Loading...
HomeMy WebLinkAbout050 - 04/21/1992 - AUTHORIZING THE PURCHASING AGENT TO ENTER INTO A FINANCING BY LEASE PURCHASE OF LIBRARY COMPUTER SYS ORDINANCE NO. 50, 1992 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 LIBRARY COMPUTER SYSTEM WHEREAS, the Council of the City of Fort Collins wishes to lease-purchase the Library Computer System Replacement; and 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, Article V, Section 14 of the Charter of the City of Fort Collins authorizes the City Council to appropriate by ordinance unanticipated revenue received as a result of new revenue at any time during the year; and WHEREAS, Article V, Section 7, of the Charter of the City of Fort Collins, hereinafter "the Charter, " authorizes the City Council to provide by ordinance for payment of any expense from reserves accumulated in prior years, notwithstanding that such reserves were not appropriated for expenditure in the annual appropriation ordinance; and WHEREAS, Article V, Section 14, of the Charter authorizes the City Council to transfer by ordinance any unexpended appropriated amount or portion thereof from one fund to another upon the recommendation of the City Manager, provided that the purpose for which the transferred funds are to be expended remains unchanged or the purpose for which the funds were initially appropriated no longer exists; and WHEREAS, the City has received a proposal from SAFECO CREDIT CO. , INC. , to lease to the City the following described equipment: 1 each Application Software Package and Documents Var. Computer Hardware hereafter referred to as the "equipment" ; and WHEREAS, the City Council has determined that the City is in need of the above-listed equipment in order that the same may be used by the City Library; and WHEREAS, the City desires to enter into a lease-purchase agreement with respect to the leasing and financing of said equipment; and WHEREAS, the City Council has determined that it is in the best interest of the City to lease said equipment from SAFECO CREDIT CO. , INC. , which is also providing financing for the acquisition of said equipment; and WHEREAS, the City Council has determined that the lease payments in the sum of $14,940 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 1992 are appropriated and available in the City' s 1992 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 CO. , INC. , for the above-described equipment in accordance with the following terms and provisions: This agreement shall be for an original term from the date of execution of the agreement through December 31 , 1992. The agreement shall provide for renewable one-year terms thereafter, through the life of each item, as indicated below. Each renewal term shall be contingent on the annual appropriation of funds needed for lease payments. The total lease term, including the original and all renewal terms, shall not exceed the useful life of the property. ITEM END OF FINAL TERM, IF RENEWED Application Software Package & Documents May 21, 1997 Computer Hardware May 21 , 1997 The City shall make equal quarterly payments throughout the term of such agreement. If the City leases the equipment for the original term and all successive renewal terms, the payment to SAFECO CREDIT CO, INC. , will total the sum of the principal , Two Hundred Fifty-Three Thousand, Seven Hundred Thirty Dollars ($253,730.00) , plus interest at a fixed rate equal to 6.44 percent per year which is a reasonable amount. The City shall have an 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. 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. 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. 2 Section 2. That the amount of Two Hundred Fifty-Three Thousand Seven Hundred Thirty Dollars ($253,730.00) to be provided to the City under the lease- purchase agreement is hereby appropriated 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. Section 3. That there is hereby appropriated for expenditure from prior year equipment replacement reserves in the General Fund the sum of Twenty-two Thousand Five Hundred Dollars ($22,500) , for expenditure in the General Fund for the new library computer system and services upgrade. Section 4. That there is hereby appropriated for expenditure from prior year reserves in the Communications Fund the sum of Fifteen Thousand Dollars ($15,000) for transfer to the General Fund and appropriated therein for the new library system and services upgrade. Section 5. That Ten Thousand Dollars ($10,000) is authorized for transfer from the Recreation Fund to the General Fund and appropriated therein for the new library computer system and services upgrade. 1992. Section 6. That the effective date of this ordinance shall be May 21, Introduced, considered favorably on first reading, and ordered published this 7th day of April , 1992, and to be presented for final passage on the 21st day of April , 1992. jz4o 2 "� Mayor ATTEST: City Clerk Passed and adopted on final reading this 21st day of April , 1992. Mayor ATTEST: City Clerk 3