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