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Home My WebLink About045 - 04/01/2014 - AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT FOR THE FINANCING BY LEASE-PURCHASE OF V ORDINANCE NO. 045, 2014 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 PURCHASES 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, its home rule 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 (the "Equipment'): Description Quantity Cost Golf- New and Replacements Toro Greensmaster 3300 Triflex 2 61,962.00 Toro Workman HDX-D Utility Vehicle 2 48,076.00 Yamaha Electric Carts for Southrid e 73 258,100.00 Yamaha Gas Carts for Southridge 3 11,700.00 Yamaha Electric Carts for Collindale 15 53,100.00 Yamaha Electric Carts for City Park 15 53,100.00 Yamaha Gas Carts for City Park 5 19,500.00 Golf Fund Total: 505,538.00 Streets - Replacements Cab/Chassis Tandem Plow Truck 1 104,808.00 Cab/Chassis Tandem Plow Truck 1 129,800.00 Dump Body for Plow truck 1 113,750.00 Dump Body for Plow truck 1 113,750.00 Spreader and "rank 2 112,150.00 6 way Folding V- Plow 1 18,539.00 Loader Bucket Attachment 1 16,275.00 Compact Sweeper 1 139,100.00 Portable Belt Conveyor 1 126,000.00 Streets Total: 874,172.00 Traffic - Replacements 1/2 ton Pick-up Truck 1 25,600.00 Cab/Chassis for Bucket Truck 1 35,000.00 Body for Bucket Truck 1 85,000.00 Traffic Total: 145,600.00 Transportation Fund Total: 1,019,772.00 - 1 - Parks - Replacement Vehicles Small Pick-up truck - 4wd 2 52,800.00 Snowplow equipment 2 9,000.00 I ton Cab/Chassis 1 24,969.00 Zero Turn Mower with decks 2 29,500.00 Parks Total: 116,269.00 Forest - Replacement Vehicle 1/2 ton Pick-up truck- 2WD 1 23,500.00 Forest Total: 23,500.00 Operation Services - Replacement Vehicle 1/2 ton Caro Van 1 24,000.00 Additional equipment & shelving 1 2,500.00 Operations Services Total: 26,500.00 Police Patrol - Replacement Vehicles Ford Utility Police Interceptor AWD 15 400,050.00 Patrol vehicle equipment 15 138,500.00 Patrol vehicle equip. - Vinyl wrap 17 11,250.00 Ram 1500 SSV 2 52,100.00 Patrol vehicle equipment 2 24,400.00 Patrol New Officer Vehicle Total: 626,300.00 Investigations -Replacement Vehicle 1/2 ton Pick-up truck 1 27,000.00 Patrol vehicle equipment 1 3,500.00 Investigation New Officer Vehicle Total: 30,500.00 Patrol - New Officer Vehicles KFCG Ford Utility Police Interceptor AWD 7 186,700.00 Patrol vehicle equipment 7 77,000.00 Patrol vehicle equip. - Vinyl wrap 7 4,700.00 Patrol New Officer Vehicle Total: 268,400.00 Investigations - New Officer Vehicle Ford Utility Police Interceptor AWD 1 26,670.00 Patrol vehicle equipment & vinyl wrap 1 11,660.00 Investigation New Officer Vehicle Total: 38,330.00 Police Patrol - Traffic - Replacement Vehicle Ford Utility Police Interceptor AWD 1 26,670.00 Patrol vehicle equipment 1 9,300.00 Investigation New Officer Vehicle Total: 35,970.00 General Fund Total: 1,165,769.00 Information Technology Dell Latitude E6440 75 104,070.00 Dell O tiPlex 7010 100 88,000.00 Dell Precision T3610 4 5,140.00 Panasonic Toughbooks 25 41,060.00 Dell Monitor Stands 40 2,240.00 Dell-Venue I 1 Tablets 5 6,630.00 - 2 - Logitech Keyboards 54 600.00 Dell USB Mouse 50 670.00 Power Strips/ Sure Suppressor 200 1,980.00 Data & Communications Fund Total: 250,390.00 Lease Total: 2,941,469.00 and; WHEREAS, the City Council has determined that it is in the best interests 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$156,514.56 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 2014 lease payments are included in the 2014 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; and WHEREAS, City staff has determined that the appropriation described in this Ordinance will not cause the total amount appropriated in the respective fund to exceed current estimates of actual and anticipated revenues to be received in those funds 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: - 3 - a. The agreement shall be for an original term from the execution date of the agreement through April 30, 2015. 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 the 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, $2,941,469.00, plus interest at a fixed rate equal to 2.40% per year, which is a reasonable amount. d. The City shall have the option to purchase part or all of the Equipment on the date of any scheduled quarterly payment during 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, as to any or all of the Equipment. 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 the 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 Five Hundred Five Thousand, Five Hundred and Thirty-Eight Dollars ($505,538) 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 One Million, Nineteen Thousand, Seven Hundred and Seventy-Two Dollars ($1,019,772) 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, One Hundred Sixty-Five Thousand, Seven Hundred and Sixty-Nine Dollars ($1,165,769) 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 equipment in accordance with the terms and provisions of the lease-purchase agreement, upon receipt thereof. - 4 - Section 5. That the amount of Two Hundred Fifty Thousand, Three Hundred and Ninety Dollars ($250,390) to be provided under the lease-purchase agreement is hereby appropriated for expenditure in the Data & Com_munications 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. Introduced, considered favorably on first reading, and ordered published this 18th day of March, A.D. 2014, and to be presented for final passage on the 1 st day of April, A.D. 2014. Mi� Cam : u or ATTEST: car �It �� •O GZ� CULORP City Clerk Passed and adopted on final reading on the 1st day of April, A.D. 2014. Maf or ATTEST: FORT C City Clerk COLORP, - 5 -