2003-370ORDINANCE NO. cA09 9?e
AN ORDINANCE AUTHORIZING THE EXECUTION OF CHANGE ORDER ONE TO A
CONTRACT FOR LEASE PURCHASE FINANCING OF PC'S, MONITORS, AND
PERIPHERAL EQUIPMENT BETWEEN THE CITY OF DENTON AND DELL GOVERNMENT
LEASING AND FINANCE; PROVIDING FOR AN INCREASE IN THE QUANTITY OF ITEMS,
INCREASE IN THE ANNUAL LEASE PAYMENT AMOUNT; AND PROVIDING FOR THE
EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (FILE
3110-DELL GOVERNMENT LEASING AND FINANCE AWARDED IN THE AMOUNT OF
$1,056,923.70 AND CHANGE ORDER ONE IN THE AMOUNT OF $331,241.64 FOR A TOTAL
OF $1,388,165.34).
WHEREAS, pursuant to Resolution 92-019, the State Purchasing Building and Procurement
Commission has solicited, received and tabulated competitive bids for the purchase of necessary
materials, equipment, supplies or services in accordance with the procedures of state law on behalf of
the City of Denton; and
WHEREAS, on February 4, 2003 the City awarded a 36 Month Master Lease Agreement for
PC's, Monitors, Laptop, and Peripheral Equipment to Dell Government Leasing and Finance in the
amount of $1,056,923.70; and
WHEREAS, the City Manager or a designated employee has reviewed and recommended that
the herein described materials, equipment, supplies or services can be purchased by the City through
the Building and Procurement Commission programs at less cost than the City would expend if
bidding these items individually; and
WHEREAS, the City Manager having recommended to the Council that a change order be
authorized to amend such lease agreement with respect to the scope and price and said change order
being in compliance with the requirements of Sections 271.081 through 271.083 of the Local
Government Code, exempting such purchases from the competitive bid process; NOW
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I. That the change order one increasing the amount of the lease agreement
between the City and Dell Government Leasing and Finance copy of which is on file in the office of
the Purchasing Agent, in the amount of Three Hundred Thirty One Thousand Two Hundred Forty
One and 64/100 Dollars ($331,241.64), is hereby approved and the expenditure of funds therefore is
hereby authorized. The master lease annual amount is amended to read $1,388,165.34.
SECTION H. That by the acceptance and approval of change order one to the master lease on
file in the office of the Purchasing Agent, the City accepts the offer of the persons submitting the
bids to the Building and Procurement Commission for such items and agrees to purchase the
materials, equipment, supplies or services in accordance with the terms, conditions, specifications,
standards, quantities and for the specified sums contained in the bid documents and related
documents filed with the Building and Procurement Commission, and the purchase orders issued by
the City.
SECTION III. That should the City and persons submitting approved and accepted items set
forth in the change order one wish to enter into a formal written agreement as a result of the City's
ratification of bids awarded by the Building and Procurement Commission, the City Manager or his
designated representative is hereby authorized to execute the written contract which shall be
substantially the same as the documents on file in the office of the Purchasing Agent; provided that
the written contract is in accordance with the terms, conditions, specifications and standards
contained in the Proposal submitted to the Building and Procurement Commission, quantities and
specified sums contained in the change order one, and related documents herein approved and
accepted.
SECTION IV. That by the acceptance and approval of the listed items set forth in the change
order one, the City Council hereby authorizes the expenditure of funds therefor in the amount and in
accordance with the purchase orders issued by the City or pursuant to a written contract made
pursuant thereto as authorized herein.
SECTION V. That this ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this / G2 day 42003. G~/l
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
B
APPROVED AS TO LEGAL FO :
HERBERT L. PRQLT;?Y, C TTORNEY
BY:
3110
Attachment 1
DELL GOVERNMENT LEASING AND FINANCE
Lease Proposal
October 1, 2003
Denton, City of
Dell Government Leasing and Finance specializes in providing the finest Technology Lease products and services
to the Public Sector. We have designed a customized financial solution for you and are pleased to have this
opportunity to present this proposal for the transaction described below:
Lessee: Denton, City of
Lease Rates: Lease Rates are proposed for the referenced quotations and amounts only.
Changes In equipment pricing or configurations may invalidate this document This
proposal and rates quoted are valid for 30 days from the above date.
.
Contracted Lease Term: montlts .
Pa ment Structure: Semi Altnual Ra nts QIRSiortt ract'200tF390 '
eno _c
bellQuote FndriCetl Ike tease
of Lease Options: FAIR MARKET VALUE PURCHASE OPTION
Lessee has the following options at the end of the contracted lease term:
1.) Return Equipment to Lessor at Lessee's expense.
2.) Continue to lease on a month to month basis or renew the lease for a fixed
renewal tens.
3.) Purchase the equipment for Its then Fair Market Value.
One Deli Way, RR8, Round Rock, TX 78582
DELL GOVERNMENT LEASING AND FINANCE
Lease Proposal
Summary of Terms and Conditions
Net Lease Provisions: The lease shall be a net lease transaction providing that the lessee shall bear all
expenses associated with the equipment, including those relating to maintenance,
operation and third party claims. Vendor/manufacturer guarantees and warranties
will be passed on to Lessee.
Note: With the exception of Conditional Sale Agreements, Lessee will be responsible for
payment or reimbursement of any Personal Property Taxes invoiced to the Lessor against
the leased equipment. Such amounts may be paid annually in the form of a liquidated
Property Tax Pee or pro-rated and added to the rental amount(s) quoted above. if your
organization is otherwise exempt from such taxation, please contact your Lease
Representative for clarification.
Insurance: Lessee shall provide Lessor written confirmation of insurance coverage acceptable
to Lessor, including: All-risk Physical Damage, Bodily Injury & Property Damage
and an endorsement that names Lessor as an additionally insured and loss payee
under all liability and property coverage. Lessee may opt, subject to prior written
approval of Lessor, to self-insure the Equipment under the same risk parameters
detailed above.
Appropriations: For State Governments, Local Governments, and Political Subdivisions thereof, the
resulting lease will contain a clause subjecting the lease to continued
appropriations of necessary funds. The Lessee will covenant that it will do all
things legally within its power to obtain and maintain funds from which rental
payments may be made and will not give priority or parity in the application of
funds for functionally similar equipment during the term of any resulting lease.
Documentation: Duly executed Lease or Master Lease Schedule and other documents including, but
not limited to Certificates of Acceptance, Opinions of Counsel, Insurance
Certificates, Essential Use Statements and UCC Financing Statements that may be
applicable and are reasonably requested by Lessor.
Approvals: Credit approval is conditioned upon the Lessee's compliance of all existing lease
and loan agreements. Final credit approval Is subject to Lessor credit committee
review and reasonable expectations of continued appropriations for the equipment
quoted. Lessee may be asked to provide Financial Statements and other
supoortinq documentation as necessary for such review.
Thank you for the opportunity to provide this proposal. Should you have any questions or concerns, please do
not hesitate to contact us by phone or email. We look forward to filling all of your financial needs.
Representative: Missy Totten
Phone: 866-363-3355 69096
Fax: 800-391-3355
Email: missy_totten@dell.com
One Dell Way, RRB, Round Rock, TX 78682