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Home My WebLink About2016-037-04/19/2016-AUTHORIZING THE PURCHASING AGENT TO LEASE ADDITIONAL VEHICLES AND EQUIPMENT UNDER THE CITY'S STANDAR J RESOLUTION 2016-037 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. 11 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 - -1- WHEREAS, the Purchasing Agent has negotiated with Pinnacle the lease of additional Equipment under the Agreement as described in the "Schedule of Equipment No. 11" dated April 27, 2016, attached as Exhibit "A" and incorporated by reference ("Schedule of Equipment No. 11"); and WHEREAS, each piece of equipment listed' in Schedule of Equipment No. 11 has a useful life of five years or longer; and WHEREAS, the Purchasing Agent has also negotiated with Pinnacle quarterly lease payments of One Hundred Forty Six Thousand Six Hundred Eighty Six Dollars and Ninety Cents ($146,686.90) for five years for the Equipment being leased in Schedule of Equipment No.11 as set forth in the parties' "Payment Schedule, Equipment Schedule #11" dated April 27, 2016, 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. 11, have been budgeted and appropriated in the City's 2016 annual budget that was 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. 11 can be entered into without voter approval; and WHEREAS, the titles for any Motor Vehicles listed in Exhibit "A" will be held by an escrow agent and delivered to the City in the event the City exercises its option to purchase any of the motor vehicles; 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. 11 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 the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. -2- Section 2. That the lease of the Equipment in Schedule of Equipment No. 11 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. 11 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. 11 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. Section 3. That City Council's approval in this Resolution of the Schedule of Equipment No. I 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 19th day of April, A.D. 2016. FART C0� %Oft XY, ay or ATTEST: Poo w City Clerk -3- EXHIBIT A Schedule of Equipment No. 11 April 27, 2016 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 Department/Fund Description Qty Cost Term Golf Toro MultiPro 1750 spray vehicle 1 39,600.00 5 yrs Golf Toro Eflex Greensmower 2 30,829.00 5 yrs Golf Toro Groundsmaster rotary mower 1 64,000.00 5 yrs Golf Tow behind turf aerator 1 6,750.00 5 yrs Golf Toro Workman HDX-D 1 23,400.00 5 yrs Golf Toro Versa Vac 1 26,100.00 5 yrs Golf Toro Pro Sweep 1 11,800.00 5 yrs Golf Swee -n-Fill turf brush 1 5,350.00 5 yrs Streets Impactor&magnets - 1 510,000.00 5 yrs Streets Street Sweeper 1 280,000.00 5 yrs Streets Small pick up 1 26,000.00 5 yrs Streets CNG tank packages 1 55,000.00 5 yrs Streets Snow blower attachment for Loader 1 127,000.00 5 yrs Parks/General Hybrid sedan 1 23,600.00 5 yrs Parks/General %ton Cab/Chassis CNG&utility body 1 41,200.00 5 yrs Parks/General 1 ton Cab/Chassis&flatbed body 1 38,600.00 5 yrs Parks/General Hybrid SUV 1 28,000.00 5 yrs Parks/General Smallpick-up 4x2 1 21,700.00 5 yrs Parks/General Smallpick-up 4x4 1 26,000.00 5 yrs Parks/General Large mower with cab&broom 3 115,200.00 5 yrs Parks/General Utility vehicle-large 1 25,800.00 5 yrs Parks/General Electric utility vehicle 1 15,650.00 5 yrs Parks/General Turf sweeper 2 58,000.00 5 yrs Parks/General Propane mower 1 16,800.00 5 yrs Operations/ General Small pickup Truck 1 45,200.00 5 yrs Police/General %tonpick-up with long bed 1 41,850.00 5 yrs Police/General Ford Police Interceptor AWD 13 369,200.00 5 yrs Police/General .Police Vehicle Equipment 1 lot 126,500.00 5 yrs Police/General Hybrid sedan 1 1 26,400.00 5 Vrs Ford Police Interceptor AWD—no Police/General sot 1 28,100.00 5 yrs Police/General Hybrid SUV 2 57,200.00 5 yrs Police/General /tonpick-up—K9 pkg. 1 30,500.00 5 yrs Police/General Police Vehicle Equipment 1 lot 38,600.00 5 yrs Police Investigations/ General /tonpick-up with long bed 1 38,900.00 5 yrs Police Investigations/ Ford Police Interceptor AWD—no General sot 1 28,100.00 5 yrs Police Investigations/ General Investi ation VehiclW Equipment 1 lot 10,800.00 5 yrs Police Investigations/ Small Pickup Truck 1 26,100.00 General 5 yrs Police Investigations/ Hybrid Sedan 4 98,600.00 General 5 yrs Police Investigations/ Hybrid SUV 2 57,200.00 General 5 yrs Police Investigations/ Investigation Vehicle Equipment 1 lot 22,006.00 General 5 Yrs Utility Generator 1 120,000.00 Administration 5 rs Total: 2,781,629.00 5 rs Exhibit B Payment Schedule, Equipment Schedule#11 Totals: $2,933,738.07 $152,109.07 $2,781,629.00 Rate 2.0506% Payment Payment - Purchase Outstanding Pmt# Date Amount Interest Principal Price Balance 4/27/2016 $2,781,629.00 1 7/27/2016 $146,686.90 $14,255.85 $132,431.05 $2,649,197.95 $2,649,197.95 2 10/27/2016 $146,686.90 $13,577.14 $133,109.76 $2,516,088.18 $2,516,088.18 3 1/27/2017 $146,686.90 $12,894.95 $133,791.95 $2,382,296.23 $2,382,296.23 4 4/27/2017 $146,686.90 $12,209.27 $134,477.64 $2,247,818.59 $2,247,818.59 5 7/27/2017 $146,686.90 $11,520.07 $135,166.83 $2,112,651.76 , $2,112,651.76 6 10/27/2017 $146,686.90 $10,827.34 $135,859.56 $1,976,792.20 $1,976,792.20 7 1/27/2018 $146,686.90 $10,131.06 $136,555.84 $1,840,236.35 $1,840,236.35 8 4/27/2018 $146,686.90 $9,431.21 $137,255.69 $1,702,980.66 $1,702,980.66 9 7/27/2018 $146,686.90 $8,727.78 $137,959.13 $1,565,021.53 $1,565,021.53 10 10/27/2018 $146,686.90 $8,020.74 $138,666.17 $1,426,355.37 �$1,426,355.37 11 1/27/2019 $146,686.90 $7,310.07 $139,376.83 $1,286,978.53 $1,286,978.53 12 4/27/2019 $146,686.90 $6,595.76 $140,091.14 $1,146,887.40 $1,146,887.40 13 7/27/2019 $146,686.90 $5,877.80 $140,809.11 $1,006,078.29 $1,006,078.29 _ 14 10/27/2019 $146,686.90 $5,156.15 $141,530.75 $864,547.54 $864,547.54 15 1/27/2020 $146,686.90 $4,430.81 $142,256.10 $722,291.44 $722,291.44 16 4/27/2020 $146,686.90 $3,701.74 $142,985.16 $579,306.28 $579,306.28 17 7/27/2020 $146,686.90 $2,968.94 $143,717.96 $435,588.32 $435,588.32 18 10/27/2020 $146,686.90 $2,232.39 $144,454.51 $291,133.81 $291,133.81 19 1/27/2021 $146,686.90 $1,492.06 $145,194.84 $145,938.97 $145,938.97 20 4/27/2021 $146,686.90 $747.94 $145,938.97 -$0.00 -$0.00 Commencement date: April 27, 2016