HomeMy WebLinkAbout064 - 05/15/2007 - AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT TO FINANCE VEHICLES AND EQUIPMENT THROUG ORDINANCE NO. 064, 2007
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE PURCHASING AGENT TO ENTER
INTO AN AGREEMENT TO FINANCE
VEHICLES AND EQUIPMENT THROUGH LEASE-PURCHASE
WHEREAS,the City is authorized by the Colorado Constitution,Article XX,§6,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 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(the"Equipment'), consisting of the following:
Line Department Qty Description Total Cost Term
No. M (yrs)
1 Traffic I Refurbish paint machine 126,372 5
2 Traffic 1 Retroreflectometer 18,600 5
3 Collindale Golf 1 Toro Triplex 3150 Greens Mower 24,982 5
4 Collindale Golf 1 Express 3000 Reel Grinder 31,082 5
5 Collindale Golf 1 Express 3000 Bedknife Grinder 13,866 5
6 SouthRidge 15 EZ-GO Golf Carts 29,340 5
7 SouthRidge 1 Toro504O Sand Rake 16,625 5
8 SouthRidge 1 MF 431 Utility Tractor 15,950 5
9 SouthRidge 1 Toro 3500D Mower(used) 13,000 5
10 SouthRidge 1 Metron Pumping System 114,030 5
11 City Park Nine 1 Toro 3500D Mower 32,147 5
12 City Park Nine I Toro Workman 3200 Utility Vehicle 22,267 5
13 City Park Nine 1 Dakota 410 Top Dresser 13,866 5
14 Police Inv. 1 2007 Ford Expedition 29,719 5
15 Police Patrol 17 1 2007 Dodge Durango 4wd 370,931 5
16 Police Patrol 1 2007 Ford F-250 4wd, crewcab 23,179 5
17 Police Patrol 1 Police equipment and installation 152,971 5
18 Police Inv. 1 2007 Dodge Durango 4 wd 21,073 5
Total 5-year Financing 1,070,000
and
WHEREAS, the City Council has determined that it is in the best interests of the City to
lease the 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 (the "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 from the proposed Agreement
will require payments by the City in the sum of$59,684 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 2007 lease payments are included in the 2007 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 the Agreement
for the Equipment with Koch Financial Corporation in accordance with the following terms and
provisions:
a. The original term of the Agreement shall commence on the execution date
thereof and shall extend through December 31, 2007. 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 the
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, $1,070,000, plus interest at a fixed rate equal to 4.26% per year.
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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 will 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 Ninety-Seven Thousand, Eight Hundred
Seventy-Three Dollars ($597,873) to be provided under the 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 Agreement,
upon receipt thereof.
Section 3. That the amount of One Hundred Forty-Four Thousand, Nine Hundred and
Seventy-Two Dollars ($144,972) to be provided under the 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
Agreement, upon receipt thereof.
Section 4. That the amount of Three Hundred Twenty-Seven Thousand, One Hundred
and Fifty-Five Dollars ($327,155) to be provided under the Agreement is hereby 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 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 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 1 st day of May,
A.D. 2007, and to be presented for final passage on the 15th d May, A.D. 2007.
10/
M o '
ATTEST:
City Clerk
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Passed and adopted on final reading on the 15th day of A.D. 2007.
r
May
ATTEST:
LL
City Clerk
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