the term of 'this Agreement purchase an undivided one- half (1/2) interest in the equipment upon thirty (30) days written notice to Lessor for a sum equal to one-half (1/2) the unamortized balance due on the promissory note from the Lessor to the Bank of Aspen on the date of the exercise of the option. The parties acknowledge that under its terms said promissory note may be prepaid at any time without penalty by Lessor. Should Lessor elect to prepay said note prior to the exercising of the option herein granted, then the purchase price shall be a sum equal to one-half (1/2) of the sum which would have been due on the note on the date of the exercising of the option had not Lessor exercised its prepayment privilege. GENERAL 9.1 Lessor covenants that it is the lawful owner of the equipment leased and that conditioned upon the Lessee performing the conditions hereof, Lessee shall peaceably and quietly hold, possess and use an undivided one-half (1/2) interest in the equipment during the term of this Lease. In the event Lessor shall default in the payment of its promissory note to the Bank of Aspen, which is secured by the equipment, then Lessee shall, at its option, have the right and privilege to pay the amount so in default and the amount so paid shall be credited against rentals due or thereafter becoming due. IN WITNESS WHEREOF, the parties hereto set their hands and seals on the day and year shown. LESSOR: THE CITY OF ASPEN, COLORADO, A COLORADO MUNICIPAL CORPORATION DATE: ATTEST: By STACY STANDLEY III, MAYOR KATa~RINE E. HAUTER, CITY CLERK LESSEE: THE BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO DATE: ATTEST: By CHAIRMAN -3-