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HomeMy WebLinkAbout023 - 03/15/2011 - AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT FOR THE LEASE-PURCHASE FINANCING OF VEHI ORDINANCE NO. 023, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT FOR THE LEASE-PURCHASE FINANCING OF VEHICLES AND EQUIPMENT AND APPROPRIATING THE AMOUNT NEEDED FOR SUCH PURPOSE WHEREAS,the City has a need for and desires to provide certain property for City purposes; and WHEREAS, the City is authorized by Article XX of the Colorado Constitution, the City 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, consisting of the following: Noe Department Qty. Description Total Cost TLin erm 1 Police Patrol 6 Crown Vic and Caprice patrol cars $143,760 5 2 Police Patrol 1 Pickup for traffic enforcement 25,002 5 3 Police Patrol 1 Chevy Tahoe patrol vehicle 31,667 5 4 Police Patrol 1 lot Equipment for new vehicles 66,300 5 5 Police Admin 1 Ford Escape hybrid 28,951 5 6 Police Investigations 1 Chevy Traverse detective vehicle 24,768 5 7 Police Investigations 1 Ford Fusion hybrid detective vehicle 25,416 5 8 Police Investigations 1 Dodge 1500 detective vehicle 21,438 5 9 Police Investigations 1 lot Equip. for new detective vehicles 5,100 5 10 City Park Nine Golf 1 Toro RM5410 Fairway Mower 43,667 5 11 SouthRidge Golf 1 Used Toro 3150 Greens Mower 10,900 5 12 SouthRidge Golf 1 Used Toro 4500D Rotary Mower 24,900 5 13 SouthRidge Golf 1 Used Jacobsen Fairway Mower 13,900 5 14 SouthRidge Golf 1 Freight forequipment delivery 2,500 5 15 Collindale Golf 1 Toro MultiPro 1250 Sprayer 28,125 5 16 Collindale Golf 1 Toro Groundsmaster 3500D Mower 35,285 5 17 Fleet Services 7 Crown Vic patrol cars 155,708 5 18 Fleet Services 4 Chevy Tahoe patrol vehicles 126,018 5 19 Fleet Services 1 lot Patrol vehicle equipment 106,400 5 20 Fleet Services 1 Dodge Caravan detective vehicle 23,645 5 21 Fleet Services 1 Chevy Traverse detective vehicle 24,768 5 22 Fleet Services 1 Ford Explorer detective vehicle 26,333 5 23 Fleet Services 1 lot Equip. for new detective vehicles 5,100 5 Noe Department Qty. Description Total Cost Tenn 24 Traffic Operations 1 Chassis for cone truck 31,930 5 25 Traffic Operations 1 Body for cone truck 28,420 5 26 Streets 1 International Tandem truck& equip 225,000 5 27 1 Streets 1 F550 Ford truck& equip. 120,0 5 Total 5-year Financind 1,405,001 and WHEREAS,the City Council has determined that it is in the best interest of the City to lease the above-described 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$75,143 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 2011 lease payments are included in the 2011 budget; 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)of the Colorado Constitution and may therefore be entered into without voter approval; and WHEREAS, Article V, Section 9, of the Charter of the City of Fort Collins 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, BEJT 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 above-described 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, 2011. The agreement shall provide for renewable one-year -2- 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, $1,405,001, plus interest at a fixed rate equal to 2.60% 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. Section 2. That the amount of One Hundred Fifty Nine Thousand, Two Hundred and Seventy-seven Dollars ($159,277) to be provided under the lease-purchase agreement is hereby appropriated for expenditure in the Golf 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. That the amount of Four Hundred Sixty-seven Thousand,Nine Hundred and Seventy-Two Dollars ($467,972) to be provided under the lease-purchase agreement is hereby appropriated for expenditure in the Fleet Fund from unanticipated revenue in the appropriate funds for the acquisition of police vehicles and equipment in accordance with the terms and provisions of the lease-purchase agreement, upon receipt thereof. Section 4. That the amount of Three Hundred Seventy-Two Thousand, Four Hundred and Two Dollars ($372,402) to be provided under the lease-purchase agreement is hereby appropriated for expenditure in the General Fund from unanticipated revenue in the appropriate funds for the acquisition of police vehicles and equipment in accordance with the terms and provisions of the lease-purchase agreement, upon receipt thereof. Section 5. That the amount of Sixty Thousand, Three Hundred and Fifty Dollars ($60,350)to be provided under the lease-purchase agreement is hereby appropriated for expenditure in the Transportation Fund from unanticipated revenue in the appropriate funds for the acquisition -3- of equipment in accordance with the terms and provisions of the lease-purchase agreement, upon receipt thereof. Section 6. That the amount of Three Hundred Forty-five Thousand Dollars ($345,000) to be provided under the lease-purchase agreement is hereby appropriated for expenditure in the Streets 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 7. 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 1 st day of March, A.D. 20111 and to be presented for final passage on the 15th day of March, A.D. 2011. i Mayor ATTEST: DC City Clerk Passed and adopted on final reading on the 15th day of March, A.D. 2011. Mayo ATTEST:'- City Clerk -4-