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HomeMy WebLinkAbout132 - 11/01/2011 - AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT FOR THE FINANCING BY LEASE-PURCHASE OF V ORDINANCE NO. 132, 2011 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 AND APPROPRIATING THE AMOUNT NEEDED FOR SUCH PURPOSE WHEREAS,the City has a need for and desires to provide certain real and personal property for City purposes; and WHEREAS, the City is authorized by the Colorado Constitution, Article XX, §6, the City Charter, and Section 31-15-80I, C.R.S. (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 equipment to the City, consisting of the following: Description Quantity Cost Traffic -Replacement Vehicle Ford F-150 half-ton pickup 1 24,736 Topper and equipment 1 lot 3,151 Transportation Fund Total: $ 27,887 Parks -Replacement Vehicle Chevy 1-ton flatbed truck 1 23,00 Forest -Replacement Vehicle Chipper chassis- International 4300 Truck 1 70,736 Chipper body- Southco 1 22,870 Fo estrV Total: 93,606 Building Inspection Chevy Colorado pickup 1 18,275 Operations Services -Replacement Vehicles Chevy Express Facilities technician vans 2 43,918 Equipment for Facilities vehicles 1 lot 12,000 O s Services Total: 55,918 Police Patrol -Replacement Vehicles& Radios Chevy Caprice patrol cars 5 140,000 Chevy Tahoe Patrol SUV 1 33,000 Patrol vehicle equipment 1 lot 36,000 Motorola police mobile radios 1 lot 83,188 Patrol Replace ent Vehicles Total: 292,188 Investigations -Replacement Vehicles Chevy Impala, Chevy Dodge Journey 3 70,000 Investigations vehicle equip. 1 lot 12,872 Investigations Replacement Vehicles Total: 82.872 Police Information Services Ford Fusion hybrid staff car 1 28,000 Equipment Fund Total: $ 593,859 Police Patrol -New Officer Vehicles Chevy Caprice patrol cars 5 140,000 Patrol Vehicle equipment 1 lot 30,000 Patrol New Officer Vehicle Total: 170,000 General Fund Total: $ 170,000 9wMes"'. MIS Replacement desktops,workstations laptops 1 lot 126,124 Replacement Police laptops 148 577,130 Data & Communications Fund Total: $ 703,254 Lease Total: $ 1,495,000 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 (5) 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$79,447 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 2012 lease payments are included in the 2012 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 City Charter 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, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: 2 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 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, $1.495,000, plus interest at a fixed rate equal to 2.35% 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 TWENTY SEVEN THOUSAND, EIGHT HUNDRED EIGHTY SEVEN DOLLARS ($27,887) 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 of vehicles and equipment in accordance with the terms and provisions of the lease-purchase agreement, upon receipt thereof. Section 3. That the amount of FIVE HUNDRED NINETY THREE THOUSAND, EIGHT HUNDRED FIFTY NINE DOLLARS ($593,859)to be provided under the lease-purchase agreement is hereby appropriated for expenditure in the Equipment Fund from unanticipated revenue in the appropriate funds for the acquisition of vehicles and equipment for Parks, Forestry,Building Inspection, Operations Services, and Police, in accordance with the terms and provisions of the lease-purchase agreement, upon receipt thereof. -3- Section 4. That the amount of ONE HUNDRED SEVENTY THOUSAND DOLLARS ($170,000) 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 vehicles for Police,in accordance with the terms and provisions of the lease-purchase agreement, upon receipt thereof. Section 5. That the amount of SEVEN HUNDRED THREE THOUSAND, TWO HUNDRED FIFTY FOUR DOLLARS ($703,254) to be provided under the lease-purchase agreement is hereby appropriated for expenditure in the Data & Communications 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 6. 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 City Charter 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 18th day of October, A.D. 2011, and to be presented for final passage on the 1 st day of November, A.D. 2011. OF F O R T or ATTEST: cat •'Z �EAL �N A .° City Clerk Passed and adopted on final reading on the 1 st day of November, A.D. 2011. O�.FORT c0`` y ATTEST: S'V . . City Clerk C©l OR -4-