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Home My WebLink AboutSpecial 2023-07-10 Item 2D - Lease Agreement - 2023 City Laptop Refresh with Dell Financial Services for $125,778.71ITEM INFORMATION STAFF SPONSOR: JOEL BUSH ORIGINAL AGENDA DATE: 7/10/23 AGENDA ITEM TITLE Dell- Laptop Refresh 2023 CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date Mtg Date 7/10/23 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date SPONSOR Council Mayor Admin Svcs DCD Finance Fire P&R Police PW SPONSOR’S SUMMARY The current Dell laptop lease expires in September. TIS is seeking Council authorization to enter into a new Dell Lease Agreement to refresh our aging equipment. TIS is asking the Council to consider this item at the 6/26/23 Committee of the Whole for discussion, then forward to the Regular Meeting on 7/10/23, granting approval for TIS to enter into the Dell Lease Agreement. REVIEWED BY Trans&Infrastructure Svcs Community Svcs/Safety Finance & Governance Planning & Community Dev. LTAC Arts Comm. Parks Comm. Planning Comm. DATE: 6/26/23 COMMITTEE CHAIR: KRULLER RECOMMENDATIONS: SPONSOR/ADMIN. Technology and Innovation Services COMMITTEE COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $125,778.71 $322,036.98 $ Fund Source: AS004012-545006 Comments: $125,778.71 over 3 year term, or $45,501 annually, all w/o tax. This is for Laptop refresh only MTG. DATE RECORD OF COUNCIL ACTION 7/10/23 MTG. DATE ATTACHMENTS 7/10/23 Info Memo Dell Lease Proposal Minutes from the 6/26 Finance and Governance Committee meeting COUNCIL AGENDA SYNOPSIS ----------------------------------Initials --------------------------------- ITEM NO. Meeting Date Prepared by Mayor’s review Council review 7/10/23 MM Unanimous approval; Forward to 7/10 Special Meeting Consent Agenda Master Lease Agreement Spec 2.D. 81 82 City 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 83 84 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 Page 1 of 1 85 86 87 88 89 90 91 92 City of Tukwila City Council Finance & Governance Committee Meeting Minutes June 26, 2023 – 5:30 p.m. – Hybrid Meeting; Duwamish Conference Room & MS Teams Councilmembers Present: Kate Kruller, Chair; Kathy Hougardy, De’Sean Quinn Staff Present: Laurel Humphrey, Vicky Carlsen, Joel Bush, Griffin Lerner I.BUSINESS AGENDA A.Lease Agreement: Dell Laptop Refresh Staff is seeking approval to enter into a three-year lease agreement with Dell Financial Services in the amount of $125,778.71 for employee laptops. Councilmembers suggested disposition of the existing laptops in a way to benefit local youth. Committee Recommendation Unanimous approval. Forward to July 10, 2023 Special Consent Agenda. B.Contract: Comprehensive Financial Sustainability Plan & Utility Rate Study Staff is seeking approval of a contract with Berk in partnership with FCS Group for development of the plan and study in an amount not to exceed $225,000. Suggestions from Councilmembers included involving Council committees, using plain language, and identifying potential legislative solutions. Committee Recommendation Unanimous approval. Forward to July 10, 2023 Committee of the Whole. MISCELLANEOUS The meeting adjourned at 5:57 p.m. Committee Chair Approval 93