HomeMy WebLinkAbout119 - 10/01/1996 - AUTHORIZING AN AGREEMENT FOR FINANCING BY LEASE PURCHASE OF VEHICLES AND EQUIPMENT ORDINANCE NO. H 9, 1996
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 Koch Financial Corporation to lease to
the City the following described vehicles and equipment:
Qty Description Total Cost Term End of Final
2 Steam Cleaners 10,000 3 Oct 13, 1999
1 Wirt en 500 Pavement Milling Machine 92,600 3 Oct 13, 1999
10 Club Car Gas Golf Cars 22,700 5 Oct 13, 2001
1 Pickup, 3/4 ton, 4WD, with Snowplow 23,500 5 Oct 13, 2001
1 Utility Truckster 15,000 5 Oct 13, 2001
57 Motorola Maratrac Radios 69,255 5 Oct 13, 2001
29 Patrol Vehicles 626,400 5 Oct 13, 2001
28 Propane Conversions 84,000 5 Oct 13, 2001
28 Patrol Vehicle Radios & Equipment 111,020 5 Oct 13, 2001
28 Vehicle Dispatch Equipment 168,000 5 Oct 13, 2001
30 Motorola HT1000& Visar Portable Radios 27,786 5 Oct 13, 2001
1 Base Station Radio 30,000 5 Oct 13, 2001
1 Caro Van, '/2 ton, K-9 unit 21,000 5 Oct 13, 2001
8 Staff Vehicles 140,000 5 Oct 13, 2001
1 Midsize Van 21,500 5 Oct 13, 2001
1 Cargo Van, 1/2 ton 18,000 5 Oct 13, 2001
1 Propane Conversion 3,000 5 Oct 13, 2001
1 Midsize Staff Car 17,500 5 Oct 13, 2001
2 Full Size Vans 60,000 5 Oct 13, 2001
2 Propane Conversions 6,000 5 Oct 13, 2001
2 Pool Cars 36,000 5 Oct 13 2001
I L1997 in Ea le F Street Swee er 115,695 5 Oct 13, 2001
1ersalift Bucket Truck 49,8701 7 1 Oct 13, 2003
Lease-Purchase Total $1,768,82611
WHEREAS,the City Council has determined that it is in the best interest of the City to lease
equipment from Koch Financial Corporation, which is also providing financing for equipment
acquisition; and
WHEREAS, the City desires to enter into lease-purchase agreements with respect to the
leasing and financing of equipment; and
WHEREAS, the City has determined that the lease payments in the sum of $105,198 per
quarter are reasonable and proper and represent the fair rental value of the subject equipment and
sufficient funds to make the lease payments for 1997 are appropriated and available in the City's
1997 budget;
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 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 October 13, 1997. The agreement shall provide for renewable one-year
terms thereafter, subject to the 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 the 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,
$1,768,826, plus interest at a fixed rate equal to 5.79% per year, which is a
reasonable amount.
d. The City shall have the option to purchase any piece or combination of pieces 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. This 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,Seven Hundred Sixty Eight Thousand,Eight
Hundred Twenty Six Dollars ($1,768,826) to be provided to the City under the lease-purchase
agreement is hereby appropriated for the fiscal year 1996 as unanticipated revenue in the appropriate
funds for the acquisition of the equipment in accordance with the terms and provisions of the lease-
purchase agreement.
Introduced, considered favorably on first reading, and ordered published this 17th day of
September, A.D. 1996, and to be presented for final passage on the Istday of October, A.D. 1996.
Mayor l'
ATTEST:
City Clerk /�
Passed and adopted on final reading this 1st day of October ' �D�. 1996. ,/
Mayor !
ATTEST:
City Clerk