HomeMy WebLinkAboutStaff Report 6.F 06/20/20056.F
CITY OF PETALUMA, CALIFORNIA June 20, 2005
AGENDA BILL
Aeenda Title: Meetine Date: June 20, 2005
Lease Agreement for Dell Computers Meetine Time: H 3:00 PM
❑ 7:00 PM
Cateuory (check one): ❑ Consent Calendar ❑ Public Hearing ® New Business
❑ Unfinished Business ❑ Presentation
Denartment: Director: Contact Person: Phone Number:
Admin Services Carmichael Williamsen 778-4573
Cost of Proposal: Account Number:
$21,251 first year, $42,502 second, $63,753 third until ceased. 3330-56320 (new acct)
Name of Fund:
Amount Budeeted: Information Services
$85,000 this year (FY05-06)
Attachments to Aeenda Packet item:
Dell Municipal Master Agreement
Draft Resolution
Summary Statement:
Dell has provided a Municipal Master Agreement for computer leasing. Staff recommends leasing as
alternative to purchasing desktop and laptop computers. Signing the agreement allows us to acquire
replacement computer equipment under a three year lease plan.
Recommended Citv Council Action/Sueeested Motion:
Authorize the City Manager to sign the Dell agreement.
Reviewedby Admin. Svcs. Dir:
Date: 6 l W 1/
Todav's Date:
Reviewed by City Attornev:
Date:
Revision # and at ised:
Anuroved by City Manaeer:
0 Date: .
File Code:
CITY OF PETALUMA, CALIFORNIA
JUNE 20, 2005
AGENDA REPORT
FOR
Lease Agreement for Dell Computers
EXECUTIVE SUMMARY:
The City has received a proposal from Dell to lease desktop and laptop computers for our users. Staff
recommends leasing as an option to purchase.
BACKGROUND:
The City has been purchasing Dell desktop and laptop computers the past couple years. Council asked Staff to
research leasing option.
Leasing results in payment of computers over 3 -year period (as opposed to 100% up front); 3 -year replacement
cycle alleviates need for extended warranty, alleviates need for "trickle-down" of used computers (a process
which is an enormous IT staff burden), and alleviates the need for equipment disposal.
ALTERNATIVES:
Continue as is. We would continue purchasing, a non -trivial process. We would continue to track assets,
depreciate and dispose of obsolete equipment. We would continue to perform "trickle-down" operations.
4. FINANCIAL IMPACTS:
The cost of the proposal represents $21,251 for the first year, $42,502 the second, $63,753 the third and
successive years, assuming a total population of 240 computers, 1/3 turned over each year. Additional amounts
would be added to accommodate a growth in workstation population.
The cost is below that added to the proposed budget for FY05-06 for cost center 3330 (Information
Technology).
5. CONCLUSION:
Leasing is a very simplifying, cost effective solution. Leasing aids in avoiding obsolete equipment.
6. OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL IDENTIFY SUCCESS OR COMPLETION:
N/A
RECOMMENDATION:
Authorize the City Manager to sign and accept the lease agreement.
gAivn s2005 agenda bill
RESOLUTION AUTHORIZING THE CITY MANAGER TO SIGN A DELL
MUNICIPAL MASTER AGREEMENT
WHEREAS, the City regularly uses desktop and laptop computers for City business,
WHEREAS, the City desires to economically obtain, deploy and dispose of computers,
WHEREAS, Dell is a regular provider of such computers,
WHEREAS, Staff obtained a Municipal Master Agreement from Dell,
WHEREAS, after reviewing the agreement, Staff recommends entering into a lease
agreement with Dell, for computer equipment replacement program of three years.
NOW, THEREFORE BE IT RESOLVED, that the City Council hereby authorizes the
City Manager to sign agreement and to allow acquiring desktop and laptop computers for
equipment replacement.
Dell Marketing, L.P.
One Dell Way, Building 8, Box 8747
Round Rock, TX 78682
Lessee Legal Name: PETALUMA, CITY OF
Municipal Master Agreement:
Dear Customer: This Municipal Master Lease ("Master Lease") is written in simple and easy to read language.
Please read this Master Lease thoroughly and feel free to ask us any questions you may have about it.The
words YOU and YOUR refer to the Lessee. The words WE, US, and OUR refer to the Lessor, Dell Marketing,
L.P.
MASTER AGREEMENT. The terms of this Agreement are master terms which may be incorporated into, and
constitute a part of, one or more Schedules between us and you. Each Schedule will constitute a separate,
assignable Lease Agreement which incorporates the terms of this Master Lease. When the term "Lease" is
used in this Master Lease, it will mean each Schedule individually, together with the terms of this Master Lease.
This Master Lease and each Schedule is a complete and exclusive statement of our Agreement concerning the
Schedule.
IMPORTANT: FOR THE SAKE OF CLARITY, PLEASE DISTINGUISH BETWEEN THE TERMS AND
CONDITIONS APPLICABLE TO THE LEASING TRANSACTION (AS STATED IN THIS MASTER LEASE AND
EACH SCHEDULE) AND THE TERMS AND CONDITIONS THAT GRANT WARRANTY RIGHTS IN
CONNECTION WITH THE MANUFACTURE AND SALE OF THE EQUIPMENT (AS STATED IN DELL'S
SERVICE AGREEMENT). THE LEASING RIGHTS AND OBLIGATIONS PROVIDED IN THIS MASTER
LEASE AND EACH SCHEDULE ARE NOT AFFECTED BY THE ORAL STATEMENTS OR
REPRESENTATIONS OF THE MANUFACTURER'S SALES FORCE.
TERMS/CONDITIONS:
1. LEASE AGREEMENT; PAYMENTS: We agree to lease to you and you agree to lease from us the
Equipment ("Equipment") listed on any Schedule entered into by both of us. You promise to pay us the
Lease payments shown on any Schedule according to the terms of the Schedule.
2. GENERAL TERMS; EFFECTIVENESS: You agree to all the terms and conditions of this Master Lease and
each Schedule. The Equipment will not be used for personal, family or household purposes. If the cost or
taxes vary from the estimate, you agree that we may adjust the Lease payment and/or (Purchase) Option
Price accordingly upward or downward up to twenty percent (20%). You acknowledge receipt of a copy of
this Master Lease and each Schedule and acknowledge that you have selected the Equipment covered by
each Schedule. This Master Lease will be effective as of the Effective Date set forth below. INDIVIDUAL
SCHEDULE(S) WILL COMMENCE ON THE EARLIER OF THE DATE SPECIFIED ON EACH SCHEDULE
OR THE DATE YOU ACCEPT THE EQUIPMENT. UNLESS YOU NOTIFY US OF YOUR REJECTION OF
THE EQUIPMENT BEFORE SUCH TIME, THE EQUIPMENT SHALL BE DEEMED ACCEPTED BY YOU
SEVEN (7) BUSINESS DAYS AFTER THE DATE OF SHIPMENT, SUBJECT TO ANY RIGHT OF
RETURN PROVIDED BY THE MANUFACTURER. You appoint us as your attorney-in-fact for the sole
purpose of executing, delivering and recording financing statements on your behalf to show our interest in
the Equipment. You agree that we are authorized without notice to you, to supply missing information or
correct obvious errors in this Master Lease and any Schedule. Any security deposit you have given us may
be used by us to cover any costs or losses we may suffer due to your default of any Lease. The security
deposit is refundable upon expiration of the Lease, provided all Lease terms and conditions have been
performed.
3. LATE CHARGES; OTHER CHARGES: If any payment is not made when due, you agree to pay a late
charge at the rate of ten percent (10%) of such late payment and each month thereafter, a finance charge
of one and one-half percent (1.5%) on any unpaid delinquent balance. You also agree to pay a
documentation fee of fifty-five dollars ($54.50).
4. RENEWAL: Unless the Schedule has a $1.00 purchase option, after the original term of a Schedule
expires, the Schedule will automatically renew for successive one (1) month terms unless you send us
written notice that you do not want it to renew at least sixty (60) days before the end of any term.
Lessee: please initial here to certify that you have received and read this page.
Revision: 3/2/04 Page 1 of 5 Reference: 11106574
5. EQUIPMENT OWNERSHIP: Title to the leased Equipment shall not pass to you unless and until you
exercise a purchase option and make the required purchase payment. You agree to keep the Equipment
free from liens and encumbrances.
6. NO WARRANTIES: WE ARE LEASING THE EQUIPMENT TO YOU "AS IS", WITH NO WARRANTIES,
EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE. We assign to you for the term of this Master Lease and each Schedule any
transferable manufacturer or supplier warranties. Neither us, nor any of our assignees, are liable to you for
any breach of those warranties; such warranties being the sole covenant and obligation of the Equipment
manufacturer or supplier. You agree that upon your acceptance of the Equipment, you will have no set -offs
or counter -claims against us.
For the sake of clarity, please distinguish between the general obligations of the manufacturer in connection
with the sale and performance of the Equipment, and the limited obligations of us, as lessor, as stated in
this Master Lease and each Schedule. Claims connected to the Equipment's performance must be
addressed by you directly with the Equipment manufacturer or supplier, separate and apart from the leasing
relationship, and you may not withhold lease payments during the pendency of such claims.
7• MAINTENANCE; USE; INSTALLATION: You are responsible for installation and maintenance of, and for
any damage to, the Equipment. You must maintain and use the Equipment in compliance with all laws and
regulations. If the Equipment malfunctions, is damaged, lost or stolen, you agree to continue to make all
payments due under this Master Lease and each Schedule.
S. EQUIPMENT LOCATION: You will keep the Equipment only at the address shown on the Schedule and
you will not move it from that address unless you get our prior written consent.
9. INSURANCE: Until a Schedule is paid in full and the Equipment has been returned to us, you certify that
you are self-insured or you will: (a) keep the Equipment insured for its full replacement value against all
types of loss, including theft, and name us or our assignees as loss payee; and, (b) provide and maintain
an acceptable general public liability insurance policy. If you do not provide us with acceptable evidence of
insurance, we may, but will have no obligation to, obtain insurance for you and add a charge to your
monthly payment which will include the premium cost and related costs.
10. RISK OF LOSS: You shall bear the entire risk of loss with respect to any Equipment damage, destruction,
loss or theft. No event of loss shall relieve you of your obligation to make rental payments under this Lease.
If any item of Equipment is damaged you shall promptly notify us and, at your expense, within thirty (30)
days of such damage, cause all necessary repairs to be made to return the Equipment to its previous
condition. In the event of the condemnation, taking, loss, destruction, theft or damage beyond repair of
such Equipment, you shall promptly notify us and on the next rental payment date pay to us an amount
equal to the sum of (a) all past due rents and other past due amounts, (b) the present value of the sum of
all remaining unpaid rental payments due or to come due under the Lease during the term, discounted at
the interest rate implicit in the Lease, less one (1%) percent, plus (c) the amount of our booked Lease end
residual value. Upon our receipt of such payment in full, we shall transfer title to the affected Equipment to
you, AS IS, WHERE IS, WITHOUT ANY WARRANTY OF ANY KIND, free and clear of all liens, claims and
encumbrances.
11. LIABILITY: WE ARE NOT RESPONSIBLE FOR ANY LOSSES OR INJURIES TO YOU OR ANY THIRD
PARTIES CAUSED BY THE EQUIPMENT OR ITS USE. You agree to reimburse us for, and to defend us
against, any claims for losses or injuries caused by the Equipment and any costs or attorney fees relative to
those claims.
Lessee: please initial here to certify that you have received and read this page.
Revision: 312104 Page 2 of 5 Reference: 11106574
12. TAXES; PERSONAL PROPERTY TAX FEES: You agree to pay us all personal property taxes assessed
against the Equipment and a related administration fee or at our sole election we may opt to charge you a
liquidated periodic personal property tax fee. In addition we may charge you a one time personal property
tax fee prior to lease termination to offset any potential assessed or pending personal property tax
exposure. You agree to reimburse us for applicable sales and/or use tax and all other taxes, fees, fines
and penalties which may be imposed, levied or assessed by any federal, state or local government or
agency which relate to this Master Lease and each Schedule, the Equipment or its use. Fines and
penalties will be limited to any incurred as a result of your failure to act in accordance with federal, state and
local tax laws and codes and/or the terms of this Lease. You agree to reimburse us for reasonable costs
incurred in collecting or paying any taxes, assessments, charges, penalties or fees.
13. ASSIGNMENT: YOU MAY NOT SELL, PLEDGE, TRANSFER, ASSIGN OR SUBLEASE THE EQUIPMENT
OR THIS MASTER LEASE OR ANY SCHEDULE. We may sell, assign or transfer all or any part of this
Master Lease, any Schedule and/or the Equipment. The new owner will have the same rights that we have,
but you agree you will not assert against the new owner any claims, defenses or set -offs that you may have
against us or any supplier. You agree that any assignment will not materially affect your rights and benefits
under this Master Agreement or any Schedule.
14. DEFAULT; DAMAGES: If you (a) fail to make any Lease payment when due or (b) become insolvent or
commence bankruptcy or receivership proceedings or have such proceedings commenced against you, or
(c) terminate your existence by merger, consolidation, sale of substantially all your assets, or (d) default
under any other agreement you have with us or our affiliates, or (e) otherwise breach any provision of this
Master Lease or any Schedule, we may accelerate the remaining balance due on this Master Lease and
any Schedule and demand the immediate return of the Equipment to us. If you do not return the Equipment
to us within ten (10) days of our notice of your default, you will also pay a liquidated Equipment charge
equal to the anticipated Lease -end residual value of the Equipment. We may also use any remedies
available to us under the Uniform Commercial Code or any other applicable law. You agree to pay our
attorney's fees at twenty-five percent (25%) of the amount you owe, plus all actual costs, including all costs
of any Equipment repossession. You waive any notice of our repossession or disposition of the
Equipment. By repossessing any Equipment, we do not waive our right to collect the balance due on any
Lease. We will not be responsible to you for any consequential or incidental damages. Our delay or failure
to enforce our rights under this Master Lease and each Schedule will not prevent us from doing so at a later
time.
15. CHOICE OF LAW; JURISDICTION; VENUE; NON -JURY TRIAL: You and any guarantor agree that this
Agreement and each Schedule will be deemed fully executed and performed in the State of Texas and will
be governed by Texas law; however, in the event that we sell or assign this lease to another party, you
agree the lease will be construed in accordance with the laws of the state in which such third party
maintains its principal place of business. YOU AND ANY GUARANTOR ALSO EXPRESSLY AGREE TO:
(a) BE SUBJECT TO THE PERSONAL JURISDICTION OF THE STATE BY WHOSE LAWS THIS LEASE
IS TO BE CONSTRUED, (b) ACCEPT VENUE IN ANY FEDERAL OR STATE COURT IN SUCH STATE,
AND (c) WAIVE ANY RIGHT TO A TRIAL BY JURY. Any charge in the Agreement and each Schedule
charge which exceeds the amount allowed by law shall be reduced to the maximum allowed.
16. FINANCE LEASE; AMENDMENTS: THIS MASTER AGREEMENT AND EACH SCHEDULE IS A "FINANCE
AGREEMENT" UNDER THE UNIFORM COMMERCIAL CODE AS ADOPTED IN MICHIGAN ("UCC").
THIS MASTER AGREEMENT AND EACH SCHEDULE MAY NOT BE AMENDED EXCEPT BY A WRITING
WHICH WE HAVE SIGNED. YOU WAIVE ANY AND ALL RIGHTS AND REMEDIES YOU MAY HAVE
UNDER UCC 2A-508 THROUGH 2A-522, INCLUDING ANY RIGHT TO: (a) CANCEL THIS MASTER
AGREEMENT AND EACH SCHEDULE; (b) REJECT TENDER OF THE EQUIPMENT; (c) REVOKE
ACCEPTANCE OF THE EQUIPMENT; (d) RECOVER DAMAGES FOR ANY BREACH OF WARRANTY;
AND (e) MAKE DEDUCTIONS OR SET -OFFS, FOR ANY REASON, FROM AMOUNTS DUE US UNDER
THIS MASTER AGREEMENT AND EACH SCHEDULE. IF ANY PART OF THIS MASTER AGREEMENT
AND EACH SCHEDULE IS INCONSISTENT WITH UCC 2A, THE TERMS OF THIS MASTER
AGREEMENT AND EACH SCHEDULE WILL GOVERN.
Lessee: please initial here to certify that you have received and read this page.
Revision: 3/2/04 Page 3 of 5 Reference: 11106574
17. EQUIPMENT RETURN: If you do not exercise the Lease End Purchase Option at the end of any Schedule
term, as extended or renewed ("Termination Date"), you will immediately crate, insure and ship the
Equipment, in good working condition, to us by means we designate, with all expenses to be prepaid by
you. If you fail to return the Equipment to us as agreed, you shall pay to us the regular Lease payments
each month from the Termination Date until the Equipment is returned. You will be responsible for any
damage to the Equipment during shipping.
18. PURCHASE OPTION: If you are not in default, you may at any time with sixty (60) days prior written notice
purchase all (but not less than all) the Equipment for a price equal to the sum of all remaining payments to
come due during the term (if any) plus the Lease End Purchase Option price indicated on Schedule A plus
any applicable sales taxes and fees. You must give us sixty (60) days advance written notice of your intent
to exercise this option unless the purchase is being made at the end of the term and the purchase option is
$1.00.
19. REPRESENTATIONS & WARRANTIES: You represent and warrant to us that: (a) you are a duly
organized public body corporate and politic with full power and authority to enter into and perform your
obligations under this Master Lease and each Schedule; and that this obligation issued on your behalf is
within the meaning of Section 103 of the Internal Revenue Code of 1986 (the "Code"); (b) all necessary
actions of your governing body have been taken and all necessary procedures have been complied with to
give full effect to the execution, delivery and performance of this Master Lease and each Schedule; (c) this
Master Lease and each Schedule is valid, binding and enforceable according to its terms; (d) you have, in
accordance with all applicable laws, budgeted and appropriated sufficient funds to make all lease payments
and meet all of your other obligations for the current fiscal year and such funds have not been expended for
other purpose; (e) you will do all things lawfully within your power to obtain and maintain funds for payment
of the lease payments (including providing for such payments in each budget or appropriation request
submitted and adopted), to have such portions of budgets or appropriation requests approved, and to
exhaust all available reviews and appeals in the event such portion of any budget or appropriation request
is not approved; (f) you have complied with all public bidding requirements applicable to this Master Lease
and each Schedule and the acquisition of the Equipment; (g) you have provided financial information and
other statements to us which are accurate and correct; (h) upon our request, you will annually provide
current financial statements, budgets, proofs of appropriation and other financial information relating to
your ability to continue this Master Lease and each Schedule; (i) the Equipment will be used only by you
and only to perform essential governmental or proprietary functions consistent with the permissible scope
of your authority; 0) you agree that you will timely file a Form 8038 -GC (or, as necessary, Form 8038-G), or
any revised or renumbered form with the Internal Revenue Service in accordance with Section 149(e) of
the Code and the Regulations thereunder, and you agree to appoint us as your Agent for the purpose of
maintaining a book entry system as required by Section 149(a) of the Code. The person executing this
Master Lease and each Schedule warrants that he or she possess the requisite and necessary authority
and authorization to execute same on your behalf.
20. NON -APPROPRIATION: If you (a) are not allotted funds for the next fiscal year to continue leasing the
Equipment; (b) have no funds for the purchase, lease or rental of equipment performing similar functions to
those performed by the Equipment; and (c) have no funds from any other sources (collectively, a
"Non -appropriation"), then you may terminate this Master Lease and each Schedule at the end of the
then -current fiscal year, and you will not, in the sole event of Non -appropriation, be obligated to make
payments beyond the end of the then -current fiscal year, except that you will be obligated, to return the
Equipment to us at your sole expense. In the event of Non -appropriation, you will furnish to us upon request
an opinion of your counsel which explains the basis of the Non -appropriation, together with appropriate
documentation evidencing the Non -appropriation. If, within one (1 ) year after termination for
Non -appropriation, you appropriate funds to purchase, lease or rent equipment performing functions similar
to those performed by the Equipment, then it will be conclusively deemed that monies have been
appropriated for the continuance of the Lease and, at our sole option, this Master Lease and each Schedule
may be automatically reinstated.
Lessee: please initial here to certify that you have received and read this page.
Revision: 3/2/04 Page 4 of 5 Reference: 11106574
21. NON -SUBSTITUTION. To the extent permitted by law, you agree that if this Master Lease and each
Schedule is terminated for Non -appropriation, you will not purchase, lease or rent equipment performing
functions similar to those performed by the Equipment for a period of one (1) year after termination date.
This Section shall remain in full force and effect notwithstanding any termination of this Master Lease and
each Schedule.
22. SAVINGS. If any provision of this Master Lease and each Schedule is unenforceable, invalid or illegal, the
remaining provisions will continue to be effective. You will not be required to pay and we will not be
permitted to collect any amount in excess of the maximum amount of interest permitted by law ("Excess
Interest'). If any Excess Interest is provided for or determined to have been provided for under this Master
Lease and each Schedule, then : (A) this subsection shall govern and control; (B) you will not be obligated
to pay any Excess Interest; (C) any Excess Interest that we may have received hereunder shall be, at our
option (1) applied as a credit against the outstanding lease payment obligations (not to exceed the
maximum amount permitted by law), (2) refunded to you, or (3) any combination of the foregoing; (D) any
interest rate(s) provided for herein shall be automatically reduced to the maximum lawful rate allowed under
applicable law, and this Master Lease and each Schedule shall be deemed to have been, and shall be,
reformed and modified to reflect such reduction; and (E) you will not have any action against us for any
damages arising out of the payment or collection of any Excess Interest.
23. PURCHASE ORDERS: You may use purchase orders in lieu of Equipment Schedules provided that such
purchase order(s) provide that they are issued pursuant to this Master Agreement and contain at least all
of the information that would be contained in an Equipment Schedule executed hereunder. Such
information includes, but is not limited to, the lease term, quantity, model number, equipment description,
serial number (if required), monthly lease payment, and any other monetary obligations. Any terms and
conditions contained in any purchase order to be used in lieu of an Equipment Schedule shall not apply
and the only terms and conditions which are applicable are those contained in the Master Agreement.
Moreover, the terms and conditions of this Master Agreement are incorporated into and become a part of
each purchase order to be used in lieu of an Equipment Schedule.
24. FAX EXECUTION PROVISIONS: At our election, we may accept a fax transmission of this Master
Agreement and/or Schedule. If we accept a fax transmission, the fax version of this Master Agreement
and/or Schedule, as received by us, shall constitute the original Master Agreement and/or Schedule and
shall be binding on you as if it were manually signed. We may treat and rely upon any fax version of this
Master Agreement and/or Schedule as the original. However, no fax version of the Master Lease
Agreement and/or Schedule(s) shall become effective and binding against us until manually signed by us in
our Michigan offices. If you elect to sign and transmit this Master Agreement and/or Schedule by fax, you
waive notice of our acceptance of this Master Lease Agreement and/or Schedule and waive receipt of the
accepted Master Agreement and/or Schedule.
(Lessee) (Lessor)
PETALUMA, CITY OF Dell Marketing, L.P.
Authorized Signer: Authorized Signer:
Print Name: Print Name:
Title: Title:
Date: Date:
Revision: 3/2/04 Page 5 of 5 Reference: 11106574
DELL GOVERNMENT LEASING AND FINANCE
Lease Proposal
June 03, 2005
Robert Volz
PETALUMA, CITY OF
Dear Robert Volz:
Dell Government Leasing and Finance specializes in providing the finest Technology Lease products and
services to the Public Sector. We have designed a customized financial solution for you and are pleased to
have this opportunity to present this proposal for the transaction described below:
Lessee: PETALUMA, CITY OF
Lease Structure: The term of the lease quoted below is non -cancelable, subject only to annual
appropriation of sufficient funds.
Lease Rates: Lease Rates are proposed for the referenced quotations and amounts only.
Changes in equipment pricing or configurations may invalidate this document.
Rates do not include sales/use tax or personal property tax. This proposal and
rates quoted are valid for 30 days from the above date.
Equipment: Dell Sales Quote #224653454 (Notebook Qty 1 - rate based on larger quantity purchase
w/desktops)
FMV Purchase Option*
Length of Term Equipment Cost Rate Factor Annual Payment
36 months $1,736.07 .35990 $624.81
End of Lease Options: FAIR MARKET VALUE PURCHASE OPTION
Lessee has the following options at the end of the contracted lease term:
1.) Return Equipment to Lessor at Lessee's expense.
2.) Continue to lease an a month to month basis or renew the lease for a
fixed renewal term.
3.) Purchase the equipment for its then Fair Market Value
$1 Purchase Option *
Length of Term Equipment Cost Rate Factor Annual Payment
36 months $1,736.07 .38870 $674.81
End of Lease Options: $1.00 PURCHASE OPTION
Lessee has the following options at the end of the contracted lease term:
1.) Return Equipment to Lessor at Lessee's expense.
2.) Continue to lease on a month to month basis or renew the lease for a
fixed renewal term.
3.) Purchase the equipment for $1.00
*Ali Payments Net of Applicable Tax
Revision: 2/5/04 Page 1 of 2 Reference: 11106574, 7025
DELL GOVERNMENT LEASING AND FINANCE
Lease Proposal
Summary of Terms and Conditions
Net Lease Provisions: The lease shall be a net lease transaction providing that the lessee shall bear
all expenses associated with the equipment, including those relating to
maintenance, operation and third party claims. Vendor/manufacturer
guarantees and warranties will be passed on to Lessee.
Note: With the exception of Conditional Sale Agreements, Lessee will be
responsible for payment or reimbursement of any Personal Property Taxes
invoiced to the Lessor against the leased equipment. Such amounts may be
paid annually in the form of a liquidated Property Tax Fee or pro -rated and
added to the rental amount(s) quoted above. If your organization is otherwise
exempt from such taxation, please contact your Lease Representative for
clarification.
Insurance: Lessee shall provide Lessor written confirmation of insurance coverage
acceptable to Lessor, including: All-risk Physical Damage, Bodily Injury &
Property Damage and an endorsement that names Lessor as an additionally
insured and loss payee under all liability and property coverage. Lessee may
opt, subject to prior written approval of Lessor, to self -insure the Equipment
under the same risk parameters detailed above.
Appropriations: For State Governments, Local Governments, and Political Subdivisions thereof,
the resulting lease will contain a clause subjecting the lease to continued
appropriations of necessary funds. The Lessee will covenant that it will do all
things legally within its power to obtain and maintain funds from which rental
payments may be made and will not give priority or parity in the application of
funds for functionally similar equipment during the term of any resulting lease.
Documentation: Duly executed Lease or Master Lease Schedule and other documents including,
but not limited to Certificates of Acceptance, Opinions of Counsel, Insurance
Certificates, Essential Use Statements and UCC Financing Statements that may
be applicable and are reasonably requested by Lessor.
Approvals: Credit approval is conditioned upon the Lessee's compliance of all existing
lease and loan agreements. Final credit approval is subject to Lessor credit
committee review and reasonable expectations of continued appropriations for
the equipment quoted. Lessee may be asked to provide Financial Statements
and other supporting documentation as necessary for such review.
Thank you for the opportunity to provide this proposal. Should you have any questions or concerns, please
do not hesitate to contact us by phone or email. We look forward to filling all of your financial needs.
Representative:
Phone:
Fax:
Email:
Revision: 2/5/04
Aaron Ricks
866-363-3355 Ext 7268843
800-391-3355
aaron_ricks@dell.com
Page 2 of 2
10
Reference: 11106574, 7025
DELL GOVERNMENT LEASING AND FINANCE
Lease Proposal
June 03, 2005
Robert Volz
PETALUMA, CITY OF
Dear Robert Volz:
Dell Government Leasing and Finance specializes in providing the finest Technology Lease products and
services to the Public Sector. We have designed a customized financial solution for you and are pleased to
have this opportunity to present this proposal for the transaction described below:
Lessee: PETALUMA, CITY OF
Lease Structure: The term of the lease quoted below is non -cancelable, subject only to annual
appropriation of sufficient funds.
Lease Rates: Lease Rates are proposed for the referenced quotations and amounts only.
Changes in equipment pricing or configurations may invalidate this document.
Rates do not include sales/use tax or personal property tax. This proposal and
rates quoted are valid for 30 days from the above date.
Equipment: Dell Sales Quote #224655441 ( Based on Qty of 80+ units)
FMV Purchase Option *
Length of Term Equipment Cost Rate Factor Annual Payment
36 months $59,047.20 .35990 $21,251.09
End of Lease Options: FAIR MARKET VALUE PURCHASE OPTION
Lessee has the following options at the end of the contracted lease term:
1.) Return Equipment to Lessor at Lessee's expense.
2.) Continue to lease on a month to month basis or renew the lease for a
fixed renewal term.
3.) Purchase the equipment for its then Fair Market Value
$1 Purchase Option *
Length of Term Equipment Cost Rate Factor Annual Payment
36 months $59,047.20 .38870 $22,951.65
End of Lease Options: $1.00 PURCHASE OPTION
Lessee has the following options at the end of the contracted lease term:
1.) Return Equipment to Lessor at Lessee's expense.
2.) Continue to lease on a month to month basis or renew the lease for a
fixed renewal term.
3.) Purchase the equipment for $1.00
*All Payments Net of Applicable Tax
Revision: 2/5/04 Page 1 of 2 Reference: 11106574, 7024
DELL GOVERNMENT LEASING AND FINANCE
Lease Proposal
Summary of Terms and Conditions
Net Lease Provisions: The lease shall be a net lease transaction providing that the lessee shall bear
all expenses associated with the equipment, including those relating to
maintenance, operation and third party claims. Vendor/manufacturer
guarantees and warranties will be passed on to Lessee.
Note: With the exception of Conditional Sale Agreements, Lessee will be
responsible for payment or reimbursement of any Personal Property Taxes
invoiced to the Lessor against the leased equipment. Such amounts may be
paid annually in the form of a liquidated Property Tax Fee or pro -rated and
added to the rental amount(s) quoted above. If your organization is otherwise
exempt from such taxation, please contact your Lease Representative for
clarification.
Insurance: Lessee shall provide -Lessor written confirmation of insurance coverage
acceptable to Lessor, including: All-risk Physical Damage, Bodily Injury &
Property Damage and an endorsement that names Lessor as an additionally
insured and loss payee under all liability and property coverage. Lessee may
opt, subject to prior written approval of Lessor, to self -insure the Equipment
under the same risk parameters detailed above.
Appropriations: For State Governments, Local Governments, and Political Subdivisions thereof,
the resulting lease will contain a clause subjecting the lease to continued
appropriations of necessary funds. The Lessee will covenant that it will do all
things legally within its power to obtain and maintain funds from which rental
payments may be made and will not give priority or parity in the application of
funds for functionally similar equipment during the term of any resulting lease.
Documentation: Duly executed Lease or Master Lease Schedule and other documents including,
but not limited to Certificates of Acceptance, Opinions of Counsel, Insurance
Certificates, Essential Use Statements and UCC Financing Statements that may
be applicable and are reasonably requested by Lessor.
Approvals: Credit approval is conditioned upon the Lessee's compliance of all existing
lease and loan agreements. Final credit approval is subject to Lessor credit
committee review and reasonable expectations of continued appropriations for
the equipment quoted. Lessee may be asked to provide Financial Statements
and other supporting documentation as necessary for such review.
Thank you for the opportunity to provide this proposal. Should you have any questions or concerns, please
do not hesitate to contact us by phone or email. We look forward to filling all of your financial needs.
Representative:
Phone:
Fax:
Email:
Revision: 2/5/04
Aaron Ricks
866-363-3355 Ext 7268843
800-391-3355
aaron_ricks@dell.com
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Reference: 11106574, 7024