HomeMy WebLinkAbout178 - 11/18/1997 - AUTHORIZING THE LEASE-PURCHASE FINANCING OF EQUIPMENT AND APPROPRIATING THE PROCEEDS OF SUCH FINANCI ORDINANCE NO. 178, 1997
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 AND
APPROPRIATING THE PROCEEDS OF SUCH FINANCING
WHEREAS, the City is authorized under the provisions of Title 31, Article 15, Part 8,
C.K.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 firom Safeco Credit Company ("Safeco") to
lease to the City the following described vehicles and equipment:
Dept. Qty. Description Total Cost Term
rs
Fleet Services I Used Ford commuter pool van 20,000 4
Fleet Services 2 Used Ford passenger vans 36,500 4
Fleet Services 2 Used passenger minivan 33,600 4
Fleet Services 6 Propane conversions 16,6041 4
Total: Four yearfinancin $106,704
Dept. Qty. Description Total Cost Term
rs
Traffic 1 One-ton bucket truck 63,000 5
Traffic 2 Generators and lighting systems 5,000 5
Facilities 1 /z-ton pickup 15,450 5
Facilities 3 1/2-ton cargo van 58,500 5
Facilities 2 3/4-ton utility truck 42,900 5
Facilities 1 3/4-ton,4WD utility truck 24,000 5
Streets 2 Trackless snow machines 100,000 5
Streets I Tel-Smith crusher 100,000 5
Police Patrol 25 Crown Victoria patrol cars 575,0001 5
Police Patrol I K-9 van 23,0001 5
Police Patrol l lot Patrol vehicle equipment 97,7501 5
Engineering 1 Extracab pickup 18,000 1 5
Parking I Pickup 14,4001 5
Transfort 1 AWD Minivan 22,484 5
Fleet Services 2 3/4-ton 4WD pickups 39,962 5
Fleet Services I 4WD utility vehicle 35,000 5
Fleet Services l Fuel mana getnent system 65,000 5
Fleet Services 1 50,000 lb vehicle hoist 66,7501 5 11
Fleet Services 1 30,000 lb vehicle hoist 21,720 5
Total: Five year financing $1,387,916
Dept. Qty. Description Total Cost Term
rs)
Forestry I Aerial Lift with Navistar cab/chassis 83,910 7
Total: Seven year rhiancing $83,910
Total Fnnancin Required 1 $1,578,530
WHEREAS,the City Council has determined that it is in the best interest of the City to lease
equipment from Safeco Credit Company, 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$86,405 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 1998 are appropriated and available in the City's
1998 budget; and
WHEREAS, Article V, Section 9, of the Charter also permits the City 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 all previous appropriations for that
fiscal year, do 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 be, and hereby is,authorized to enter into a lease-
purchase agreement 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, 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 Safeco Credit Company will total the sum of the principal, $1,578,530,
plus interest at a fixed rate equal to 5.04% 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 alter 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.
C. 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 Five Hundred Seventy-eight Thousand Five
Hundred Thirty Dollars ($1,578,530)to be provided to the City under the lease-purchase agreement
is hereby appropriated for the fiscal year 1997 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 4th day of.
November, A.D. 1997, and to be presented for final passage on the 18th dayj of November, A.b.
1997.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 18th day of November,A.D, 1997.
Mayor
ATTEST:
City Clerk