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Home My WebLink About2002 Ordinance No. 038,. • • • ORDINANCE N0.38'.. SERI.ES OF 2002 BY AUTHORITY COUNCIL BILL NO. ~O INTRODUCED BY COUNCIL MEMBER WOLOSYN AN ORDINANCE OF THE CITY OF ENGLEWOOD, COLORADO AUTHORIZI NG AND APPROVING THE LEASE-PURCHASE OF COMPUTER H,\RDWARE AND OPERATI NG SOFTWARE FOR THE CITY PROVIDING DETAILS IN CONNECTION WITH THE LEASE-PURCHASE OF THE SAME, AND DE CLARING AN EMERGENCY. WHEREAS, the City of Englewood, Colorado (the "City"), is a home rule municipality of the State of Colorado (the "State'? duly organized and operating under t he Home Rule Charter of the City (the "Charter") a nd t h e Constitution and laws of the State; and WHEREAS, pursuant to Section 30 of the Charter, the City Council of the City (the "Co uncil") h as all municipal legislative powers as conferred by ge ne ral law, exce pt a• provided by the Charter; and WHEREAS . fo ll owing t he bidding procedures set forth in Section 113 of the Charte r, the Council approved co ntracts with various vendors for the acquisition of comp uter hardw are and operating soft ware comprising the enterprise resource planning Project (also known as the IBIS or "improving business improving service" Project and defined herein as the "Project"); a nd WHEREAS, meetings held on April 15 , 2002 a nd on May 6, 2002 , the Co uncil approved resolu tions to reimburse the City for all or a portion of s uch ca pital expen ditures incurred or to be incurred in relation to the Project; and WHEREAS, various components of the Project have bee n a nd are in t he process of being acquired by the City; a nd WHEREAS. pursuant to Section 31 -1 5-101 of the Co lorado Re vised Statutes, the City has the pow er to lease-p urchase personal property and the Co uncil desires to s pread the cost of acquiring the Proj ect over a period not to exceed sLx years through the lease-p ur chase of the same; and WHEREAS. the City has received a proposal from ABN AMRO Financial Services, ln · .. Chicago, Illinois C'ABN AJ\IIRO") to e ffe ct the lease -purchase of t he Project at a n"l ti ffective interest rate not to exceed 4.50% per a nnum , as more fully set fo rth in tr.n lease documentsti'ln prepared by ABN AMRO (th e "Lease Agreement") ui d~r which the fil:nnc1a1 obligation of the City s hall co nstitut':? currently bu,lgeted expenditures Jf the City; and WHEREAS. the Lca.,e Agreement is to become effective on a date within thi rty days following t he dote of adoption of this Ordinance on second reading ("t he Closing Date"); a nd -1- 11 bi WHEREAS, the Council is desiro us of a uthorizing a nd directing the transaction described above; NOW, THEREFORE, BE IT ORDAINE D BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO , AS FOLLOWS : 5.e.wnn...l. Anoroval of Convevance of Proiect Com nonents , The City Co un ci l hereby approves of the sa le of, and co nveyance of title to, the co mp onents of the Project acquired by the City as of t he Closing Date to ABN AMRO , or to its de signee , fo r an amount equ al to the actual cost for s uch components (w hich amount represents reimbursement to the City for fund s which the City has advanced). ~-Annrova l of Lease Agreement -The Lease Agreeme nt, in s ubstantia ll y the form a nd with substantially the content presented to the City for the lease - purchase of the Project and avail a ble for City Council review prior to final re ading of this Ordinance, ia in all respects approved, authori ze d and confirmed. The aggregate principal co mponent of the Lease Agree ment s h•ll not exceed $1 ,300,000. ~-Execution and Delivery of Documen t.s:1. Th e Mayor or, in the abse nce the reo f, the Mayor Pro Tem is hereby authorized and dircct<:d to execute the Lease Agreement, nnd the signature of the Mayor or Mayor Pro Tern shall conclusively determine the valid execution of the Lease Av,ee ment by the City. Additionally , the Mayor, other officials a nd employees of the City are hereby authorized a nd directed to exec ute a nd deliver for a nd on behalf of t he City any a nd all additio nal agreements, ce rtificates, documents and other papers and to perform all other acts that they may dee m necessary or approp riate in order to implement and carry out the transaction authorized and co ntem pl ated by this Ordinance , including but not limited to an Interna l Reve nu e Service Form 8038-G. ~ Pecle ration e and Findings. The City Council hereby determines and declares that the re nta l payme nts under the Lease Agree me nt (when calculated at thP. interes t rate, term and amount authorized herein (the "Rental P ay ments") represent the fair value of the use of t he Proj ect, a nd that the Prepayment Price (as de fined in the Lease Agreement) rep reBe nts the fair pu rchase price of the Project. The City Council her eby determines and declares tha t the Rental Payme nts do not exceed a reasonable amount so as to place the City under an eco nomic or practical co mpulsion to appropriate moneys to make paym ents under the Lease Agreeme nt or to e xe rcise its op ti on to purchase the Project pur suant to the Lease Agreement. In making such determinations, the City Co uncil has given co nsideration to the current mark et va lue of the Proj ect, the cost of acquiring, co nstructing or equipping property sim ilar to the Proj ect, the option of the City to pur chase the Project, and t he expected eventual vesting of full title to the Project in the City . The City Council hereby determines and declares that the duration of the Lease Agree ment, includin g all optional renewal te rm s, authorized under this Ordinance , does not e xceed the weighte d average useful life of the Project. ~-Bank-Qualified Determination . The City hereby designates the Lease Agreeme nt as a "qualified tax-exempt obli gation" fo r purp oses of Sectio n 265(b)(3) of the Internal Reve nu e Code of 1986, as ame nd ed. -2- • • ~-Obligations pf the City . No provision of this Ordinance or the Len ee Agreement shall be construed as creating or constituting a general obligation or a multiple-fiscal year direct or indirect indebtedness or other financial obligation whatsoever of th e City nor a mandatory payment obligation of the City m any ensuing fi scal year beyo nd any fis ca l year during which the Lease Agree1'1ent s hall be in effect. Smiwl....1. Ratjficatjoc of Prior Actjons . All actions heretofore take n (not inconoistent with the provisions of this Ordinance) by the City Council or by the officers and emp loyees of the City regarding the acq uisition or leaae-p urchuse of the Project, or directed toward s atisfaction of the City's obligations under the Lease Agreement, are hereby ratified, approved ond confirmed . ~. Severebi1ity. It is hereby expressly declared that all provisions he reof and their app li cation are inU!nded to be and are severable . In orde r to implement such intent, if any provision hereof or the application thereof is determin ed by a court or admini strative body to be invalid or une nforceable , in whole or in part, auch determination shall not affect, impair or invalidate any othe.r provision hereof or the application of the provision in question to any other situatioa; and if any provision hereof or the application thereof is determined by a court or ad.ministrative body to be valid or enforceable only if its ap plication is limited, itr. .,~plication sha ll be lim ited as required to most fully imp lement its purpose. ~-~-All ordinan ces, or parts thereof, in consiste nt or in conflict herewith are hereby repealed to the extent only of such inconsistency or conflict. ~-Declorntioo of Emergency. The City desires to obtain a locked-in interest rate re lating to the lease-purchase of the Project and to be reimbursed for Project co sts prior to the end of August 2002. In order to secure this locked-in rate to preve nt a ri s k of an increase in interest rates and to effect such reimbursement, th e Council hereby finds and determines that this Ordinance is necessary for the immediate preservation of public property, health, peace a nd safety and shall be in full force and effect immediately upon final passage by the Council. Introduced , read in full , and passed on first reading as 1:1n emergency ordinance on the 5'' day of August, 2002 . Published as on Emergency Bill for on Ordinance on the 9th day of August, 2002. Read by title and passed on final reading as an Emergency Ordinance on the I 9th day of Augus t. 2002. Published by title as Emergency Ordinance No . !>f'. Series of 2002 , on the -3- 23rd day of August, 2002. I, Lo ucrishia A. Ellis, City Clerk of the City of Englewcx;d , Colorado, hereby certify that the a bove and foregoing is a true co py of the Emergency Ordi ance passed on final reading and published by title as Emergency Orte• N . Series of 2002 . /~~-~ -4- • • • • • • COUNCI L COMMUNICATION Date Age nda Item Subject August 5, 2002 11 a ii A bill fo r ordinance authorizing and approving the lease-p urchase of computer hard wa re and ope ratin g softwa re, teleco mmunica ti ons equipm ent, and police lapto p co mputers. Initiated By I Staff Source City of Englewood, Fina nce and Adminis trative Frank Gryglewicz, Direc tor Services Depa rtment COUNCIL GOAL ANO PREVIOUS COUNCIL ACTION The City Coun d has discusse d the Improvi ng Busin ess Improv in g Serv ice (IBI S) Project implementation and financing o n num erous occas ions with City staff. City Coun ci l passed two reimbu rs emen t resolutions regarding the IB IS Proj~ct, Resolu ti o n 49 Series of 2002 on April 1 5, 200 2 and Resolution 5 1, Series of 2002 o n May 6, 2002. RECOMMENDED ACTION Staff recom mends the City Counci l approve th e attached emerge ncy bill fo r o rdinan ce. BACKGROUND, ANALYS IS , ANO ALTERNATIVES IDE NTI FIED This bi ll for and ordinance is being passed as an emergency ordin ance to p reserve the interest rate offered bv AB , AMRO. This lease-p urchase is segmen ted by the functional lives cf each assel The telecomm unications and police lap tops are three-year asse ts; and th e computer hard wa re, softw,:e, and re lated suppo rt and subscripti o ns are five-year ass ets . FIN AN CI AL IMPACT This action preserves a blended in terest ra te of 4.11 perce nt. The bia nn ual principal and in terest pa yme nts for the firs t three years are $135,889.51 ($271,779.02 per yea r). The biannual principal and interest paymen ts fo r yea rs fo ur and five are Sd9 ,483.63 (S178,967.26). The t,1tal principal paid w ill be S 1,062,879 .1 5 and total interest paid will be $1 10,392.42. Total pay me nts over the five-year term will be Sl,173 ,:!71.5 7. LIST OF ATTACHMENTS Proposed bill for an ordinance