HomeMy WebLinkAbout160 - 11/21/2000 - AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT FOR THE FINANCING BY LEASE-PURCHASE OF V ORDINANCE NO. 160, 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 VEHICLES AND EQUIPMENT
WHEREAS, the City is authorized under the provisions of Colorado Constitution Article
XX, §6,its home rule charter and 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 to lease
equipment to the City, consisting of the following:
Line Department Qty Description Total Cost Term
1 Traffic Operations I LED Traffic Signal Lams 392,569 5
2 Engineering 1 2000 Ford F-150 24,513 5
3 Cemetery 2 72"Toro Mower Deck 9,580 5
4 Cemetery 1 Vault Trailer 12,000 5
5 Operations Services 1 Copier 10,504 5
6 Fleet Services 1 2000 Toyota Prius Sedan 20,520 5
7 Fleet Services 1 200KW Cummins Diesel Generator 59,390 5
8 Fleet Services 1 2001 Jeep Cherokee 29,686 5
9 Fleet Services 1 2001 Toyota Prius Sedan 23,000 5
10 Police Patrol 16 2001 Police Patrol Vehicles 382,400 5
11 Police Patrol 16 Vehicle Police Equipment 63,900 5
12 Police Patrol 8 Vehicle Computers & CAD Equipment 26,800 5
13 Police Investigations 1 2001 Van 23,100 5
Total Lease Financin $1 077 962
WHEREAS,the City Council has determined that it is in the best interest of the City to lease
the above-described equipment from Safeco Credit Company,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$62,710 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, 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 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, 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 payment to Safeco Credit Company will total the sum of the principal,
$1,077,962 plus interest at a fixed rate equal to 5.95% 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.
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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 Four Hundred Ninety Six Thousand, Two Hundred
Dollars ($496,200) 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 Police
equipment and vehicles described above, in accordance with the terms and provisions of the lease-
purchase agreement.
Section 3. That the amount of One Hundred Thirty Two Thousand,Five Hundred Ninety
Six Dollars ($132,596) to be provided under the lease-purchase agreement is hereby appropriated
for expenditure in the Equipment Fund from unanticipated revenue for the acquisition of the Fleet
Services vehicles and equipment described above, in accordance with the terms and provisions of
the lease-purchase agreement.
Section 4. That the amount of Four Hundred Seventeen Thousand,Eighty Two Dollars
($417,082)to be provided under the lease-purchase agreement is hereby appropriated for expenditure
in the Transportation Services Fund from unanticipated revenue for the acquisition of the
Transportation Services vehicles and equipment described above, in accordance with the terms and
provisions of the lease-purchase agreement.
Section 5. That the amount of Twenty One Thousand, Five Hundred Eighty Dollars
($21,580)to be provided under the lease-purchase agreement is hereby appropriated for expenditure
in the Cemetery Fund from unanticipated revenue for the acquisition of the Cemetery vehicles and
equipment described above, in accordance with the terms and provisions of the lease-purchase
agreement.
Section 6. That the amount of Ten Thousand,Five Hundred Four Dollars ($10,504) 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 Operations Services equipment
described above, in accordance with the terms and provisions of the lease-purchase agreement.
Introduced, considered favorably on first reading, and ordered published this 7th day of
November, A.D. 2000, and to be presented for final passage on the 21 st day of November, A.D.
2000.
Mayor
ATTEST:
City Clerk
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Passed and adopted on final reading this 21st day of November, A.D. 2000.
Mayor
ATTEST:
'43 M� A.
City Clerk
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