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HomeMy Public PortalAboutORD09746 t i i • Ir !BILL N0. INTRODUCED BY COUNCILMAN ORDINANCE NO. AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI , AUTHORIZING AND DIRECTING THE MAYOR AND CLERK OF THE CITY TO ENTER INTO AN AGREE- IMENT WITH CENTRAL TRUST BANK TO PROVIDE FINANCING FOR THE PURCHASE OF FIRE APPARATUS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF JEFFERSON, MISSOURI , AS FOLLOWS: SECTION 1. The Mayor and City Clerk of the City of Jefferson, Missouri, are hereby authorized and directed, for and ® in the name of the City, to execute a written contract between the City of Jefferson, Missouri, and Central Trust Bank for a loan in the amount of Two Hundred Thirty Thousand Three Hundred Thirty-Seven and No/100 Dollars ($230,337.00) , to be used in the purchase of two fire trucks. SECTION 2. Said contract shall be substantially the same in form and content as that contract attached hereto and made a part hereof as if fully incorporated herein. SECTION 3. This Ordinance shall take effect and be in force from and after its passage and approval. Passed , /S. 19 8.L Approved I Aesidpftt .of the Crncll Mayor ATTEST: City Clerk MW LOAN AGREEMENT THIS AGREEMENT is made and entered into by and between CENTRAL TRUST BANK, hereinafter referred to as "Bank" , and the CITY OF JEFFERSON, MISSOURI , a municipal corporation, herein- after referred to as "City" . The parties hereby agree as follows: 1. This agreement is entered into for the purpose of financing the purchase of the following items of firefighting equipment: 1-Emergency One Protector IV 1500 GPM Two Stage Pumping Engine, with 750 Gallon Aluminum Water Tank, built on a Hendrickson Model 1871 WA Chassis. 1-Emergency One Protector IV 1500 GPM Two Stage Pumping Engine, with 1500 Gallon Aluminum Water Tank, built on a Hendrickson Model 1871 WA Tandem Chassis. 2. The equipment will be purchased from Able Fire and ,s Safety Equipment, Inc. for $280 ,337. 00. At the time of delivery of the equipment, the City will pay the entire purchase price, the Bank will pay $230, 337.00 to the City, and the City will execute the necessary documents, including lien documents, on behalf of the Bank. 3. The City agrees to repay the loan amount of $230 ,337.00 plus interest within one year from the date the City receives payment from the Bank. The interest rate shall be simple interest based upon 65% of the prime rate as established by Mercantile Trust Company, N.A. of St. Louis, Missouri. The initial prime rate shall be determined at the date the loan is actually made, and shall be adjusted quarterly thereafter. The prime rate used shall not exceed 30%. Annual payments shall be made in two installments. Six months from the date of the loan, the City shall pay all accumulated interest. Twelve months from the date of the loan, the City shall pay the remainder of the ac- cumulated interest and the principal, or such portion of the principal as may be due under the options listed below. 4. The City shall have the option at the end of each note year to renew or extend the term of the loan for an additional year under the same conditions, and at no additional S cost. The City shall have the right to exercise four such re- newals or extensions. If the City elects to renew or extend the loan for another year, then the City shall pay the accumu- lated interest -and one-fifth (1/5) of the original principal. 5. The City shall be allowed to pay all or any portion of the principal at any time without penalty. 6. It is understood that the City Council may fail to obtain appropriation or approval of the full amount of funds necessary to make required payments hereunder during any fiscal period subsequent to the current fiscal period. If the City refuses to make any payment required under this agreement, then the Bank's sole remedy is to seize the equipment, and sell or lease the equipment to obtain the balance due. Any excess r. between the sale or lease price and the balance due (including interest and normal expenses) shall be paid to the City. 7. The Bank, or its employees or agents, may inspect any of the equipment at any reasonable time or place, and for such purpose enter any building or place where said equip- ment is located. Whenever requested by the Bank, the City shall advise the Bank of the exact location of the equipment. 8. The City shall, for the term of this Agreement, at its own expense, maintain casualty insurance with respect to the equipment, insuring against customary risks with coverage at all times not less than the amount of the unpaid principal portion at the last preceding payment date. The insurance policy shall name both the City and the Bank as insureds as their respective interests may appear. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed in duplicate, one copy of which was delivered to and retained by the Bank, and one copy of which was delivered to and retained by the City, on this 6th day of May 19 82 F CENTRAL TRU T. BANK By Signature and Title David L. Perdue, Vice President CITY OF JEFFERSON, MISSOURI MAYOR CITY CLERK Ssr -2-