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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/15/2000 - FIRST READING OF ORDINANCE NO. 18, 2000, AUTHORIZI AGENDA ITEM SUMMARY ITEM NUMBER: 16 DATE: February 15, 2000 • FORT COLLINS CITY COUNCIL STAFF: Jim O'Neill SUBJECT: First Reading of Ordinance No. 18, 2000, Authorizing the Purchasing Agent to Enter into an Agreement for the Financing by Lease-purchase of Records Management Software, Hardware, Services, and Related Equipment. RECOMMENDATION: Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT: Capital funds are available to purchase the CAD portion of the system and lease-financing will be used for the Records Management,Courts,and Mobile portions. While the lease-purchase must be approved before a contract may be executed for the system,the actual lease financing won't be finalized until October,2000,when the money is needed for payment on the contract. 040 cost of the items to be lease-purchased is approximately $2,000,000, and the amount of the lease will not exceed 0,000. Payments at an interest rate of 7%would not exceed$573,036 in 2001. Money for the first year lease-purchase payments is included in the 2001 budget. Lease-purchase financing will be obtained from either Safeco Credit Company or Koch Financial Corporation. Each company has provided such financing in the past two years and has offered to provide the financing for these systems. The lease will be placed with the company offering the lowest interest rate at the time the funds are needed. EXECUTIVE SUMMARY: This Ordinance will authorize the Purchasing Agent to enter into a lease-purchase financing agreement with the selected company at the lowest interest rate offered. The agreement will be for an original term from the execution date of the agreements to the end of the current fiscal year. The agreement provides for renewable one-year terms thereafter,for a total term of five(5)years,subj ect to annual appropriation of funds needed for lease payments. The total lease terms, including the original and all renewal terms,will not exceed the useful life of the property. This lease-purchase financing is consistent with the financial policies of the City of Fort Collins. ; BACKGROUND: Police Services,Poudre Fire Authority,Poudre Valley Hospital Ambulance Service and Municipal Court are cooperatively replacing existing Computer Aided Dispatch,police records management, and fire records management systems. The computer aided dispatch system that serves both Police Services and the Poudre Fire Authority was originally installed in 1988 and was upgraded in 1992. Police, PFA, and Municipal Court share an RMS system that was also upgraded in 1992, but has never been adequate for PFA's needs. DATE: February 15, 2000 2 ITEM NUMBER: 16 The current systems have diminishing reliability and functionality,are seriously outdated and do not operate in a Windows environment. They also lack database structures to meet the City's current needs. Included in this replacement is the purchase of an automated vehicle locating system (AVL) that will be purchased by PFA and the ambulance service. This system will allow real time tracking and monitoring of their vehicle fleets. PFA and Police Services will be replacing the remaining mobile data terminals in their vehicles with laptop computers and status reporting devices. The purchase of software from VisionTek will allow far greater functionality such as forms processing and field reporting from the vehicles. Printrak was selected through a request for proposal process conducted in the summer and fall of 1999. All equipment has been purchased following the City's purchasing ordinances and procedures to ensure that the City realizes all cost savings. The proposed Ordinance authorizes the lease-purchase financing of the following: 1. Law Enforcement Record Management System(LRMS) - $1,080,278 Application Software and Hardware, Workstation Software Barcoding Software and Equipment, Document Imaging Software and Equipment Training, Installation, and Implementation. 2. VisionTek Hardware and Software- $612,436 3. Courts Application Hardware and Software- $219,095 NT Hardware Courts interface with LRMS 4. Ambulance portion of the AVL system-$46,163 Dollar amounts and the mix ofhardware and software elements to be lease-purchased may vary from the above listing, depending on contract negotiations with the CAD/RMS vendor. Section 29-1-103(3)of the Colorado Revised Statutes requires local governments to identify as part of their budgets: (1) the total expenditures during the ensuing fiscal year for all lease purchase agreements involving real and personal property;and(2)the total maximum payment liability under all lease purchase agreements over the entire terms of the agreements,including all optional renewal terms. While from a legal standpoint a lease-purchase is not included in the legal definition of debt, rating agencies include lease-purchases in calculating the City's debt burden,and staff has provided this information as part of the financial impact discussion above. ORDINANCE NO. 18,2000 • OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT FOR THE FINANCING BY LEASE-PURCHASE OF RECORDS MANAGEMENT SOFTWARE, HARDWARE, SERVICES, AND RELATED EQUIPMENT WHEREAS, the City of Fort Collins, Colorado (the "City") has a need for and desires to provide certain real and personal property for City purposes; and WHEREAS, the City is authorized by the Colorado Constitution, Article XX, §6 and its home rule charter to lease City property; and WHEREAS,the City is authorized by the Colorado Constitution,Article XX, §6, its home charter and Part 8 of Article 15 of Title 31, Colorado Revised Statutes, as amended(the "Act"), to enter into rental or leasehold agreements in order to provide necessary land, buildings, equipment and other property for governmental or proprietary purposes, and such agreements may include options to purchase and acquire title to such leased or rented property; and WHEREAS, the City has received proposals from Koch Financial Corporation and Safeco • Credit Company to lease equipment to the City, consisting of the following (the "Equipment"): 1. Law Enforcement Record Management System(LRMS) - $1,080,278 Application Software and Hardware, Workstation Software Barcoding Software and Equipment, Document Imaging Software and Equipment Training, Installation, and Implementation. 2. VisionTek Hardware and Software- $612,436 3. Courts Application Hardware and Software- $219,095 NT Hardware Courts interface with LRMS 4. Ambulance portion of the AVL system- $46,163 Lease total may vary from these amounts, but will not exceed$2,400,000. WHEREAS,the City Council has determined that it is in the best interest of the City to lease the above-described equipment from the leasing company offering the lowest cost lease, which company will also provide financing for the Equipment acquisition; and . WHEREAS, the City desires to enter into a lease-purchase agreement with respect to the leasing and financing of the Equipment; and WHEREAS, the useful life of the Equipment is longer than the maximum lease-purchase term of five U years; and WHEREAS, the City has determined that the lease payments to result from the proposed arrangement will require payments by the City in the sum of not more than $143,259 per quarter, and that payments in that amount are reasonable and proper and represent the fair rental value of the Equipment; and WHEREAS, no lease payments will be required in 2000 and funds for the 2001 lease payments are included in the 2001 budget; and WHEREAS,the lease of the Equipment will not constitute a"multiple-fiscal year direct or indirect debt or other financial obligation"of the City within the meaning of Article X§20(4)(b)and may therefore be entered into without voter approval; and WHEREAS, Article V, Section 9, of the Charter of the City of Fort Collins permits the Council to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with previous appropriations for that fiscal year,does not exceed the then current estimate of actual and anticipated revenues to be received during the fiscal year. NOW, THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the Purchasing Agent be,and hereby is,authorized to enter into a lease- purchase agreement for the above-described Equipment in accordance with the following terms and provisions: a. The agreement shall be for an original term from the execution date of the agreement through December 31. 2000. The agreement shall provide for renewable one-year terms thereafter up to a total term of five (5) years, subject to annual appropriation of funds needed for lease payments. The total lease terms,including the original and all renewal terms,shall not exceed the useful life of the property. b. The City shall make equal quarterly payments throughout the term of such agreement but subject to annual appropriation of funds needed for such payments. C. If the City leases the Equipment for the original term and all renewal terms, the payments will total the sum of the principal,not to exceed $2,400,000, plus interest at a fixed rate. . d. The City shall have the option to purchase part or all of the Equipment on any quarterly payment date of any term. The option to purchase shall be exercised by paying the quarterly payment due on said date and the unpaid principal due after said date. e. If the City renews the agreement for all the renewal terms and makes all payments during said terms,the City,shall be deemed to have exercised the option to purchase said Equipment. f. The agreement shall constitute only a current expense of the City and shall not be construed to be a debt or pledge of the City's credit or revenues. Section 2. That the amount of Two Million, Four-Hundred Thousand Dollars ($2,400,000) to be provided under the lease-purchase agreement is hereby appropriated for expenditure in the General Fund from unanticipated revenue for the acquisition of the Records Management, Courts, and Mobile portions of the CAD/RMS system in accordance with the terms and provisions of the lease-purchase agreement,upon receipt thereof,for the purpose of conforming to accounting standards applicable to the City. Section 3. Any inconsistency between the provisions of this Ordinance and those of the Act is intended by the Council. To the extent of any such inconsistency the provisions of this Ordinance shall be deemed made pursuant to the home rule charter of the City and shall supersede . to the extent permitted by law and the conflicting provisions of the Act. Introduced, considered favorably on first reading, and ordered published this 15th day of February, A.D. 2000, and to be presented for final passage on the 7th day of March, A.D. 2000. Mayor ATTEST: City Clerk Passed and adopted on final reading this 7th day of March, A.D. 2000. Mayor ATTEST: • City Clerk