HomeMy WebLinkAbout066 - 07/01/2008 - AUTHORIZING THE PURCHASING AGENT TO ENTER INTO A LEASE-PURCHASE FINANCING AGREEMENT FOR VEHICLES AND ORDINANCE NO. 066, 2008
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE PURCHASING AGENT TO ENTER
INTO A LEASE-PURCHASE FINANCING AGREEMENT FOR
VEHICLES AND EQUIPMENT
WHEREAS,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 Article XX of the Colorado Constitution,its 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 these agreements may include options to
purchase and acquire title to the 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
No. (yrs)
I SouthRidge Golf 15 Golf Carts $ 37,505 5
2 2 JD 84" slope mowers $ 49,176 5
3 City Park Nine Golf 2 Toro Greens mowers $ 19,412 5
4 1 Toro ProCare 648 $ 23,542 5
5 1 JD Gator 850 Utility $ 15,947 5
6 Collindale Golf 1 Toro ProCore 864 $ 25,318 5
7 1 Toro TriPlex greens mower $ 25,832 5
8 Traffic 1 Ford F550 cab/chassis $ 26,453 5
9 1 Altec AT37-G aerial lift $ 53,293 5
10 1 Ford F550 cab/chassis $ 26,763 5
11 1 Flannegan Western lift $ 50,492 5
12 Police 7 XLT 500 Mobile radios $ 25,305 5
TOTAL 5-year Financing $ 379,038
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
financing of the Equipment; and
WHEREAS, the useful life of the Equipment is greater than 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$20,847 per quarter,and that payments
in that amount are reasonable and proper and represent the fair rental value of the Equipment; and
WHEREAS, funds for the 2008 lease payments are included in the 2008 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, 2008. 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
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the sum of the principal, $379,038,plus interest at a fixed rate equal
to 3.70%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 that date and the unpaid principal due after that 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 Twenty Five Thousand, Three Hundred Five Dollars
($25,305)to be provided under the lease-purchase agreement is appropriated for expenditure in the
General Fund from unanticipated revenue in the appropriate funds for the acquisition of the Police
radios in accordance with the terms and provisions of the lease-purchase agreement, upon receipt
thereof.
Section 3. That the amount of One Hundred Fifty-seven Thousand One Dollars
($157,001)to be provided under the lease-purchase agreement is 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 One Hundred Ninety-six Thousand, Seven Hundred
Thirty-two Dollars ($196,732) to be provided under the lease-purchase agreement is appropriated
for expenditure in the Golf Fund from unanticipated revenue in the appropriate funds for the
acquisition of equipment in accordance with the terms and provisions of the lease-purchase
agreement, upon receipt thereof.
Section 5. 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.
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Introduced,considered favorably on first reading,and ordered published this 3rd day of June,
A.D. 2008, and to be presented for final passage on the 1 st da ly, A.D. 2008.
1
M or
ATTEST:
City Clerk
Passed and adopted on final reading on the 1st day of y, .D. 2008.
Mayo
ATTEST:
City Clerk
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