HomeMy WebLinkAbout054 - 04/01/1997 - AUTHORIZING AGREEMENT FOR LEASE-PURCHASE OF VEHICLES AND EQUIPMENT AND APPROPRIATING RELATED UNANTIC ORDINANCE NO. 54, 1997
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 VEHICLES AND EQUIPMENT
AND APPROPRIATING RELATED UNANTICIPATED REVENUE
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 Koch Financial Corporation to lease to
the City the following described vehicles and equipment:
Qty Description Total Cost Term End of Final
rs Term
2 Used Diahatsu Trucksters 16,800 3 April 10, 2000
3 John Deere Walking Greens Mowers 11,850 3 April 10, 2000
1 Toro Workman 3000 Utility Vehicle 16,478 5 April 10, 2002
1 Toro Workman 3000 with dump box 18,000 5 April 10, 2002
1 Jacobsen Rotary Rough Mower 39,000 5 April 10, 2002
1 Toro Workman 3000 14,500 5 April 10, 2002
15 1997 Club Car DS Gas Golf Cars 50,250 5 April 10, 2002
1 Toro Triplex Tee Mower 17,600 5 April 10, 2002
1 Toro 72" Rotary Mower 14,500 5 April 10, 2002
1 RI34/R12 Freon Recycling Machine 6,000 5 April 10, 2002
I Opacity Machine for Emission Testing 4,600 5 April 10, 2002
1 GMC Safari Van 19,883 5 April 10, 2002
1 Ford E-I 1 Cargo Van 17,840 5 April 10, 2002
E11 Versalift Aerial Lift 45,000 7 April 10, 2004
Ford F-47 Cab/Chassis for Aerial Lift 19,647 7 1 April 10, 2004
Lease-Purchase Total $311,948
WHEREAS,the City Council has determined that it is in the best interest of the City to lease
equipment from Koch Financial Corporation, which is also providing financing for equipment
acquisition; and
WHEREAS, the City desires to enter into lease-purchase agreements with respect to the
leasing and financing of equipment; and
WHEREAS, the City has determined that the lease payments in the sum of$17,907 per
quarter are reasonable and proper and represent the fair rental value of the subject equipment and
sufficient funds to make the lease payments for 1997 are appropriated and available in the City's
1997 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 Koch Financial Corporation 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 April 10, 1998. The agreement shall provide for renewable one-
year terms thereafter, 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 payment to Koch Financial Corporation will total the sum of the principal,
$311,948,plus interest at a fixed rate equal to 5.32%per year, which is a reasonable
amount.
(d) The City shall have the 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.
(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) 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.
Section 2. That the amount of Three-Hundred Twelve Thousand, Sixty-One Dollars
($311,948)to be provided to the City under the lease-purchase agreement is hereby appropriated for
the fiscal year 1997 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 18th day of
March, A.D. 1997, and to be presented for final passage on the Istday of April, A.D. 1997.
Mayor
ATTEST:
04 L —A 4- - I
City Clerk
Passed and adopted on final reading this 1 st day of A�gril,A.D. 1997.
Mayor i
ATTEST:
I aL�� N %"I .
City Clerk