HomeMy WebLinkAboutFIN 2023-06-26 Item 1A - Lease Agreement - 2023 Laptop Refresh with DellCity of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Joel Bush, Chief Technical Officer
BY: Mike Marcum, Supervisor of Technical Operations
CC: Mayor Ekberg
DATE: 6/20/23
SUBJECT: Dell Lease Agreement- City Laptop Refresh
ISSUE
TIS is seeking Council authorization to enter into a three-year lease agreement with Dell
Financial Services.
BACKGROUND
Laptops have become an integral part of our hybrid work force. The current laptop lease
expires in September.
DISCUSSION
The Dell Financial Services quote is attached for Council review and discussion.
FINANCIAL IMPACT
Not to exceed $45,501 annually, or $125,778.71 over three years, not including tax. This is a
budgeted expense.
RECOMMENDATION
The Council to being asked to consider this item for discussion and forward it to the Consent
Agenda on 7/10/23, granting approval for TIS to enter into the lease agreement.
ATTACHMENTS
Dell Financial Services Quote #3000155734231
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Dell Customer Communication - Confidential#
Prepared For:
June 16, 2023
Term 36
Thank you for giving Dell Financial Services L.L.C. (“DFS”) the opportunity to provide a technology financing solution. Option TELP
Enclosed is a financing proposal for your new technology needs. We look forward to discussing this opportunity in Payments: Annual
further detail with you. If you have any questions, please contact me at the phone number or email address below.Consolidation: Monthly
Payments Due: Advance
Interim Rent: None
Dell 3
Quote Number Payments
3000155734231 Dell Latitude 5330 $694.91 181 $125,778.71 0.36176 $45,501.71
TOTALS $125,778.71 $45,501.71
Proposal Expiration Date:
July 16, 2023
End of Term Options:
Tax Exempt Lease Purchase (TELP):
• Exercise the option to purchase the products for $1.00.
• Return all products to lessor at the lessee’s expense.
Zach Barthel
Finance Sales – Midwest / PacNW
Dell Financial Services
(651)-272-9675
Zach.Barthel@dell.com
Additional Information:
LEASE QUOTE: The Lease Quote is exclusive of shipping costs, maintenance fees, filing 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 you are sales tax
exempt, please provide a copy of your Exemption Certificate with the Lease Contract. If Lessee provides the appropriate tax exemption certificates to DFS,
sales and use taxes will not be collected by DFS. However, if your taxing authority assesses a personal property tax on leased equipment, and if DFS pays that
tax under your lease structure, Lessee must reimburse DFS for that tax expense in connection with the Lessee's lease.
PURCHASE ORDER: The Purchase Order must be made out to Dell Financial Services L.L.C., One Dell Way, RR8-23, Round Rock, TX 78682. The Purchase
Order will need to 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 and include your address as the SHIP TO destination.
INSURANCE: The risk of loss on the equipment is borne solely by the Lessee. Lessee shall be required to purchase and maintain during the Term
(i) comprehensive public liability insurance naming Lessor as additional insured; and (ii) "all-risk" physical damage insurance in a minimum amount of the
Purchase Price, naming DFS as first loss payee.
APPROPRIATION COVENANT: The Lease will 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.
DOCUMENTATION: In addition to a duly executed Agreement, other documents as reasonably requested by DFS may be required, such as but not limited to,
opinions of counsel, IRS tax exemption forms (if applicable), and audited financials.
PROPOSAL VALIDITY / APPROVALS: This is a proposal based upon market conditions and is valid for 30 days, is subject to final credit approval, review of the
economics of the transaction, and execution of mutually acceptable documentation.
INDEXING LANGUAGE: Upon expiration, lease rates may be changed in the event that market rates change.
Leasing and financing provided by Dell Financial Services L.L.C. or its affiliate or designee (“DFS”) to qualified customers. Offers may not be available or may vary in
certain countries. Where available, offers may be changed without notice and are subject to product availability, credit approval, execution of documentation provided
by and acceptable to DFS, and may be subject to minimum transaction size. Offers not available for personal, family or household use. Dell and the Dell logo are
trademarks of Dell Inc. Proposal is property of DFS, contains confidential information and shall not be duplicated or disclosed in whole or part. Proposal is not a firm
offer of financing. Pricing and rates based upon the final amount, configuration and specification of the supplied equipment, software, services or fees. Prorata
payment may be due in the first payment cycle. Proposal excludes additional costs to customer such as shipping, maintenance, filing fees, applicable taxes,
insurance and similar items. Proposal valid through the expiration date shown above, or if none is specified, for 30 calendar days from date of presentation. Upon
expiration, lease rates may be changed in the event that market rates change
TUKWILA, WASHINGTON
Summary Product Description Product Price Quantity Extended Price Rate Factor
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