2006-034
ORDINANCE NO. d'a?6 - 0.3 t/-
AN ORDINANCE AUTHORIZING THE FINANCING OF FLEET VEHICLES AND
EQUIPMENT FOR THE VARIOUS CITY UTILITY DEPARTMENTS THROUGH A LEASE
PURCHASE FINANCING AGREEMENT; PROVIDING FOR THE EXPENDITURE OF
FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 3446-THIRD
PARTY LEASE PURCHASE OF UTILITY FLEET AND EQUIPMENT, APPROXIMATE
FINANCE CHARGES OF $204,184.70).
WHEREAS, In the 2005-2006 budget process the City Council authorized the purchase
of ten refuse trucks, one service truck, five % ton 4 x 4 diesel pickup trucks and a scraper from
the to be determined lowest responsible bidders pursuant to Chapter 252 of the Texas Local
Government Code in the estimated principal sum 01'$2,365,000; and
WHEREAS, Section 271.005 of the Local Government Code authorizes the City council,
in its discretion, to contract for the financing of personal property; and
WHEREAS, the City Council finds that the herein authorized financing of the budgeted
equipment through a lease purchase agreement with Chase Equipment Leasing Inc. is
appropriate and in the public interest; and
WHEREAS, the City Council has provided in the City Budget for the appropriation of
funds to be expended for the herein authorized lease purchase agreement; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Council hereby authorizes a lease purchase agreement to finance
the acquisition of ten refuse trucks, one service truck, five % ton 4 x 4 diesel pickup trucks and a
scraper with Chase Equipment Leasing Inc., said agreement providing for a financed amount of
$2,365,000 having ten bi-annual payments of approximately $256,918.47 with an effective rate
of not to exceed 3.78% over 5 years.
SECTION 2. The City Manager, or the Purchasing Agent as his designee, is authorized
to enter into a lease purchase agreement on behalf of the City in accordance with the terms set
forth in Section 1 and to expend the funds provided for in Section I.
SECTION 3. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the
1f::-h dayof 3fl~./J1j- ,2006.
c~!k~
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY ~.I, 1 ttoA A)
BY:
4-0RD-Filc 3446
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