HomeMy WebLinkAbout21-City Administrator
CITY, OF SAN BERNA~DINO - REQUEST FO~ COUNCIL ACTION
From: Fred Wilson
Assistant City Administrator
Subject: Resolution authorizing agreement
wlth Motorola, Inc. for equipment
lease/purchase financing for
800 MHz trunked radio communications
system.
Dept:
Date: 11/17/93
ynopsis of Previous Council action:
July 1990 -- Mayor and Council authorized the City Administrator to prepare a plan for the purchase and
installation of the 800 MHz System for the City.
August 1990 --
Action Plan represented to Council and was approved.
August 1992 --
Ag ment approved with Motorola for the purchase of a M.D.T. System for the City.
October 1992 --
Agreement approved with Omnicon to provide consulting services for the implementation
of the City's 800 MHz Trunked Radio System.
June 1993 --
Motorola awarded purchase order for 800 portable 800 MHz radios.
Recommended motion:
Adopt resolution.
Signature
::ontact person: Fred Wilson.
Phone:
5122
iupporting data attached: Yes
Ward:
=UNDING REQUIREMENTS:
Amount:
$234,326.10
Source: (Acct. No.) 001-092-55500
(Acct. DescriPtion)
Finance: ~dUe,-)IA~~
:ouncil Notes:
5.0262
Agenda Item No.
;;LI
CITY OF SAN BERNA .DINO - REQUEST Fe. ~ COUNCIL ACTION
STAFF REPORT
The attached resolution and accompanying equipment lease purchase
agreement execute the recommended method of financing the 800 MHz
radio communications system.
This agreement offers the city the most economical means of
financing the system. We have pursued financing this system
through various firms including Miller and Schroeder and the terms
recommended by Motorola are the most advantageous to the city.
The term is 10 years at an interest rate of 6.09%. The payment
schedule is provided in Schedule B and is structured in a manner
that requires the city to pay a total of $234,326.10 a year for the
first seven years and $62,222.48 for the eighth through tenth
years.
The FY93/94 Budget includes funding in the amount of $354,800 for
this project.
'5.0264
(f5J
MOTOROLA
Communications and Electronics Inc.
SCHEDULE 8
PAYMENT SCHEDULE
Lessee's Fiscal Periods:
Lease Expiration Date: 1/1/2003
Insurance requirements:
Lease Lease
Payment Payment Lease Interest Principal Concluding
Number Date Payment Portion Portion Payment
1 01-01-1994 234,326.10 0.00 234,326.10 1,252,072.26
2 01-01-1995 234,326.10 80,027.95 154,298.15 1,097,774.11
3 01-01-1996 234,326.10 70,165.77 164,160.33 933,613.78
4 01-01-1997 234,326.10 59,673.23 174,652.87 758,960.91
5 01-01-1998 234,326.10 48,510.05 185,816.05 573,144.86
6 01-01-1999 234,326.10 36,633.36 197,692.74 375,452.12
7 01-01-2000 234,326.10 23,997.55 210,328.55 165,123.57
8 01-01-2001 62,222.48 10,554.10 51,668.38 113,455.19
9 01-01-2002 62,222.48 7,251.65 54,970.83 58,484.36
10 01-01-2003 62,222.48 3,738.12 58,484.36 0.00
GmlND 'lUl'AIS 1,826,950.14 340,551.78 1,486,398.36
@ MO"'OROLA
Communications and Electronics Inc.
E::hibit "A"
EaUIPMENT LEASE-PURCHASE AGREEMENT
LESSEE
CITY OF SAN 8ERNARDIID
300 N:JR'rH D STREET
.c;AN F\~RnTm C"Ji.. q?41A
Lessor agrees to lease to lBssee and Lessee agrees to lease from Lessor.
the EQuipment described In any Schedule A now or hereafter attached
hereto ,"Equipment") In accordance with the following terms and conditions
at this EQulpmenllease-Purchase Agreement ("Lease").
,. TERM. This Lease will become effective upon the executIon hereof
by Lessor. The Term of this Lease will commence on date specIfied In
Schedule A and unless terminated according to terms hereol or the pur-
chase option. prOVIded In Sec!:iun1a is exercIsed this Lease will conttnue
until the ExpIration Dale set forth In Schedule 8 attacheo hereto ("Lease
Term")
2. RENT. Lessee agrees 10 pay to Lessor or liS assignee Ihe Lease
Payments/herein so cauedl,lncludingthe Interest portion. In the amounlS
specifIed In Schedule e. The Lease Payments will be payable wllhout notice
ar demand at the office of the Lessor (or SUCh other place as Lessor or ItS
assignee may from time to time deSignate In writIng), and will commence
on the ITrSI Lease Paymenl Date as sel tonh in Schedule B and thereafter
on eaCh ot lhe Lease Payment Dates set forth in Schedule e. Any payments
recel'...ed laler than ten (10) days from Ihe due date will bear IntereSI allhe
hlghestlawtul rate from the due date. Except as specifically prOVlaed In
Section 5 hereof. Ihe Lease Payments will be absolule and uncondlllonal
In aU evenls and will not be subject to any set~, defense. counterclaim, or
recoupmenl for any reason whatsoever. Lessee reasonably beheves thai
tunds can be oblalned sufficient to make all Lease Payments dUring Ihe
Lease Term and hereby covenal'Tlsthat it will do alllhings lawfully Wllhln Its
power tooblaln. maintain and properlyrequest and pursue fundS from whiCh
the lease Payments may be made, InCluding making proviSions for Such
paymenls 10 lhe extent necessary in each budget SUbmitted lor the purpose
Of obtaining funding, USIng its bona/ide best efforts to have SUCh ponion of
the budgel approved and exhausting all available administrative reviews
and appeals in the event such portion of Ihe budget is not apprOVed, It IS
Lessee's lI'Itent 10 make Lease Payments for the full Lease Term if funds are
legally available therefor and In that regard Lessee represents that the
EQUIpment will be used for one or more aulhorlzed governmental or pro-
ptlEltary lunCllons essential to Its proper, efflClenl and economIC operation.
3. DELIVERY AND ACCEPTANCE. Lessor will cause the EQUipment
10 be delivered 10 Leuee at the lQC8Iion specified in Schedule A ("EqUIp-
menl Location"). Lesseewill accept the Equipment as soon as II has been
dehvered and is operational. Lessee will evidence ItS acceptance of the
EqUipment by executing and deli'f'erlng to lessor a Delivery and Acceptance
Cenlflcate In the form provided by Lessor.
4. REPRESENTATIONS AND WA:. ~ANTIES. Lessor acknOWledges
Ihat the EQUipment leasecJ hereunQ8r IS O8lng manutacturecJ and Installed
by Lessor pursuant to the contract (the "Conlract") covering the EqUipment.
Lessee acknowledges that on or poor 10 the dSle of acceptance of Ihe EqUIp.
ment. Lessor Intends to sell and assIgn Lessor's nght, tItle and Ihlerest In
and to thiS Agreemenl and Ihe Equipment 10 an assignee ("AsSIgnee").
lESSEE FURTHER ACKNOWLEDGES THAT EXCEPT AS EXPRESSLY
SET FORTH IN THE CONTRACT. LESSOR MAKES NO EXPRESS OR
IMPLIED WARRANTIES OF ANY NATURE OR KIND WHATSOEVER.
AND AS BETWEEN LESSEE AND THE ASSIGNEE. THE PROPERTY
SHALL BE ACCEPTED BY lESSEE "AS IS" AND '-WITH ALL FAULTS"
LESSEE AGREES TO SETTLE ALL CLAIMS DIRECTLY WITH lESSOR
AND WILL NOT ASSERT OR SEEK 10 ENFORCE ANY SUCH CLAIMS
AGAINST THE ASSIGNEE. NEITHER LESSOR NOR THE ASSIGNEE
SHAll BE LIABLE FOR ANY DIRECT. INDIRECT. SPECIAL INCIDENTAL.
OR CONSEQUENTIAL DAMAGES OF ANY CHARACTER AS A RESULT
OF THE lEASE OF THE EQUIPMENT. INCLUDING WITHOUT LIMITA-
TION. LOSS OF PROFITS. PROPERTY DAMAGE OR LOST PRODUC-
TION WHETHER SUFFERED BY LESSEE OR ANY THIRD PARTY.
L@SSOrlSnotresponsiblefor.andShallnOl:beltabletoLesseeforaamages
relalmg to a losS of value of the EOUlpment for any cause or Slluallon
(InCluolng. WithOut limitation. govemmental &alonS or regulal:lonsor actions
of olner thlra panles~
5. NON-APPROPRIATION OF FUNDS. NotwlthSlandmg anythIng con.
tamed In tnls Lease to the contrary. In the event the funds appropriated by
l.essee s governing body or otherwise available by any means whatsoever
In any fiscal perlOCl of Lessee for Lease Payments or other amounts due
unoer InIS Lease are Insufflclenl therefor. thiS Lease shalllermlnate on Ine
iaS1 day ot lhe fiscal perrOCl for whiCh appropnatlons were received Wllhout
penalty or expense to Lessee of any kind whatsoever. except as 10 the por.
hons ot Lease Payments or other amounls herem agreed upon lor whiCh
fundS shalt have been approprtateCl and bUdgeted or are otherWise
avallaDle. The Lesseewllllmmedlately notltythe Lessor or ItS Assignee of
SUCh occurrence In the event 01 SUCh lermlnatlon, Lessee agrees to
peaceably surrender possessIOn of the Equipment to Lessor or ItS Assignee
on the dale of Such lermlnlllon, paCked tor shipment In accordance WIth
manufaClurer specifications and freighl prepaid and Insurecl to any loca.
hon In the conttnental Unrted Stales Designated by Lessor, Lessor wilt have
all legal and equitable rights and rernedieSlotaKe PGSSHSlon otthe EqUIp-
ment. NorwIfhSlanding the foregolng. lessee agrees (i) that It WiIII'lOl: cancel
lease No
LESSOR
Motorola CommunicatIons ana Eiectromcs. Inc
1301 East AlgonQUin Roae
SChaumourg. illinOIS 60196
thiS Lease under the proviSions of this SectIon if any lundS are appropnated
to II, or by It. lor the acquIsition. retention or operation of the EQUipment or
olher equipment perlormlng funCllons Similar to the equIpment fO' the fiscal
petlOCl In which such termination occurs orthe next succeeding fiscal penod
thereafter. and (II) that It Wilt not dUring the Lease Term gIve PriOrity m the
applicatIon of funds to any other functionally SImilar equipment or services
ThiS SectIon Will not be construed so as 10 permll Lessee 10 termmate Ihls
Lease In order 10 acquire any other equIpment or to allocate funds directly
or Indirectly to perform essentially the same applicallon for whiCh Ihe EqUIp.
ment IS Intended,
&. LESSEE CERTIFICATION. Lessee represenlS. covenants and war.
rants thaI: (i) lessee IS a state or a duly constrluted polItical SuDdivlSlon or
agency of the state of the EQUipment location: (ii) the Interest ponlon of the
Lease Payments shall be excluded from Lessor's gross income pursuanl
to Section 103 of the Internal Revenue Code of 1986, as Itmay be amend-
ed from time to lIme (the "Code"); (ili) the execution. delivery and perfor.
mance by the Lessee 01 this lease have been duly aulhotlzed by alt
necessary &alon on Ihe I)8rt of the lessee; (iv) thIS Lease constllutes a legal.
valid and binding obhgatlon of the Lessee enforceable in accordance With
ilS termS: (v) LesseewiII comply with the informallOh reporttng requirements
of Section 149(e) of the Code. and SUCh compliance snail Include but 1'101
behmitedtothe execution of lhformatlon statemenlS requested by Lessor:
(vi) Lessee Will 1'101 do or cause 10 be done any act which Will cause. or Dy
omISSIon of any acta/low, the Lease lobe an arbnrage bond Within the mean-
lhg of SectIOn 14S(a)ofthe Code; (vii) Lesseewill notdoor cause to be done
any act which will cause. or by omiSSion of any act allow. thiS lease to be
a ptlV81eaetivitybondwithin the meaning or SectIon 141(a)oflhe Code: (Villi
Lessee wilt nOldO or cause 10 be done any act which Will cause. or byomls.
Slon of any aet allow, the lhterest panlon of the lease Payments 10 be or
become inCludible In gross income for Federal income taxatron purposes
under the Code: and (IX) lessee will be lhe only entity to own. use and
operate the Equipmenl durmg Ihe Lease Term.
Lessee represents. covenants and warrants that (i) it wilt do or cause to
De done 811 things necessary 10 preserve and keep lhe lease In lull force
and effect. (ii) it has comphed with all publie bidding and Bond CommiSSion
requlrementS(as defined In lhe Code,wher8 necessary and by due notIfica-
tion presenled Ihls Lease for approval and adoptIOn as a valid Obhgatlon on
lIs pan. and (iii) it has sufflclenl appropriations or other funds available to
pay all amounts due hereunder for the currenl fiscal penod.
7. TITLE TO EQUIPMENT; SECURITY INTEREST. Upon acceptance
of the EqUipment by lessee hereunaer.mle to the EqUipment will vest In
Lessee: provided. however, that (i) in Iheevent oftermlnatlon ofthls Lease
by Lessee pursuanlto Section 5 hereof: (ii) upontheoccul1llnce of an Event
of Default hereunder. and as long as SuCh Event of Defautlls conllnUlng:
or (Ill) In the evei'll that Itle purc:haseopclOn has not been exercised pnorto
Ihe ExpIration Date. title will immedlalelyvest In Lessor or Its Assignee. In
order to secure aU of Its obhgltlons hereunder, Lessee hereby (I) grants 10
l.essor a first and prior securIty Imerest In any and all tlgrlt. tllle ana Interest
of Lessee In Ihe EQUipment anet In all additions. attachments. accesSions.
and substitutions therelo. and on any proceeds therelrom; (ii) agrees Ihat
thiS Lease may be filed as 8 finanCing statement eVidenCing such seCUtlty
I merest: and (iil) agrees 10 execule and deliver all finanCing statemenlS. cer-
tificates of title and other InstrumentS necessary or appropnateto evlaence
such securlly interest.
8. USE; REPAIRS. Lessee win use the EQUipment In a careful manner
tor the use comemolaled by Ihe manufaClurer of the EqUipment ana shall
comply WIth all laws. ordinances. Insurance polICIes and regulallons relattng
10. ana Will pay all costs, claims. damages.leesanet charges anSlng out of
the possession. use or maintenance of the EQUipment. Lessee. alllS
expense will keep Ihe Equlpmenlln good repair and furnISh aU parts.
mechanIsms and devIces reqUired therefor.
9. ALTERATIONS. LesseewiUnotmakeanyalterations. addmonSQr
Imorovements 10 the EQUlpmenl Without Lessor's prior wfllten conse,,!
unless such alterallOhs. additions or Imprcwements may be readily remov8Q
wllhout damage to the Equlpmenl
10. LOCATION: INSPECTION. The EqUIPment wilt no! oe removec:
from. or If Ihe EQulpmenl conSists of rolling stock, Its permanen: Dase Will
not be changed from the EQuipment LocatIOt'l wilhoullessor'S prior wrrnen
consent whiCh WIll not be unreasonablywrthheld. LessorWllt beentltled to
enter upon the EQUipment Location Of elsewhere dUring reasonable Dusl'
ness hOurs to lI'Ispect Ihe EqUipment or observe lIS use anCl ooeratlon
11. LIENS AND TAXES. lessee shall Il8eptl'le EQuIpment tree and Clear
of a1lleVl8s, Il8ns anCI encumbrances 8liCC8PI those created under thiS Lease
Lessee shall pay. when due, all chargeS and taxes (local, stale and federal)
whICh may t'IOWCKhereaftert.lmpoeed upon theownerst'llp..leUlng. I'8ntal
sale, purchase, posses$Ion or use of the Equrpmem, excluding however. all
taxes on 01' measured by lessor's Income. " Lessee faiII to ~ said el'I8rges
and taxes when due, Lessor shall have the right, but Shall not be obhgated.
10 pay said chargeS and taxes. If Lessor pays any charges 01 taxes, lessee
Shall reimburse Lessor therefor within ten days wntten demand.
STIC"04A
ADDENDUM FOR THE PURPOSE OF DESIGNATING
EQUIPMENT LEASE-PURCHASE AGREEMENT NO.
ASA
QUALIFIED TAX-EXEMPT OBLIGATION
This addendum is made pan of that cenain Equipment Lease-Purchase Agreement
dated as of . 19_ (the "Agreement") by and between
(the "Lessee") as Lessee. and Motorola. Inc.. as Lessor,
for the purpose of designating the Agreement as a "qualified tax-exempt obligation" for
purposes of Section 265 (b) (3) of the Internal Revenue Code of 1986. With respect to such
designation, the Lessee hereby agrees. warrants and represents as follows:
1. The Agreement is designated by Lessee as a "qualified tax exempt obligation" for
purposes of Section 265 (b) (3) of the Internal Revenue Code of 1986.
2. The property which is subject to the Agreement will be owned and operated by the
Lessee in performance of its public purposes: said propeny will not be subject to the
use or control of any entity other than Lessee.
3. Lessee agrees that it will not designate more than S10,OOO,OOO of tax-exempt
obligations during the current calendar year as qualified tax-exempt obligations.
Lessee reasonably expects to issue no more than S10,OOO,OOO of tax-exempt
obligations during the current calendar year.
4. For purposes of Paragraph 3 of this Addendum, the amount of tax-exempt
obligations stated as either issued or designated as qualified tax-exempt obligations
includes tax-exempt obligations issued by all subordinate entities of Lessee, as
provided in Section 265 (b) (3) (E) of the Internal Revenue Code of 1986.
Executed this day of
delivery of the Agreement.
, 19_; the date of execution and
LESSEE:
LESSOR:
By:
By:
Its:
Its:
1
2
3
4
5
6
7
8
9
10
11
RESOLUTION NO.
RESOLUTION OF THE CITY OF SAN BERNARDINO APPROVING A
LEASE/PURCHASE EQUIPMENT AGREEMENT WITH MOTOROLA, INC. FOR THE
LEASE PURCHASE FINANCING OF THE 800 MHZ TRUNKED RADIO
COMMUNICATIONS SYSTEM INCLUDING DISPATCH EQUIPMENT AND PORTABLE
RADIOS.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Mayor is hereby authorized and directed to
execute on behalf of the city an agreement by and between the City
of San Bernardino and Motorola,
Inc.
for the lease purchase
financing of equipment for the 800 Mhz trunked radio communications
system including dispatch equipment and portable radios.
SECTION 2. That Motorola is the lowest and best responsible
12
bidder for the financing of the 800MHz trunked radio communication
13
14
15
16
system and equipment in the total amount of $1,826,950.14 at 6.09%
interest payable in annual payments as noted on Exhibit B (payment
schedule) ; pursuant to this determination, the Mayor of the city of
San Bernardino is hereby authorized and directed to execute on
17
18
terms upon approval of the Agreement by the City Attorney.
behalf of said City a Lease Purchase agreement containing said
A copy
19
of said agreement will be attached to this resolution as Exhibit
20
"A".
21
SECTION 3. The authorization to execute the above referenced
22
Purchase is rescinded if it is not issued within sixty (60) days of
23
the passage of this resolution.
24
25
26
11111
11111
11111
27
28 IIIII
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
RESOLUTION OF'
LEASEjPURCHA.
800 MHz.
THE CITY OF SAN BERNARDINO ~PPROVING A
EQUIPMENT AGREEMENT WITH JTOROLA, INC. FOR
I HEREBY CERTIFY that the foregoing resolution was dul
adopted by the Mayor
and Common Council of the City of Sa
Bernardino at a
meeting thereof, held on the
da
of
, 1993, by the following vote, to wit:
councilmernbers
NAYS
ABSTAIN
AYES
ABSENT
NEGRETE
CURLIN
HERNANDEZ
OBERHELMAN
DEVLIN
POPE-LUDLAM
MILLER
City Clerk
The foregoing resolution is hereby approved this day 0
, 1993.
Torn Minor, Mayor
City of San Bernardino
Approved as to form
and legal content:
JAMES F. PENMAN
City A torney
l?
~
By:
2