The URL can be used to link to this page

Home My WebLink About153 - 11/16/1999 - AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT FOR THE LEASE-PURCHASE OF VEHICLES AND E ORDINANCE NO. 153, 1999 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT' FOR THE LEASE-PURCHASE OF VEHICLES AND EQUIPMENT AND APPROPRIATING FUNDS RELATED THERETO 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 liar 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: Line Term No. Department Qty. Description Total Cost (yrs) I Police Patrol 38 Laptop Computers 95,000 3 Total 3-year Financing $95,000 Line Term No. Department Qty. Description Total Cost (yrs) 1 Water Production 1 CO2 Storage Tanks& Related Equipment 333,700 5 2 Police Stu 1 Dodge Durango 24,668 5 3 Police SIU 1 Dodge Intrepid Staff Car 15,032 5 4 Police Stu 1 Grand Prix 19,375 5 5 Police Patrol 38 Patrol Vehicles 862,115 5 7 Police Patrol 1 Tot Police Patrol Vehicle Equipment 182,110 5 8 Fleet Services 2 Dodge Intrepid Staff Cars 30,064 5 9 Fleet Services I Dodge Durango 26,854 5 10 Fleet Services 1 Jeep Grand Cherokee 29,901 5 11 Fleet Services 1 Chevy'/ton,4x4, Utility Truck 24,398 5 12 Fleet Services 1 Ford Supercab Pickup 25,741 5 13 Fleet Services 2 Midsize Pickup 32,000 5 14 Cemetery 2 Toro Turf Sweepers 23,548 5 15 GolUCity Park 9 1 Toro Groundsmaster 3000 37,300 5 16 City Park 9 1 Cushman 3 Wheel Truckster 10,000 5 17 Collindale 2 John Deere 800 Aerator 22,900 5 18 Collindale I Toro Workman 3200 W/Hydraulic Dump 15,200 5 19 Southridge I John Deere Loader/Tractor 21,350 5 20 Southridge 1 Jacobsen LF-3400 Fairway Mower 32,200 5 21 Southridge 15 Golf Carts 32,880 5 22 Transportation 1 Parking Ticket System 101,184 5 Total 5-year Financing $1,902,520 Total Lease Financing $1,997,520 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 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$117,384.46 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 1999, and funds for the 2000 and 2001 payments are included in the City Manager's recommended budget for those years; 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, 1999. 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 al I 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, $1.997,520, plus interest at a fixed rate equal to 5.25%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 MILLION ONE HUNDRED AND NINETY EIGHT THOUSAND AND THREE HUNDRED DOLLARS ($1,]98,100)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, upon receipt thereof. Section 3. That the amount of TWENTY THREE THOUSAND, FIVE HUNDRED AND FORTY-EIGHT DOLLARS ($23,548)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 equipment described above, in accordance with the terms and provisions of the lease-purchase agreement, upon receipt thereof. Section4. Thatthe amount of ONE HUNDRED SEVENTY-ONE THOUSAND, EIGHT HUNDRED AND THIRTY DOLLARS (S171,830) 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 Golf/City Park 9,Collindale and Southridge vehicles and equipment described above, in accordance with the terms and provisions of the lease-purchase agreement, upon receipt thereof. Section 5. That the amount of ONE HUNDRED AND ONE THOUSAND, ONE HUNDRED AND EIGHTY-FOUR DOLLARS($101,184)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 vehicles and equipment described above, in accordance with the terms and provisions of the lease-purchase agreement, upon receipt thereof. Section 6. That the amount of THREE Ht_NDRED THIRTY THREE THOUSAND, SEVEN HUNDRED DOLLARS ($333,700) to be provided under the lease-purchase agreement is hereby appropriated for expenditure in the Water Fund from unanticipated revenue for the acquisition of the Water Production vehicles and equipment described above, in accordance with the terms and provisions of the lease-purchase agreement, upon receipt thereof. Section 7. That the amount of ONE HUNDRED SIXTY EIGHT THOUSAND, NINE HUNDRED AND FIFTY-EIGHT DOLLARS ($168,958) 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 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 2nd day of November, A.D. 1999, and to be presented for final passage on the 16th day of November, A.D. 1999. May or ATT—ST: City Clerk Passed and adopted on final reading this 16th day of November, A.D. 1999. Ma}or ATTEST: -^� City Clerk