HomeMy WebLinkAboutReso. 1990-448 - Approving Agreement No. G720172 for four PS/2 Model 70 Computers U U
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RESOLUTION NO. 70.wi
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE INSTALLMENT PAYMENT AGREEMENT DATED AUGUST 6,
1990 , IN THE AMOUNT OF $37 ,964 . 26 BETWEEN THE CITY OF
REDDING AND INTERNATIONAL BUSINESS MACHINES CORPORATION,
REFERENCE AGREEMENT NO. G720172 , CUSTOMER NO. 7489602 , FOR
FOUR PS/2 MODEL 70 COMPUTERS , AND AUTHORIZING THE CITY
MANAGER TO SIGN ALL NECESSARY DOCUMENTATION.
WHEREAS, the Electric Department is in need of four personal
computers to allow its Engineering Division to effectively
perform its duties; and
WHEREAS, presented herewith is an Installment Payment
Agreement with IBM for the necessary equipment, calling for a
total expenditure of $37 ,964 . 26 to be paid in 48 installments of
$750 . 62 per month;
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of
the City of Redding as follows:
1 . That the City Council ' of the City of Redding hereby
approves the Installment Payment Agreement dated August 6, 1990 ,
Reference Agreement No. G720172 , Customer No. 7489602 , between
the City of Redding and International Business Machines
Corporation in the amount of $37 ,964 .26 , a true copy of which is
attached hereto and incorporated herein by reference, on the
terms and conditions stated therein.
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2 . That the City Manager of the City of Redding is hereby
authorized and directed to sign said Agreement and all necessary
documentation on behalf of the City of Redding in connection
therewith, and the City Clerk is hereby authorized and directed
to attest the signature of the City Manager and to impress the
official seal of the City of Redding thereto.
I HEREBY CERTIFY that the foregoing Resolution was
introduced and read at a regular meeting of the City Council of
the City of Redding on the 4th day of September , 1990,, and was
duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Arness, Fulton, Moss & Buffum
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Dahl
ABSTAIN: COUNCIL MEMBERS: None
N•NCY : I ' UM, May.r
City Redding
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HB A�d GH0 , ' C ' y C1e L/ /
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RM' APPROVED,.
RA DALL A. HAYS, City Attorney
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International Business Machines Corporation Armonk, New York 10504
Installment Payment Agreement
(State and Local Government)
Name end Address of Customer. Reference Agreement No.: 0720172
City of Redding
760 Parkview Ave Reference Supplement Dated: 08/06/90
Redding CA 96001
Agreement No.:
IBM Branch Office Address: IBM Branch Office No.: DH4
520 Capitol Mall
Sacramento CA 95814 Customer No.: 7489602
International Business Machines Corporation(IBM)and the Customer agree that this Installment Payment Agreement
supplements and amends the referenced Agreement for Purchase of IBM Machines and its referenced Supplement with
respect to the following IBM machines, features, model upgrades, machine elements and/or accessories (hereinafter
called "Machines" unless the context requires individual reference).
IBM Plant
Order or Purchase
Machine Serial Model or Price S
Oy. Type Number(•) Feature Description (Net Unit Price) Amount S
4 8570 2FFKHM,R, A21 PS/2 Model 70 6,545 26,180.00
W, 2FFKJB
4 8513 2FFKHN,S, 001 PS/2 Color Display 472 1,888.00
X, 2FFKJC
4 4208 2FFKHP,T, 002 Proprinter XL24E 721 2,884.00
Y, 2FFKJD
(•)An "indicates Machine Serial Number. TOTAL: $ 30,952.00
Statement of Transaction •
1. Cash Price (if this were a cash sale) $ 30,952.00
2. Trade-In Allowance Credit (from IBM trade-in agreement) $ NA
3. Cash Down Payment $ NA
4. Total Down Payment (Sum of Items 2 and 3) $ NA
5. Unpaid Balance of Cash Price (Item 1 minus Item 4) $ 30,952.00
6. State and Local Taxes, if applicable 's 1,934.50
7. Amount to be Financed (Sum of Items 5 and 6) $ 30,952.00
8. FINANCE CHARGE (Time Price Differential on Item D. Fanance Charge consists 5,077.76
of interest at an ANNUAL PERCENTAGE RATE of u Wo $
9. Tax on Finance Charge, if applicable, (payable in first installment) $ NA
10. Total Amount of Remaining Payments (Sum of Items 7, 8 and 9) $ 36,029.76
11. Total Time Sale Price (Sum of Items 4 and 10) $ 37,964.26
^Payments The Customer may; at any time, pay in advance the full
The Customer agrees to pay the Cash Down Payment, amount due hereunder and the Finance Charge will be
if any, (a) upon the Date of Installation of the Machines or adjusted by IBM to reflect the shorter payment period.
(b) with respect to installed Machines, on the Effective All remittances are to be made to the IBM Branch Office
Date of Purchase, and agrees to pay the Total Amount of address listed herein unless otherwise requested by IBM.
Remaining Payments in consecutive Periodic Payments,
Including Finance Charge,for the Fiscal Periods as set forth Assignments
below in either Payment Plan I or Payment Plan II. This Installment Payment Agreement is not assignable by
PLAN I the Customer, nor may the Customer sell, transfer, sub-
PAYMENTstantially modify, relocate or dispose of any or all of the
Periodic Payment Finance Charge Machines without prior written permission of IBM. In no
Fiscal (Annual) (Included in event may the Machines be relocated outside the United
Period (Biennial) Payment) States. Any attempted assignment or transfer by the
• Customer of any of the rights, duties or obligations of this
1 Installment Payment Agreement is void.
2 Customer's Covenants
The Customer covenants and agrees that (a) it will not
3 create,assume, or voluntarily suffer to exist,without giving
IBM at least 15 calendar days' prior written notice, any
4 mortgage, pledge, encumbrance, security interest, lien or
charge of any kind upon any or all of the Machines;(b)it will
5 keep the Machines in good repair and operating condition;
(c) it will promptly pay all taxes, interest and other charges
when levied or assessed upon the Machines or their
6 operation or use, or upon IBM,exclusive of taxes based on
IBM's net income, in connection with this Installment
PAYMENT PLAN II Payment Agreement; (d) it will promptly satisfy all liens
against the Machines; and (e) there are no mortgages,
Total Finance pledges,encumbrances,security interests, liens or charges
Periodic Payment Charge for of any kind by any party other than IBM or assigns upon the
(Total of Monthly Fiscal Period machines on which features, model upgrades, machine
Fiscal Payments for Monthly (Included in P9
Period Fiscal Period) Payment Payments) elements or accessories will be installed'subject to this
Installment Payment Agreement.
1 6,755.58 750.62 1,506.82
Insurance
2 9,007.44 750.62 1,795.63 The Customer further agrees to procure and maintain fire
insurance with extended coverage against loss, theft,
3 9,007.44 750.62 1,197.07 damage to or destruction of the Machines for the full
insurable value thereof for the duration of this Installment
Payment Agreement, the policy for such insurance being
4 9,007.44 750.62 548.81 endorsed to show loss payable to IBM and assigns as
respective interests may appear. Upon request,a certificate
5 2,251.86 750.62 29.43 of such insurance will be furnished to IBM or assigns.Any
proceeds received directly by IBM under such insurance
6 shall be credited to the payment required from the Custo-
mer pursuant to the Section entitled "Casualty Occur-
rences."'
The Periodic Payment for Period 1, which includes the
Tax on Finance Charge, if applicable, is due on the first
business day of the month following the Date of Installation Casualty Occurrences
or the Effective Date of Purchase, and the Periodic Pay- A Casualty Occurrence shall be deemed to exist if any of
ments for Periods 2 through 5 are due on the first the Machines shall be lost,stolen,irreparably damaged or
business day of each succeeding Fiscal Period.If Payment destroyed or otherwise rendered permanently unfit for use
Plan I has been chosen, payments must be made in full on from any cause whatsoever prior to the payment in full of
the due dates. If Payment Plan II has been chosen, the Total Time Sale Price. To the extent permitted by law,
payments must be made in equal consecutive monthly the Customer shall promptly pay to IBM a sum equal to the
installments,except that the first installment will include the aggregate Casualty Value of such Machines.
Tax on Finance Charge,if applicable, beginning on the due The Casualty Value of each Machine suffering a Casualty
dates and continuing on the corresponding day of each Occurrence shall be the sum of the unpaid balances of the
month of each Fiscal Period until fully paid. Payments State and Local Taxes, Unpaid Balance of Cash Price and
include Finance Charge in the appropriate amount in- Finance Charge at the time of such Casualty Occurrence
dicated above. and attributable to such Machine.The Finance Charge shall
The Customer having been offered the choice of pur- be adjusted by IBM to reflect the shorter payment period.
chasing at the foregoing Cash Price (plus applicable State Any money so paid shall be applied by IBM to reduce
and Local Taxes)or at the Total Time Sale Price has elected installments thereafter falling due so that such installments
to purchase at such Total Time Sale Price. represent only the payments due for the remaining Ma-
2120-279143(Rev.07/64)
UM 025 J Page x 01 e
chines.piny excess insurance paymer' eceived by IBM reasonable ;s attorney' and legal expenses. IBM will pay
'shall'be credited to the Customer. to the Customer any'drtion of the net proceeds in excess
of the unpaid Total Time Sale Price.
Events of Default In the event IBM repossesses and removes a feature,
Any one or more of the following are Events of Default:(a) model upgrade, machine element or accessory, it shall be
the Customer fails to pay when due any amount required to the Customer's responsibility to restore any remaining
be paid by the Customer hereunder and such failure shall information processing equipment to good working order.
continue for a period of seven days after the due date, The Customer agrees that IBM shall have no liability for
except as provided in the Section entitled"Funding"; (b)the damages caused by the repossession of such a feature,
Customer fails to procure and maintain insurance as model upgrade, machine element or accessory or by the
required in this Installment Payment Agreement; (c) the Customer's failure to fulfill such responsibilities. Further,
Customer fails to perform any other provisions hereunder IBM shall have no obligation to reimburse the Customer,
or violates any of the covenants or agreements made by the user or any other secured party for the cost of repair
Customer hereunder, and such failure or breach shall resulting from such removal.
continue for a period of 15 days after written notice is IBM may pursue any other remedy available at law or in
received by the Customer from IBM; or(d) any insolvency equity, including, but not limited to, seeking damages,
proceedings of any character, voluntary or involuntary, specific performance and an injunction. No right or remedy
shall be instituted by or against the Customer. is exclusive of any other provided herein or permitted by
Any failure of IBM to require strict performance by the law or equity. All such rights and remedies shall be
Customer or any waiver by IBM of any provision of this cumulative and may be enforced concurrently or individ-
Installment Payment Agreement shall not be construed as a ually from time to time.
consent or waiver of any other breach of the same or of any
other provision. Funding
Remedies Since the Customer intends to request the appropriation
of funds periodically to be paid for the Machines, if funds
If an Event of Default shall have occurred and be are not appropriated for the Customer for such Periodic
continuing, IBM or assigns may,to the extent permitted by Payment for any future Fiscal Period,the Customer will not
law, (a) recover from the Customer any and all amounts be obligated to pay the remainder of the Total Time Sale
then due and to be become due; (b)take possession of any Price due beyond the end of the then current Fiscal Period.
or all of the Machines,wherever located,without demand or Such event will not constitute an Event of Default. The
notice and without any court order or other process of law. Customer agrees to notify IBM in writing of such nonappro-
or render them unusable, and retain all prior payments as priation at the earliest possible time.
partial compensation for their use and depreciation; (c) In the event that funds are not appropriated as provided
require the Customer to assemble the Machines and make above and the Customer is unable to make further pay-
them available to IBM, freight prepaid, at any place in the ments due under this Installment Payment Agreement
continental United States specified by IBM:and/or(d)incur beyond the end of the then current Fiscal Period, IBM will,
reasonable attorney's fees and legal expenses in exercising within a reasonable time after the end of such Period,enter
any of its rights and remedies upon default which the and take the Machines from the Customer's premises and
Customer hereby agrees to pay. Upon repossession of will retain all sums previously paid by the Customer to IBM
such Machines, IBM may sell, lease or otherwise dispose of as partial compensation for machine use and depreciation;
any or all of the Machines in a commercially reasonable provided, however that upon the Customer's request, the
manner, with or without notice and by public or private Customer may, prior to such repossession, retain the
proceedings, and apply the net proceeds thereof towards Machines during a reasonable period agreed to by IBM at a
the amounts due under this Installment Payment Agree- monthly charge designated by IBM, beginning on the first
ment after deducting the reasonable expenses of retaking, day following the last-Fiscal Period for which payment has
holding and preparing for such disposition and deducting been made hereunder.
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Security Interest end Location of Machines unenforceable,the parties agree that the Machines shall be
To secure the payment of the Total Time Sale Price, IBM deemed to have been installed under IBM's State and Local
reserves a purchase money security interest in each of the Government LeasepPlanlpursuant t the terms and e condi-
reserves
Machines, and the Customer hereby grants a security tions applicablef IBM's e Leas le agreement and/or amendment c-
• interest in any substitutions,replacements,accessions,and iIBM's with thea Lease Plan Monthlyrthe Effectiveec, ve Date of
f
additions thereto and the proceeds thereof. Such interest Purchaseg Date aoines.l For the periodprr to such h
shall be satisfied by payment in full of the Total Time Sale of the Machines. For prior suan
Price. A copy of this Installment Payment Agreement may holding, IBM shallthe credit amounts the by theCus Lease Plan
be filed with appropriate state and local authorities, at any Monthly Chargall tPayment paid Agreement the and Customertonts
time after signature by the Customer, as a financing under this Installment and amounts
statement in order to perfect IBM's security interest. Such paid by the Customer for maintenance,property taxes and
filing does not constitute acceptance of this Installment insurance.omerAny anydeficiencydecreditsswill be to
butio the
no
Payment Agreement by IBM. The Customer also shall event shalll and nt due be due excess IBM; in ds
execute from time to time,alone or with IBM,any financing ppynany. In
the event be to IBM in inof funds
statements or other documents and do such other act or not availableaafrom the that the affected agrMaeement,
are
acts considered by IBM to be necessary or desirable to not timof IBM under,the Customera r rental agreement,at
perfect or protect the security interests hereby created.The the upon
such equitableholdig,the and IBM willChr agree
Machines shall remain personal property, not become the p perioda fair and to Lease Plan hMolding and, oother-
fixturesfo-
to real property, and be kept at: w s , thprior to andohiso ecti such shall appl and,wise, the provisions of this Section apply.
If any provision or provisions of this Installment Payment
760 Parkview Ave Agreement shall be held to be invalid,illegal or unenforce-
(Street address) able, and the preceding paragraph does not apply, the
Redding CA validity, legality and enforceability of the remaining provi-
(ci y) (County) (Slate) sions shall not in any way be affected or impaired thereby.
where IBM may inspect them at any reasonable time. THE CUSTOMER ACKNOWLEDGES THAT THE CUSTO-
MER HAS READ THIS AGREEMENT, UNDERSTANDS
General IT, AGREES TO BE BOUND BY ITS TERMS AND CON-
DITIONS, AND BY THE CUSTOMER'S SIGNATURE
If the Net Unit Price for any Machine is adjusted as BELOW, ACKNOWLEDGES THAT THE CUSTOMER IS
provided in the referenced Agreement, or the trade-in LEGALLY AUTHORIZED TO ENTER INTO THIS AGREE-
allowance for any trade-in equipment is adjusted as pro- MENT. FURTHER, THE CUSTOMER AGREES THAT
vided in an applicable IBM trade-in agreement, Items No. 1 THIS INSTALLMENT PAYMENT AGREEMENT, THE
through 11 in the Statement of Transaction and the REFERENCED AGREEMENT AND SUPPLEMENT AND
Payments herein agreed to be paid shall be adjusted, and ANY APPLICABLE IBM TRADE-IN AGREEMENT CON-
this Installment Payment Agreement shall be deemed to be STITUTE A SINGLE AGREEMENT AND THE COM-
amended accordingly. PLETE AND EXCLUSIVE STATEMENT OF THE AGREE-
The terms and conditions of this Installment Payment MENT BETWEEN THE CUSTOMER AND IBM, WHICH
Agreement shall prevail notwithstanding any variance with SUPERSEDES ALL PROPOSALS OR PRIOR AGREE-
the terms and conditions of the referenced Agreement. MENTS, ORAL OR WRITTEN, AND ALL OTHER COM-
Should this Installment Payment Agreement and/or the MUNICATIONS BETWEEN THE PARTIES RELATING
referenced Agreement be held by the courts to be invalid or TO THE SUBJECT MATTER HEREOF.
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Received by IBM at Sacramento/DH4 •
Bun Office Name/Number
By
Manager's Signature
Name(Type or Print) Date
Accepted by:
International Business Machines Corporation City of Redding
Customer
By By
Authorized Signature Authorized Signature
Name(Type or Print) Date Name(Type or Print) Date
PLEASE PRESS FIRMLY WITH BALL POINT PEN ON A HARD SURFACE FOR MAXIMUM LEGIBILITY.