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HomeMy WebLinkAboutReg 2025-04-07 Item 6E - Agreement - Dell Lease for Police Department Rugged TabletsCOUNCIL AGENDA SYNOPSIS Initialr Meeting Date Prepared by Mayor's review Council review 3/24/25 MM 4/7/25 MM ITEM INFORMATION IrEMNo. 6.E. STAFF SPONSOR: JOEL BUSH ORIGINAL AGENDA DATE: 4/7/25 AGENDA ITEM TITLE Dell- PD Rugged Tablet Refresh 2025 CATEGORY ❑ Discussion Mtg Date ❑X Motion Mtg Date 4/7 ❑ Resolution Mtg Date ❑ Ordinance Mtg Dale C Bid Award Mtg Date C Public Hearing Mtg Date ® Other Mtg Date 4/7 SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ®.Finance ❑ Fire ❑ P&R ❑ Police ❑ PW SPONSOR'S SUMMARY TIS is requesting the Finance Committee's consideration of funding at the 3/24 meeting to enter into a new lease for this routine, budgeted expense. The request will then be forwarded to the Regular Council Meeting Consent Agenda on 4/7/25 for final approval, authorizing the Mayor to sign the lease agreement. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ® Finance & Governance ❑ LTAC DATE: 3/24/25 ❑ Arts Comm. ❑ Parks Comm. (_J Planning & Community Dev. ❑ Planning Comm. COMMITTEE CHAIR: PAPYAN RECOMMENDATIONS: SPONSOR/ADMIN. Technology and Innovation Services COMMITTEE Finance Committee; Forward to 4/07 Regular Meeting Consent Agenda COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED $57,289.61 annually AMOUNT BUDGETED $77,000 annually APPROPRIATION REQUIRED $ Fund Source: MR003012-545006 Comments: $212,026,38 over 4 year term, or $57,289, 61 annually, This is a budgeted expense MTG. DATE RECORD OF COUNCIL ACTION 4/7/25 MTG. DATE ATTACHMENTS 4/7/25 Informational Memorandum dated 3/17/2025 Lease Purchase Schedule (added at 3/24/2025 Finance & Governance Committee Meeting) Exhibit A - Dell Proposal No. 0000129796.1 Exhibit B - Amortization Schedule (Added at 3/24/2025 Finance & Governance Meeting) Minutes from the 3/24/2025 Finance & Governance Committee 65 City 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 Lease Purchase Schedule Exhibit A - Dell Proposal No. 0000129796.1 Exhibit B - Amortization Schedule 66 Dell Customer Communication - Confidential TUKWILA, WASHINGTON LEASE PURCHASE SCHEDULE NO. 810-6729834-004 TO MASTER LEASE AGREEMENT NO. 576818-22912 THIS SCHEDULE IS SUBJECT TO AND INCORPORATES THE TERMS AND CONDITIONS OF MASTER LEASE AGREEMENT NO. 576818-22912 ("Agreement") DATED October 03, 2016 BETWEEN DELL FINANCIAL SERVICES L.L.C. ("Lessor") AND TUKWILA, WASHINGTON ("Lessee"). Lessor hereby agrees to lease and/or make available to Lessee subject to the terms, conditions and provisions set forth in this Schedule and in the Agreement, the Products described below. Any capitalized term used herein and not defined herein shall have the meaning ascribed to it in the Agreement. PRODUCT DESCRIPTION AND LOCATION: See below or Exhibit "A" attached to and made a part hereof. PRODUCT SELLER: Dell Marketing L.P. One Dell Wav Round Rock TX 78682 Product Product Lessee Purchase Primary Term Commencement Description Location Order No. (Mos.) Date See Exhibit 'A' See Exhibit 'A' See Exhibit A 48 TBD Rent is payable: In Advance Payment Period: Annual LEASE PURCHASE PROVISIONS The following provisions shall apply with respect to this Schedule in addition to those provisions in the Agreement: 1. SECTION 4. RENT; TAXES; PAYMENT OBLIGATION. Insert as a new last sentence to subsection (a) the following: "For the purposes of this Schedule, the Rent, as well as the principal and interest portions of each Rent payment are shown in the chart provided on Exhibit "B", attached to and made a part hereof. 2. SECTION 11. REPRESENTATIONS AND WARRANTIES OF LESSEE. For purposes of this Schedule, add paragraphs (j) through (t) as follows: "(j) Lessee will comply with the information reporting requirements of Section 149(e) of the Code, including but not limited to, the execution and delivery to Lessor of information statements requested by Lessor; (k) Lessee will not do, cause to be done or fail to do any act if such act or failure to act will cause this Agreement, or any transaction hereunder, to be an Arbitrage Bond within the meaning of Section 148 of the Code or a Private Activity Bond within the meaning of Section 141 of the Code; (I) The total cost of the Products listed in this Schedule will not be less than the total Principal Portion of the Rent listed in this Schedule; (m) The Products listed in this Schedule have or will be ordered within six months of the date hereof in order to commence such Schedule; (n) The Products listed in this Schedule are expected to be delivered and installed, and the Seller fully paid, within one year from the date hereof; (o) No fund or account which secures or otherwise relates to the Rent has been established; Reference:810-6729834-004 Master Lease Schedule TELP Page 1 of 3 67 Dell Customer Communication - Confidential LEASE PURCHASE SCHEDULE NO. 810-6729834-004 (continued) (p) Lessee will not sell, encumber or otherwise dispose of any property comprising this Schedule prior to the final maturity or termination of such Schedule without a written opinion of nationally recognized bond counsel to the effect that any such disposition will not adversely affect the exclusion of interest on the Rent from gross income for federal income tax purposes; (q) Lessee agrees to execute, deliver and provide Lessor with satisfactory evidence of the filing of such documentation, as may be required for the purposes of properly reporting this Schedule, including, without limitation, IRS forms 8038-G or 8038-GC, as required under the Code; (r) It is expected that Rent under this Schedule will be paid from periodic appropriations of the Lessee deposited into the general fund of the Lessee, that such appropriations will equal the Rent due during each Fiscal Period of Lessee, and that all amounts paid for Rent will be from an appropriation made by the Lessee during the Fiscal Period in which such Rent is made; (s) To the best of Lessee's knowledge, information and belief, the above expectations are reasonable; and (t) Lessee will comply with all applicable provisions of the Code, including without limitation Sections 103, 141 and 148 thereof, and the applicable regulations of the Treasury Department to maintain the exclusion of the interest components of Rent from gross income for purposes of federal income taxation. Without limiting the generality of the foregoing, Lessor hereby gives notice to Lessee that, upon execution of this Schedule by Lessor, Lessor shall assign all of its right, title and interest in, to and under this Schedule, including all Products and all payments owing under such Schedule, to Dell Equipment Funding L.P. ("DEF") pursuant to a purchase agreement between the Lessor and DEF. Lessee hereby acknowledges and consents to such assignment and shall keep, or cause to be kept, a complete and accurate record of all such assignments in a manner and form necessary to comply with Section 149(a) of the Code and the Treasury Regulations promulgated thereunder. Lessor hereby directs Lessee to continue to make any and all payments required to be made under this Schedule directly to Lessor, as servicing agent for DEF, at the same address to which Lessee is currently making payments unless and until Lessor is directed by DEF to make such payments to a different address or payee." TO THE EXTENT PERMITTED BY LAW, AND IN ADDITION TO LESSEE'S OBLIGATION UNDER SECTION 16 OF THE AGREEMENT AND ANY AMENDMENTS THERETO, LESSEE HEREBY ASSUMES LIABILITY FOR, AND SHALL PAY WHEN DUE, AND SHALL DEFEND LESSOR AND ITS SUCCESSORS AND ASSIGNS AGAINST, ANY AND ALL LIABILITIES, LOSSES, DAMAGES, CLAIMS AND EXPENSES (INCLUDING REASONABLE ATTORNEY FEES) RELATING TO OR ARISING OUT OF LESSEE'S BREACH OF ANY OF ITS REPRESENTATIONS, WARRANTIES, OR COVENANTS CONTAINED IN SECTION 11 OF THE AGREEMENT AS SUPPLEMENTED HEREIN. 3. SECTION 12. WARRANTY ASSIGNMENT; EXCLUSION OF WARRANTIES; LIMITATIONS ON LIABILITY; FINANCE LEASE. For purposes of this Schedule, delete "FINANCE LEASE" in the title of this Section and delete the first and last sentences of paragraph (d). 4. SECTION 17. OWNERSHIP; LIENS AND ENCUMBRANCES; LABELS. Insert at the end of this paragraph the following: "Notwithstanding the first sentence of this Section, upon Lessee's acceptance of the Products under this Schedule, title to the Products shall vest in Lessee subject to Lessor's rights under the Agreement; provided that, upon an Event of Default or any termination of this Schedule, other than by Lessee's purchase of the Products, title to the Products shall immediately and without any action by either party vest in Lessor, and Lessee shall immediately surrender possession of the Products to Lessor. Any such transfer of title shall occur automatically without the necessity of any bill of sale, certificate of title or other instrument of conveyance. Lessee shall, nevertheless, execute and deliver any such instruments as Lessor may request to evidence such transfer. 5. PURCHASE OPTION. Provided that no Event of Default has occurred and is continuing, and upon satisfaction of all payment obligations herein by Lessee, Lessee shall be entitled to Lessor's interest in the Products, AS IS, WHERE IS, WITHOUT WARRANTY OR RECOURSE, EXPRESS, IMPLIED OR OTHERWISE, BY OR AGAINST LESSOR, INCLUDING ANY WARRANTIES OF DESIGN, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR AGAINST INFRINGEMENT, other than the absence of any liens by, through or under Lessor. 6fQference:810-6729834-004 Page 2 of 3 IMAster Lease Schedule TELP Dell Customer Communication - Confidential LEASE PURCHASE SCHEDULE NO. 810-6729834-004 (continued) As continuing security for Lessee's obligations hereunder, Lessee hereby grants to Lessor, a first -priority security interest in all of Lessee's rights and interest in and to the Products and all proceeds thereof, free and clear of all security interests, liens or encumbrances whatsoever. 6. COMPLETION OF SCHEDULE: Lessee hereby authorizes Lessor to insert or update the serial numbers of the Products from time to time as necessary. If Lessee delivers this signed Schedule, any amendment or other document related to this Schedule or the Master Lease (each a "Document") to Lessor by facsimile transmission, and Lessor does not receive all of the pages of that Document, Lessee agrees that, except for any pages which require a signature, Lessor may supply the missing pages to the Document from Lessor's database which conforms to the version number at the bottom of the page. If Lessee delivers a signed Document to Lessor as an e-mail attachment, facsimile transmission or by U.S. mail, Lessee acknowledges that Lessor is relying on Lessee's representation that the Document has not been altered. Lessee further agrees that, notwithstanding any rule of evidence to the contrary, in any hearing, trial or proceeding of any kind with respect to a Document, Lessor may produce a tangible copy of the Document transmitted by Lessee to Lessor by facsimile or as an e-mail attachment and such signed copy shall be deemed to be the original of the Document. To the extent (if any) that the Document constitutes chattel paper under the Uniform Commercial Code, the authoritative copy of the Document shall be the copy designated by Lessor or its assignee, from time to time, as the copy available for access and review by Lessee, Lessor or its assignee. All other copies are deemed identified as copies of the authoritative copy. In the event of inadvertent destruction of the authoritative copy, or corruption of the authoritative copy for any reason or as the result of any cause, the authoritative copy may be restored from a backup or archive copy, and the restored copy shall become the authoritative copy. At Lessor's option, this electronic record may be converted into paper form. At such time, such paper copy will be designated or marked as the authoritative copy of the Document. By signing below, each of the parties hereto agrees to be bound by the terms of the Agreement, this Schedule and the attached Exhibits "A" and "B". TUKWILA, WASHINGTON DELL FINANCIAL SERVICES L.L.C. "Lessee" "Lessor" By: By: Name: Name: Title: Title: Date: Date: Reference:810-6729834-004 Page 3 g2'39 Master Lease Schedule TELP C7 Exhibi A Technology Payment Solutions Dell Finaricial Services Prepared for: TUKWILA, WASHINGTON Proposal No, 0000129796.1 Expiration Date: 04/17/2025 48 Month 1 P Payments Annual Due Advance Interim Rent None Quote Description Product Subtotal Rate Factor Payment 3000186832117.1 Dell Latitude 7230 Rugged $192,427.38 0.27020 $51,993.95 Extreme Tablet Dell Latitude 7230 Rugged $159,301.89 0.27020 $43,043.43 Extreme Tablet Dell Dock Fischer UD22 $4.168.80 0.27020 $1,126.41 Dell Keyboard for Latitude $28,956.69 0.27020 $7,824.11 7230 Rugged Extreme Tab Subtotal: Taxes, Shipping & Fees: Foe mo, apply $192,427.38 Rate Factor & Payment Financed Amount 0.27020 $51,993.95 0.27020 $5,295.66 $19,599.00 Total Amount: Rate Factor & Payment 0.27020 $57,289.61 Financed Amount $212,026.38 Structure Notes Madison Cupples DFS Account Manager (512) 639-8143 Madison_Cupples@Dell.com Proposal Notes P/easo note, this includes estimated taxes, End of Term Option(s): Tax Exempt Lease Purchase (TEO) 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 notite and are subject to product availability, credit approval, execution of documentation provided by and acceptable to DES, 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 DES, 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. Prorate 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, PrOfiCISA1 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, LEASE QUOTE: The Lease Quote is exclusive of shipping costs, maintenance fees, filing fees, licensing fees, property or ute 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 ail sales, use and personal property taxes to the appropriate taxing authorities. ff 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 DES, sales and use taxes will not be collected by DES. However, if your taxing authority assesses a personal property fax on leased equipment, and if DES pays that tax under your lease structure, Lessee must reimburse DES 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 gdote 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 DES 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 DES 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 isssblocl 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 EgymentSplutp.riej„DellDSA 70 Dell Customer Communication - Confidential e e Commencement Date TBD TUKWILA, WASHINGTON Amortization Schedule 810-6729834-004 Exhibit B Technologies Total Financed Amount $212,054.98 DUE DATE PAYMENT # PAYMENT AMOUNT PRINCIPAL INTEREST UNPAID BALANCE TBD 1 $ 57,297.33 $ 57,297.34 $ - $ 171,892.01 TBD 2 $ 57,297.33 $ 48,878.73 $ 8,418.61 $ 114,594.68 TBD 3 $ 57,297.33 $ 51,537.67 $ 5,759.67 $ 57,297.34 TBD 4 $ 57,297.33 $ 54,341.25 $ 2,956.09 $ - internal Use - Confidential City of Tukwila City Council Finance & Governance Committee Meeting Minutes March 24, 2025 - 5:30 p.m. - Hybrid Meeting; Hazelnut Conference Room & MS Teams Councilmembers Present: Staff Present: Armen Papyan, Chair; Dennis Martinez, Verna Seal Aaron BeMiller, Laurel Humphrey, Tony Cullerton, Megan Marks, Joel Bush, Julie Hatley, Kari Sand 1. BUSINESS AGENDA Chair Papyan welcomed Councilmember Seal to the Committee A. Puget Sound Regional Fire Authority (PSRFA): Lease Agreements and Deeds Staff seeking approval of leases with PSRFA for Fire Stations 51 and 54, deed transfers of Stations 52 and 53, and leaseback of various rooms at Station 52. Committee Recommendation Unanimous approval. Forward to April 14, 2025 Committee of the Whole. B. Lease Agreement; Dell Rugged Tablets Staff is seeking approval to enter into a four-year lease agreement with Dell Financial * Services to refresh the Police Department's fleet of rugged tablets. Committee Recommendation Unanimous approval. Forward to April 7, 2025 Regular Meeting Consent Agenda. C. Minimum Wage Program Staff provided an update on the program. Committee Recommendation Discussion only. D. 2024 Year -End Financial Report Staff presented the report. Item(s) for follow-up • Provide information about funding for the TCC HVAC replacement project. Committee Recommendation Discussion only. 72