HomeMy WebLinkAboutFIN 2025-03-24 Item 1B - Lease Agreement - Police Department Rugged Tablets with Dell Financial ServicesCity of Tukwila
Thomas McLeod, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Joel Bush, Chief Technical Officer
BY: Mike Marcum, Technical Operations Supervisor
CC: Mayor McLeod
DATE: 3/17/25
SUBJECT: Dell Lease Agreement- PD Rugged Tablets
ISSUE
TIS is seeking Council authorization to enter into a four-year lease agreement with Dell
Financial Services.
BACKGROUND
The device lease will refresh the PD's fleet of rugged tablets, which are currently over 5 years
old.
DISCUSSION
Attached is the Dell Financial Services proposal for review by the Finance Committee and
Council.
FINANCIAL IMPACT
The annual cost will not exceed $57,289.61, or $212,026.38 over four years. This is a routine,
budgeted expense.
RECOMMENDATION
The Finance Committee is being asked to review the rugged tablet refresh on 3/24 and forward
it to the Regular Meeting consent agenda on 4/7/25 for approval, authorizing the mayor to sign
the lease agreement.
ATTACHMENTS
Dell Proposal No. 0000129796.1
41
Dell
Financial
Services
Technology Payment Solutions
03/18/25
Prepared for: TUKWILA, WASHINGTON
Proposal No. 0000129796.1
Expiration Date: 04/17/2025
Quote
Description Product Subtotal
3000186832117.1 Dell Latitude 7230 Rugged $192,427.38
Extreme Tablet
Dell Latitude 7230 Rugged $159,301.89
Extreme Tablet
Dell Dock Fischer UD22 $4,168.80
Dell Keyboard for Latitude $28,956.69
7230 Rugged Extreme Tab
Subtotal:
$192,427.38
Taxes, Shipping & Fees:
'Personal Property Management Fee may apply
Rate Factor & Payment
Financed Amount
Total Amount: Rate Factor & Payment
Financed Amount
Structure Notes
Madison Cupples
DFS Account Manager
(512) 639-8143
l MadisonCupples@Dell.com
48 Month
TELP
Payments Annual
Due Advance
Interim Rent None
Rate Factor Payment
0.27020 $51,993.95
0.27020 $43,043.43
0.27020 $1,126.41
0.27020 $7,824.11
0.27020 $51,993.95
0.27020 $5,295.66
$19,599.00
Proposal Notes
Please note, this includes estimated taxes.
End of Term Option(s):
Tax Exempt Lease Purchase (TELP) options:
1. Exercise the option to purchase the products for one dollar; or,
2. For an agreed upon fee, return all products to DFS at lessee's expense.
Payment solutions provided and serviced 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. Restrictions and additional requirements
may apply to transactions with governmental or public entities. 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 a payment solution. 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, fling 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.
Additional Information:
LEASE QUOTE: The Lease Quote is exclusive of shipping costs, maintenance fees, fling 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 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.
DOCUMENTATION: The Agreement executed between DFS and Lessee shall include all required leasing terms and conditions, including, but not limited to, payment terms, non -appropriation, essential use, authority, taxes, and insurance. 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.
To explore how Dell Financial Services payment solutions can help take your business to the next level, please visit Payment Solutions l Dell USA