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HomeMy WebLinkAbout018 - 03/07/2000 - AUTHORIZING THE PURCHASING AGENT TO ENTER AN AGREEMENT FOR THE FINANCING BY LEASE-PURCHASE OF A RECO ORDINANCE NO. 18, 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 RECORDS MANAGEMENT SOFTWARE, HARDWARE, SERVICES, AND RELATED EQUIPMENT WHEREAS, the City of Fort Collins, Colorado (the "City") has a need for and desires to provide certain real and personal property for City purposes; and WHEREAS, the City is authorized by the Colorado Constitution, Article XX, §6 and its home rule charter to lease City property; and WHEREAS,the City is authorized by the Colorado Constitution,Article XX, §6, its home 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 has received proposals from Koch Financial Corporation and Safeco Credit Company to lease equipment to the City, consisting of the following (the "Equipment'): 1. Law Enforcement Record Management System(LRMS) - $1,080,278 Application Software and Hardware, Workstation Software Barcoding Software and Equipment, Document Imaging Software and Equipment Training, Installation, and Implementation. 2. VisionTek Hardware and Software - $612,436 3. Courts Application Hardware and Software - $219,095 NT Hardware Courts interface with LRMS 4. Ambulance portion of the AVL system - $46,163 Lease total may vary from these amounts,but will not exceed $2,400,000. WHEREAS,the City Council has determined that it is in the best interest of the City to lease the above-described equipment from the leasing company offering the lowest cost lease, which company will also provide 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 not more than $143,259 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,the lease of the Equipment will not constitute a"multiple-fiscal year direct or indirect debt or other financial obligation"of the City within the meaning of Article X§20(4)(b)and may therefore be entered into without voter approval; 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 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, subj ect 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 payments will total the sum of the principal, not to exceed $2,400,000, plus interest at a fixed rate. 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. 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 Two Million, Four-Hundred Thousand Dollars ($2,400,000) 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 Records Management, Courts, and Mobile portions of the CAD/RMS system in accordance with the terms and provisions of the lease-purchase agreement,upon receipt thereof,for the purpose of conforming to accounting standards applicable to the City. Section 3. 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 home rule charter of the City and shall supersede to the extent permitted by law and the conflicting provisions of the Act. Introduced, considered favorably on first reading, and ordered published this 15th day of February, A.D. 2000, and to be presented for final passage on the 7th day of March, A.D. 2000. Mayor ATTEST: City Clerk , Passed and adopted on final reading this 7th day of March, A 2000. 1Vlayo ATTEST: c�I1 CC ��5 City Clerk