HomeMy WebLinkAbout181 - 12/07/2004 - AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT FOR THE FINANCING BY LEASE-PURCHASE OF V ORDINANCE NO. 181, 2004
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 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, 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 a proposal from Koch Financial Corporation to lease
equipment to the City, consisting of the following:
Line Department Qty. Description Total Cost Term
1 Police Patrol 1 2004 Ford Explorer 26,711 5
2 Police Patrol 1 2004 Ford F250 pickup 22,241 5
3 Police Invest. 1 2004 Police Tahoe 29,158 5
4 Police Invest. 1 2004 Astro Van 18,096 5
5 Police Training 1 2004 Astro Van 18,309 5
6 Traffic Operations 1 2005 Chevy Colorado pickup 15,371 5
7 Traffic Operations 1 2005 Ford F450 cab/chassis &body 32,147 5
8 Traffic Operations 1 2005 Ford F250 crewcab pickup 17,690 5
9 Streets 1 Cedar Rapids 5048 HSI Crusher 148,409 5
10 Fleet 2 2005 Astro Vans 421000 5
11 Police Patrol 1 2005 Tahoe Patrol vehicle &equipment 36,000 5
Total 5-year Financing $406,132
and;
WHEREAS,the City Council has determined that it is in the best interest of the City to lease
the above-described equipment from Koch Financial Corporation,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$22,751 per quarter,and that payments
in that amount are reasonable and proper and represent the fair rental value of the Equipment; and
WHEREAS, no payments are due in 2004 and funds for the 2005 lease payments are
included in the 2005 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 is hereby authorized to enter into a lease-purchase
agreement for the above-described Equipment with Koch Financial Corporation 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, 2004. 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 Koch Financial Corporation will total the sum of the
principal, $406,132, plus interest at a fixed rate equal to 4.43% 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 ONE HUNDRED FIFTY THOUSAND, FIVE
HUNDRED FIFTEEN DOLLARS ($150,515) 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 Police vehicles in accordance with the terms and
provisions of the lease-purchase agreement, upon receipt thereof.
Section 3. That the amount of SIXTY FIVE THOUSAND TWO HUNDRED EIGHT
DOLLARS ($65,208)to be provided under the lease-purchase agreement is hereby appropriated for
expenditure in the Transportation Fund from unanticipated revenue in the appropriate funds for the
acquisition of the Traffic Operations vehicles in accordance with the terms and provisions of the
lease-purchase agreement, upon receipt thereof.
Section 4. That the amount of FORTY TWO THOUSAND DOLLARS ($42,000)to be
provided under the lease-purchase agreement is hereby appropriated for expenditure in the Fleet
Fund from unanticipated revenue in the appropriate funds for the acquisition of a staff vehicle in
accordance with the terms and provisions of the lease-purchase agreement, upon receipt thereof.
Section 5. That the amount of ONE HUNDRED FORTY EIGHT THOUSAND,FOUR
HUNDRED NINE DOLLARS ($148,409) to be provided under the lease-purchase agreement is
hereby appropriated for expenditure in the Streets Fund from unanticipated revenue in the
appropriate funds for the acquisition of the grounds equipment in accordance with the terms and
provisions of the lease-purchase agreement, upon receipt thereof.
Section 6. 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, the conflicting provisions of the Act.
Introduced, considered favorably on first reading, and ordered published this 16th day of
November,A.D.2004,and to be presented for final passage on the 7 d December, A.D.2004.
i
Mayor
ATTEST:
U" *I%a �
City Clerk
Passed and adopted on final reading this 7th day of December, A.D. 004.
Mayor
ATTEST:
�k,
City Clerk