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Home My WebLink About029 - 04/17/2012 - AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT FOR THE FINANCING BY LEASE-PURCHASE OF V ORDINANCE NO. 029, 2012 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 AND APPROPRIATING THE AMOUNT NEEDED FOR SUCH PURPOSE WHEREAS,the City has a need for and desires to acquire certain personal property for City purposes; and WHEREAS, the City is authorized by the Colorado Constitution,Article XX, §6, its home 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 Pinnacle Public Finance to lease equipment to the City, consisting of the following: Golf Yamaha Electric carts for Collindale 27 77,382.00 Golf Fund Total: 77,382.00 Traffic Highway paint truck-chassis 1 132,000.00 Highway paint truck-body 1 220,600.00 1-ton truck chassis 1 24,000.00 1-ton truck flatbed body 1 24,000.00 Bucket truck chassis 1 33,000.00 Bucket truck body 1 62,000.00 Sign truck chassis- Isuzu NPR 1 32,000.00 Sign truck body 1 19,000.00 Transportation Fund Total: 546 600.00 Parks-Vehicles 5900 Toro-replacement 1 85,000.00 Harper Turf Sweeper Vac- replacement 1 48,000.00 Toro Electric Workman utility vehicles-replacements 2 26,000.00 3/4-ton pickup with utility box-replacement 1 28,000.00 Sander-replacement 1 9,000.00 Dump body-replacement 1 5,000.00 Sidewalk sweeper-new 1 106,000.00 Parks Replacement Vehicles Total: 307,000.00 Police Patrol -Replacement Vehicles Chevy Caprice patrol cars 9 265,500.00 1 Patrol vehicle equipment lot 81 000.00 Patrol Replacement Vehicles Total: 346,500.00 Investigations-Replacement Vehicles Chevy Equinox 1 25,500.00 1 Investigations vehicle equip. lot 5,000.00 Investigations Replacement Vehicles Total: 30,500.00 Equipment Fund Total: 684,000.00 Investigations -New Officer Vehicles Dodge Journey 1 23,000.00 Chevy Equinox 1 25,500.00 Ford Fusion hybrid 1 27,500.00 Ford Fusion 1 24,000.00 Chevy Traverse 1 25,500.00 1 Investigations Vehicle equipment lot 25 000.00 Patrol New Officer Vehicle Total: 150,500.00 General Fund Total: 150,500.00 Information Technology Dell OptiPlex 790 Desktops 56 39,608.00 Dell Latitude e6420 Laptops 57 69,782.00 Panasonic Toughbook CF-52 7 11,572.00 Data&Communications Fund Total: 120,962.00 Lease Total: 1,579,444.00 and WHEREAS,the City Council has determined that it is in the best interest of the City to lease the above-described equipment from Pinnacle Public Finance,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 years; and WHEREAS, the City has determined that the lease payments that will result from the proposed arrangement, in the amount of $ 83,505 per quarter, are reasonable and proper and represent the fair rental value of the Equipment; and WHEREAS, funds for the 2012 lease payments are included in the 2012 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 City Charter 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: -2- Section 1. That the Purchasing Agent is hereby authorized to enter into a lease-purchase agreement for the above-described Equipment with Pinnacle Public Finance 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, 2012. The agreement shall provide for e renewable one-year terms thereafter up to a total term of five (5) years, 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 Pinnacle Public Finance will total the sum of the principal, $ 1,579,444, plus interest at a fixed rate equal to 2.15% 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 SEVENTY-SEVEN THOUSAND THREE HUNDRED EIGHTY-TWO DOLLARS ($77,382)to be provided under the lease-purchase agreement is hereby appropriated for expenditure in the Golf Fund from unanticipated revenue in the appropriate funds for the acquisition of vehicles and equipment in accordance with the terms and provisions of the lease-purchase agreement, upon receipt thereof. Section 3. That the amount of FIVE HUNDRED FORTY-SIX THOUSAND SIX HUNDRED DOLLARS ($546,600) to be provided under the lease-purchase agreement is hereby appropriated for expenditure in the Transportation Fund from unanticipated revenue in the appropriate funds for the acquisition of vehicles and equipment in accordance with the terms and provisions of the lease-purchase agreement, upon receipt thereof. -3- Section 4. That the amount of SIX HUNDRED EIGHTY-FOUR THOUSAND DOLLARS ($684,000) to be provided under the lease-purchase agreement is hereby appropriated for expenditure in the Equipment Fund from unanticipated revenue in the appropriate funds for the acquisition of vehicles for Parks and Police,in accordance with the terms and provisions of the lease- purchase agreement, upon receipt thereof. Section 5. That the amount of ONE HUNDRED FIFTY THOUSAND FIVE HUNDRED DOLLARS ($150,500) to be provided under the lease-purchase agreement is hereby appropriated for expenditure in the General 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 6. That the amount of ONE HUNDRED TWENTY THOUSAND NINE HUNDRED SIXTY-TWO DOLLARS ($120,962) to be provided under the lease-purchase agreement is hereby appropriated for expenditure in the Data & Communications 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 7. 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. Introduced,considered favorably on first reading,and ordered published this 3rd day of April, A.D. 2012, and to be presented for final passage on the 17th day of April, A.D. 2012. O�FORT.CO�`, A14yor ATTEST: AroG(�T�s�s °°••.... ••oo Interim City Clerk Passed and adopted on final reading on the 17th day of April, A.D. 2012. FORTCO` �— ° �E�L ,NMayor ATTEST: ° 0 Interim City Clerk -4-