Agenda Date: 08/03/2021
Subject:
Title
Ordinance 15-2021: An ordinance on second reading amending a lease purchase agreement between the City of Littleton and Motorola Solutions, Inc., for radio equipment
Body
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Prepared by: |
Tiffany Hooten, Finance Director |
PURPOSE:
Does city council support an ordinance amending a lease purchase agreement between the City of Littleton and Motorola Solutions, Inc., for radio equipment?
PRESENTATIONS:
Staff Presenter(s): Tiffany Hooten, Finance Director
Additional Presenter(s): N/A
SUMMARY:
In 2015, the city entered into a lease agreement with Motorola Solutions, Inc. for radio equipment for the police, fire, and public works departments. As part of the fire inclusion with South Metro Fire Rescue in 2018, a payment was made towards the portion of this lease related specifically to the fire department equipment. As a result, the subsequent payments were revised and reduced for the remainder of the lease term.
This ordinance is to formally amend the lease purchase agreement with Motorola Solutions, Inc. to reflect the change in the annual payment amounts through the remainder of the lease term.
PRIOR ACTIONS OR DISCUSSIONS:
The lease agreement was originally approved by city council on December 15, 2015, Ord. No. 108.
This ordinance passed on first reading on July 20, 2021.
ANALYSIS:
Staff Analysis
An amendment is necessary to formally approve the change in the annual payment amounts of this radio lease with Motorola Solutions, Inc.
The original lease agreement has been attached as a reference. There is no change to the length of the lease term, only the annual amount of the lease payments.
Council Goal, Objective, and/or Guiding Principle
Goal 8: Good Governance
Fiscal Impacts
Annual payments for this lease are included in the 2021 budget; therefore, there is no additional financial requirements. Payments will continue through January 1, 2024 at the agreed upon annual amount of $152,481.79 which is reduced from the original annual amount of $255,902.13.
Alternatives
Option 1 - Approve the lease amendment and continue payments as agreed upon
Option 2 - Not approve the lease amendment and risk payment default or overpayment
STAFF RECOMMENDATION:
Staff recommends approval of an ordinance to amend a lease purchase agreement with Motorola Solutions, Inc.
PROPOSED MOTION:
Proposed Motion
I move to approve Ordinance 15-2021 on second reading amending a lease purchase agreement between the City of Littleton and Motorola Solutions, Inc., for radio equipment.