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HomeMy WebLinkAboutLease Proposal - Lease Four (4) ToughBook Laptops for Water Works and Wastewater – Dell Inc.1316 COUNTY —CITY BUILDING '` "' /' . 227 W.JEFFERSON BOULEVARDS Z� d SOUTH BEND, INDIANA 46601-1830 a SOUTHCITY OF BEND JAMES MUELLER, MAYOR BOARD OF PUBLIC March 24, 2020 Dell Financial Services LLC. Records Department MS RRIDF-28 One Dell Way Round Rock, TX 78682 RE: Lease Proposal To Whom It May Concern: PHONE 574/235-9251 FAX 574/ 235-9171 The Board of Public Works, at its meeting held on March 24, 2020, approved the above referenced proposal for the lease of four (4) ToughBook laptops for Water Works and Wastewater in the amount of $2,743.08 annually for five (5) years with $1.00 buyout option for a total of $12,000. Enclosed please find the original of the proposal 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, Linda M. Martin, Clerk Enclosure GARY A. GILOT ELIZABETH A. MARADIK THERESE J. DORAU JORDAN V. GATHERS JOSEPH R. MOLNAR CITY OF SOUTH BEND, INDIANA LEASE PURCHASE SCHEDULE NO. 810-6813484-002 TO MASTER LEASE AGREEMENT SCHEDULE NO. 1844711999-60992 THIS SCHEDULE IS SUBJECT TO AND INCORPORATES THE TERMS AND CONDITIONS OF MASTER LEASE AGREEMENT NO. 1844711999-60992 ("Agreement") DATED December 2, 2019 BETWEEN DELL FINANCIAL SERVICES L.L.C. ("Lessor") AND CITY OF SOUTH BEND, INDIANA ("Lessee"). Lessor hereby agrees to lease and/or make available to Lessee subject to the terms, conditions and provisions set forth in this Schedule and in the Agreement, the Products described below. Any capitalized term used herein and not defined herein shall have the meaning ascribed to it in the Aareement. PRODUCT DESCRIPTION AND LOCATION: See below or Exhibit "A" attached to and made a part hereof. PRODUCT SELLER: Dell Inc. One Dell Way, Round Rock, TX 78682 Product Descri tion Product, Location Lessee Purchase Prima!y Term Order No. Mos. Commencement Date See Exhibit'A' See Exhibit'A' TBD 60 TBD Rent is payable: in: Advance Payment Period: Annually LEASE PURCHASE PROVISIONS The following provisions shall apply with respect to this Schedule in addition to those provisions in the Agreement: SECTION 4. RENT; TAXES; PAYMENT OBLIGATION. Insert as a new last sentence to subsection (a) the following: "For the purposes of this Schedule, the Rent, as well as the principal and interest portions of each Rent payment and the Purchase Price as of the applicable Purchase Date are shown in the chart provided on Exhibit "B", attached to and made a part hereof. 2. SECTION 11. REPRESENTATIONS AND WARRANTIES OF LESSEE. For purposes of this Schedule, add paragraphs (j) through (t) as follows: "a) Lessee will comply with the information reporting requirements of Section 149(e) of the Code, including but not limited to, the execution and delivery to Lessor of information statements requested by Lessor; (k) Lessee will not do, cause to be done or fail to do any act if such act or failure to act will cause this Agreement, or any transaction hereunder, to be an Arbitrage Bond within the meaning of Section 148 of the Code or a Private Activity Bond within the meaning of Section 141 of the Code; (1) The total cost of the Products listed in this Schedule will not be less than the total Principal Portion of the Rent listed in this Schedule; : ReN,,I.mIce: Page 1 of 3 AM 1 a�8!!I'r ,c�',wiuk: N�.,;d..F, (m) The Products listed in this Schedule have or will be ordered within six months of the date hereof in order to commence such Schedule; (n) The Products listed in this Schedule are expected to be delivered and installed, and the Seller fully paid, within one year from the date hereof; (o) No fund or account which secures or otherwise relates to the Rent has been established (p) Lessee will not sell, encumber or otherwise dispose of any property comprising this Schedule prior to the final maturity or termination of such Schedule without a written opinion of nationally recognized bond counsel to the effect that any such disposition will not adversely affect the exclusion of interest on the Rent from gross income for federal income tax purposes; (q) Lessee agrees to execute, deliver and provide Lessor with satisfactory evidence of the filing of such documentation, as may be required for the purposes of properly reporting this Schedule, including, without limitation, IRS forms 8038-G or 8038-GC, as required under the Code; (r) It is expected that Rent under this Schedule will be paid from periodic appropriations of the Lessee deposited into the general fund of the Lessee, that such appropriations will equal the Rent due during each Fiscal Period of Lessee, and that all amounts paid for Rent will be from an appropriation made by the Lessee during the Fiscal Period in which such Rent is made; (s) To the best of Lessee's knowledge, information and belief, the above expectations are reasonable; and (t) Lessee will comply with all applicable provisions of the Code, including without limitation Sections 103, 141 and 148 thereof, and the applicable regulations of the Treasury Department to maintain the exclusion of the interest components of Rent from gross income for purposes of federal income taxation. Without limiting the generality of the foregoing, Lessor hereby gives notice to Lessee that, upon execution of this Schedule by Lessor, Lessor shall assign all of its right, title and interest in, to and under this Schedule, including all Products and all payments owing under such Schedule, to Dell Equipment Funding L.P. ("DEF") pursuant to a purchase agreement between the Lessor and DEF. Lessee hereby acknowledges and consents to such assignment and shall keep, or cause to be kept, a complete and accurate record of all such assignments in a manner and form necessary to comply with Section 149(a) of the Code and the Treasury Regulations promulgated thereunder. Lessor hereby directs Lessee to continue to make any and all payments required to be made under this Schedule directly to Lessor, as servicing agent for DEF, at the same address to which Lessee is currently making payments unless and until Lessor is directed by DEF to make such payments to a different address or payee." TO THE EXTENT PERMITTED BY LAW, AND IN ADDITION TO LESSEE'S OBLIGATION UNDER SECTION 16 OF THE AGREEMENT AND ANY AMENDMENTS THERETO, LESSEE HEREBY ASSUMES LIABILITY FOR, AND SHALL PAY WHEN DUE, AND SHALL DEFEND LESSOR AND ITS SUCCESSORS AND ASSIGNS AGAINST, ANY AND ALL LIABILITIES, LOSSES, DAMAGES, CLAIMS AND EXPENSES (INCLUDING REASONABLE ATTORNEY FEES) RELATING TO OR ARISING OUT OF LESSEE'S BREACH OF ANY OF ITS REPRESENTATIONS, WARRANTIES, OR COVENANTS CONTAINED IN SECTION 11 OF THE AGREEMENT AS SUPPLEMENTED HEREIN. 3. SECTION 12. WARRANTY ASSIGNMENT; EXCLUSION OF WARRANTIES; LIMITATIONS ON LIABILITY; FINANCE LEASE. For purposes of this Schedule, delete "FINANCE LEASE" in the title of this Section and delete the first and last sentences of paragraph (d). 4. SECTION 17. OWNERSHIP; LIENS AND ENCUMBRANCES; LABELS. Insert at the end of this paragraph the following: "Notwithstanding the first sentence of this Section, upon Lessee's acceptance of the Products under this Schedule, title to the Products shall vest in Lessee subject to Lessor's rights under the Agreement; provided that, upon an Event of Default or any termination of this Schedule, other than by Lessee's purchase of the Products, title to the Products shall immediately and without any action by either party vest in Lessor, and Lessee shall immediately surrender possession of the Products to Lessor. Any such transfer of title shall occur automatically without the necessity of any bill of sale, certificate of title or other instrument of conveyance. Lessee shall, nevertheless, execute and deliver any such instruments as Lessor may request to evidence such transfer. Reference: Page 2 of 3 Master Lease Schedule TELP 5. PURCHASE OPTION. Provided that no Event of Default has occurred and is continuing, and upon satisfaction of all payment obligations herein by Lessee, Lessee shall be entitled to Lessor's interest in the Products, AS IS, WHERE IS, WITHOUT WARRANTY OR RECOURSE, EXPRESS, IMPLIED OR OTHERWISE, BY OR AGAINST LESSOR, INCLUDING ANY WARRANTIES OF DESIGN, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR AGAINST INFRINGEMENT, other than the absence of any liens by, through or under Lessor. As continuing security for Lessee's obligations hereunder, Lessee hereby grants to Lessor, a first -priority security interest in all of Lessee's rights and interest in and to the Products and all proceeds thereof, free and clear of all security interests, liens or encumbrances whatsoever. 6. COMPLETION OF SCHEDULE: Lessee hereby authorizes Lessor to insert or update the serial numbers of the Products from time to time as necessary. If Lessee delivers this signed Schedule, any amendment or other document related to this Schedule or the Master Lease (each a "Document") to Lessor by facsimile transmission, and Lessor does not receive all of the pages of that Document, Lessee agrees that, except for any pages which require a signature, Lessor may supply the missing pages to the Document from Lessor's database which conforms to the version number at the bottom of the page. If Lessee delivers a signed Document to Lessor as an e-mail attachment, facsimile transmission or by U.S. mail, Lessee acknowledges that Lessor is relying on Lessee's representation that the Document has not been altered. Lessee further agrees that, notwithstanding any rule of evidence to the contrary, in any hearing, trial or proceeding of any kind with respect to a Document, Lessor may produce a tangible copy of the Document transmitted by Lessee to Lessor by facsimile or as an e-mail attachment and such signed copy shall be deemed to be the original of the Document. To the extent (if any) that the Document constitutes chattel paper under the Uniform Commercial Code, the authoritative copy of the Document shall be the copy designated by Lessor or its assignee, from time to time, as the copy available for access and review by Lessee, Lessor or its assignee. All other copies are deemed identified as copies of the authoritative copy. In the event of inadvertent destruction of the authoritative copy, or corruption of the authoritative copy for any reason or as the result of any cause, the authoritative copy may be restored from a backup or archive copy, and the restored copy shall become the authoritative copy. At Lessor's option, this electronic record may be converted into paper form. At such time, such paper copy will be designated or marked as the authoritative copy of the Document. By signing below, each of the parties hereto agrees to be bound by the terms of the Agreement, this Schedule and the attached Exhibits "A" and "B". CITY OF SOUTH BEND, INDIANA DELL FINANCIAL SERVICES L.L.C. "Lessee" "Lessor" By: Name°: Title: fle"14 Of By: Name: Title: Date: 202n, Date: "' a_ ZEL- Reference: Page 3 of 3 Information Technologies Department TO: The Board of Public Works FROM: Information Technologies Department SUBJECT: Dell Master Lease and Laptops DATE: 3/10/2020 Members of the Board - Attached for your approval is a new Dell lease schedule under Dell Master Lease 1844711999-60992. This schedule is to lease four ToughBook laptops. Three laptops are for Water Works Meter reading operations and one laptop is to replace a Waste Water laptop at the end of its life cycle. The total amount financed is $12,000.00. Payments will be made annually for five years. After the lease we have the option to buy the equipment for $1.00 each. Thank you for your consideration. Sue Gerlach Cc: Ben Dougherty Amy Shirk Michael Schmidt Clara McDaniels Sandra Kennedy W Financial Services DELL FINANCIAL SERVICES LEASE PROPOSAL CITY OF SOUTH BEND March 3, 2020 Thank you for the opportunity to provide leasing information to you on the proposed acquisition of Dell product. Dell Financial Services (DFS) is a leasing institution fully integrated into Dell Computers' systems and operations allowing you to benefit from one stop shopping for all your hardware, software, peripherals, service, support, and financing needs. The lease quote provided below outlines only a few of the options available to you through DFS programs. If the information does not meet your needs, please let us know and we will work with you to tailor a lease program that does. Should the attached lease quote meet to your satisfaction, the next step is to issue a purchase order for the equipment. Please refer to the "Purchase Order" section and fax in your PO, Once your order(s) is entered by your Dell Hardware Representative, I will fax you the lease contract. It is the returned and signed lease contract that sends the orders into production. If you have any questions or comments, please don't hesitate to call me a512-724- 5095. Thank you for your interest in Dell Financial Services. Sincerely, Missy Totten Dell Financial Services LEASE PROGRAM: Quote # I Equipment 3000056892873,1 Latitude 12 Rugged Extreme 7214 1 Buyout Tax Exempt Lease Purchase I Total Unit Price $3,000.00 Qty, Amount Payment Lease Term Lease Rate Lease L.- - - - I Frequency I (months) I Factor I Payments 12,000.001I Annual 1 60 n 0.22859 1 $ 2,743.08 END OF LEASE OPTIONS: 1 BUYOUT LEASE OPTION Option available to lessee upon completion of the base lease term are as follows: Exercise the option to purchase the products for 1.00. LEASE QUOTE: The Lease Quote is exclusive of interim rental, shipping costs, maintenance fees, fling fees, licensing fees, property or use taxes, insurance premiums and similar items which shall be for Lessee's account. Lessee will pay Payments and all other amounts without set-off, abatement or reduction for any reason whatsoever. Additionally, Lessee shall declare and pay all sales, use and personal property taxes to the appropriate taxing authorities If V2U are sales tax exetn t;, please fax a copy of your Exemption Certificate with the Lease Contract, PURCHASE ORDER: The Purchase Order will be made out to Dell Financial Services, One Dell Way, RR3 / MS8468, Round Rock, TX 78682. The Purchase Order will include the quote number, quantity and description of the equipment, Please be sure to indicate that the PO is for a lease order and shows the type of lease, the term length, and payment frequency. The date of the lease quote referenced should be included. Please be sure to include any applicable shipping costs as a line item. Please include your address as the SHIP TO destination. APPROPRIATION COVENANT: The Lease shall contain an appropriation of funds clause. The Lessee will covenant that it shall do all things legally within its power to obtain and maintain funds from which the payments may be paid and Lessee will not give priority or parity in the application of funds to any functionally similar equipment, DOCUMENTATION: Duly executed Agreement and other appropriate documents, including, opinions of counsel. UCC financing statements, audited financials and such other documentation as is reasonably requested by Lessor. PROPOSAL VALIDITY/APPROVALS: This is a proposal based upon market conditions and is valid fut jtk rd,a is subject to final credit approval, review of the economics of the transaction, and execution of mutually acceptable documentation, CITY OF SOUTH BEND, INDIANA Schedule No. 810-6813484-002 Exhibit A IORY Subtotal LANItude 1 II igged Extrorne'7214 WMAO 4 EsUrnataid fjohnny H pumhased laday- Mar. 20, ZYn Corilhwt 8 CM(ARX'M lit 103 awki Unit Prko subtolap rMH bifluds 7214 Ru(pgad E'xrertfi, XCTO 01"Ai :11 hnial Cm HP13MU Flm<�cissex (.UAB Cacho, 2,4,c) GaHz) 3,']R-NJKC Wlin 10, Pro $54 IErgholh, French, Sp errs 619-AHKO4 No Ault)PWA, 340cxsz Mk,yowltffi) ()"km U) risys Tprag &1S&BcSB IDSH CAVIVIpbAn Enh,"opidub" DqlaII D'isl6vory 421 -94RS prostopport try ScAtwam, ILWSp rTj,,ci ypvc4i, Years 954,14711 FtuRure 63 1 1 Ojq, (11 ,908, 1x8GB, 2608MR7 DDRA Nyi-ECC M&Afity&W Stalikb Didwe 400-A040 pfzd (R] prftegcwhw HID QirapNgn 5211 C,40-1881,14 201wxra 0,11,61 HD Tuuctt Uhiplayadidi hiffac#wne Catners 301 -SCSF mdth Priw.-tuy Shuhair 14�agulakwy La * I No mmadng 384-BiKMY Saw,eg� �inkwna� ROB Hav,,*.fem Englah �<eyl,,xnard 580-AIEVVIR n,Jrj mouse 1670-IVOK Iiod L)juM 41enl WirtIewt,&C 82(X7 Dn,,w FA, &BIC211 kdd 1.)WO-8and WkwA6Fm-AC 82EM �M-S * I �4,1 V*iAtim CwJ CLtd) 115%5�SCIXR RAguhtory Lab@1,VVAN,QS44GS (12 3109-SKOT Awitmina Hmmi�n, LTE. ?214 395,8($8,K Dwitvl,aE GOHISOrAll 4GAL."T'E. %MrWaaim WAN Cavil fix A" IrAT(WirudcAke, 515f'-BBFII kin 6altery Vwh E'gwfmE'( hAa 6610V M, Adaptar, 3101 Fingmprink Readat CUM0111 CrfX49119364N) f3f) ES U5 Power C'ved 450-AAEJ and Ri4'gJaai ,' IG. ulde !W0, AG K $ Wquay"ge) Quk.k Smkq.� Qflcla VErA;fiah) No .. ,ICY' STi IQumftd Mpj*yj fkyx Shuttle W MO 1284ASPA U SYS1611 SNXTUKvt W�AAFC US Oniqu, 33212W ROWAfatory W.MW 3Sq-SKKW RV) Slandard S44�rrwoR, (M) 80)-abIGS No Op flw � widumed 110 AIC44 No fmaiml Mncliudiw 5 1115-Bijk`1 IH No, Carrong Owm3 4 FA, FJ, IBE �K ktd Owe 6VIvu, Prl,,x,�",tl" Labim 18941JUF rmffl flc%w Marwiger UO-ADFZ Defl Clots TexAs D�jknt DWhn3r#NS 422 DIOIIOY Dqfl�,Tm) L>kgiug 'Whavefy l�&Tus rAllient (AO-MA-W Syshmn DHw, Dolt Rugged Em.,twrno 12 nefl ir-11wo Spown kJKM W (Updahm WWO DeH Rcx,,xsnrnfjnrkwJ ffi(X'S. Dirlivimm, 1r1mmotte, ogmJ Arja'"r) Mmom hipin Almik) Ragaky De" Davelcpwj Racxvery ail ihmunimm, 656-SmAe No UplkM Drive 420-AAYP Nua UPC LWW No )AF.Wjko 6,2()-,AAOH Pb-Jr�Fj MeffWXV Cd J",Orjp�jr U& BE1411a Robagn Om me Wilt rlqogiu No 00mn IlIwAudied UO-ACC)Q 040 "J."'Yhoin kwAkj&mj 340-ACOO Pru,Suppcirt Phis, Nag Sus,,%r*(is Day Onalim, 2 Yosir, E�MsuAad 12, Phxv NeA Dusimms Day ChISNA'L 1 13fl NO 1.3miled �-,Oerdwwe VV�airarfV Exf.evr.kjd Yiegr(a) Defl UrnIMI F14wrefwive Warrmriy W611RAW Ywwr Pm,NS,uq'sort Pher AccidienVa N3imp S'Yeairm qX17 -M i's PtoSuprjoot Rm Kimqp Ycxm Hard Difte, FiYea m Mu"hma Ix 14 TectwdcM Suppm)irt, S Yearn Think pau it aicxArvfK) Dal PrG&AppcxI Pka Fcw tm% supxvf, Alt 99 141111417 mar (M I S-3 I IS .......... . ... ......... . .. ---- - — -------- . ........ . .................. . . Subtotal: $12,00an $0.00 111:11-'sticnated 'Tax. $10 DO ToW: $12,000.00 Q Z Q O 00 4J O Z 0000 v tt L M Z u r-I m Lu N oo +� CO c to O O L N 00 w O t' au N O 3 L- E 0 a s u u Lu u_ K N 00 M 00 D_ m O N w w to L6 ri oo of O ',, O Q �-i m O ri O u01 tD Ln r, M Lrl m N D o_ N 00 M 00 01 Ol O N lD OO C lD I� 00 Ol r0 Ln r, Ln N ri a Ln {/} CD 0) rl -;t'N' i� ih In (/} 00 -ct Ln Ln 00 O o0 00 Ln tD M 0) 00 00 m Gt I- N 00 Ln ''..... Z I� O N M Ln W N N N N N D_ in 14 in in in ~ Rt rn m O w O N N Ln '... LV", O tD ri Ln 00 ''.....in tD Ln M ri Z ',, �/} ih i/� -tn 00 ''' 00 00 00 00 Z Lu d N N N N N in tn in -tn'-V� u u N 00 N 00 M 00 m O N tD m 00 LD r� 00 Ol 00 O` m I- � Ln N '..... ri 01 Ln C rNi 0) r- 1;1' N 01 i/} in O_ 1 O C a -I N M Ln r0 d BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM Date Name 03/10/2020 m Gerlach Department IT BPW Date 03/24/2020 Phone Extension 6209 MIMIMmmmmmmIMMMmmwmuw�M.� a �ermr v�:n. . , �un�mm�nmm�omm�rmomwmmo ummmnreirrrcattm� .... r rr a... �nugm it ...-A .._.. _ .......... _.._ . Lf� oval Ruu ._.._.. Review and A r�i�~d Prior to Submittal to Board Diversity Compliance and Inclusion Officer Officer Name BPW Attorney ; Attorney Name Clara McBaniels Dept. Attorney Attorney Name Sandra Kennedy Purchasing ® Michael Schmidt Check the Appropriate Item Type Ll Professional Services Agreement ❑ Contract ❑ Open Market Contract ❑ Amendment/Addendum ❑ Bid Opening ❑ Bid Award Quote Opening [:] Quote Award Proposal Opening F-1 C/O & PCA No. Chg. Order, No. F] Traffic Control El Other: Lease Schedule euire In ormation All Submissions Proposal L Special Purchase, QPA ❑] Req. to Advertise Reject Bids/Quotes PCA ❑ Resolution Ease./Encroach ❑ Title Sheet Company or Vendor Name Dell m®...Nos._..YeE]If Yes, A roved... b.................r m............................................... New Vendor Pp y Purchasing MBE/WBE Contractor ❑❑ WBE Completed E-Verify Form Attached ❑' Nos Project Name TouhBook L,aJteJs for Water Works and Waste Water ��. . � ... Project Number N/A Funding Source I.... �, _....m.. ..._..........w. T Lease .. Account No. Prm.279-0672-4.................... �..........__ _...... ........... 15-38.01Int.279-0�6.7�2._.4.1.�5._.3.........__�........................................................... 8.02 Time Extension Amount: New Completion Date: