HomeMy WebLinkAbout010 - 02/15/1994 - AUTHORIZING AN AGREEMENT FOR THE LEASE-PURCHASE OF VEHICLES AND EQUIPMENT ORDINANCE NO. 10, 1994
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE PURCHASING AGENT TO ENTER
INTO AN AGREEMENT FOR THE LEASE-PURCHASE OF
VEHICLES AND EQUIPMENT
WHEREAS, the City is authorized under the provisions of Title 31, Article
15, Part 8, C.R.S. , to acquire necessary equipment and other property for its
governmental and proprietary purposes under the provisions of a long-term rental
or leasehold agreement, with an option to purchase such equipment or property and
to provide for the payment of said property from any available municipal income;
and
WHEREAS, the City has received a proposal from Municipal Services Group,
Inc. to lease to the City the following described equipment and vehicles:
QUANTITY DESCRIPTION
1 each Rotary Mower
13 each Golf Cars
21 each Patrol Cars
9' each Patrol Vans
30 each Light Bars
30 each Cages
30 each Push Bumpers
30 each Unitrol
30 each Radios
30 each Boxes
9 each MDT's
22 each Consoles
21 each PAC sets
3 each Midsize Staff Cars
1 each 52" Riding Mower
7 each Midsize Pickups
5 each Van Pool Vans
1 each ADA Van Pool Van
6 each Propane Conversions
hereinafter referred to as the "Equipment"; and
WHEREAS, the City Council has determined that the City is in need of the
Equipment in order that the same may be used by various City departments; and
WHEREAS, pursuant to Section 8-160(d) of the City Code, a contract may be
awarded without competition if the Purchasing Agent determines in writing that
there exists only one responsible source; and
WHEREAS, the Purchasing Agent has determined Municipal Services Group,
Inc. , is the only responsible source available to the City for this lease-
purchase transaction; and
WHEREAS, the Purchasing Agent has submitted this sole source determination
to the City Manager and the City Manager has approved this determination; and
WHEREAS, pursuant to Section 8-160(d)(3) of the Code, all sole source
procurements over $50,000 must be approved by the City Council in an open
meeting; and
WHEREAS, the City Council has determined that it is in the best interest
of the City to lease-purchase the Equipment from Municipal Services Group, Inc. ;
and
WHEREAS, the City desires to enter into a lease-purchase agreement with
respect to the leasing of the Equipment; and
WHEREAS, the City Council has determined that the lease payments in the sum
of $55,603. per quarter are reasonable and proper and represent the fair rental
value of the Equipment and sufficient funds to make the lease payments for 1994
are appropriated and available in the City's 1994 budget.
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 with Municipal Services Group, Inc. , for
the above-described Equipment in accordance with the following terms and
provisions:
The lease-purchase agreement shall be for an original term from the
date of execution of the agreement through December 31, 1994. The
agreement shall provide for renewable one-year terms thereafter,
through the life of each item of the Equipment, subject to the
appropriation of funds needed for lease payments. The total lease
term, including the original and all renewal terms, shall not exceed
the useful life of the Equipment.
ITEM END OF FINAL TERM, IF RENEWED
Rotary Mower March 1, 1999
Golf Cars March 1, 1999
Patrol Cars March 1, 1999
Patrol Vans March 1, 1999
Light Bars March 1, 1999
Cages March 1, 1999
Push Bumpers March 1, 1999
Unitrols March 1, 1999
Radios March 1, 1999
Boxes March 1, 1999
MDT's March 1, 1999
Consoles March 1, 1999
PAC sets March 1, 1999
Midsize Staff Cars March 1, 1999
52" Riding Mower March 1, 1999
Midsize Pickups March 1, 1999
Van Pool Vans March 1, 2001
ADA Van Pool Van March 1, 2001
Propane Conversions March 1, 2001
2
The City shall make equal quarterly payments throughout the term of such
agreement.
If the City leases the Equipment for the original term and all successive
renewal terms, the payment to Municipal Services Group, Inc. , will total
Nine Hundred Ninety-three Thousand Six Hundred Eighty-seven Dollars
($993,687) in principal , plus interest at a fixed rate equal to 5.88% per
year, which is a reasonable amount.
The City shall have an option to purchase any piece or combination of
pieces 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.
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 the Equipment.
This 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. I
Section 2. That the Council approves this lease-purchase transaction as
a sole source procurement.
Section 3. That the effective date of this ordinance shall be February 25,
1994.
Section 4. That the amount of Nine Hundred Ninety-three Thousand Six
Hundred Eighty-seven Thousand Dollars ($993,687.) to be provided to the City
under the lease-purchase agreement is hereby appropriated for fiscal year 1994
as unanticipated revenue in the appropriate funds for the acquisition of the
Equipment in accordance with the terms and provisions of the lease-purchase
agreement.
Introduced, considered favorably on first reading, and ordered published
this 1st day of February, A.D. 1994, and to be present for final pa ge on the
15th day of February, A.D. 1994.
Mayor
ATTEST:
u� -
City Clerk QS
3
Passert and adopted on fin'c? reading- this- 15f February, A.D. 1994.
ayor
ATTEST:
City Clerk
4