HomeMy WebLinkAbout032 - 04/18/2000 - AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT FOR THE FINANCING BY LEASE-PURCHASE OF V ORDINANCE NO. 32, 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 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:
Equipment to be Lease-Purchased:
Line Department Qty. Description Total Cost Term (yrs)
No.
1 Forestry 1 Galion/Hood 8000 1 37,5301 7
2 Forestry 1 Freightliner Cab/Chassis 1 56,2351 7
3 Collindale Golf 1 Jacobsen HR-5111 Rough Mower 1 43,5201 5
4 SouthRidge Golf 1 1 Toro Workman 3200 Truckster 1 20,1021 5
5 SouthRidge Golf 1 1 John Deere 1500 Aercore 1 17,3641 5 1
6 PD-Investigations 1 12000 Ford Crown Victoria 1 20,9371 5 1
7 PD-Investigations 1 12000 Chevy Astro Van 1 19,6581 5
8 Streets 2 1 Tandem axle trucks and equipment 1 260,0001 5 1
9 Fleet Services 1 11999 15-passenger van 1 21,9001 5
10 Fleet Services 2 12000 Dodge Intrepid Staff Cars 1 36,4111 5
11 Fleet Services 3 1 Hot Water Parts Washers 1 17,9401 5 1
12 Fleet Services 3 Pro-M Work Stations 1 7,5451 5
13 Fleet Services 5 System One Parts Washers 1 14,4501 3
Total Lease Financing $573,592
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 seven (7) 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 $32,433 per quarter, and that
payments in that amount are reasonable and proper and represent the fair rental value of the
Equipment; and
WHEREAS, funds are budgeted for lease payments 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 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 seven (7) 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 will total the sum of the principal,
$573,592, plus interest at a fixed rate equal to 5.85% 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. 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 HUNDRED AND THIRTY-TWO
THOUSAND, SIX HUNDRED AND SIX DOLLARS ($232,606) 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 Forestry and Police equipment and vehicles
described above, in accordance with the terms and provisions of the lease-purchase agreement,
upon receipt thereof.
Section 3. That the amount of EIGHTY THOUSAND NINE HUNDRED AND
EIGHTY-SIX DOLLARS ($80,986) to be provided under the lease-purchase agreement is
hereby appropriated for expenditure in the Golf Fund from unanticipated revenue for the
acquisition of the Collindale and Southridge vehicles and equipment described above, in
accordance with the terms and provisions of the lease-purchase agreement, upon receipt thereof.
Section 4. That the amount of TWO HUNDRED SIXTY THOUSAND DOLLARS
($260,000) 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 Streets vehicles and equipment described above, 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 4th day of
April, A.D. 2000, and to be presented for final passage on the 18th day of April, A.D. 2000.
Mayor a a
ATTEST:
City Clerk
Passed and adopted on final reading this 18th day of April, A.D. 2000.
Mayor
ATTEST:
2
City Clerk