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HomeMy WebLinkAbout12220 RESOLUTION NO. 12220 A RESOLUTION APPROVING A MASTER LEASE AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND SUNTRUST EQUIPMENT FINANCE AND LEASING CORPORATION, APPROVING AN EQUIPMENT SCHEDULE NO. 03 AND ADDENDUM TO EQUIPMENT SCHEDULE NO. 03 WITH RESPECT THERETO, AUTHORIZING EXECUTION THEREOF BY THE PRESIDENT OF THE CITY COUNCIL, AND AUTHORIZING THE EXECUTION AND DELIVERY OF ALL OTHER DOCUMENTS REQUIRED THEREWITH BY THE CITY MANAGER, AND AUTHORIZING ALL OTHER ACTION NECESSARY TO THE CONSUMMATION OF THE TRANSACTION CONTEMPLATED BY THIS RESOLUTION WHEREAS, the City of Pueblo, a Municipal Corporation (hereinafter “City”), is a Colorado home rule city duly organized and existing under and by virtue of Article XX of the Colorado Constitution, and is authorized thereby to purchase and lease personal property for its municipal purposes for the benefit of City and its inhabitants and to enter into contracts with respect thereto; and WHEREAS, City desires to purchase, acquire and lease a certain sewer jet/vacuum truck constituting personal property necessary for the City to perform essential governmental functions; and WHEREAS, in order to acquire such equipment, City proposes to enter into a Master Lease Agreement (the “Agreement”) and separate Equipment Schedule No. 03 (collectively, the “Lease”) with Suntrust Equipment Financing and Leasing Corporation, a Virginia Corporation or a subsidiary thereof (the “Lessor”), in substantially the form as attached hereto; and WHEREAS, City Council, as the governing body of the City, deems it for the benefit of City and for the efficient and effective administration thereof to enter into the Lease for the purchase, acquisition and leasing of equipment therein described on the terms and conditions therein provided; and WHEREAS, the funds made available under the Lease will be applied to the acquisition of the equipment in accordance with the terms of such Lease; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The form, terms and provisions of the Agreement and the separate Equipment Schedule, as provided in the Agreement, are hereby approved in substantially the form attached hereto with such insertions, omissions and changes as shall be approved by the President of City Council and the City Attorney, the execution of such documents being conclusive evidence of such approval; and the President of the City Council is hereby authorized and directed to execute the Agreement and said Equipment Schedule and any related Exhibits attached thereto and to deliver the Agreement and Equipment Schedule, and the City Clerk is authorized and directed to attest same and affix the seal of the City thereto. SECTION 2. The City Manager is authorized and directed to take all action necessary or reasonably required by the parties to the Agreement and Equipment Schedule to carry out, give effect to and consummate the transactions contemplated thereby (including the execution and delivery of Acceptance Certificates, Payment Requests, any Tax Agreement and Arbitrage Certificate, and Incumbency Certificate each with respect to the Equipment Schedule, as contemplated in the Agreement) and to take all action necessary in conformity therewith, including, without limitation, the execution and delivery of any closing and other documents required to be delivered in connection with the Agreement and such Equipment Schedule and Addendum. SECTION 3. The Agreement and such Equipment Schedule and Addendum, are expressly made subject to sufficient appropriations being made therefore in each fiscal year after 2011. Nothing contained in this Resolution, the Agreement, and the Equipment Schedule nor any other instrument, shall be construed with respect to the City as incurring a pecuniary liability or charge upon the general credit of the City or against its taxing power, nor shall the breach of any agreement contained in this Resolution, the Agreement or such Equipment Schedule or any other instrument or document executed in connection therewith impose any pecuniary liability upon the City or any charge upon its general credit or against its taxing power, except to the extent that the rental payments payable under each Lease are special limited obligations of the Lessee as provided in such Lease. Nothing in the Agreement or such Equipment Schedule and Addendum is intended, nor shall it be construed, to create any multiple-fiscal year direct or indirect debt or other financial obligation whatsoever of the City. SECTION 4. The City Manager and Director of Finance of the City are each hereby designed to act as authorized representatives of the City for purposes of the Agreement and such Equipment Schedule until such time as the City Council shall designate any other or different authorized representative for purposes of the Agreement, and such Equipment Schedule. SECTION 5. This Resolution shall be effective immediately upon final passage and approval. INTRODUCED September 12, 2011 BY: Vera Ortegon COUNCILPERSON Background Paper for Proposed RESOLUTION DATE: AGENDA ITEM # M-1 September 12, 2011 DEPARTMENT: Finance Department Sam Azad, Director Purchasing Department Naomi C. Hedden, Director Stormwater Utility Department Earl Wilkinson, Director TITLE A RESOLUTION APPROVING A MASTER LEASE AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND SUNTRUST EQUIPMENT FINANCE AND LEASING CORPORATION, APPROVING AN EQUIPMENT SCHEDULE NO. 03 AND ADDENDUM TO EQUIPMENT SCHEDULE NO. 03 WITH RESPECT THERETO, AUTHORIZING EXECUTION THEREOF BY THE PRESIDENT OF THE CITY COUNCIL, AND AUTHORIZING THE EXECUTION AND DELIVERY OF ALL OTHER DOCUMENTS REQUIRED THEREWITH BY THE CITY MANAGER, AND AUTHORIZING ALL OTHER ACTION NECESSARY TO THE CONSUMMATION OF THE TRANSACTION CONTEMPLATED BY THIS RESOLUTION ISSUE Should the City of Pueblo enter into a lease-purchase agreement for the acquisition of a new 2012 Vacall sewer jet/vacuum truck? RECOMMENDATION Approval of the Resolution. BACKGROUND Bid proposals had been solicited and received for the purchase of a new sewer jet/vacuum truck. Thereafter a vendor was selected and a contract is scheduled contemporaneously for approval by City Council. This Resolution approves a lease purchase agreement for lease of the sewer jet/vacuum truck. The selection of the leasing agent was made after careful consideration of proposals submitted in response to a request for proposals. FINANCIAL IMPACT The Cost of the sewer jet/vacuum truck is $294,283.59, which will be amortized over seven years for the truck acquired by lease purchase. Total payments over the seven year period equate to $318,849.65. The payment schedule for the lease payments is as follows: 02/01/2012 $45,549.95 02/01/2013 $45,549.95 02/01/2014 $45,549.95 02/01/2015 $45,549.95 02/01/2016 $45,549.95 02/01/2017 $45,549.95 02/01/2018 $45,549.95 The City’s obligation under the equipment lease shall be subject to annual appropriation by the City Council.