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HomeMy WebLinkAbout110 - 07/17/2001 - AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT FOR THE FINANCING BY LEASE-PURCHASE OF 8 ORDINANCE NO. 110, 2001 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 800 MHz RADIO 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 Motorola,Inc.,for the lease of equipment (the "Equipment") to the City, consisting of the following: 800 MHz radio equipment, including the necessary software, programming, installation and support. WHEREAS,the City Council has determined that it is in the best interest of the City to lease the above-described Equipment from Motorola, Inc.; and WHEREAS, the City desires to enter into a lease-purchase agreement with respect to the leasing of the Equipment; and WHEREAS, the useful life of the Equipment is longer than the maximum lease-purchase term of ten (10) 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 $294,649.09 per year, and that payments in that amount are reasonable and proper and represent the fair rental value of the Equipment; and WHEREAS, 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 Motorola,Inc.,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, 2001. The agreement shall provide for renewable one-year terms thereafter up to a total term of ten (10) 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 annual 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 Motorola,Inc.,will total the sum of the principal, $2,318,977 plus interest at a fixed rate equal to 5.77% per year, which is a reasonable amount for the Equipment. 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 all unpaid principal due after said date. e. If the City renews the agreement for all the renewal terms and makes all payments during said terns, the City shall be deemed to have exercised the option to purchase said Equipment, and the Equipment shall transfer to the City. 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 THREE HUNDRED EIGHTEEN THOUSAND NINE HUNDRED AND SEVENTY-SEVEN DOLLARS($2,318,977)to be provided under the lease-purchase agreement is hereby appropriated for expenditure in the General Fund from unanticipated revenue in the appropriate funds for the acquisition of the 800 MHz radio 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 19th day of June, A.D. 2001, and to be presented for final passage on the 17th day of July, A.D. 2001. Mayor Prt� A TEST: City Clerk Passed and adopted on final reading this 17th day of July, A. , '2001. Mayor ATTEST:"��)A, City Clerk