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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/18/2001 - ITEMS RELATING TO THE LEASE FINANCING AGREEMENT FO AGENDA ITEM SUMMARY ITEM NUMBER: 8 A-C DATE: September 18, 2001 FORT COLLINS CITY COUNCIL Alan xrcmarik STAFF: Jerry P. Brown SUBJECT: Items Relating to the Lease Financing Agreement for the Public Safety and Recreational Improvements RECOMMENDATION: Staff recommends adoption of the Ordinances on Second Reading. FINANCIAL IMPACT: The City will finance the improvements with $3,720,000 from a lease purchase transaction. $890,000 will be used to acquire an off-site City Police Department facility. $2,830,000 will be used for replacement of the Collindale Golf Course Clubhouse and other Golf Course improvements. The annual payments on the lease transaction will average about $291,000 for 20 years. The Golf Fund will pay its share of the improvements from a surcharge fee that will be implemented in 2002. After 2003 the Golf Fund will have up to an additional $140,000 available annually when the debt service for the SouthRidge Golf Course is retired. The source of payment for the Police facility will come from the City's General Fund and federal grant monies. r EXECUTIVE SUMMARY: A. Second Reading of Ordinance No. 130, 2001, Approving and Authorizing the City to Enter into Agreements in Connection with the Execution and Delivery of Lease Certificates of Participation for Public Safety and Recreational Improvements. This Ordinance authorizes the City to execute deeds and agreements to provide funds to acquire a facility for the Police Department and to construct a new clubhouse at the Collindale Golf Course and to make additional Golf Course improvements. The Police Department and Golf Fund projects will be financed through the use of a non-profit corporation, the Fort Collins Capital Leasing Corporation. This is similar to the financing used for the parking structure and City office building. Through an assignment of lease payments, the City will transfer the properties to the Fort Collins Leasing Corporation. The Corporation will then lease the properties back to the City for a term of 20-years. Upon payment of all lease payments, the site lease will be terminated, and the property and improvements will be conveyed to the City. The full term of the lease transaction is 20 years. The City has the right to make early payments in order to reduce the length of the lease term or to reduce annual costs. The City expects to pay interest on the lease semi-annually, at a rate of 4.70% for the first 10 years at DATE: September 18,2001 2 ITEM NUMBER: 8 A-C which time the rate will be reset every five years based upon a lending index. Principal payments will be made annually. B. Second Reading of Ordinance No. 141, 2001, Appropriating Proceeds in the Golf Enterprise Fund from the Lease Financing of Golf Course Improvements, Including the Replacement of the Collindale Golf Course Clubhouse. This Ordinance appropriates $2,830,000 in the Golf Fund. The funds will be used to construct a new Collindale Golf Course Clubhouse and make additional golf course improvements and pay for the costs associated with the lease financing. C. Second Reading of Ordinance 142, 2001, Appropriating Unanticipated Revenue in the Capital Projects Fund to be Used for the Purchase of a Police Facility This Ordinance appropriates $890,000 in the Capital Projects Fund for the acquisition and improvements for a Police facility and to pay for the costs associated with the lease financing. BACKGROUND: On August 21, Council unanimously adopted Ordinance No. 130, 2001, on First Reading. On September 4, 2001, Council also unanimously adopted Ordinance No's. 141 and 142, 2001. On September 7, the Finance Department received competitive bids on the lease transaction. Zions First National Bank submitted the lowest interest rate of 4.70% for the first ten years with repricing to occur at the end of the tenth year and to reset according to a floating index for each of the remaining two five-year terms. Based on the terms of the bid from Zions, the City has been able to reduce the original estimated cost of the transaction. The original financing plan contemplated an interest rate of 5.50% with estimated lease payments of approximately $324,000 annually. The actual interest rate of 4.70% lowers the annual lease payments to approximately $291,000 per year. Staff was also able to reduce the cost of the financing by $55,000. The table below shows the actual breakout of the sources and uses of funds. Police Facility Golf Total % of Total Sources of Funds $890,000 $2,830,000 $3,720,000 100.00% Uses of Funds Construction $ ----- $2,289,000 $2,289,000 61.53% Contingency 40,000 160,000 200,000 5.38% Land-Facility Costs 835,000 351,000 1,186,000 31.88% Total Construction Costs 875,000 2,800,000 3,675,000 98.79% DATE: September 18, 2001 3 ITEM NUMBER: 8 A-C Police Facility Golf Total % of Total Financing Costs Cost of Issuance 15,000 30,000 45,000 1.21% Accrued Interest -- - - -- Total Financing Costs 15,000 30,000 45,000 1.21% Total Project Costs $890,000 $2,830,000 $3,720,000 100.00% Recommendation The tease transaction bid process resulted in lower costs to the City. Staff recommends adoption of the ordinances on Second Reading. AGENDA ITEM SUMMARY ITEM NUMBER: 23 DATE: August 21, 2001 FORT COLLINS CITY COUNCIL STAFF: Alan Krcmarik Jerry P. Brown SUBJECT: First Reading of Ordinance No. 130, 2001, Approving and Authorizing the City to Enter into Agreements in Connection with the Execution and Delivery of Lease Certificates of Participation for Public Safety and Recreational Improvements. '- RECOMMENDATION: Staff recommends adoption of the Ordinance on First Reading Agoillimma Am mm"S66-d'A FINANCIAL IMPACT: 77 The Citywill finance the improvements with p approximately $3.865' million in tax-exempt certificates of participation lease financing. Approximately $1.0 million')ffiW be used to acquire an off-site City Police facility. Approximately $2.865 million will be used for replacement of tl3e Collindale Golf Course Clubhouse and other Golf Course improvements. The annual payments on the certific icipation will average about $324,000. The Golf Fund will pay most of its share,bf-did iM ativements fro irt ¢urcharge fee that will be implemented in 2002. After 2003, the Golf Fund will have up to an7liiiiional $140"" available annually when the debt service for the SouthRidge Golf Course is retired. The source of payment for the Police facility will come from the City's General Fund. The structure will also receive federal grant monies. Second Reading of this Ordinance will be on September 18, due to pricing considerations. EXECUTIVE SUMMARY: w This Ordinance authorizes the City to execute and deliver lease purchase certificates of participation to provide funds to acquire a facility for the Police Department and to construct a new clubhouse at the Collindale Golf Course and to make additional Golf Course improvements. The 0olice Department and Golf Fund projects will be financed through the use of a non-profit corpbtstion, the Fort Collins Capital Leasing Corporation. This is similar to the financing used for the parking structure and City office building. Through a sale-leaseback arrangement, the City willrtransfer the properties to the Fort Collins Leasing Corporation. The Corporation will then lease the properties back to the City for a term of 20-years. The actual financing will be accomplished through the sale of certificates of participation (COPS). Upon payment in full of the COPS the site lease will be terminated. The average life of the COPs is expected to be between 13 and 15 years. The City expects to pay interest on the lease semi-annually, at an estimated rate of 5.50% for the first 10 years at which time the rate will be reset for an additional 10-year period. Principal payments will be made annually. DATE: August 21,2001 2 ITEM NUMBER: 23 The City will select a trustee for this transaction. The Trustee will be assigned all rents to the Corporation from the City and the Trustee will make payments to the investors that purchase the COPS in the lease purchase transaction. The COPS will be paid through an annual appropriation. This financing technique does not entail a multiple year fiscal obligation of the City under Article X, Section 20, of the State Constitution, because the City's lease payments to the non-profit corporation will be subject to annual appropriation. Under state law, the COPs are not considered debt of th °ity. Therefore, the City is not required to obtain voter approval in order to finance capital " s or equipment using lease purchase financing. BACKGROUND: Golf Improvements Approximately $2.865 million of the lease purchase proceeds will be used ce the clubhouse at Collindale Golf Course and make oth improvements. the clubhouse will be completed between Dece a fall of 2002. The ' Ian calls for a modem facility of approximately 14 square feet t The Golf Board and the Golf Division staff have'atutlied the condition of the current clubhouse and recommend replacement of the existing 30-Y -Wd, :7,700 square foot clubhouse. The lr_Board and staff recommend the construction of a n6W-14,644 square foot, bi-level, modem clubhouse building on the same.srte �` - h The existing Collindale Clubhouse building had an original life expectancy of no more than 35 years. The construction of the building was done very inexpensively as a pre-fabricated design, with many elements constructed minimally or sub-standard, such as the entire electrical system, which does not currently meet Code. It has served its useful life. Over the years the City has upgraded or replaced many pf the systems, such as HVAC, plumbing, lighting, etc. Staff and the Golf Board„,,find the facr ;}tas essentially reached the functional limits of any further improvements. It is not practical to spend a great deal of money on this old building and parking lot, and now is the appropriate time to consider replacing them. The quality of the Golf Course at Collindale is very high, but the quality°of the Collindale Clubhouse is very low. It does not provide a positive image, nor is it the full-service facility customers seem to desire and deserve. The'architect/consultants have estimated the total cost of the project to be $2,650,000; this includes casts related to construction, contingency, furnishings, and all associated fees and charges.b ',additional $215000 will be used for other necessary golf course improvements. Drawings atbeproposed-project are on display at the Collindale Clubhouse. The new building will be bi-level, and`is a'"Colorado lodge" look. The Pro Shop will have great visual access of the 1st and 1Oth tees and the 9th and 18th greens. The full-service restaurant/bar/lounge/dining area will provide seating for 142 people and 10 bar stools, and the 1,200 square foot patio facing south with seating for 50, are all located on the upper level. The lower level will provide storage for 50 golf carts, limited men's and women's day-use lockers and shower facilities, women's lounge, long-term locker rentals, etc. The building also has more than twice as many restroom facilities, and it will have a snack bar window access to the kitchen from outside for food and beverage service "at the turn". The parking lot will be totally renovated to modern development standards, including multi-modal access accommodations. DATE: August 21, 2001 3 ITEM NUMBER: 23 Police Department Faciliri The remaining $1.0 million will be used to acquire an offsite facility for the Fort Collins Police Department. The facility is located within the Loveland-Fort Collins Industrial Airpark. The site includes an 8,000 square foot building built in 1999. The building has all required i, ties and a fire sprinkler system. The site includes paved parking for at least 20 vehicles.,,,—A ize of the lot is 177 feet by 265 feet. The building interior is mostly open. Part of the financi swill be used to remodel the interior to add offices for the department. r. The Fort Collins Police Department works in conjunction rtX other local`olice forces, including the Loveland and CSU Police Departments ty Sheriffs Department. This location, which is outside City limits, provides a c the multi- agency cooperation. Financing-Plan Estimates All of the figures in the table are subject to change,:due to changes to market conditions. x Tooke Facty , . Golf Total % of Total Sources of Funds $1,000,000 52,865,000 $3,865,000 100.00% Uses of Funds Construction ., S ----- $2,289,000 $2,289,000 59.22% Contingency 40,000 160,000 200,000 5.17% Land-Facility Costs 925,060 351,000 1,276,000 33.02% Total Construction Costs 965,000 2,800,000 3,765,000 97.41% Financing Costs Cost of Issuance 35,000 65,000 100,000 2.59% Accrued Interest Total Financing Costs 35,000 65,000 100,000 2.59% f Total Project Costs $1,000,000 $2,865,000 $3,865,000 100.00% The Golf Fund will repay the bonds from proceeds of a $1.00 surcharge fee on each 9-hole golf round and $2.00 surcharge fee on each 18-hole round that will be implemented in 2002. The DATE: August 21,2001 4 ITEM NUMBER: 23 Golf Board has carefully reviewed the project and proposed financing plan. The Board has also recommended the surcharge. Currently the total fees and charges at the three City Golf Courses rank in the lower 25% of all comparable northern Colorado municipal and public courses, and these new fees will not alter that position in the market. The surcharge fees are expected to raise $180,500 in annual revenue for the Golf capital projects. Additionally, beginning in 2003, the SouthRidge debt service will be retired thus providing a portion of the annual $140,000 for repayment of the COPS. The City will repay the Police Department share of the financing from G Fund revenue and funds received from the federal government for law enforcement. SI . tea, . AGENDA ITEM SUMMARY ITEM NUMBER: 20 A-B DATE: September 4, 2001 FORT COLLINS CITY COUNCIL STAFF: Alan Krcmarik/ Jerry P. Brown SUBJECT: Items Relating to Appropriation of the Proceeds from Lease Financing for the Public Safety and Recreational Improvements. M: RECOMMENDATION: Staff recommends adoption of the Ordinances on First Reading FINANCIAL IMPACT: Through a lease financing transaction, the City-4be able to acquire or construct $2,865,000 of improvements to the Collindale Golf Course CIA'd,iise and acquire or construct a $1,000,000 off site facility for use by the Police Department. The atimial payments are estimated to be about $324,000. The Golf Fund will make ;annual payments of approximately $230,000 for its share of the improvements over 20 yea OI'h approxuriaW' $90,000, for the Police Building rx u g , will be made from the Geneiya'T Fund. Ordmanddee"3Vo. 141, 20'01;appropriates the proceeds from the lease for the Golf improvements and for financing issuance costs and Ordinance No. 142, 2001, appropriates the proceeds for the Police building improvements and for financing issuance costs. EXECUTIVE SUM": A_ A. First Reading of Ordinance� 141, 200`4 Appropriating Proceeds in the Golf Enterprise Fund from the Lease Financing of Golf Course Improvements, Including the Replacement of the Collindale Golf Course Clubhouse. This'Ordinance appropriates $2,865,000 in the Golf Fund. The funds will be used to acquire and construct a clubhouse facility at the Collindale Golf Course and to pay for the costs associated with the;lease financing. B. First` Reading, of Ordinance No. 142, 2001, Appropriating Proceeds in the Capital Projects Fund From the Lease Financing of Police Facility Improvements. This Ordinance appropriates $1,000,000 in the Capital Projects Fund for the acquisition and construction of improvements to a Police facility and to pay for the costs associated with the lease financing. On August 21, 2001, Council unanimously adopted Ordinance No. 130, 2001 on First Reading. The Finance Department will receive pricing bids on the lease transaction on September 7 through a competitive process. The Financial Officer will present the rates on the financing and DATE: September 4,2001 2 ITEM NUMBER: 20 A-B any changes to the financing documents to the Council at the time of Second Reading on September 18. These Ordinances appropriate the proceeds from the lease transaction. The Collindale Golf Course Clubhouse Project will be accounted for as a Capital Project within the Golf Fund. The Police building will be accounted for in the Capital Projects Fund. The Agenda Item Summary from August 21, 2001, is included as background information in support of the two Ordinances. T is ({iK ORDINANCE NO. 130,2001 AN ORDINANCE AUTHORIZING THE CITY TO EXECUTE AND DELIVER A QUITCLAIM DEED TO FORT COLLINS CAPITAL LEASING CORPORATION AND ENTER INTO A LEASE AGREEMENT BETWEEN THE CORPORATION AND THE CITY AND APPROVING SAID DOCUMENTS, AND APPROVING AN ASSIGNMENT FROM THE CORPORATION TO ZIONS FIRST NATIONAL BANK AND A DEED OF TRUST FROM THE CORPORATION TO THE PUBLIC TRUSTEE OF LARIMER COUNTY, COLORADO, FOR THE BENEFIT OF THE BANK. WHEREAS, the City of Fort Collins, Colorado (the "City"), has need for and desires to provide certain real and personal property for City purposes; and WHEREAS, the City is authorized by Colo. Const. art. XX, § 6, its home rule charter (the "Charter's and Section 23-111 of the City code to sell, convey or otherwise dispose of City property; and WHEREAS, the City is authorized by Colo. Const. art. XX, § 6, the 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 currently owns certain real property (the "Golf Clubhouse Site") that it desires to convey to Fort Collins Capital Leasing Corporation, a Colorado nonprofit Corporation(the "Corporation"), by means of a Quitclaim Deed (the "Deed"); and WHEREAS, the Corporation has offered to acquire the Golf Clubhouse Site and certain other real and personal property (collectively, the "Leased Property") and lease the Leased Property to the City under a Lease Agreement, dated its date of execution and delivery (the "Lease"), between the Corporation, as lessor, and the City, as lessee; and WHEREAS, the Lease does not constitute a "multiple-fiscal year direct or indirect debt or other financial obligation' of the City within the meaning of Colo. Const. art. X, §20(4)(b) and may therefore be entered into without voter approval; and WHEREAS,the City has heretofore distributed to potential investors a request for proposal to provide lease/purchase financing(the "Request for Proposal"); and WHEREAS, in accordance with the Request for Proposal, the Corporation and the City accepted the proposal (the "Proposal") of Zions First National Bank, affiliate of Vectra Bank Colorado (the "Bank")to provide such lease/purchase financing; and WHEREAS, in consideration of receiving from the Bank the amount set forth in the Proposal (the "Loan") to acquire the Golf Clubhouse Site and acquire, construct and install the other Leased Property, the Corporation will promise to repay the Loan and assign to the Bank all its rights under the Lease, including its rights to receive rental payments thereunder, pursuant to an Assignment, dated its date of execution and delivery (the "Assignment"), from the Corporation, as assignor,to the Bank, as assignee; and WHEREAS, in order to provide additional security to the Bank, the Corporation proposes to grant a first lien upon and security interest in the Leased Property to the Bank, pursuant to a Deed of Trust, Security Agreement and Financing Statement, dated its date of execution and delivery (the "Deed of Trust"), between the Corporation, as grantor, and the Public Trustee of Larimer County, Colorado, as grantee, for the benefit of the Bank, as beneficiary; and WHEREAS, the proceeds of the Loan are to be deposited in the Project Account (as defined in the Lease) and disbursed by the City, on behalf of the Corporation, to pay costs of acquiring the Golf Clubhouse Site and acquiring, constructing and installing the other Leased Property and for other municipal purposes,pursuant to the provisions of the Lease;and WHEREAS the forms of the Deed, the Lease, the Assignment and the Deed of Trust have been filed with the City Clerk. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO: 1. The forms of the Deed, the Lease, the Assignment and the Deed of Trust are hereby approved, together with any revisions thereto as may be considered necessary or desirable by the Financial Officer in consultation with the City Attorney to carry out the purposes thereof. 2. The City Council (the "Council') hereby finds that the sale of the Golf Clubhouse Site to the Corporation pursuant to the Deed and the lease of the Leased Property as provided in the Lease are in the best interests of the City and its inhabitants. In addition, the determinations set forth in Section 6.5 of the Lease are incorporated herein by this reference as if set forth in full herein. 3. The Mayor and the City Clerk are hereby authorized and directed to execute and deliver the Deed and the Lease and the Mayor, the City Clerk and the City Manager are hereby authorized and directed to execute and deliver any other document, certificate or instrument that in the opinion of the City Attorney is necessary to effect the transactions contemplated thereby and not inconsistent therewith. 4. The City hereby waives any available defense of governmental immunity from liability in tort for any failure to surrender possession of the Leased Property as provided in the Lease. 5. If any section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. 6. All action not inconsistent with the provisions of this Ordinance heretofore taken by the City or its officers and otherwise by the City directed toward the completion of the transactions described herein, including but not limited to the distribution of the Request for Proposal and the acceptance of the Proposal, is hereby ratified,approved and confirmed. 7. All ordinances, resolutions and orders, or parts thereof, of the City inconsistent herewith and with the documents approved hereby are hereby repealed to the extent only of such inconsistency. This repealer shall not be construed as reviving any ordinance, resolution or order, or part thereof. 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 Charter and shall supersede to the extent permitted by law the conflicting provisions of the Act. READ, AMENDED, FINALLY PASSED AS AMENDED ON SECOND READING AND ORDERED PUBLISHED BY NUMBER AND TITLE ONLY this 18th day of September, A.D. 2001. CITY OF FORT COLLINS, COLORADO By: Mayor (CITY) (SEAL) ATTEST: City Clerk ORDINANCE NO. 141,2001 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PROCEEDS IN THE GOLF ENTERPRISE FUND FROM THE LEASE FINANCING OF GOLF COURSE IMPROVEMENTS INCLUDING THE REPLACEMENT OF THE COLLINDALE GOLF COURSE CLUBHOUSE WHEREAS,the Golf Board and the Golf Division have studied the condition of the current Collindale Golf Course clubhouse and recommend replacement of the existing 30-year old, 7,700 square foot clubhouse with a new 14,644 square foot, bi-level, modem clubhouse building on the same site; and WHEREAS,the existing Collindale Clubhouse building had an original life expectancy of no more than 35 years and construction of the building was done very inexpensively with many elements constructed minimally or substandard; and WHEREAS,the estimated cost of replacing the Collindale Golf Course Clubhouse and other golf course improvements is $2,830,000, with work on the clubhouse to be completed between December 2001 and the fall of 2002; and WHEREAS, by the adoption of Ordinance 130, 2001, the City Council has authorized the execution and delivery of various agreements in connection with the lease financing of the above- described improvements; and WHEREAS,the appropriation of the proceeds of the lease financing is necessary to complete the construction of the replacement of the Collindale Golf Course Clubhouse and other golf course improvements, and to pay costs associated with said financing; and WHEREAS,Article V, Section 9 of the Charter of the City of Fort Collins permits the City 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 all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, it is the desire of the Council to appropriate the sum of $2,830,000 in unanticipated revenue in the Golf Fund, representing proceeds from the lease financing described herein,to be used for the replacement of the Collindale Golf Course Clubhouse and other golf course improvements, and the payment of costs associated with said lease financing. NOW, THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from unanticipated revenue in the Golf Fund the amount of TWO MILLION EIGHT HUNDRED THIRTY THOUSAND DOLLARS ($2,830,000)upon receipt of the proceeds from the lease financing described in Ordinance No. 130, 2001, for the purpose of replacing the Collindale Golf Course Clubhouse, and other golf course improvements, and for the costs associated with said lease financing. Introduced, considered favorably on first reading and ordered published this 4th day of September, A.D. 2001, and to be presented for final passage on the 18th day of September, A.D. 2001. Mayor ATTEST: City Clerk Passed and adopted on final reading this 18th day of September, A.D. 2001. Mayor ATTEST: City Clerk ORDINANCE NO. 142,2001 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PROCEEDS IN THE CAPITAL PROJECTS FUND FROM THE LEASE FINANCING OF POLICE FACILITY IMPROVEMENTS WHEREAS,the Fort Collins Police Department works in conjunction with other local law enforcement agencies including the Loveland and Colorado State University Police Departments and the Larimer County Sheriff's Department; and WHEREAS, the aforementioned agencies having been looking for a facility that would provide a central location for the multi-agency cooperation; and WHEREAS,a site has been identified which includes the land and building,with sufficient space to meet the needs of the participating agencies; and WHEREAS,the estimated cost for acquisition of the aforementioned off-site police facility, including some remodeling costs, is $890,000; and WHEREAS,on August 21,2001,the City Council approved on first reading Ordinance No. 130,2001,approved on second reading of even date herewith,authorizing the execution and delivery of various agreements in connection with the lease financing of said off-site police facility and other city improvements,thereby providing a mechanism to secure funding for improvements associated with public safety, and to pay costs associated with said financing; and WHEREAS, Article V, Section 9 of the Charter of the City of Fort Collins (the "Charter") permits the City 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 all previous appropriations for that fiscal year,do not exceed the then current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, it is the desire of the Council to appropriate the sum of $890,000 in unanticipated revenue in the Capital Projects Fund, representing the proceeds from the lease financing described above, to be used for the acquisition of an off-site police facility, and the payment of costs associated with said lease financing. NOW, THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from unanticipated revenue in the Capital Projects Fund, Off-Site Police Facility capital project, the sum of EIGHT HUNDRED NINETY THOUSAND DOLLARS($890,000)upon receipt of the proceeds from the lease financing described in Ordinance No. 130, 2001,to be used for the acquisition of a police facility and for the costs associated with said lease financing. Introduced, considered favorably on first reading and ordered published this 4th day of September, A.D. 2001, and to be presented for final passage on the 18th day of September, A.D. 2001. Mayor ATTEST: City Clerk Passed and adopted on final reading this 18th day of September,A.D. 2001. Mayor ATTEST: City Clerk