HomeMy WebLinkAboutReso 1990-602 - Approving Installment Payment Agreement Aft
RESOLUTION NO. 9o-6c42.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE INSTALLMENT PAYMENT AGREEMENT DATED
NOVEMBER 13 , 1990 , AND FINANCING AGREEMENT PREPARED
NOVEMBER 20 , 1990 , BETWEEN THE CITY OF REDDING AND
INTERNATIONAL BUSINESS MACHINES CORPORATION, REFERENCE
AGREEMENT NO. G720172 , CUSTOMER NO. 7489602 , TO REPLACE THE
SYSTEM/38 COMPUTER WITH A NEWER AS/400 SYSTEM WITH EXPANSION
CAPABILITIES , AND AUTHORIZING THE CITY MANAGER TO SIGN ALL
NECESSARY DOCUMENTATION.
WHEREAS, it is deemed necessary for the City to expand its
information systems capacity by replacing the System/38 computer
with a newer AS/400 system with expansion capabilities; and
WHEREAS , presented herewith are the aforementioned
Installment Payment Agreement and Financing Agreement with IBM
for the necessary equipment;
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 November 13 ,
1990 , and Financing Agreement prepared November 20 , 1990 ,
Reference Agreement No. G720172 , Customer No. 7489602 , between
the City of Redding and International Business Machines
Corporation, true copies of which are attached hereto and
incorporated herein by reference, for the amounts and 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 Agreements 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 December, 1990 , and was
duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Arness, Fulton, Moss & Dahl
NOES : COUNCIL MEMBERS : None
ABSENT: COUNCIL MEMBERS: Buffum
ABSTAIN: COUNCIL MEMBERS: None
71,„e, Az_c__
MIKE DAHL, Vice Mayor
City of Redding
ATTEST:
ETHEL A. NICHOLS , City Clerk
FORM.`PPROVED:
RA0DALL A. HAYS , City Attorney
-2-
^HUM + nE•CU UMER NEED ONLY SIGN ONCE. PROVIDED THE CARBON TRANSFER OF
2. AFTER TYPING EACH SECTION.DETACH CARBONS FROM SECTIONS I AND 2 ONLY THE SIGNATURE APPEARS LEGIBLY ON THE REMAINING COPIES
? LEAVE CARBONS IN SECTION 3 INTACT UNTIL ALL SIGN TURES AFFIXED.
CUSTOMER'S NAME MUST AGREE,SECTIONS 1 AND 3.
International Business Machines Corporation Armonk, New York 10504
Installment Payment Agreement
(State and Local Government)
Name and Address of Customer. Reference Agreement No.: G720172
City of Redding
760 Parkview Avenue Reference Supplement Dated: 11/13/90
Redding, CA 96001
Agreement No.:
IBM Branch Office Address: IBM Branch Office No.: DH4
520 Capitol Mall Customer No.: 7489602
Sacramento, CA 95814
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$
Qty. Type Number(') Feature Description (Net Unit Price) Amount$
1 9406 2LQHCX B60 System Unit 232,249 232,249.00
1 2440 2LQHCY Al2 Mag Tape Subsystem 21,780 21,780.00
2 9309 2LQHCZ 002 Rack Enclosure 2,278 4,556.00
2LQHDB
1 5853 2LQHDC 001 Modem 532 532.00
3 9336 2LQHDD 010 DASD 31,820 95,460.00
2LQHDF
2LQHDG
1 9336 2LQHDH 010 DASD 19,240 19,240.00
1 5262 2LQHDJ 001 Line Printer 15,408 15,408.00
(•)An"•"indicates Machine Serial Number. TOTAL $ 389,225.00
Statement of Transaction
1. Cash Price (if this were a cash sale) $ 389,225.00
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) $ 389,225.00
6. State and Local Taxes, if applicable $ 24,326.56
7. Amount to be Financed (Sum of Items 5 and 6) $ 389,225.00
8. FINANCE CHARGE (Time Price Differential on Item 7). Finance Charge consists
of interest at an ANNUAL PERCENTAGE RATE of 7.28 % $ 73,486.60
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) $ 462,711.60
.. T ._. T: e l o.: ,o.... "s I. ..r A -,..a 1m Q 487,038. 16
I •
•
• • SECTION 2
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 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 38,559.30 7,711.86 9,060.79 tnaunuce
2 92,542.32 7,711.86 23,928.68 The Customer further agrees to procure and maintain fire
insurance with extended coverage against loss, theft,
3 92,542.32 7,711.86 18,763.51 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 92,542.32 7,711.86 13,209.54 endorsed to show loss payable to IBM and assigns as
respective interests may appear.Upon request,a certificate
5 92,542.32 7,711.86 7,237.45 of such insurance will be furnished to IBM or assigns.Any
proceeds received directly by IBM under such insurance
6 53,983.02 7,711.861,286.63 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 Cssuaffy Occurrence*
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 6 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 Pricerepresent only the payments due for the remainina Ma-
chines. Any excess insurance paym received by IBM reasonable attorney'aps and,legal expenses. IBM will pay
shall be credited to the Customer. to the Customer antion 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
Since the Customer intends to request the appropriation
Remedies 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.
•
Page 3 of 4
110
•
SECTION 3
Security Interest and Location of Machines unenforceable,the parties agree that the Machines shall be
To the payment of the Time Sale deemed to have been installed under IBM's State and Local
a securepthe payse money securityTotal interest est in each Price,oIBM the Government Lease Plan pursuant to the terms and condi-
reservesMachines, and the Customer hereby grants a security tions of IBM's applicable agreement and/or amendment at
interest in any substitutions,replacements,accessions,and ingIBwith theapplieaDable Lease Plan Monthly the EffectiveCharge , vDate of
additions thereto and the proceeds thereof. Such interest Purchase Date aoine Installation the to such h
shall be satisfied by payment in full of the Total Time Sale of the Machines. For period prior such
holding, IBM shall credit to the applicable Lease Plan
Price. A copy of this Installment Payment Agreement may
be filed with appropriate state and local authorities, at any Monthly Charges the amounts paid by the Customer to IBM
the Customer, under this Installment Payment Agreement and amounts
time after signature a financing
statement in order to perfect IBM's security interest. Such paid by theCustomer
for maintenance,property taxes and
filing does not constitute acceptance of this Installment insurance. Annyyexcess credits will be refunded to the
Payment Agreement by IBM. The Customer also shall Customer,and any deficiency shall be due to IBM;but in no
execute from time to time,alone or with IBM,any financing event shall any amount be due to IBM in excess of funds
statements or other documents and do such other act or appropriated.fromIn the event that the affected agrMaeement,
are
acts considered by IBM to be necessary or desirable to not available IBM under a lease or rental agreement,at
perfect protect the securitythe time of such holding,the Customer and IBM will agree
interests hereby created.The upon a fair and equitable Lease Plan Monthly Charge for
Machines shall remain personal property, not become the period prior to and following such holding and, other-
fixtures to real property, and be kept at: wise, the provisions of this Section shall apply.
If any provision or provisions of this Installment Payment
760 Parkview Avenue Agreement shall be held to be invalid,illegal or unenforce-
(street address) able, and the preceding paragraph does not apply, the.
Redding California validity, legality and enforceability of the remaining provi-
(c;a) (County) (State) 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
CON-
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.
Received by IBM at Sacramento/DH4
Branch Office Narne,Number
By
Managers Signature
Name(Type or Print) Date
Accepted by: Cityof Redding
International Business Machines Corporation $
Customer
By By
Authorized signature Authorized Signature
Name(Type or Print) Date Name(Type or Print) Date
IBM Credit Corporation Stamford,Connecticut 06904
Addendum to Agreement
(State and Local Government)
Tax-Exempt Status/IRS Reporting Requirements
Customer Name and Address: Date Prepared:
City of Redding Referenced Agreement No.: G720172
760 Parkview Avenue
Redding, CA 96001 Addendum No.:
IBM Branch Office Address: Customer No.: 7489602
520 Capitol Mall
Sacramento, CA 95814
IBM Credit Corporation and Lessee/Customer agree that the Financing Agreement, Installment Payment Agreement,
or Term Lease Master Agreement referenced above between the parties is hereby modified by adding the following
provision:
THE RATES IN THIS AGREEMENT ARE BASED ON THE LESSEE'S/CUSTOMER'S UNDERLYING DEBT OBLIGATION
QUALIFYING TO PAY INTEREST WHICH IS EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 103(a) OF THE
INTERNAL REVENUE CODE (Code). Accordingly, Lessee/Customer represents that it qualifies as a State or political
subdivision of a State for purposes of Section 103(a). Lessee/Customer agrees that any misrepresentation of its
status under Section 103(a) is an event of default under this agreement.
Further, Lessee/Customer agrees to comply promptly with all Information reporting requirements of Code Section
149(e) and Treasury Regulations thereunder. Lessee/Customer specifically agrees to file Internal Revenue Service
Form 8038-G or 8038-GC, whichever appropriate, for this transaction. If the Lessee/Customer either 1) does not file
the above IRS forms on a timely basis, or 2) is unable upon request to demonstrate to the satisfaction of IBM Credit
Corporation that the IRS has determined Lessee/Customer is qualified under Section 103(a) of the Code, then
Lessee/Customer shall pay, on demand by IBM Credit Corporation, a sum to be determined by IBM Credit Corpo-
ration that will return to IBM Credit Corporation the economic results it would otherwise have received.
Accepted by:
IBM Credit Corporation City of Redding
Lesseel(ustomer
By By
Authorized Signature Authorized Signature
Name(Type or Print) Date Name(Type or Print) Date
Z125-4149-01 6/89
.
•
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IBM Credit Corporation Stamford,Connecticut 06904
Addendum to Agreement
(State and Local Government)
Tax-Exempt Status/IRS Reporting Requirements
Customer Name and Address: Date Prepared:
City of Redding
760 Parkview Avenue Referenced Agreement No.: G720172
Redding, CA 96001
Addendum No.:
IBM Branch Office Address: Customer No.: 7489602
520 Capitol Mall
Sacramento, CA 95814
IBM Credit Corporation and Lessee/Customer agree that the Financing Agreement, Installment Payment Agreement,
or Term Lease Master Agreement referenced above between the parties is hereby modified by adding the following
provision:
THE RATES IN THIS AGREEMENT ARE BASED ON THE LESSEE'S/CUSTOMER'S UNDERLYING DEBT OBLIGATION
QUALIFYING TO PAY INTEREST WHICH IS EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 103(a) OF THE
INTERNAL REVENUE CODE (Code). Accordingly, Lessee/Customer represents that it qualifies as a State or political
subdivision of a State for purposes of Section 103(a). Lessee/Customer agrees that any misrepresentation of its
status under Section 103(a) is an event of default under this agreement.
Further, Lessee/Customer agrees to comply promptly with all information reporting requirements of Code Section
149(e) and Treasury Regulations thereunder. Lessee/Customer specifically agrees to file Internal Revenue Service
Form 8038-G or 8038-GC, whichever appropriate, for this transaction. If the Lessee/Customer either 1) does not file
the above IRS forms on a timely basis, or 2) is unable upon request to demonstrate to the satisfaction of IBM Credit
Corporation that the IRS has determined Lessee/Customer is qualified under Section 103(a) of the Code, then
Lessee/Customer shall pay, on demand by IBM Credit Corporation, a sum to be determined by IBM Credit Corpo-
ration that will return to IBM Credit Corporation the economic results it would otherwise have received.
Accepted by:
IBM Credit Corporation City of Redding
Lessee/Customer
By By
Authorized Signature Authorized Signature
Name(Type or Print) Date Name(Type or Print) Date
Z125-4149-01 6/89