HomeMy WebLinkAbout036 - 03/16/1999 - AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT FOR THE FINANCING BY LEASE-PURCHASE OF V ORDINANCE NO. 36, 1999
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 Safeco Credit Company ("Safeco") to
lease equipment to the City, consisting of the following:
Line Department Qty. Description Total Cost Term
No. (yrs)
1 Forestry 1 Ford'/4-ton pickup with dump body 19,392 5
2 Forestry 1 Ford %-ton extracab pickup with radio 23,049 5
3 Southridge Golf 1 John Deere 2653A Triplex Mower 19,360 5
4 Southridge Golf I Toro 3200 Workman Truckster 14,884 5
5 Collindale Golf 12 Yamaha G16A Golf Cars 26,304 5
6 Collindale Golf l Jacobsen Greens King 1V Mower 15,952 5
7 Collindale Golf 1 Jacobsen LF-3400 Triplex Mower 31,082 5
8 Collindale Golf 1 Toro 72" Mower 17,063 5
9 City Park Nine 1 Toro 455D Mower 30,311 5
10 Police Patrol 5 Ford Crown Victoria Patrol Cars 108,014 5
11 Police Patrol I lot Patrol Car Equipment 48,535 5
12 Police Invest. 2 Ford Taurus Staff Cars 29,698 5
13 Police Invest. I Dodge Intrepid Staff Car 15,032 5
14 Police Invest. 2 Chevy Lumina Staff Cars 30,762 5
15 Police Invest. I Dodge Durango 26,854 5
16 Engineering l Ford 4x4, extracab pickup 25,155 5
17 Cemetery 1 Toro 325D, 72" Mower 17,668 5
18 Cemetery 2 Toro 3200 Workman 1'rucksters 36,354 5
19 Fleet Services I 7-passenger Minivan 19,382 5
20 Fleet Services I GEMS 2000 Software Conversion 26,000 3
Total Financing $580,851
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$33,554 per quarter,and that payments
in that amount are reasonable and proper and represent the fair rental value of the Equipment; and
WHEREAS, sufficient funds to make the lease payments for 1999 are included in the City
Managers 1999 recommended 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 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 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 Safeco Credit Company will total the sum of the principal,
$580,851, plus interest at a fixed rate equal to 4.61% 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 FIVE HUNDRED EIGHTY 'THOUSAND EIGHT
HUNDRED FIFTY-ONE DOLLARS($580,851)to be provided to the City under the lease-purchase
agreement is hereby appropriated for the fiscal year 1999 as unanticipated revenue in the appropriate
funds for the acquisition of the Vehicles and Equipment in accordance with the terms and provisions
of the lease-purchase agreement, upon receipt thereof
Introduced, considered favorably on first reading, and o e pub 'shed thi n day of
March, A.D. 1999, and to be presented for final passage on�l6th day Marc A.D 1999.
or
ATTEST:
City Clerk
Passed and adopted on final reading this 16th day of Mar 4 A.D. 1999.
Mayor /
ATTEST:
City Clerk