HomeMy WebLinkAbout148 - 09/15/1998 - AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT FOR THE FINANCING BY LEASE-PURCHASE OF V ORDINANCE NO. 148, 1998
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
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 Safeco Credit Company ("Safeco") to
lease equipment to the City, consisting of the following ("the Equipment'):
Line Dept. Qty. Description Total Cost Term
No. rs
1 Finance I HP 9000 K460 Server 193 178 5
2 Fleet Services 1 1998 Ford Ranger Extended Cab 4x4 Pickup 18,591 5
3 Fleet Services 1 1998 Chevy Astro Van All Wheel Drive 20,100 5
4 Fleet Services 1 Fiber Optic Cable Installation, 835 Wood& 16,486 5
906 Vine
5 Fleet Services 1 Fleet Maintenance Server,Network,and 13,934 5
Computer Upgrades
Total to be Financed $262,289
and
WHEREAS,the City Council has determined that it is in the best interest of the City to lease
the above-described equipment from Safeco, which is also providing 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 (5) 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$14,956 per quarter,and that payments
in that amount are reasonable and proper and represent the fair rental value of the Equipment; and
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 Equipment with Safeco Credit Company 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, 1998. 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 payment to Safeco Credit Company will total the sum of the principal,$262,289,
plus interest at a fixed rate equal to 5.14% per year, which is a reasonable amount.
(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) 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 Two-Hundred Sixty-Two Thousand, Two-Hundred
Eighty-Nine Dollars ($262,289) to be provided to the City under the lease-purchase agreement is
hereby appropriated for the fiscal year 1998 as unanticipated revenue in the appropriate funds for the
acquisition of the Vehicles and Equipment in accordance with the terms and provisions of the lease-
purchase agreement, upon receipt thereof.
Introduced, considered favorably on first reading, and ordered_published this Ist day of
September, A.D. 1998, and to be presented for final passage on th& nth day of SePjarr ,her, A.D.
1998.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 15th day of'Septem er, A.D. 1.998.
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ATTEST:
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City Clerk