HomeMy WebLinkAbout2015-099-11/17/2015-AUTHORIZING THE PURCHASING AGENT TO LEASE ADDITIONAL VEHICLES AND EQUIPMENT UNDER THE CITY'S STANDAR RESOLUTION 2015-099
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE PURCHASING AGENT TO LEASE ADDITIONAL
VEHICLES AND EQUIPMENT UNDER THE CITY'S STANDARD
MASTER LEASE AGREEMENT WITH PINNACLE PUBLIC FINANCING, INC.
FOR SCHEDULE OF EQUIPMENT NO. 10
WHEREAS, the City and Pinnacle Public Finance, Inc. ("Pinnacle") have previously
entered into that certain "Standard Master Lease Agreement" dated February 15, 2011, (the
"Agreement"); and
WHEREAS, the Agreement provides that Pinnacle will lease to the City certain
"Equipment" as generally described in Section 1.1 of the Agreement and as specifically
described in each "Schedule of Equipment" that is agreed to in the future and added to the
Agreement as Exhibit A by the City and Pinnacle (collectively, the "Equipment"); and
WHEREAS, the Agreement contemplates an initial term of one year, with up to four
additional one-year terms, not to exceed a total of five years; and
WHEREAS, Article V of the Agreement grants the City the option to purchase any or all
of the Equipment in accordance with the provisions of Article V of the Agreement; and
WHEREAS, the Agreement also expressly provides that all of the City's obligations
under the Agreement are subject to the City Council's annual appropriation of each year's lease
payments and, if such appropriation does not occur, Pinnacle's sole remedy is to repossess the
Equipment; and
WHEREAS, the Purchasing Agent and Pinnacle have previously entered into that certain
"First Amendment to Master Lease Agreement" approved by City Council on December 2, 2014,
in Resolution 2014-108 (the "First Amendment"); and
WHEREAS, the purpose of the First Amendment was to amend certain language in
Section 1.2 of the Agreement to clarify the City's and Pinnacle's original (and current) intent
with respect to the language in Section 1.2 that provides that the City is to be listed as the owner
on the titles of motor vehicles included in the Equipment leased under Schedule of Equipment
No. 8 and that had been leased under the previous seven schedules of equipment; and
WHEREAS, that such original (and current) intent of this motor-vehicle-title language
was and is not to change the lease-purchase nature of the Agreement, but solely for the purposes
of establishing ownership of the leased motor vehicles for federal tax purposes, reducing
Pinnacle's liability for any civil claims arising from the City's use of the motor vehicles, and for
the City's administrative convenience in establishing clear title to vehicles when the City
exercises its option to purchase any of them; and
WHEREAS, the Purchasing Agent has negotiated with Pinnacle the lease of additional
Equipment under the Agreement as described in the "Schedule of Equipment No. 10" dated
November 24, 2015, attached as Exhibit "A" and incorporated by reference ("Schedule of
Equipment No. 10"); and
WHEREAS, each piece of equipment listed in Schedule of Equipment No. 10 has a
useful life of five years or longer; and
WHEREAS, the Purchasing Agent has also negotiated with Pinnacle quarterly lease
payments of Seventy Three Thousand Three Hundred Eight Three Dollars and Twenty Four
Cents ($73,383.24) for five years for the Equipment being leased'-in Schedule of Equipment No.
10 as set forth in the parties' "Payment Schedule, Equipment Schedule #10" dated November 24,
2015, attached as Exhibit `B" and incorporated by reference (the "Payment Schedule"); and
WHEREAS, the funds needed for the City's quarterly lease payments that will be owed
to Pinnacle in 2016 for the Equipment being leased in Schedule of Equipment No. 10, have been
budgeted and appropriated in the City's 2016 annual budget that is expected to be adopted by
Council on November 17, 2015; and
WHEREAS, the City is authorized in Section 8(c) of Article V of the City Charter,
Article IV in Chapter 8 of the City Code, and in C.R.S. Section 31-15-801 to enter into multiple-
year lease-purchase agreements provided each year's lease payments are subject to annual
appropriation; and
WHEREAS, the lease of the Equipment in Schedule of Equipment No. 10 under the
Lease will not constitute a "multiple fiscal year direct or indirect debt or other obligation" of the
City within the meaning of Section 20(4)(b) of Article X of the Colorado Constitution and,
therefore, this lease of Equipment under Schedule of Equipment No. 10 can be entered into
without voter approval; and
WHEREAS, the City Council has determined that it is in the City's best interests to lease
from Pinnacle all of the Equipment described in the Schedule of Equipment No. 10 in
accordance with the terms and conditions of the Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That all of the recitals set forth above in this Resolution are hereby
adopted as the City Council's findings in support of this Resolution.
Section 2. That the lease of the Equipment in Schedule of Equipment No. 10 under
the Agreement (as amended by the First Amendment) and the Payment Schedule, attached hereto
as Exhibit"A" and Exhibit "B", respectively, are hereby approved, and the Purchasing Agent is
hereby authorized to enter into the Schedule of Equipment No. 10 and the Payment Schedule on
the City's behalf. The Purchasing Agent may agree, in consultation with the City Attorney, to
modifications and amendments to Schedule of Equipment No. 10 and the Payment Schedule as
may be needed to protect the City's interests and that are consistent with the stated purposes of
this Resolution.
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Section 3. That City Council's approval in this Resolution of the Schedule of
Equipment No. 10 and the Payment Schedule are subject to the Council budgeting and
appropriating in the City's 2016 annual budget the funds necessary for the 2016 payments under
the Payment Schedule.
Passed and adopted at a regular meeting of the. Council of the City of Fort Collins this
17th day of November, A.D. 2015.
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EXHIBIT A
Schedule of Equipment No. 10 November 24,2015
RE: STANDARD MASTER LEASE AGREEMENT entered into as of February 15, 2011, ("Agreement°),
between Pinnacle Public Finance ("Lessor") and the City of Fort Collins, Colorado ("Lessee"). All terms
used and not otherwise defined herein have the meanings ascribed to them in the Agreement.
The following items of Equipment are hereby included under this Schedule to the Agreement:
Item De artmentf Fund Description Oty Cost Term
CNG-Cab/Chassis for snowplow
Streets dump truck . 4 580,000 5 yrs
Streets Dump body and snow accessories 4 552,000 5 yrs
Streets Liquid De-Icespray system 4 92,000 5 yrs
Streets Cab/Chassis for Traffic Control truck 1 42,000 5 rs
Streets Body for Traffic Control truck 1 22,000 5 rs
Streets '/z ton Pick-up truck 1 27 000 5 yrs
Code Compliance Small SUV 3 73,000 5 yrs
Total: 1,388,000.00 5 yrs
Lessee hereby represents, warrants and covenants that its representations, warranties and covenants set
forth in the Agreement are true and correct as though made on the Commencement Date of Payments
under this Schedule. The terms and provisions of the Agreement(other than to the extent that they
relate solely to other Schedules or Equipment listed on other Schedules)are hereby incorporated
into this Schedule by reference and made a part hereof.
Lessee: the City of Fort Collins, Colorado Lessor: Pinnacle Public Finance
By By
Gerry S. Paul
Director of Purchasing Name
Title
Date: Date:
Schedule of Equipment No 10 1 November 24, 2015
EXHBIT B
Payment Schedule,Equipment Schedule #10
Totals: $1,467,664.76 $79,664.76 $1,388,000.00 Rate2.1500%
Payment Payment Purchase Outstanding
Pint 4 Date Amount Interest Principal Price Balance
12/12015 $1,388,000.00
1 3/12016 $73,383.24 $7,460.50 S65,922.74 $1,322,077.26 $1,322,077.26
2 6/12016 $73,383.24 $7,106.17 $66,277.07 $1,255,800.19 $1,255,800.19
3 9112016 $73,383.24 $6,749.93 $66,633.31 $1,189,166.88 $1,189,166.88
4 12/12016 $73,383.24 $6,391.77 $66,991.47 $1,122,175.41 $1,122,175.41
5 3/12017 $73,383.24 $6,031.69 $67,351.54 $1,054,823.87 $1,054,823.87
6 6/12017 $73,383.24 $5,669.68 $67,713.56 $987,110.31 $987,110.31
7 9/l/2017 $73,383.24 $5,305.72 $68,077.52 $919,032.79 $919,032.79
8 12/12017 $73,383.24 $4,939.80 $68,443.44 $850,589.35 S850,589.35
9 3/12018 $73,383.24 $4,571.92 $68,811.32 $781,778.03 $781,778.03
10 6/12018 $73,383.24 $4,202.06 $69,181.18 $712,596.85 $712,596.85
11 9/12018 $73,383.24 $3,830.21 S69,553.03 $643,043.82 $643,043.82
12 12/12018 $73,383.24 $3,456.36 $69,926.88 $573,116.94 $573,116.94
13 3/12019 $73,383.24 $3,080.50 $70,302.73 $502,814.21 $502,814.21
14 6/12019 $73,383.24 $2,702.63 $70,680.61 $432,133.60 S432,133.60
15 9/12019 $73,383.24 $2,322.72 $71,060.52 $361,073.08 $361,073.08
16 12/12019 $73,383.24 $1,940.77 $71,442.47 $289,630.61 $289,630.61
17 3/l2020 $73,383.24 $1,556.76 $71,826.47 $217,804.14 $217,804.14
18 6/l2020 $73,A3.24 $1,170.70 $72,212.54 $145,591.59 $145,591.59
19 9/l2020 $73,383.24 $782.55 $72,600.68 $72,990.91 $72,990.91
20 12/12020 $73,383.24 $392.33 $72,990.91 -$0.00 -$0.00
Commencement date: December 1, 2015
City of Fort Collins
BY:
Gerry S. Paul
Director of Purchasing and Risk Management
Date: