HomeMy WebLinkAbout104 - 10/16/2012 - AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT FOR THE FINANCING BY LEASE-PURCHASE OF E ORDINANCE NO. 104, 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 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 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 certain
equipment to the City (the "Equipment'), consisting of the following:
Information Technology
Dell O tiPlex 7010 Minitower 140 129,000
Dell Latitude e6430 Laptops 106 130,500
Panasonic Tou hbook 53-I5-2520M 25 34,500
Data & Communications Fund Total: 294,000
Lease Total: 294,000
and;
WHEREAS,the City Council has determined that it is in the best interest of the City to lease
the 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 to result from the proposed
arrangement will require payments by the City in the sum of $15,596 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 2013 lease payments are included in the 2013 budget requests;
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:
Section 1. That the Purchasing Agent is hereby authorized to enter into a lease-purchase
agreement for the 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 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 Pinnacle Public Finance will total the sum of the
principal, $294,000, plus interest at a fixed rate equal to 2.28% 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.
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Section 2. That the amount of TWO HUNDRED NINETY FOUR THOUSAND
DOLLARS ($294,000) 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 3. 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 2nd day of
October, A.D. 2012, and to be presented for final passage on the 16th day of October, A.D. 2012.
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NMayor
ATTEST: SAL E
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City Clerk
Passed and adopted on final reading on the 16th day of October, A.D. 2012.
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ATTEST: :N
City Clerk
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