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Home My WebLink About15610RESOLUTION NO. 15610 A RESOLUTION OF THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, APPROVING LEASE/PURCHASE FINANCING WITH CLAYTON HOLDINGS, LLC, FOR SPORTS FIELD AND COURT LIGHTING SYSTEMS FROM MUSCO SPORTS LIGHTING, LLC, 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 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 desires to purchase, acquire, and lease new LED sports lighting systems constituting personal property necessary for the purpose of promoting safe outdoor recreation experiences to the citizens of our community; and WHEREAS, to acquire the new LED lighting systems, the City proposes to enter into a Lease/Purchase Agreement ("Agreement") with Clayton Holdings, LLC ("Lessor") and Escrow Agreement with the Escrow Agent in the form as approved by the City Attorney; and WHEREAS, City Council 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 the new LED lighting systems therein described on the terms and conditions as 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. 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 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 2024. 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 lease 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 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: April 22, 2024 BY: Regina Maestri MEMBER OF CITY COUNCIL APPROVED: __________________________ PRESIDENT OF CITY COUNCIL ATTESTED BY: ________________________ CITY CLERK City Clerk's Office Item # M15 Background Paper for Proposed Resolution COUNCIL MEETING DATE: April 22, 2024 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham 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, APPROVING LEASE/PURCHASE FINANCING WITH CLAYTON HOLDINGS, LLC, FOR SPORTS FIELD AND COURT LIGHTING SYSTEMS FROM MUSCO SPORTS LIGHTING, LLC, 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 LED sports field lighting on City Park Ballfields #3 and #4 and LED sports court lighting for the Mineral Palace Park Pickleball Courts. PREVIOUS COUNCIL ACTION: None. BACKGROUND: Approximately 99% of the City owned softball fields, outdoor basketball courts, and tennis courts consist of metal halide lamps. Metal halide lamps use large quantities of wattage to operate which results in exceptionally high utility expenses to operate annually. The Parks and Recreation Department has been working on a plan to replace the metal halide lamps with efficient LED lights throughout the City which will result in the reduction of annual utility expenses while providing safer lighting for the recreational facility users. The Parks and Recreation Department has determined that the softball field lights at City Park Fields #3 and #4 are a priority for replacement. These lights and wooden poles were installed in the mid to late 1950s and are becoming a maintenance and safety concern. The Mineral Palace Park Pickleball Courts were constructed in 2022 without lights. The addition of LED lights to this popular recreational facility will increase awareness and popularity of the new courts. FINANCIAL IMPLICATIONS: The total financing amount for the new LED lighting systems total $649,894.00, which will be amortized over five years. The first payment in the amount of $143,269.00 is due appropriation by the City Council. The City will make lease payments through Capital Project LT2302 Athletic Field Lighting Replacement. Clayton Holdings, LLC will be paid Interest at the annual rate of 4.88% to finance this lease/purchase transaction. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Resolution. STAKEHOLDER PROCESS: Not applicable to this Resolution. ALTERNATIVES: If the City Council declines to approve this Resolution, the City will not purchase the new LED sports field and court lighting systems required to maintain the community's expectations for quality and safe recreation experiences. RECOMMENDATION: Approval of the Resolution. ATTACHMENTS: None