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HomeMy WebLinkAbout15443RESOLUTION NO. 15443 A RESOLUTION OF THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, ACTING BY AND THROUGH ITS GOLF ENTERPRISE, APPROVING LEASE/PURCHASE FINANCING WITH BANKFUNDING, LLC, FOR EQUIPMENT FROM MASEK ROCKY MOUNTAIN GOLF CAR COMPANY AND L.L. JOHNSON DISTRIBUTING COMPANY AND AUTHORIZING THE EXECUTION AND DELIVERY OF ALL DOCUMENTS REQUIRED THEREWITH BY THE MAYOR OR DIRECTOR OF PURCHASING, AND AUTHORIZING ALL OTHER ACTIONS NECESSARY FOR 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 to create Enterprises which have the authority to purchase and lease personal property for municipal purposes for the benefit of the City’s inhabitants and to enter into contracts with respect thereto; and WHEREAS, the City’s Golf Enterprise desires to purchase, acquire, and lease certain new golf maintenance equipment and golf carts constituting personal property necessary for the performance of golf course functions; and WHEREAS, to acquire such equipment, City’s Golf Enterprise proposes to enter into a Lease/Purchase Agreement, (the “Agreement”), with BankFunding, LLC (“Lessor”) and Escrow Agreement with the Escrow Agent in the form as approved by the City Attorney; and WHEREAS, City Council, as the governing body of the City’s Golf Enterprise, deems it for the benefit of the City and for the efficient and effective administration thereof to enter into the Agreement for the purchase, acquisition, and leasing of equipment and golf carts therein described on the terms and conditions therein provided; and WHEREAS, the funds made available under the Agreement will be applied to the acquisition of the equipment per the terms of such Agreement and Escrow Agreement; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that SECTION 1. City Council expressly authorizes the City Attorney to negotiate the form, terms, and provisions of the Agreement and Escrow Agreement with such insertions, omissions, and changes as shall be approved by the City Attorney, the execution of such documents by the Mayor, Director of Finance, and/or Purchasing Director, being conclusive evidence of such approval; and the Mayor is hereby authorized and directed to execute the Agreement and Escrow Agreement and to deliver the Agreement and Escrow Agreement on behalf of the City's Golf Enterprise, and the City Clerk is authorized and directed to attest same and affix the seal of the City thereto. SECTION 2. City Staff is hereby authorized and directed to take any and all actions necessary or reasonably required by the parties to the Agreement and Escrow Agreement to carry out, give effect to and consummate the transactions contemplated thereby and to take any and all actions 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 Escrow Agreement. SECTION 3. The Agreement and Escrow Agreement are expressly made subject to sufficient appropriations in each fiscal year after 2023. Nothing contained in this Resolution and the Agreement and Escrow Agreement, nor any other instrument, shall be construed 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 and the Agreement and Escrow Agreement 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 the Agreement and Escrow Agreement are special limited obligations of the Lessee as provided in such agreements. Nothing in the Agreement and Escrow Agreement is intended, nor shall it be construed, to create any multiple-fiscal year direct or indirect debt or other financial obligation of the City. SECTION 4. The Purchasing Director and Director of Finance of the City are each hereby designated to act as authorized representatives of the City's Golf Enterprise for purposes of the Agreement and Escrow Agreement until such time as the City Council shall designate any other or different authorized representative for purposes of said agreements. SECTION 5. City officers and staff are directed and authorized to perform any and all acts consistent with the intent of this Resolution and the Agreement and Escrow Agreements to implement the transactions described herein. SECTION 6. This Resolution shall become effective immediately upon final passage. INTRODUCED: December 11, 2023 BY: Vicente Martinez Ortega MEMBER OF CITY COUNCIL APPROVED: PRESIDENT OF CITY COUNCIL ATTESTED BY: City Clerk's Office Item # M7 Background Paper for Proposed Resolution COUNCIL MEETING DATE: December 11, 2023 TO: President Heather Graham and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Marisa Stoller, City Clerk FROM: Steven Meier, Director of Parks and Recreation SUBJECT: A RESOLUTION OF THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, ACTING BY AND THROUGH ITS GOLF ENTERPRISE, APPROVING LEASE/PURCHASE FINANCING WITH BANKFUNDING, LLC, FOR EQUIPMENT FROM MASEK ROCKY MOUNTAIN GOLF CAR COMPANY AND L.L. JOHNSON DISTRIBUTING COMPANY AND AUTHORIZING THE EXECUTION AND DELIVERY OF ALL DOCUMENTS REQUIRED THEREWITH BY THE MAYOR OR DIRECTOR OF PURCHASING, AND AUTHORIZING ALL OTHER ACTIONS NECESSARY FOR THE CONSUMMATION OF THE TRANSACTION CONTEMPLATED BY THIS RESOLUTION SUMMARY: This Resolution would approve the financing to lease/purchase new grounds maintenance equipment and golf carts for the Elmwood and Walking Stick Golf Courses. PREVIOUS COUNCIL ACTION: None. BACKGROUND: Certain existing grounds maintenance equipment of the City’s two Golf Courses have become ongoing maintenance issues due to their high number of hours used. The average useful lifespan of a commercial mower in a municipal or golf environment is five years. Under this Resolution, the Golf Enterprise will lease/purchase one hundred fifty-three (153) fleet cars, two (2) marshal cars, two (2) range picker cars, two (2) beverage cars, six (6) greens mowers, four (4) fairway mowers, six (6) rough mowers, eight (8) utility vehicles, two (2) bunker maintenance vehicles, one (1) turf aerator, and one (1) 300-gallon sprayer. The total cost for the maintenance equipment and golf carts is $2,396,720.71. FINANCIAL IMPLICATIONS: The grounds maintenance equipment and the golf cart financing package total $2,396,720.71, which will be amortized over five years. Golf Enterprise will make lease payments through their operating budgets. The City’s Enterprise obligations under the equipment and golf cart leases shall be subject to annual appropriation by the City Council. BankFunding, LLC will be paid Interest at the annual rate of 4.68% to finance this lease/purchase transaction. BOARD/COMMISSION RECOMMENDATION: It is the request of the Golf Enterprise Advisory Committee that this Resolution be approved as submitted. STAKEHOLDER PROCESS: Not applicable to this Resolution. ALTERNATIVES: If the City Council fails to approve this Resolution, the Golf Enterprise will not purchase the new equipment and golf carts required to maintain and operate the two (2) municipal golf courses to the community’s expectations. RECOMMENDATION: Approval of the Resolution. ATTACHMENTS: None