HomeMy WebLinkAbout007 - 02/20/1996 - AUTHORIZING AGREEMENT FOR THE FINANCING BY LEASE PURCHASE OF VEHICLES AND EQUIPMENT ORDINANCE NO. 7, 1996
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, Inc. to lease to
the City the following described vehicles and equipment:
Qty Description Total Cost Term End of Final
( rs) Term
20 Laptop Computers $50,000 3 3-1-1999
2 Transfort 41,793 3 3-1-1999
I'_ Computer Aided Dispatch-Upgrade 380,526 5 3-1-2001
15 EZ-GO Model TXT golf cars 37360 5 3-1-2001
5 ADA golfcars 16,475 5 3-1-2001
1 John Deere 3235 Fairway mower 24,930 5 3-1-2001
1 Jacobsen Greens King mower 13,685 5 3-1-2001
1 Toro 3200 Utility Vehicle 13,815 5 3-1-2001
1 Toro Reelmaster 2300D mower 17,675 5 3-1-2001
1 Kodak 2110duplicator 52,785 5 3-1-2001
3 Ford Commuter Pool vans 78,018 5 3-1-2001
3 Propane conversions 8,172 5 3-1-2001
1 RoscoPatcher 82,516 5 3-1-2001
1 Toro Groundmaster 325D mower 16,698 5 3-1-2001
1 Cushman Truckster 11,3961 5 3-1-2001
1 Shop air compressor 6,352 5 3-1-2001
1 Vactor 21 IOC Flusher/IHC Chassis 202.320 7 3-1-2003
WHEREAS, the City Council has determined that it is in the best interest of the City to lease
equipment from Safeco Credit Company, Inc., 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 $60,096 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 1996 are appropriated and available in the City's
1996 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 with Safeco Credit Company, Inc. 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, 1996. The agreement shall provide for renewable one-year
terms thereafter, 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. 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 after said date.
d. 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.
e. If the City leases the equipment for the original term and all renewal terms, the
payment to Safeco Credit Company, Inc. will total the sum of the principal,
$1,051,281, plus interest at a fixed rate equal to 5.12% per year, which is a
reasonable amount.
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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 3. That the amount of One Million Fifty-One Thousand Two-Hundred Eighty-
One Dollars ($1,051,281) to be received by the City from Safeco Credit Company, Inc., under the
lease-purchase agreement is hereby appropriated for the fiscal year 1996 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-Wblished this 6th-daY of
February, 1996, and to be presented for final passage on the 20th day of February,A.6 1996,/
Mayor
1.
ATTEST:
City Clerk
Passed and adopted on final reading this 20th day of February.;Ay. 1996.
Mayor
ATTEST:
City Clerk
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