Agenda 03/25/2003 - Laserfiche WebLink

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March 11,2003 Mayor Roop moved to adopt the following Resolution;; the motion was duly seconded and carried by the following vote, with all members voting: Vote 4 - 1; Yeas (4) - Cobbe, Ferrill, Roop, Teague; Nays (1) - Dallas: WHEREAS, the City of Martinsville issued a RFP seeking proposals regarding the purchase of a City owned telephone system; and WHEREAS, the City entered into negotiations with the lowest bidder, The Presidio Corporation, for the purchase and installation of a new telephone system for a sum not to exceed $476,888; and WHEREAS, SunTrust Bank has offered to finance said purchase by reimbursing the City the amount thereof and taking from the City a lease-purchase agreement in the total principal not to exceed $476,888 bearing interest at the rate of two and sixteen one- hundreds per centum (2.16%) per annum, which lease-purchase agreement will obligate the City of Martinsville to repay the aforesaid indebtedness in twenty (20) consecutive quarterly installments of not more than Twenty-five Thousand Two Hundred Twenty-one Dollars and Twenty-Five Cents ($25,221.25) each commencing on the first day of July 2003 and on the first day of each succeeding quarter thereafter until said principal and interest are fully paid, at which time SunTrust shall convey title to said equipment to the City; and WHEREAS, SunTrust Bank has requested that this transaction be approved by a resolution of City Council, and that the execution of the lease-purchase agreement between SunTrust Bank and the City be specifically authorized; now, therefore BE IT RESOLVED by the Council of the City of Martinsville, Virginia, in regular session held on March 11, 2003 that the aforesaid transaction be, and it hereby is, approved in its entirety; and BE IT FURTHER RESOLVED that the City Manager be, and he hereby is, authorized and directed to enter into that certain equipment lease-purchase agreement dated April 1, 2003 between SunTrust Bank, as Lessor, and the City of Martinsville, Virginia, as Lessee, obligating the City of Martinsville, Virginia to repay the principal sum of not more than $476,888.00, with interest thereon at the rate of 2.16% per annum, to SunTrust Bank in 20 consecutive quarterly installments of not more than $25,221.25 each commencing on the first day of July 2003 and on the first day of each succeeding quarter thereafter until said principal and interest are fully paid, at which time title to said equipment shall vest in the City.