HomeMy WebLinkAbout2009 Ordinance No. 020•
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BY A TH ORITY
ORDINANCE NO .df)_
SERCES OF 2009
COUNC IL BILL NO . 21
INTRODUCED BY COUNC IL
ME MB ER McCASLIN
AN ORDINANCE OF THE CITY OF ENGLEWOOD AUT HOR IZING AND
APPROVING THE LEASE-PUR CHASE OF CERTAIN EQUIPMENT FO R
CITY DEPARTMENTS AND PROVIDING DETAILS IN CONNECT ION WlTH
THE LEASE -P URC I u\SE TRANSACTI ON.
W~CEREA S, 1he Ci ty of Englewood, Col0rado (th e "C it y"), is a home rul e muni ci pali ty
of the State of Co lorado (the "St ate") duly organized and opera tin g under the Ho me Rul e Charier
of the City (the "Charter") ,:,id the constitution and laws of th e St ate; and
W~AS, pursuant to Sec ti on 30 of the Charter , the Cit y Co uncil of the City (the
"Co un cil ") has all muni cipal le gis lative powers as confe rred by ge nera l law, except as provided
by th e Cha rter; and
WHEREAS, th e Coun r" detem,ined that it is necessary to acquire ce rtain police ,
informat ion technology and ~nting equipm ent including , but not limited to, se lf contained
breathin g appara ti and com pressed air cylinders (the "Fire Depanment Equipment"), vo ice over
internet protocol for ph one co mmuni cations and related operating software, deskt op computer
repla cement , mobile data termin als and tactical vests (th e "In fo rmation Technology and Police
Department Equipm ent") (the Fire Dep artm ent Eq uipment and the Informati on Techn ology and
Police Department Equipm ent being co ll ecti ve ly referred to as th e "Equipment "), and
WHEREAS , pursua nt to Section 31-15 -10 I of th e Co lorado Revi sed Stat ut es, the Ci ty
has th e powe r to lease-purcha se personal propert y and the Co uncil desires to spread the cos t of
acq uiring the Fire Depa.rtment Equipmeat , over a pi:riod not to exceed fi ve Jears , and the
In forma tio n Technology and Police Depa rtment Equ ipment , over a period not to exceed three
years, through th e lease-purchase of such equipment ; and
WHEREAS , the City and CAFCo Leasing LLC, a Co lorado limited li abili ty Co mp any
(th e "Lesso r") have previously en tered int o a Master Equ ipme nt Lea se/P urchase Agree men t (th e
'Master Lease") for the purpose of establishing a con tinu ing relationship betw een th e parti es to
facili tate the leasi ng and acq uirin g of cert ai n pro perty upon th e term s and co ,.diti ons set forth by
the panics in subscq ll ent leases; and
WHEREAS, th e Ci ty has received a proposa l from Stifel Nico lau s & Co mpany,
Incorporated to effect the lease -p urchase of th e Eq uip men t at a net effec tive rate not in exce ss of
4. 75% per ann um , whic h rate is to be detennined at the tim e of the closing on th e tran sact ion;
a 1d
WHEREAS , pursuant to the Master Lease, the detail s 0f th c tran sac ti ons arc more fully
set forth in Schedules and Leases as defined in th e Mas ter Lc,•.e (th e "Leas e Agreements"), and
th e fi nancia l obligati on of the Ci ty under the Lease Agreeme nts shall consti tute currently
budgete d expendi tu res of the Ci ty: and
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\VHERE AS, the Coun cil is des iro us of authorizing and directi ng the transa ction
de scri bed above;
NOW, THEREFORE , BE IT ORDAINED BY THE CIT Y CO UNCIL OF Tl-IE CITY OF
ENGLEWOOD , COL<"1RADO, AS FOLLOWS :
Sectlou J Approva l of Lease Purcha se Terms. The City Co uncil hereby approves the
lease-purchase of (i) the Fire Department Equipment fo r the amount not to exceed $330 ,000 ,
with monthly pa yment s not to exceed $6 ,500 over annual tcnns which shall not exceed fi ve years
and (ii) the Infonnat ion Tec hnology and Police Department Equipment for the amo unt not to
exceed $625,000, with monthly payme nt s not to exceed $20 ,000 over annual terms which shall
not exceed three years. The City Council hereby delegates to the Mayor, or in the absence
thereof, the Mayor Pro Tcm, the authority to detennine the net effective rate for the lease-
purchases , which :ate shall not be in excess of 4. 75% per annum and the final amo unt s of the
Lease Agreements.
Section 2. Approval of LeRse Agreements. The Lease Agreements, in substantially the
fonn and with substantially the content presented to th e Cit y, are in all respects approved,
authorized and confirmed.
Section 3. Execution and Delivery of Do cuments. The Mayor or, in the absence
thereof, the Mayor Pro Tern is hereby au thorized and directed to execute the Lease Agreemen ts,
and the signJture of the Mayor or Mayor Pro Tem shall conclusively detennine acceptance of the
fi nal form and content of the Lease Agreements and th e valid execution of the Lease Agreement s
by the C it y. Addit iona ll y, the Mayor, oth er officia ls and emp loyees of th e City are hereby
au th orized and directed to execute and delive r for and on behalf of the City any and all additional
agreements, certificates, docum ents and other papers and to perform all ot her acts that they may
deem neccssnry or approprinle in order to implement and curry out the transaction authori zed and
contempb ::-:d by thi s Ordi nnncl!, in cludi ng but not li mit ed to an Internal Reve nu e Service Fom1
8038-G.
Section 4. Declarations and Findings. The City Council hereby determines and
declares that th e respective renta l pa yments under the Lease Agreements (t he "Rental
Payments") represent the fair va lue of the use of the respective Equipment , and that the Purchase
Pri ce (a s defined in the Lea se Agreements) represents the fair purcha se price of the respecti ve
Equipment. The City Council hereby dctennines and declares that the Rental Payment s do not
exceed a reasonable amount so as to place the City under an economic or practi cal compu lsion to
appropria te moneys to make payments under the Lease Agreements or to exercise its opt ion to
purchase the Equipment pursuant to the Lease Agreements . In making such deterrnina. ons, the
C ity Council has given considerati on to the current market va lue of the Equipment , the cost of
ucqu1:1n g th e Equipment , the op ti on or the City to purchase th e Equipment, and th e expec ted
cvetttu,I vesti ng of full ti tl e to the Equip ment in th e Ci ty. The Ci ty Council hereby dctcnnines
an d dee arcs that th e dura ti on of the Lea se Agreement s, including all opti onal rcnewnl terms,
,:~:!~:::~t.ed under this Ordinance, does not exceed the weighted average useful life of the
Equipment.
Section S. Bank-Qualified Dete rmination . The C it y hereby designates th e respective
Leuse Agreements as "qualified tax -rscmpt obligations" for purposes of Section 265(b)(3) of the
lntema l Revenue Code of 1986, as amended.
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~-Obligations of the City . No provi sion of this Ordi nance or th e Lease
Agreements shall be cons tru ed as crea tin g or constituting a general ob lig ati on or a multiple-fi sc al
year direct or indirect indebtedness or other financi al obligation whatsoever of the City nor a
mandatory payment ob ligati on of the City in any ensuing fisc al year beyond any fiscal yea r
during whic h the Lease Agreem ents shall be in effect.
~-Ratification of Prior Actions. All actions heret ofo re taken (not in cons istent
with the provisions of this Ord inance) by the City Counci l or by the officers and en1ployec s of
the City regarding the acquisition or lease-purc hase of the Equipment, or directed toward
satisfact ion of the City 's obligations under the Lease Agreements , arc hereby ratified , approved
and confirmed.
~-Severability. It is hereby expressly declared that all provisions hereof and
their application are intended to be and are severable. In order to implement such intent , if any
provisi on hereof or the application thereof is detennined by a court or administrative body to be
invalid or unenforceable, in whole or in part, such detenninal ion shall not t 'feet, impair or
invalidate any other provision hereof or the appli cat ion of the provision in question to any other
situation; and if any provisi on hereof or the app licati on thereof is detemiined by a court or
administrative body to be va lid or enforceable only if its application is limited, its application
shall be limited as required to most fully implement it s purpose .
Section 9. Repealer. All ordinances , or parts thereof, inconsistent or in conflict
herewith are hereby repealed to th e extent only of such inconsistency or conflict.
Section 10 . Effective Date. TI1e Ordinance shall be effective thirty days after
~ublic ati on following final passage .
Introduced, read in full , and passed on first reading on the 4th day of May, 2009.
Publi shed as a Bill for an Ordinance in the City's official newspaper on th e s• day of May , 2009.
Published as a Bi . for an Ordinance on the City's officia l website beginning on the 6th d1y of
May, 2009 for thirt y (30) days.
Read by title and passed ,._ final reading on the Is• da y of May, 2009 .
Publi shed by titl e in the City 's official newspaper as Ord inance No ~, Series of 2009, on
the 22nd day of M.iy, 2009.
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James K. Woodward , Mayor
I. Loucrishio A. Ellis, City Clerk of the Ci ty of Englewood, Colorado, here by certify that the •
above and foregoing is a true copy of the Ordinance passed on finol reading and publi shed by
title as Ordinance No..,;?a Series of 2009.
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COUNCIL COMMUNICATION
Date : Agenda Item : Subjec :
May 4, 2009 11 a vi A bill for an ordin ance auth o ri zi ng
and approvin g the lease-purchase of
equipme nt for the Fi re, Po li c e, and
In forma ti on Tech nol ogy Departments
Initiated By : I Staff Source :
Fina nc e and Administrati ve Services Department Frank Gryglewicz, Direc tor
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
City Council disc usse d leas ing self co ntain ed breat hin g apparat us (SC BA ) equipmen t, poli ce tactical
ves ts, and a voice ove r internet protocol (VOiP ) telephone sys t em at th e 2009 Budget Re treat.
RECOMMENDED ACTION
Staff recommends th e Ci ty Council approve th e attached bill for an ord inance ap proving the lease-
purchase of SCBA equipment for Fir e, tactical vests for Police, and VOiP sys tem (so ftware and
hardware).
BACKGROU ND, ANALYSIS, AND ALTERNATIVES IDENTIFIED
This bill fo r an ordinan ce allows the City to conserve its ca pital and takes advantage of relatively low
interes t rates. This eq uipment will be leas ed over thr ee/fi ve yea rs . Th e City w ill acquire thi s
eq uipment during th e remainder of 2009.
FINANCIAL IMPACT
Th e mo nthl y principal and interest pa yme nts ove r th e term of th e lease for th e Fire D epa rtment
eq uipmen t w ill not exceed $6,500 over the t er m, not t o exceed five (5) years. Th e interest rat e w ill
not exceed 4.7 5 perc ent Th e total principal paid will n ot exc eed $330,000.
The interest rat e for th e lease of Information Technolo gy and Po li ce Department equipment will not
e cee d 4.75 µercen t. The monthly principal and interest payments wi ll no t exceed $20,000 over a
period not to exceed three (3 ) years. Th e total princ.ipal will not exceed $625,000.
Th e firs t payment for the lease will be pa id fr o m fund s paid into th e Cap it al Equipment Replacement
Fund. Th e source of the rema inin g pa ym ents w ill b e determin ed during th e annual bud ge ting
process .
LIST OF ATTACHMENTS
Pr op osed Bi ll for an O rd ina nce