HomeMy WebLinkAboutEquipment Lease - AT&T Capital Services Inc - iPads and Surfaces for City Departments1316 COUNTY-Cay BUILDING
227 W. Jr FFE'RSON Bouu",, VAR D
Soi riji BE.ND. INDIANA 46601-1830
CITY OFSouri-j BEND PE'rEBUTFIGIEG, MAYOR
BOARD OF PUBLIC WORKS
February 13, 2018
Dick Martin
AT&T Capital Services, Inc.
36 S, Fairview Avenue, Floor I
Park, Ridge, IL 60068-4016
RE: Equipment Lease
Dear Mr. Martin:
hiow,,, 574/235-9251
FAX 574/ 235-9171
The Board of Public Works, at its meeting held on February 13, 2018, approved the above
referenced lease for fifty-three (53) iPads with accessories and four (4) Surfaces for various
City departments in the amount of $805 per month for thirty-six (36) months, for a total of
$28,980.
Enclosed please find the original of the agreement for your signature. Please sign and return
the original agreement to our office and retain a copy for your records.
If you have any further questions regarding this matter, please call this office at (574) 235-
9251.
Sincerely,
1( JAA
Linda M. Martin, Clerk
Enclosure
c: Dan O'Connor, Innovation & Technology
Jeff Weaver, Engineering
Shawn Delahanty, Innovation & Technology
G ARY A � G i t,oi, SUZANNA M. FRrrZBER(, Ei..IZABI,.,,i,j-i A. MARADIK JAML-,.s A. MUELLER TuL,,REsF- I DORAU
AT&T Capital Scivices, Inc.
Fau a a36 S. Fairview Am w Park Ridge, IL 6068-4016
Office: 800/323-7312
Fax: 847/326-0573
Lessee
AT&T Muni Mobility ("°)
Financing Agreement
Number: 1-2340900-002
Dated: February 6, 2018
Customer full legal name
THE CITYOF SOUTH BEND, INDIANA
Telephone number
Fax number
Federaf Employer Id Number (Required)
f574) 245-6201
1
Contact Name
IE-Mall Address
DAN O'CO qNOR
dconr)or@southbendinn.gov
HeadquarterAddress
city
Date
ZIP
County
227 WESTJEFFERSON BLVD.
-SOUTH BEND
IN
46601
Location, V different from above
city
State
ZIP
County
227 WESTJEFFERSON BLVD,
SOUTH BEND
IN
46601
it:quipmenz ijetaii
Equipment Description
Mobility - Microsoft Surface Piro Tablet with accessories, Ward 32GB & accessories
Equipment Supplier AT&T Mobility Corporation
aocneauie or ocentai vayments
Purchase option
One Dollar
Down Payment (if applicable)* Term (in monthsl Total number of payments: 36 in Arrears
1 36
*Payable to AT&T Capital Services, Inc. and due upon execution of this Agreement.
Payment frequency: Payments". 36 at S804.99
Monthly Remaining at $-- (plus applicable taxes)
"Payments, may be Fridexed u-un#ll - -- - - --- - tcommencement.
Acknowledgement
Accepted By
Custorri er hereby certifies that he/she has read and agrees to all of the term and
THIS AGREEMENT IS NOT BI NDI NG UNTIL ACCEPTED BY LENDER.
conditions set forth on pages 1-3 of this AT&T Mobility Financing 49reernent
customerNameTHE CITY OF SOUTH BEND, INDIANA
Lender Name
DBA:
AT&T CAPITAL SERVICES, INC.
APPAQV&D
Name a,nd Title JpIeMMwpytbtbf P tmi(" Woli
Name and Title (please print)
Signature �� .
Sig'na�ture
� � .
��� � 7
City of Soadi Bend - Rev. 2-6-2018 Page I of3
Terms and Conditions
CLAIM AND ANY COMPLAINT THEREFOR AGAINST VENDOR, AND NOT
1. AGREEMENT - Subject to the terms and conditions of this AT&T Muni AGAINST LENDER AND SHALL CONTINUE TO MAKE ALL PAYMENTS
Mobility Financing Agreement (the "Agreement"), Customer agrees to finance REQUIRED HEREUNDER. CUSTOMER ACKNOWLEDGES THAT VENDOR
from Lender the equipment (the "Equipment") described on page 1 of this IS NOT AN AGENT OF LENDER AND STATEMENTS OR
Agreement. The Agreement shall commence on the date the Equipment is REPRESENTATIONS OF THE VENDOR SHALL NOT BIND OR AFFECT
delivered to the customer ("Commencement Date") and shall continue for the LENDER, AND SHALL NOT AFFECT THE CUSTOMER'S OBLIGATIONS
number of months specified in the Agreement ("Term"). UNDER THIS AGREEMENT.
Customer's failure to execute this Agreement within ninety (SO) days of the
delivery of the Equipment Wil result in this Agreement converting to a cash
sale, with payment due and payable immediately.
2. PAYMENTS - During the Term of the Agreement, Customer agrees to
pay Lender the total number of payments multiplied by the amount of each
payment (plus taxes) specified on page 1 of the Agreement. The due date of
the first payment is the date upon which the Equipment is delivered to
Customer or any later date designated by Lender. Restrictive endorsements
on checks sent to Lender will not reduce Customer's obligations to Lender.
The payment amount specified is indexed to like -term US Treasury Bills, and
any increase or decrease in the corresponding US Treasury Bills will cause the
payment to be adjusted point for point at the time of the Commencement Date.
The payments do not include any additional interest expense for progress
payments which are required by Lender on all transactions with installations
exceeding 60 days. Progress payments will be financed through Lender at
Prime Rate plus 2% at time of funding.
3. NON -CANCELABLE AGREEMENT - Customer's obligation to make
payments and to pay any other amounts due hereunder shall be ABSOLUTE
AND UNCONDITIONAL and shall not be subject to any delay, cancellation,
termination, reduction, set-off, defense, counterclaim or recoupment for any
reason whatsoever. This is an irrevocable Agreement for the full Term and
cannot be cancelled, other than for Non-Approprialion, as hereinafter defined.
4. NON -APPROPRIATION: Customer's obligations to pay Payments and
any other amounts due for each fiscal period is contingent upon approval of
the appropriation of funds by its governing body. In the event funds are not
appropriated for any fiscal period equal to amounts due under the Agreement,
Customer may terminate the Agreement effective on the first day of such fiscal
period ("Termination Date"), if: (a) Customer has used due diligence to
exhaust all funds legally available; and (b) Lender has received written notice
from Customer at least thirty (30) days before the Termination Date. Upon the
occurrence of such non -appropriation, Customer shall not be obligated for
Payments for any fiscal period for which funds have not been so appropriated,
and Customer shall deliver the Equipment to Lender on the Termination Date,
packed for shipment in accordance with the manufacturer's specifications,
freight prepaid and insured to any location in the continental United States
designated by Lender. If Customer terminates an Agreement pursuant to this
Section, unless the following would affect the validity of a Agreement,
Customer will not purchase, lease, rent, seek appropriations for, or otherwise
obtain equipment serving the same function as the Equipment for the fiscal
period in which such termination occurs or the next succeeding fiscal period
and such an obligation will survive termination of this Agreement.
S. DELIVERY AND ACCEPTANCE - Customer understands that Lender
is not responsible for delivery of Equipment. Customer holds Lender harmless
from specific performance of this Agreement and from any damages if for any
reason the manufacturer, supplier, vendor or distributor (coifectively referred to
in this Agreement as "Vendor") delays in delivery, or if the Equipment is
unsatisfactory.
6. WARRANTY DISCLAIMER - CUSTOMER AGREES THAT IT HAS
SELECTED THE VENDOR AND PRODUCT BASED UPON ITS OWN
JUDGEMENT AND DISCLAIMS ANY RELIANCE UPON ANY
STATEMENTS OR REPRESENTATIONS MADE BY LENDER. LENDER
MAKES NO WARRANTY WITH RESPECT TO THE PRODUCT, EXPRESS
OR IMPLIED, AND LENDER SPECIFICALLY DISCLAIMS ANY WARRANTY
OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR
PURPOSE AND ANY LIABILITY FOR CONSEQUENTIAL DAMAGES
ARISING OUT OF THE USE OF OR THE INABILITY TO USE THE
PRODUCT. WARRANTIES MADE BY THE VENDOR TO THE LENDER
SHALL INURE TO THE BENEFIT OF THE CUSTOMER, TO THE EXTENT
ASSIGNABLE. IF THE EQUIPMENT DOES NOT OPERATE AS
REPRESENTED, WARRANTED OR GUARANTEED BY VENDOR, OR ARE
UNSATISFACTORY FOR ANY REASON, CUSTOMER SHALL MAKE ITS
7. NO AGENCY - Customer acknowledges that (1) there is no agency or
joint venture between Lender and the Vendor; (2) neither the Vendor nor any
other person is authorized to act on Lender's behalf; and (3) ONLY AN
INDIVIDUAL AUTHORIZED BY LENDER IS PERMITTED TO WAIVE OR
ALTER ANY TERM OR CONDITION OF THIS AGREEMENT.
8. ASSIGNMENT - LENDER MAY ASSIGN ITS INTEREST IN THIS
AGREEMENT WITHOUT CUSTOMER'S CONSENT, CUSTOMER AGREES
THAT IN ANY ACTION BROUGHT BY AN ASSIGNEE AGAINST
CUSTOMER TO ENFORCE LENDER'S RIGHTS HEREUNDER, CUSTOMER
WILL NOT ASSERT AGAINST SUCH ASSIGNEE, AND EXPRESSLY
WAIVES AS AGAINST ANY ASSIGNEE, ANY BREACH OR DEFAULT ON
THE PART OF LENDER HEREUNDER OR ANY OTHER DEFENSE, CLAIM
OR SET-OFF WHICH CUSTOMER MAY HAVE AGAINST LENDER EITHER
HEREUNDER OR OTHERWISE. NO SUCH ASSIGNEE SHALL BE
OBLIGATED TO PERFORM ANY OBLIGATION, TERM OR CONDITION
REQUIRED TO BE PERFORMED BY LENDER HEREUNDER,
9. QUIET ENJOYMENT - Provided that no Event of Default (as defined in
Section 12 herein) has occurred or is continuing hereunder, Lender shall not
interfere with Customer's right of quiet enjoyment and use of the Equipment.
10. TAXES AND FEES - Customer shall pay when due and shall indemnify
Lender for, and hold Lender harmless from and against all federal, state, and
local filing fees, assessments, taxes including without limitation, sales, lease,
use, excise and personal property taxes (excluding only taxes payable with
respect to Lender's net income) which may be imposed on the Lender arising
in any way out of the use or leasing of the Equipment. Such amounts shall be
considered additional rent and shall be payable by Customer upon demand by
Lender.
The obligations under this section shall survive the expiration or termination of
this Agreement.
11. INDEMNITY - Customer hereby indemnifies Lender and holds Lender
harmless from any and all claims, actions, suits, proceedings, costs,
expenses, damages and liabilities, including attorney's fees, arising out of or
connected with the Equipment or the use thereof, including without limiting the
generality of the foregoing, its manufacture, selection, delivery, possession,
use, leasing, fitness operation, return, or latent or other defects, whether or not
discoverable, or arising out of any failure by Customer to perform or comply
with any of the terms and conditions of this Agreement. The indemnities
contained herein shall continue in full force and effect notwithstanding the
termination of this Agreement, whether by expiration of time, by operation of
law, or otherwise.
12. DEFAULT AND REMEDIES - If Customer (a) does not pay rent within
ten (10) days after the same becomes due, (b) breaches any of its
representations, warranties or other obligations under the Agreement, (c) is in
default under any other agreement between Customer and Lender (d)
becomes insolvent or assigns its assets for the benefit of its creditors, or (e)
enters (voluntarily or involuntarily) a bankruptcy proceeding ("Event(s) of
Default"), Customer will be in default. Upon the occurrence of an Event of
Default, Lender may require that Customer pay the remaining balance of all of
the rental payments due under this Agreement, present valued using a 3% per
year discount rate. Customer also represents to Lender that interest on all
sums due Lender from the date of default until paid will he at the rate of one
and one-half percent (1-112%) per month, but only to the extent permitted by
law. In addition, Lender shall be entitled to recover from Customer any of the
remedies available under the Uniform Commercial Code ("UCC") or any other
law. If Lender refers this Agreement to an attorney or collection agency for
enforcement or collection, Customer agrees to pay the cost of recovery
including, but not limited to, legal fees and expenses.
Customer initials
Page 2 of 3
City of South Bend - Rev, 2-6-2018
13. OTHER RIGHTS - Customer agrees that any delay or failure to
enforce Lender's rights under this Agreement does not prevent Lender from
enforcing any rights at a later time. Customer and Lender intend this
Agreement to be a valid and legal document, and agree that if any part is
determined to be unenforceable, all other parts will remain in full force and
effect.
14. ENTIRE AGREEMENT; CHANGES - This Agreement contains the
entire agreement between Customer and Lender and supersedes all
previous discussions and the terms and conditions of any purchase orders
issued to and/or by Customer and it may not be altered, amended, modified,
terminated or otherwise changed except in writing and signed by Customer
and Lender. The descriptive headings hereof do not constitute a part of the
Agreement and no inferences shall be drawn there from. Whenever the
context of the Agreement requires, the masculine gender includes the
feminine or neuter, and the singular number includes the plural, and
whenever the word Lender is used herein, it shall include all assignees of
Lender. If there is more than one Customer named in the Agreement, the
liability of each shall be joint and several.
15. NOTICES - All of Customer's notices to Lender must be sent by
certified mail or recognized overnight delivery service, postage prepaid, to
Lender's address stated in this Agreement, or by facsimile transmission to
our facsimile telephone number, with oral confirmation of receipt. Lender's
notices to Customer may be sent first class mail, postage prepaid, to
Customer's address stated in this Agreement.
OPINION OF COUNSEL
16, MISCELLANEOUS - Customer and Lender intend and agree that a
photocopy or facsimile of this Agreement and all related documents, with
their signatures thereon shall be treated as originals, and shalt be deemed
to be as binding, valid, genuine and authentic as an original signature
document for all purposes. This Agreement is a "Finance Agreement" as
defined in Article 2A of the UCC.
17. JURISDICTION - This Agreement shall be governed by the laws of
the state in which the Customer is located.
18. CUSTOMER REPRESENTATIONS - Customer represents and
warrants that (i) It has complete and unrestricted power to enter into this
Agreement, (ii) the persons executing this Agreement have been duly
authorized to execute this Agreement on Customer's behalf, (iii) all
information supplied to Lender is true and correct, including all credit and
financial information and (iv) it is able to meet all its financial obligations,
including the rent payments hereunder.
THE LOGO APPEARING ON THIS DOCUMENT IS A FEDERALLY REGISTERED TRADEMARK
AND MAY NOT BE USED IN ANY WAY NOR MAY THIS DOCUMENT BE ALTERED OR
MANIPULATED WITHOUT THE PR10R EXPRESS WRITTEN CONSENT OF AT&T CAPITAL
SERVICES, INC. CUSTOMER MAY TRANSFER THIS DOCUMENT FROM ELECTRONIC FORMAT
To A TANGIBLE ONE BY PRINTING IT IN ITS UNALTERED STATE:.
Error! Reference source not found. Customer initials
With respect to that certain AT&T Muni Mobility Financing Agreement (the "Agreement") dated by and between AT&T Capital Services, Inc. and the Customer, I
am of the opinion that: (i) the Customer is, within the meaning of Section 103 of the Internal Revenue Code of 1986, as amend ed, a State or a fully constituted
political subdivision or agency of the State of the Equipment location described herein; (ii) the execution, delivery and performance by the Customer of the
Agreement have been duly authorized by all necessary action on the part of the Customer; and, (iii) the Agreement constitutes a legal, valid and binding
obligation of the Customer enforceable in accordance with its terms.
Attorney for Customer
Page 3 of 3
City of SotAh Bend - Rev, 2-6-2018
EM
City of South Bend, Indiana
227 W. Jefferson Blvd.
South Bend, IN 46601
Opportunity M 1-69615278
AT&T Capital Services, Inc.
Dick Martin
36 S, Fairview Avenue, Floor I
Park Ridge, IL 60068-4016
Direct: 1-847-720-0631
Fox: -
Email,- rx1432@att.com
February 5, 2018
AT&T Capital Services, Inc, is pleased to provide a proposal for the lease of the equipment and/or services as submitted to us.
The proposed lease terms are as follows:
NOTE: AT&T EQUIPMENT/SERVICES CONTRACT IS REQUIRED BEFORE ORDER CAN BE PROCESSED.
Apple Wad 32 GIB -
Lease Term
Tbtal'Cost,
Lease Rate,
Down Payment
Payment
Initial Option
$350.99 lea, City 53
Factor
Amount
Muni - $1 Buyout
36
$19,079A7
0.02981
$0-00
$568.76
4 citySurface'table " Its &
Lease Rate
Rayrnent
S�,Ipacl accessories
Lease Term,
Totat Cost
Factor
Down Paym6nt
Amount
Initial Option
Muni -;1Buyout
I'll, 3 - 6-.-
$7,924.70
0.02981
$0,00
$236.24
Rates quoted are for commercial leases only.
Subject to execution of Mutually Acceptable Documentation.
Quoted Lease Payments Exclude Any Applicable Taxes,
Quoted lease rate is valid through EOY 2018
Customer agrees to allow AT&T Capital Services, Inc, to file UCC Financing Statements,
Credit Approval will be withdrawn 120 days following the date of this letter if the lease has not commenced.
Approval is pending verification of corporate name and final verification of credit information.
Shipping Charges are not included in Data Equipment.
$250,00 processing fee for lease cancellation prior to commencement if PO is issued.
Lessee's failure to execute mutually acceptable documentation relative to this lease within ninety (90) days of the lessee's first
functional use of the system will result in this lease converting to cash.
For quoted maintenance " lease term and payment amount are subject to change after install is completed.
End of Lease Options
$1 Purchase Option
Customer purchases the equipment for $1 at the end of the lease term.
Thank you for this leasing opportunity. I am looking forward to working with you.
Sincerely,
)9&lk AAartih AGREED TO AND ACCEPTED BY,
Inside Sales Manager City of South Bend, Indiana
Name.,
Title: 0"Ard of Pldwk orto
Date:
INTER -OFFICE MEMORANDUM
Department of Innovation & Technology
City of South Bend 227 W Jefferson Blvd
TO: Board of Public Works, Linda Martin
CC: Dan O'Connor, Rene Casiano, John Lankowicz, Shawn Delahanty
FROM: Jeff Weaver
SUBJECT: Initial Lease Plan for Mobile Devices through ATT Business
DATE: 01/30/2018
BoPW Date:02/13/2028
The City IT department is working with our wireless service provider, AT&T, to formalize a procurement
process for purchasing and managing the fleet of mobile devices being used throughout the city. This
includes organizing the mobile devices in our Mobile Device Management System (MDM), AirWatch, so
that the devices can be tracked, inventoried, and remotely managed within a digital environment. A
standard IT spec has also been developed to provide for easy management of the physical devices,
accessories, and peripherals. Finally, a leasing plan has been identified that will allow for some
flexibility in the purchasing of the devices, as well as providing each department with a standardized
fixed monthly cost for each device. This will eliminate the need for a large upfront cost and make it
easier to manage budgetary requirements within each department. It will also help us in the
deprecation process as we retire old mobile devices and put new ones on lease.
Apple IOS Devices
• iPad Standard Mobile Device Specs for leased units include cords and chargers. Standard cases will
be purchased separately based on use (Field Crew or Office Crew)
• Quantity of iPad iOS Devices Being Requested
iOS Devices Requested = 53
o Device Requests by Department
■ IT
• Business Case: 2 Loaner iPads are needed to be used as floater iPads so when
field iPads have issues, the loaners can be exchanged with negligible impact
to productivity.
* 2 iPads Requested
■ Sewers
Business Case: A pilot program is being implemented with the Sewer
Department for CityWorks, a Work Order Management suite of tools and
mobile applications. This system requires the 14 crews within the sewer
department to update work order statuses on mobile devices in the field.
J 5u41 h.+�`I1
i Yr City of South Bend Information Technologies Department
+ 14 iPads Requested
■ Sewers Vac Trucks
+ Business Case: Replacement for GIS tools currently being used on outdated
laptops on Vac Trucks to access GIS sewer asset data.
• 6 iPads Requested
■ Safety & Risk
Business Case: 3 Mobile Devices will be used by S&R liaisons to log near
misses and safety information using the S&R mobile application, 2 devices
will be used by S & R staff for demonstrations, presentations, and the S&R
mobile application.
• 5 iPads Requested
■ VPA
• Business Case: 1 mobile device will be used by the city forester to track tree
inventory on a mobile application, 1 mobile device will be used to direct a
cleaning crew, and 5 mobile devices will be used by the mowing crews to
manage mowing. The Experience division has requested 4 mobile devices to
be used for various events throughout the city. They will primarily be used as
a check in and survey kiosk.
• 7 iPads for Parks, 4 iPads for Experience Division Requested (11 total)
■ Engineering
+ Business Case: 9 mobile devices will be used by engineers to access project
and utilize existing maps in GIS, and to perform research while in the field. 4
mobile devices will be used by inspectors to gather inspection data and to
replace existing iPads which are 5 years old. 2 mobile devices will be used by
the LTCP and PIO directors for project research and social media updates.
• 15 iPads Requested
• Costs per iOS Wad Device
o Lease cost for 53 iOS Wad Devices = $646.97 Per month
o Annual lease cost for 53 iOS Wad Devices = $7,763.64
0 3-year lease cost for 53 10S Wad Devices = $23,290.92
0)
/:. City of South Bend Information Technologies Department
Microsoft Surface Devices
• Microsoft Surface Pro LTE Device Specs for leased units include keyboard, pen and docking station.
• Quantity of Microsoft Surface Pro LTE Devices Being Requested
Microsoft Surface Devices Requested = 4
o Device Requests by Department
■ IT
• Business Case: 2 Microsoft Surface Devices will be to replace existing laptops
budgeted to be refreshed in 2018. 2 Microsoft Surface Devices will be used
as pilots within departments to validate additional business uses for future
purchases
• 4 Microsoft Surface Pro LTE Requested
• Costs per Microsoft Surface Device
o Lease cost for 4 Microsoft Surface Devices = $158.03 Per month
o Annual lease cost for 4 Microsoft Surface Devices = $1,896.36
a 3-year lease cost for 4 Microsoft Surface Devices = $5,689.08
Overall Summary
• Grand Total Annual lease cost for 53 iOS iPads and 4 Microsoft Surface Devices = $9660
• Grand Total 3-year lease cost for 53 iOS iPad and 4 Microsoft Surface Devices = $28,980
Thank you for your consideration,
Jeffrey M. Weaver, GISP
Shawn Delahanty, Director of Services
3
BOARD OF PUBLIC WORKS
AGENDA ITEM REVIEW REQUEST FORM
Date 1131 /18
Name Dan O'Connor Department Innovation & Tech
BPW Date 2/13118 Phone Extension
Legal Attorney Name McDaniels & Dougherty
Controller review is required for all Contracts $5,000.00 or more
Controller ® and greater than one year in length per the City Purchasing
Policy
Purchasing
U
Agreement
LJ Contract
JJ Proposal U Addendum
❑ Professional Services
❑ Amendment
❑
Bid Opening
❑
Bid Award
❑ Req. to Advertise ❑ Title Sheet
❑
Quote Opening
❑
Quote Award
❑
Chg Order No.
❑
CIO & PCA No.
❑ PCA
❑ Ease./Encroach.
❑ Traffic Control
❑ Resolution
M
Other: Hardware Lease
n
Claim
Company or Vendor Name
New Vendor
MBE/WBE .Contractor
Project Name
Project Number
Funding Source
Account No.
Amount
Terms of Contract
Purpose/Description
Amount of ❑
El
AT&T Mobility
❑ Yes ❑ If Yes, Approved by Purchasing
® No
❑ MBE Completed E-Verify Form Attached ❑Yes
❑ WBE ❑ No
Mobile Tablet Leasing
IT Lease
279-0672-415-37-11 (principal) and 37-12 interest
$805 er month for 36 months $28,980 total
Monthly payments for 36 months
53 iPads with accessories for Sewers, VPA, Engineering Safety
& Risk, Vac Trucks, and IT; 4 Surfaces for pilot departments
Increase
Decrease
Previous Amount $
Current Percent of Change: %
New Amount $
Total Percent of Change: %
Time Extension:
Dispersal
Copy Original
® ❑ Dan O'Conner
® ❑ Jeff Weaver
® ❑ Shawn Delahanty
fter Reeroval