HomeMy WebLinkAbout10927RESOLUTION NO. 10927
A RESOLUTION APPROVING A MUNICIPAL LEASE AGREEMENT BETWEEN PUEBLO, A
MUNICIPAL CORPORATION AND NEBRASKA NATIONAL BANK RELATING TO THE
ACQUISITION OF GOLF COURSE MAINTENANCE EQUIPMENT AND AUTHORIZING THE
PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME
WHEREAS, the funding for the lease /purchase of new golf course maintenance equipment
was identified and approved in the 2007 City adopted golf course budgets; and
WHEREAS, the City Council has determined that a true and real need exists for the
acquisition of the golf course maintenance equipment described in the Municipal Lease
Agreement; and
WHEREAS, the City has taken the steps necessary, including legal bidding requirements,
under applicable law and Charter provisions to arrange for the acquisition of the golf course
maintenance equipment, NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Municipal Lease Agreement between Pueblo, A Municipal Corporation and Nebraska
National Bank dated as of February 12, 2007 (the "Agreement'), a copy of which is attached
hereto, has been approved as to form by the City Attorney is hereby approved. The President of
the City Council is authorized to execute and deliver the Agreement in the name of the City and
any related documents necessary to the consummation of the transactions contemplated by the
Agreement, and the City Clerk is directed to affix the seal of the City to the Agreement and attest
same.
SECTION 2.
The City Council hereby represents that the reasonable anticipated amount of qualified tax -
exempt obligations, which have been and will be issued by the City will not exceed $10,000,000.00
in calendar year 2007. Accordingly, the City hereby designates the Agreement as a qualified tax -
exempt obligation for the purposes of Section 265(b)(3) of the Internal Revenue Code.
SECTION 3.
The obligation of the City to make Rental Payments under the Agreement is subject to
annual renewal and annual appropriation by the City Council. No provision of this Resolution or
the Agreement or the acquisition of the golf course maintenance equipment shall be construed or
interpreted as creating or constituting or giving rise to a multiple - fiscal year direct or indirect City
debt or other financial obligation whatsoever nor a general obligation of the City within the meaning
of any constitutional, charter or statutory debt limitation, nor a mandatory charge or payment
obligation against the City beyond a fiscal year for which City has appropriated funds to make any
such payment obligation.
SECTION 4.
The City Council hereby determines that the Rental Payments due under the Agreement do
not exceed a reasonable amount so as to place the City under an economic compulsion not to
terminate the Agreement or to exercise its option to purchase the golf course maintenance
equipment pursuant to the Agreement.
SECTION 5
This Resolution shall become effective upon final approval and passage.
INTRODUCED February 12, 2007
BY Michael Occiato
Councilperson
APPROVED: Qz& j p� e , &Xv —
FFRESIDLINTof City Council
ATTESTED BY:
CITY CLERK
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Background Paper for Proposed
RESOLUTION
AGENDA ITEM #
DATE: February 12, 2007
DEPARTMENT: PARKS & RECREATION, RICH ZAJAC, DIRECTOR
MIKE ZAREMBA, GOLF COURSE
MANAGER
TITLE
A RESOLUTION APPROVING A MUNICIPAL LEASE AGREEMENT BETWEEN
PUEBLO, A MUNICIPAL CORPORATION AND NEBRASKA NATIONAL BANK
RELATING TO THE ACQUISITION OF GOLF COURSE MAINTENANCE
EQUIPMENT AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL
TO EXECUTE SAME
ISSUE
Should City Council approve a five -year
Nebraska National Bank for the acquisition
equipment for the two municipal golf courses?
Municipal Lease Agreement with
of new golf course maintenance
RECOMMENDATION
Approval of this Resolution
As part of the adopted 2007 City budgets for the two municipal golf courses, City
Council approved specific funding for the lease /purchase of new course
maintenance equipment to replace the old and unreliable existing equipment.
Bids were received on November 3, 2006, for 20 specific pieces of new golf
course maintenance equipment, which includes the following:
• Four (4) Fairway Mowers
• Four (4) Greens Mowers
• Three (3) Rotary Rough Mowers
• One (1) Sand Trap Bunker Rake with Front Blade
• Seven (7) Utility Vehicles
One (1) Heavy Duty Utility Vehicle with Vicon Fertilizer Spreader
Mounted on the Bed.
A bid summary is attached. The new equipment will be delivered 45 days after
acceptance of the agreement and will be available for the spring maintenance
season at both courses.
FINANCIAL IMPACT
The City will be entering into a tax- exempt purchase agreement with an automatic
transfer after five years. The City will pay a $90,000 cash down payment in 2007 and
then pay $86,309.36 per year lease payment starting in 2008 for four years. The cash
down payment and the annual lease payments are to be paid out of the golf courses'
annual operating budgets. These funds are contingent on the availability of annual
appropriation by the City Council. In the event of non - appropriation of funds in any
given year, the City will not be held liable to complete the lease /purchase contract and the
golf course maintenance equipment will be surrendered.
Per the low bid of $397,084.71 from Colorado Golf and Turf, the total cost of the
lease/purchase agreement is $435,238.44. Funds are approved and specifically identified
in the acquisition of the new golf course maintenance equipment in each respective 2007
golf course budget: $45,000 at Elmwood and $45,000 at Walking Stick under debt
service payments.