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Home My WebLink About036 - 03/19/2013 - AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT FOR THE FINANCING OF VEHICLES AND EQUIPM ORDINANCE NO. 036, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT FOR THE FINANCING OF VEHICLES AND EQUIPMENT FOR VARIOUS CITY DEPARTMENTS WHEREAS,the City has a need for certain real and personal property for City purposes;and WHEREAS, the City is authorized by the Colorado Constitution, Article XX, §6, its home 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 equipment to the City, consisting of the following: Description Quantity Cost Golf Golf carts for Collindale 29 79.810.0 Electric Utility vehicle 1 9,970.0 Vibratory Turf Rollers 1 9 150.0 Large Rotary Mower 1 57,730.0 Golf Replacement Vehicle Total: 156 660.0 Golf Fund Total: 156,660.0 Traffic Cable/ Wire Reel Trailer 1 16 800.0 1 ton Flatbed Body- additional Equipment 1 lot 9,500.0 Sign truck - additional equipment/accessories 1 lot 17 000.0 Traffic Replacement Vehicle Total: 43 300.0 Streets Street Sweepers 3 683 295.0 International Snowplow Truck 1 108 800.0 Spreader/Sander, Hydraulics, wing plow and accessories 1 lot 74 250.0 Wausau front snowplow 1 lot 19,200.0 Streets Replacement Vehicle Total: 885 545.0 Transportation Fund Total: 928 845.0 Building Inspection -Replacement Vehicles mall Ford Cargo Van 2 51 00 Building Inspection Replacement Vehicle Total 51 00 Facilities-- Replacement Vehicle mall Caro Van with shelving 1 25,501 BRa n 1 24,50 Facilities Replacement Vehicle Total: 50,00 ement Vehicles ower 1 84,600.0 Mower i 46 200.0 x4 ni-L-,m 900.0 Parks Replacement Vehicles Total: 154.700.0 Forest - Replacement Vehicle Bucket Truck Chassis & Body 1 163 550.0 Additional equipment on Bucket Truck 1 lot 11,250.0 Forestry Vehicle Total- 174,800.0 Police Administration - Replacement Vehicles Ford Explorer AWD l 26 900.0 Investigations Vehicle equipment 1 lot 2,300.0 Patrol New Officer Vehicle Total: 29,200.0 Police Patrol - Replacement Vehicles Ford Utility Police Interceptor -FWD 20 517 000.0 Ford Utility Police Interceptor -AWD 5 134 250.0 Patrol vehicle equipment I lot 244,000.0 Patrol Replacement Vehicles Total 895,250.0 Investigations - Replacement Vehicles Dodge Journey FWD 1 21 000.0 Ford Explorer AWD 1 26,900.0 Investigations vehicle equip. 1 lot 4,600.0 Investigations Replacement Vehicles Total: 52,500.0 Equipment Fund Total: 1,407,450.0 General Fund Total: 1,597,705.0 Information Technology Dell Precision T3600 Desktop 15 22,430.0 Dell Latitude E6430 Laptops 12 14 300.0 Dell O tiPlex 7010 Minitower Desktop 15 13,320.0 Data& Communications Fund Total: 50 050.0 Lease Total: 2,543,005.00 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 2 WHEREAS, the City Council wishes 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 that will result from the proposed arrangement will require payments by the City in the sum of$ 134,724.32 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 2013 lease payments are included in the 2013 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)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: 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, 2013. 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, $ 2,543,005.00, plus interest at a fixed rate equal to 2.23% per year, which is a reasonable amount. -3- 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 AND FIFTY-SIX THOUSAND, SIX HUNDRED AND SIXTY DOLLARS ($156,660.00) 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 vehicles and equipment in accordance with the terms and provisions of the lease-purchase agreement, upon receipt thereof. Section 3. That the amount of NINE HUNDRED TWENTY-EIGHT THOUSAND, EIGHT HUNDRED AND FORTY-FIVE DOLLARS($928,845.00)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 4. That the amount of ONE MILLION, FOUR HUNDRED AND SEVEN THOUSAND, FOUR HUNDRED AND FIFTY DOLLARS ($1,407,450.00) 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 for Parks, Operation Services and Police, in accordance with the terms and provisions of the lease-purchase agreement, upon receipt thereof. Section 5. That the amount of FIFTY THOUSAND AND FIFTY DOLLARS ($50,050.00) 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 home rule charter of the City and shall supersede, to the extent permitted by law, the conflicting provisions of the Act. -4- Introduced, considered favorably on first reading, and ordered published this 5th day of March, A.D. 2013, and to be presented for final passage on the 19th day of March, A.D. 2013. .ems>ca�� C\1li OF FONT r :L Mayo ATTEST: '• p. �/ < City Clerk Passed and adopted on final reading on the 19th day of March, A.D. 2013. Ma or ATTEST: FORTc VV j�v r y�L1�-- ' `.cis qq�� ••• ••O�! City Clerk EAL : cQC r j2 p�O . s -5-