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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