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HomeMy WebLinkAbout004 - 02/02/1993 - AUTHORIZING THE PURCHASE AGENT TO ENTER INTO AN AGREEMENT FOR THE FINANCING BY LEASE PURCHASE OF VEH ORDINANCE NO. 4, 1993 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 lease 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 Council of the City of Fort Collins passed on second reading Ordinance No. 119, 1992, on the 15th day of December 1992, which authorized the Purchasing Agent to enter into a lease-purchase agreement with First Interstate Bank to lease to the City certain equipment and vehicles; and WHEREAS, First Interstate Bank has since withdrawn its lease-purchase proposal , as has the party submitting the next lowest proposal ; and WHEREAS, the City received a third proposal from Safeco Credit Company Inc. , to lease to the City the same equipment and vehicles; and WHEREAS, the City continues to be in need of the above-listed equipment in order that the same may be used by various City departments; and WHEREAS, the City Council has determined that it is in the best interest of the City to repeal Ordinance No. 119, 1992, and enter into a lease-purchase agreement with Safeco Credit Company Inc. , for the following equipment and vehicles: QUANTITY DESCRIPTION 1 each 2-Way Radio 1 each 20' Mower Trailer 1 each Hand Tamper 1 each Copier 1 each Fuel Pump Dispensers 17 each MT1000 Portable Radio 2 each "Kustom" Laser Speed Det. Units 1 each "LTI" Laser Speed Det. Units 2 each Mobile Data Terminals 1 each Turf Aerator 1 each Turf Sweeper 2 each 1993 Trucksters 1 each 1993 Midsize Pickups 3 each 72" Mowers 2 each Hydraulic Snow Broom 1 each Mower Cab Kit 1 each 1993 Full Size 1/2 Ton Pickup 1 each Toro 5 Gang Mower I each 1993 3/4 Ton Ext. Cab/Chassis 1 each 5 Gang Mower, Lt. Wt. Jacobsen 12 each Golf Cars 1 each Hydrojet 3000 Aerator 1 each 52" Rotary Mower 1 each Stepvan 2 each 1993 Kawasaki Motorcycles 2 each 1993 Midsize Staff Car 1 each 1993 Midsize Ext. Cab Pickup 1 each 1993 3/4 Ton Utility Truck 1 each 2 Yard Loader 1 each 1-1/2 Ton Chipper Truck 7 each Dispatch Consoles hereinafter referred to as the "equipment" ; and WHEREAS, the City Council has determined that the lease payments in the sum of $50,594 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 1993 are appropriated and available in the City's 1993 budget. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1 . That Ordinance No. 119, 1992 is hereby repealed in its entirety. Section 2. That the Purchasing Agent be, and hereby is, authorized to enter into a lease-purchase agreement with Safeco Credit Company 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 February 16, 1994. The agreement shall provide for renewable one-year terms thereafter, through the life of each item, subject to 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 2-Way Radio February 16, 1996 20' Mower Trailer February 16, 1996 Hand Tamper February 16, 1996 Copier February 16, 1996 MT1000 Portable Radio February 16, 1996 "Kustom" Laser Speed Det. Units February 16, 1996 "LTI" Laser Speed Det. Units February 16, 1996 Mobile Data Terminals February 16, 1998 Fuel Pump Dispensers February 16, 1998 Turf Aerator February 16, 1998 Turf Sweeper February 16, 1998 1993 Trucksters February 16, 1998 1993 Midsize Pickups February 16, 1998 72" Mowers February 16, 1998 Hydraulic Snow Broom February 16, 1998 Mower Cab Kit February 16, 1998 1993 Full Size 1/2 Ton Pickup February 16, 1998 Toro 5 Gang Mower February 16, 1998 1993 3/4 Ton Ext. Cab/Chassis February 16, 1998 5 Gang Mower, Lt. Wt. Jacobsen February 16, 1998 Golf Cars February 16, 1998 Hydrojet 3000 Aerator February 16, 1998 52" Rotary Mower February 16, 1998 Stepvan February 16, 1998 1993 Kawasaki Motorcycles February 16, 1998 1993 Midsize Staff Car February 16, 1998 1993 Midsize Ext. Cab Pickup February 16, 1998 1993 3/4 Ton Utility Truck February 16, 1998 2 Yard Loader February 16, 2000 1-1/2 Ton Chipper Truck February 16, 2000 Dispatch Consoles February 16, 2000 The City shall make equal quarterly payments throughout the term of such agreement but subject to annual appropriation of funds needed for such payments. If the City leases the equipment for the original term and all successive renewal terms, the payment to Safeco Credit Company Inc. , will total the sum of the principal , Eight Hundred Seventy-four Thousand Nine Hundred Forty-one Dollars ($874,941) plus interest at a fixed rate equal to 5.65% 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. Section 3. That the amount of Eight Hundred Seventy-four Thousand Nine Hundred Forty-one Dollars ($874,941) to be provided to the City under the lease- purchase agreement is hereby appropriated for fiscal year 1993 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. 3 Introduced, considered favorably on first reading, and ordered published this 19th day of January, A.D. 1993, and to be presented for final passage on the 2nd day of February, A.D. 1993. a or ATTEST: City Clerk' I Passed and adopted on final reading this 2nd day of February, A.D. 1993. Mayor ATTEST: City Clerk 4