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HomeMy WebLinkAbout1999 Ordinance No. 065• • • ORDINANCE NO. 0 b SERIES OF 1999 BY AUTHORITY COUNCIL BILL NO. 67 INTRODUCED BY COUNCIL MEMBER BRADSHAW AN ORDINANCE OF THE CITY OF ENGLEWOOD, COLORADO AUTHORIZING AND APPROVING THE LEASE-PURCHASE OF COMPUTER AIDED DISPATCH AND RECORDS MANAGEMENT SYSTEMS EQUIPMENT FOR THE CITY . WHEREAS , The City of Englewood, Colorado (t he "City"), i s a home rule municipality of the State of Colorado (the "State") duly organized and opera ting under the Home Rule Charter of the City (the "Charter") and the Constitution and laws of t he State; and WHEREAS , pursuant to Section 30 , of the Englewood Home Rule Charter, the City Council of the City (the "Council") has all municipal legislative powers as conferred by general law , except as provided by the Charter; a nd WHEREAS , on October 20, 1997, the Englewood City Council approved the contract with Logistic Systems, Inc. for computer aided dispatch and records management system equipment for the City communications center (the system component of such contract and the change orders thereto collectively r eferred to as the "CAD/RMS Equipment") which system has enhanced the service provided by the Saftey Services personnel of the City; and WHEREAS , in accordance with Section 113 of the Charter, the competitive bidding procedures were complied with in the acquisition of the CAD/RMS Equipment; and WHEREAS, pursuant to Resolution No. 47 , Series of 1998 , the Council declared its intent to reimburse itself for funds advanced for the CAD/RMS Equipment and to participate in a tax-exempt financing of the CAS/RMS Equipment in an amount not to exceed $851 ,500; and WHEREAS , the CAD/RMS Equipment has been installed and is operational; and WHEREAS , pursuant to Section 31 -15 -101 of the Colorado Revised Statutes, the City has the power to lease -purchase personal property and the Council desires to spread the cost of acquiring the CAD/RMS Equipment over a five-year period through the lease-purchase of such equipment; and WHEREAS, the financial advisor to the City, George K. Baum & Company, shall assist the City in receiving bids for execution of a Lease Purchase Agreement (the "Lease Agreement") under which the financial obligation of the City shall constitute currently budgeted expenditures of the City and shall not extend beyond the current fiscal year unless the Lease Agreement is annually renewed by the City; and -1 - WHEREAS, to effect the lease-purchase of the CAD/RMS Equipment at this time, the City will, upon execution of the Lease Agreement, transfer to The Bank of Cherry Creek, N.A., as custodial agent, title to the CAD/RMS Equipment in exchange for reimbursement of the moneys advanced by the City for acquisition of the property and, in the event that the City Council later determines not to appropriate moneys for payment of the Lease Agreement the lessor thereunder shall be entitled to physical delivery CAD/RMS Equipment as security under the Lease Agreement; and WHEREAS , the Lease Agreement shall not constitute a general obligation or a multiple-fiscal year direct or indirect debt or other financial obligation whatsoever of the City within the meaning of any constitutional or statutory limitation or requirement concerning the creation of indebtedness; and WHEREAS , the Council is desirous of authorizing and directing the transaction described above; NOW, THEREFORE , BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD , COLORADO, AS FOLLOWS: Section 1. Approval of transfer of CAD/RMS Equipment to Custodial Trustee. The City Council hereby approves of the conveyance of title to the CAD/RMS Equipment to The Bank of Cherry Creek, N .A., as custodial agent, for reimbursement to the City in the amount of $851 ,500. The City Council hereby determines and declares that the fair market value of the CAD/RMS Equipment is $851,500 and such amount represents fair and adequate consideration to the City for the CAD/RMS Equipment. Section 2. Authorization of Lease Agreement: Direction to Bid . The City Manager is hereby directed to cause bids to be received by the City for the lease-purchase of the CAD/RMS Equipment, in substantially the form and with substantially the content as approved by the City Attorney. The Lease Agreement, which shall have an initial term ending December 31 , 1999 with five additional one-year renewal terms, shall contain a schedule setting forth the principal and interest components of each rental payment. The Aggregate principal component of the Lease Agreement shall not exceed $851,500. The Council shall approve the Lease Agreement by resolution following the receipt of bids and such approval shall contain a determination by the City Council that the rental payments under the Lease Agreement represent the fair value for the use of the CAD/RMS Equipment. Section 3. Execution and Delivery of Documents. The Mayor or, in the absence thereof, the Mayor Pro Tern is hereby authorized and directed to execute the Lease Agreement, and the signature of the Mayor or Mayor Pro Tern shall conclusively determine the valid execution of the Lease Agreement by the City. Additionally, the Mayor, other officials and employees of the City are hereby authorized and directed to execute and deliver for and on behalf of the City any and all additional agreements, certificates, documents and other papers and to perform all other acts that may deem necessary or appropriate in order to implement and carry out the transaction authorized and contemplated by this Ordinance, including but not limited to an Internal Revenue Service Form 8038-G. -2- {• • • • • • • Section 4. Obligations of the City. No provision of this Ordinance or the Lease 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 the City nor a mandatory payment obligation of the City in any ensuing fiscal year beyond any fiscal year during which the Lease Agreement shall be in effect. Section 5. Ratification of Prior Actions. All actions heretofore taken (not inconsistent with the provisions of this Ordinance) by the City Council or by the officers and employees of the City regarding the lease-purchase of the CAD/RMS Equipment or directed toward satisfaction of the City's obligations under the Lease Agreement, when executed, are hereby ratified, approved and confirmed. Section 6. Headings. The headings to the various sections and paragraphs to this Ordinance have been inserted solely for the convenience of the reader, are not a part of this Ordinance, and shall not be used in any manner to interpret this Ordinance. Section 7. 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 provision hereof or the application thereof is determined by a court or administrative body to be invalid or unenforceable , in whole or in part, such determination shall not affect, impair or invalidate any other provision hereof or the application of the provision in question to any other situation; and if any provision hereof or the application thereof is determined by a court or administrative body to be valid or enforceable only if its application is limited, its application shall be limited as required to most fully implement its purpose. Section 8. Repealer. All ordinances , or parts thereof, inconsistent or in conflict herewith are hereby repealed to the extent only of such inconsistency or conflict. Introduced, read in full, and passed on first reading on the 1st day of November, 1999. Published as a Bill for an Ordinance on the 5th day of November, 1999. Read by title and passed on final reading on the 15th day of November, 1999. Published by title as Ordinance No.~ Series of 1999, on the 19th day of November, 1999 . -3- I , Loucrishia A. Ellis, City Clerk of the City of Englewood, Colorado, hereby certify that the above and foregoing is a true copy of the Ordinance passe on final reading and published by title as Ordinance No. 'JcE' Series of 19 9. -4 - -· ~ .. • • • :· • • • COUNCIL COMMUNIC ATION Date Agenda Item Subject November 1, 1999 Bill For An Ordinance To Approve the Lease-Purchase of the Computer Aided 10 a iii Dispatch and Records Management Systems (CAD/RMS ) Equipment Initiated By Staff Source City of Englewood , Financial Services Department Frank Gryqlewicz, Director COUNCIL GOAL AND PREVIOUS COUNCIL ACTION On October 17, 1998 City Council approved a contract with Logistic Systems , Inc. for the purchase of the computer and dispatch/records management equipment for the new Communications Center . Additionally , on February 17, 1998 City Counc il approved Reso lut ion 47 , Series 1998 declaring the intent of the City to reimburse itself with the proceeds of a future borrowing in an amount not to exceed $851,500. RECOMMENDED ACTION Staff recommends Council approve the attached bill for an ordinance authorizing the lease-purchase of the CAD/RMS System in the amount of $851,500. BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED The City of Englewood placed a referred measure asking the voters if they wanted to keep the communications operations in the City on the November 2, 1993 ballot. This referred measure passed by an overwhelming margin. On November 7 , 1995 a ballot question was placed on the ballot to issue debt for the construction of a new communications center; this question failed overwhelmingly. The City used reserves to build the "bricks and mortar" portion of the center. The cost of the computer and communications hardware and software was to be financed by a lease-purchase agreement when the final implementation phase was to be completed . As implementation has now occurred , this ordinance allows the City to reimburse itself for the cost of the communications hardware and software. No other alternatives were identified. ANANCIAL IMPACT George K. Baum, as financial advisor to the City, will assist the City in receiving bids for the Lease Purchase Agreement. Bid opening and bid award is scheduled to occur on or about November 30, 1999. A Resolution awarding the lease will be presented to City Counc il on December 6, 1999 detailing the final terms of the Lease-Purchase Agreement. Proceeds from the lease-pur.chase will reimburse the Public Improvement Fund for the funds expended to purchase the CAD/RMS System . The lease obligation will be repaid over a five-year period commencing in 2000 and ending in 2004. The Lease Purchase Agreement is subject to annual appropriation and does not constitute a general obligation or a multi-year financial obligation of the City . LIST OF ATTACHMENTS Proposed bill for an ordinance