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HomeMy WebLinkAboutR-2010-083 City Telephone System Purchase Lease; Budget Amendment and Funds AllocationA RESOLUTION RESOLUTION NO. R-2010-83 of the City of Yakima, Washington, approving and directing the City Manager to execute the attached Municipal Lease / Purchase Agreement with Key Government Finance, Inc for the lease on a new telephone system. WHEREAS, the City has determined that it was necessary to replace it's existing telephone system with a new telephone system; and WHEREAS, the City has determined that it is advisable to lease the Cerium Network telephone system through a lease/purchase agreement with Key Government Finance, Inc; NOW, THEREFORE, BE IT RESOLVED by the City of Yakima, Washington, as follows: Section 1. Approval of Documents. The proper officers of the City are hereby authorized to execute the attached Municipal Lease Purchase Agreement and accompanying exhibits on behalf of the City of Yakima, in substantially the form attached hereto. The above - listed agreements shall be amended only with the approval of the City. Section 2. Authorization of Documents. The City Manager is hereby authorized to execute the documents relating to financing the telephone system. The City Manager, Director of Finance and Budget, and each of the other appropriate officers, agents and representatives of the City are each hereby authorized and directed to take such steps, to do such other acts and things, and to execute such letters, certificates, agreements, papers, financing statements, assignments or instruments as in their judgment may be necessary, appropriate or desirable in order to carry out the terms and provisions of, and complete the transactions contemplated by this resolution. Section 3. Prior Acts. All acts taken pursuant to the authority of this resolution but prior to its effective date are hereby ratified and confirmed. Section 4. Effective Date. This resolution shall be in effect from and after its adoption in accordance with law. ADOPTED BY THE CITY COUNCIL of the City of Yakima, Washington at a regular meeting thereof, held this 15th day of June, 2010. ATTEST Micah Cawley, M yor APPROVED AS TO FORM: City Attorney R-2016 —83 Property Schedule No. 7 Master Tax -Exempt Installment Purchase Agreement This Property Schedule No. 7 is entered into as of the Commencement Date set forth below, pursuant to that certain Master Tax - Exempt Installment Purchase Agreement (the "Master Agreement"), dated as of 10/15/2003, between Key Govemment Finance, Inc., and City of Yakima. 1. Interpretation. The terms and conditions of the Master Agreement are incorporated herein by reference as if fully set forth herein. Reference is made to the Master Agreement for all representations, covenants and warranties made by Purchaser in the execution of this Property Schedule, unless specifically set forth herein. In the event of a conflict between the provisions of the Master Agreement and the provisions of this Property Schedule; the provisions of this Property Schedule shall control. All capitalized terms not otherwise defined herein shall have the meanings provided in the Master Agreement. 2. Commencement Date. The Commencement Date for this Property Schedule is 9/30/2010 3 Property Description and Payment Schedule. The Property subject to this Property Schedule is described in Exhibit 1 hereto. Purchaser shall not remove such property from the locations set forth therein without giving prior written notice to Seller The Installment Payment Schedule for this Property Schedule is set forth in Exhibit 1 4 Opinion The Opinion of Purchaser's Counsel is attached as Exhibit 2. 5. Purchaser's Certificate. The Purchaser's Certificate is attached as Exhibit 3. 6. Proceeds. Seller shall disburse the proceeds of this Property Schedule in accordance with the instructions attached hereto as Exhibit 4 7 Acceptance Certificate. The form of Acceptance Certificate is attached as Exhibit 5. 8. Additional Purchase Option Provisions. In addition to the Purchase Option provisions set forth in the Master Agreement, Installment Payments payable under this Property Schedule shall be subject to prepayment as follows: See termination amount in Exhibit 1 (Payment Schedule), subject to per diem adjustment. 9. Bank Qualified Tax Exempt Obligation. Attached as Exhibit 6. 10 Expiration. Seller, at its sole determination, may choose not to accept this Property Schedule if the fully executed, original Agreement (including this Property Schedule all ancillary documents) are not received by Seller at its place of business by 8/6/2010. IN WITNESS WHEREOF, Seller and Purchaser have caused this Property Schedule to be executed in their names by their duly authorized representatives as of the Commencement Date above. Seller: Key Govemment Finance, inc. By. AN Name: Name i MYRA AKSAM T Title CONTRACTS MANAGER CITY CONTRACT NO: .249/0 - ((00 RESOLUTIONR -20/D —OS3 Purchaser: City of Yakima By. AN Name: R.A. Zais, Jr. Title. City Manager KEN -CORP CONFIDENTIAL. — This is counterpart # ;2- of 2 manual/' executed counterparts. Only counterpart 41 constitutes chattcl paper. EXHIBIT 1 Property Description and Payment Schedule Re: Property Schedule No. 7 to Master Tax -Exempt Installment Purchase Agreement between Key Government Finance, Inc., and City of Yakima. The Property is as follows: The Property as more fully described in Exhibit A incorporated herein by reference and attached hereto. EQUIPMENT LOCATION: 129 N. Second St., Yakima, WA 98902 USE: Transportation operations - This use is essential to the proper, efficient and economic functioning of Purchaser or to the services that Purchaser provides; and Purchaser has immediate need for and expects to make immediate use of substantially all of the Property, which.need is not temporary or expected to diminish in the foreseeable future. Installment Payment Schedule If the Due Dates are not defined in this Installment Payment Schedule, they shall be defined as the last day of each quarterly period of this Installment Payment Schedule commencing with the Acceptance Date. Total Principal Amount $98,288.49 Payment No. Due Date Payment Principal, Interest Prepayment Amount Portion Portion Balance 1 30 -Oct -2010 2,909.31 2,567.75 341.56 98,592.36 2 30 -Nov -2010 2,909.31 2,576.68 332.63 95,938.38 3 30 -Dec -2010 2,909.31 2,585.63 323.68 93,275.18 4 30 -Jan -2011 2,909.31 2,594.62 314.69 90,602.73 5 28 -Feb -2011 2,909.31 2,603.63 305.68 87,920.98 6 30 -Mar -2011 2,909.31 2,612.68 296.63 85,229.92 7 30 -Apr -2011 2,909.31 2,621.76 287.55 82,529.51 8 30 -May -2011 2,909.31 2,630.87 278.44 79,819.72 9 30 -Jun -2011 2.909.31 2,640.02 269.29 77,100.50 10 30 -Jul -2011 2,909.31 2,649.19 260.12 74,371.84 11 30 -Aug -2011 . 2,909.31 2,658.39 250.92 71,633.70 12 30 -Sep -2011 2,909.31 2,667.63 241.68 68,886.04 13 30 -Oct -2011 2,909.31 2,676.90 232.41 66,128.83 14 30 -Nov -2011 2,909.31 2,686.20 223.11 63,362.04 15 30 -Dec -2011 2,909.31 2,695.54 213.77 60,585.64 16 30 -Jan -2012 2,909.31 2,704.90 204.41 57,799.59 17 29 -Feb -2012 2,909.31 2,714.30 195.01 55,003.86 18 30 -Mar -2012 2,909.31 2,723.74 185.57 52,198.41 19 30 -Apr -2012 2,909.31 2,733.20 176.11 49,383.21 20 30 -May -2012 2,909.31 2,742.70 166.61 46,558.23 21 30 -Jun -2012 2,909.31 2,752.23 157.08 43,723.44 22 30 -Jul -2012 2,909.31 2,761.79 147.52 40,878.79 23 30 -Aug -2012 2,909.31 2,771.39 137.92 38,024.26 24 30 -Sep -2012 2,909.31 2,781.02 128.29 35,159.81 25 30 -Oct -2012 2,909.31 2,790.69 118.62 32,285.40 26 30 -Nov -2012 2,909.31 2,800.38 108.93 29,401.01 27 30 -Dec -2012 2,909.31 2.810.22 99.19 26,506.59 28 30 -Jan -2013 2,909.31 2.819.88 89.43 23,602.12 29 28 -Feb -2013 2,909.31 2,829.68 79.63 20,687.55 30 30 -Mar -2013 2,909.31 2,839.51 69.80 17,762.85 31 30 -Apr -2013 2,909.31 2.849.38 59.93 14,827.99 32 30 -May -2013 2,909.31 2,859.28 50.03 11,882.93 KEYCORP CONFIDENTIAL. - This is counterpart # a2 of manually executed counterparts. Only counterpart 1 constitutes chattel paper. 33 30 -Jun -2013 2.909.31 2,869.22 40.09 8,927.64 • 34 30 -Jul -2013 2,909.31 2,879.19 30.12 5,962.08 35 • 30 -Aug -2013 2,909.31 2,889.19 20.12 2,986.21 36 ' 30 -Sep -2013 2,909.31 2,899.23 10:08 0.00 . Purchaser: City of Yakima C_ By: ---— Name: R.A. Zais Jr. Title: Ci ty Manaoar KEYCORP CONFIDENTIAL — This is counterpart 4 of .2 manually executed counterparts. Only counterpart # 1 constitutes chattel paper. EXHIBIT A Property Description As desidbed in the Cerium Networks Quote - Project # CERQ32937-A dated June 28, 2010 for Avaya Communications System KEYCOR/CONFIDEMlAL — flus is counterpart # / of manually executed counterparts Only counterpart #1 constitutes chattel paper LEGAL DEPARTMENT' 200 South Third Street Yakima, Washington 98901-2830 July 15, 2010 Key Government Finance, Inc. Attn: Janice Thoman 1000 South McCaslin Boulevard Superior, CO 80027-9456 City of Yakima Attn: Dick Zais, City Manager 129 North Second Street Yakima, WA 98901 RE: Property Schedule No.7 to Master Tax -Exempt Installment Purchase Agreement between Key Government Finance, Inc. and City of Yakima. Ladies and Gentlemen: The City Legal Department is the legal counsel for the City of Yakima ("Purchaser"), in connection with the Master Tax -Exempt Installment Purchase Agreement, dated as of 10/15/2003 (the "Master Agreement"), between City of Yakima, as Purchaser, and Key Government Finance, Inc. as Seller ("Seller"), and the execution of Property Schedule No. 7 (the "Property Schedule") pursuant to the Master Agreement. We have examined the law and such certified proceedings and other papers as we deem necessary to render this opinion. All capitalized terms not otherwise defined herein shall have the meanings provided in the Master Agreement and Property Schedule. As to questions of fact material to our opinion, we have relied upon the representations of Purchaser in the Master Agreement and the Property Schedule and in the certified proceedings and other certifications of public officials furnished to us without undertaking to verify the same by independent investigation. Based upon the foregoing, we are of the opinion that, under existing law: 1 Purchaser is a public body corporate and politic, duly organized and existing under the laws of the State, and has a substantial amount of one or more of the following sovereign powers: (a) the power to tax, (b) the power of eminent domain, and (c) the police power. 2. Purchaser has all requisite power and authority to enter into the Master Agreement and the Property Schedule and to perform its obligations thereunder. Civil Division (509) 575-6030 • Criminal Division (509) 575-6033 • Fax (509) 575-6160 Yakima 11 TIP ' 1111! Key Government Finance, Inc. Attn: Janice Thoman July 15, 2010 Page 2 3. The execution, delivery and performance of the Master Agreement and the Property Schedule by Purchaser has been duly authorized by all necessary action on the part of Purchaser. 4. All proceedings of Purchaser and its governing body relating to the authorization and approval of the Master Agreement and the Property Schedule, the execution thereof and the transactions contemplated thereby have been conducted in accordance with all applicable open meeting laws and all other applicable state and federal laws. 5. Purchaser has acquired or has arranged for the acquisition of the Property subject to the Property Schedule, and has entered into the Master Agreement and the Property Schedule, in compliance with all applicable public bidding laws. 6. Purchaser has obtained all consents and approvals of other governmental authorities or agencies which may be required for the execution, delivery and performance by Purchaser of the Master Agreement and the Property Schedule. 7. The Master Agreement and the Property Schedule have been duly executed and delivered by Purchaser and constitute legal, valid and binding obligations of Purchaser, enforceable against Purchaser in accordance with the terms thereof, except insofar as the enforcement thereof may be limited by any applicable bankruptcy, insolvency, moratorium, reorganization or other laws of equitable principles of general application, or of application to municipalities or political subdivisions such as the Purchaser, affecting remedies or creditors' rights generally, and to the exercise of judicial discretion in appropriate cases. 8. As of the date hereof, based on such inquiry and investigation as we have deemed sufficient, no litigation is pending, (or, to our knowledge, threatened) against Purchaser in any court (a) seeking to restrain or enjoin the delivery of the Master Agreement or the Property Schedule or of other agreements similar to the Master Agreement; (b) questioning the authority of Purchaser to execute the Master Agreement or the Property Schedule, or the validity of the Master Agreement or the Property Schedule, or the payment of principal of or interest on, the Property Schedule; (c) questioning the constitutionality of any statute, or the validity of any proceedings, authorizing the execution of the Master Agreement and the Property Schedule; or (d) affecting the provisions made for the payment of or security for the Master Agreement and the Property Schedule. 9. The Purchaser is a political subdivision within the meaning of Section 103 of the Internal Revenue Code of 1986, as amended, and the related regulations and rulings thereunder, and the portion of payments identified as the interest component of the Installment Payments (as set forth in the payment schedule attached to the Property Schedule) will not be includable in Federal gross income of the recipient under the statutes, regulations, court decisions and rulings existing on the date hereof and consequently will be exempt from Federal income taxes. Key Government Finance, Inc. Attn: Janice Thoman July 15, 2010 Page 3 This opinion may be relied upon by Seller, its successors and assigns, and any other legal counsel who provides an opinion with respect to the Property Schedule. Very truly yours, 44/er— Jeff Cutter City Attorney JC/pm EXHIBIT 3 Purchaser °s Certificate Re. Property Schedule No. 7 to Master Tax -Exempt Installment Purchase Agreement between Key Government Finance, Inc. and City of Yakima. The undersigned, being the duly elected, qualified and acting keeper of records for the City of Yakima ('Purchaser ") do hereby certify, as of 9/30/2010, as follows: 1.' Purchaser did, at a meeting of the governing body of the Purchaser held 7/6/10 by resolution or ordinance duly enacted, in accordance with all requirements of law, approve and authorize the execution and delivery of the above -referenced Property Schedule (the "Property Schedule") and the Master Tax -Exempt Installment Purchase Agreement (the "Master Agreement") by the following named representative of Purchaser, to wit: NAMEOF EXECUTING OFFICIAL (Official who signed the documents.) TITLESIGNATURE OF EXECUTING OFFICIAL OF EXECUTING OFFICIAL R.A. Zais, Jr. City Manager And/ Or 2. The above-named representative of the Purchaser held at the time of such authorization and holds at the present time the office set forth above. 3. The meeting(s) of the governing body of the Purchaser at which the Master Agreement and the Property Schedule were approved and authorized to be executed was duly called, regularly convened and attended throughout by the requisite quorum of the members thereof, and the enactment approving the Master Agreement and the Property Schedule and authorizing the execution thereof has not been altered or rescinded All meetings of the governing body of Purchaser relating to the authorization and delivery of Master Agreement and the Property Schedule have been. (a) held within the geographic boundaries of the Purchaser; (b) open to the public, allowing all people to attend, (c) conducted in accordance with internal procedures of the governing body; and (d) conducted in accordance with the charter of the Purchaser, if any, and the laws of the State. 4 No event or condition that constitutes, or with the giving of notice or the lapse of time or both would constitute, an Event of Default (as such term is defined in the Master Agreement) exists at the date hereof with respect to this Property Schedule or any other Property Schedules under the Master Agreement. 5. The acquisition of all of the Property under the Property Schedule has been duly authorized by the governing body of Purchaser. 6. Purchaser has, in accordance with the requirements of law, fully budgeted and appropriated sufficient funds for the current budget year to make the Installment Payments scheduled to come due during the current budget year under the Property Schedule and to meet its other obligations for the current budget year and such funds have not been expended for other purposes. 7. As of the date hereof, no litigation is pending, (or, to my knowledge, threatened) against Purchaser in any court (a) seeking to restrain or enjoin the delivery of the Master Agreement or the Property Schedule or of other agreements similar to the Master Agreement; (b) questioning the authority of Purchaser to execute the Master Agreement or the Property Schedule, or the validity of the Master Agreement or the Property Schedule, or the payment of principal of or interest on, the Property Schedule; (c) questioning the constitutionality of any statute, or the validity of any proceedings, authorizing the execution of the Master Agreement and the Property Schedule, or (d), affecting the provisions made for the payment of or security for the Master Agreement and the Property Schedule. City of Yakima By: Title. ' SOIVIEONE:.OTHER-THAN:T . E`EXECIJTING'"OFFICIAL(S) SHOWN ABOVE, MUST: SIGN_ HERE "`.` ITEM TITLE: BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 1c- 19 For Meeting of: -864-45f16— Legislation regarding the lease purchase of a new City telephone system: A. A Resolution approving and authorizing a new purchase lease for the City's telephone system pursuant to the Municipal Lease /Purchase Agreement with Key Government Finance Inc. B. An ordinance amending the 2010 Budget and making an appropriation in the 151 - Public Safety Communications Fund to purchase a telephone system SUBMI I 1"ED BY: Wayne Wantland, 911 Director/Communications Manager 575-6048 Jon Lorberau, Treasury Services Officer, 575-6024 7 Cindy Epperson, Deputy Director of Accounting & Budgeting /5 $,I4V tvf CONTACT PERSON: Wayne Wantland, 911 Director/Communications Manager 575-6048 SUMMARY EXPLANATION: The City's existing telephone system utilizes 1990's era equipment, which lacks modern features and the system has become prone to periodic failure. While limited upgrades have been done, there are approximately 200 units still reliant on old technology. Cerium Technologies in conjunction with the Communications Department has put together a system upgrade that not only addresses the current system's interdepartmental incompatibility issues, but also enhances our system with the new generation of telephone features and capabilities. Installation of this system will solve the instability issues of the City's existing system, adds enhanced voice mail services and auto - attendant features, and standardizes systems among the various City departments. Continued on next page Resolution X Ordinance X Other (Contract) Municipal Lease Purchase Agreement Mail to (name and address): Key Government Finance, Inc P.O. Box 1187 Englewood, CO FUNDING SOURCE: Capital Izse in Public Safety Communications Fund -151 APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: A) Adopt Resolution; B) Read Ordinance by title only at the June 15, 2010 Council Meeting. Pass Ordinance after the second reading at the July 6, 2010 Council Meeting. BOARD/COMMISSION RECOMMENDATION: The Council Public Safety Committee was briefed on the need for this equipment at their May 19th meeting, and recommended that it be brought forward for consideration by the full Council. COUNCIL ACTION: ACTION: Ordinance passed. ORDINANCE NO. 2010-30 The enclosed Resolution, if approved by Council, authorizes a lease/purchase arrangement with Key Government Finance, Inc for the telephone system. Financing will be provided under this agreement as per the payment schedule/terms in the attached lease agreement. This is a three-year installment agreement to purchase equipment that has an estimated cost of $100,000 at an interest rate of 4.17%. Monthly payments will be about $2,948 for an annual amount of $35,377. Three bids from Key Bank, US Bancorp and Avaya Leasing were reviewed and Key Bank offered the best balance of rate and term, although the US Bank offer was very close. This loan, if approved by Council, will close and be completed by July 31, 2010. The enclosed Ordinance to amend the 2010 budget is required to authorize the acceptance of funds from the financing lease and appropriates the full cost of the proposed telephone system. Note: This is a housekeeping transaction to complete the financing of the telephone system. The lease payment of approximately $35,377 a year can be paid within the current telephone budget (421 accounts) while leaving some ongoing money available for continued replacement of older telephone sets. As this technically represents a financing, accounting rules require that the full cost of the equipment (approximately $100,000) be appropriated in this year's budget even though the payments in 2010 will be approximately 1/6 of the total costs. The attached appropriation ordinance is balanced in the Public Safety Communications Fund, as the financing is considered a source of revenue, which is then being used to purchase the equipment. Appropriation for the monthly payments is already available in the current telephone budget. Page 2 of 2 A RESOLUTION RESOLUTION NO. R-2010-83 of the City of Yakima, Washington, approving and directing the City Manager to execute the attached Municipal Lease / Purchase Agreement with Key Government Finance, Inc for the lease on a new telephone system. WHEREAS, the City has determined that it was necessary to replace it's existing telephone system with a new telephone system; and WHEREAS, the City has determined that it is advisable to lease the Cerium Network telephone system through a lease/purchase agreement with Key Government Finance, Inc; NOW, THEREFORE, BE IT RESOLVED by the City of Yakima, Washington, as follows: Section 1. Approval of Documents. The proper officers of the City are hereby authorized to execute the attached Municipal Lease Purchase Agreement and accompanying exhibits on behalf of the City of Yakima, in substantially the form attached hereto. The above - listed agreements shall be amended only with the approval of the City. Section 2. Authorization of Documents. The City Manager is hereby authorized to execute the documents relating to financing the telephone system. The City Manager, Director of Finance and Budget, and each of the other appropriate officers, agents and representatives of the City are each hereby authorized and directed to take such steps, to do such other acts and things, and to execute such letters, certificates, agreements, papers, financing statements, assignments or instruments as in their judgment may be necessary, appropriate or desirable in order to carry out the terms and provisions of, and complete the transactions contemplated by this resolution. Section 3. Prior Acts. All acts taken pursuant to the authority of this resolution but prior to its effective date are hereby ratified and confirmed. Section 4. Effective Date. This resolution shall be in effect from and after its adoption in accordance with law. ADOPTED BY THE CITY COUNCIL of the City of Yakima, Washington at a regular meeting thereof, held this 15th day of June, 2010. ATTEST: /s/ Deborah Kloster City Clerk APPROVED AS TO FORM: City Attorney /s/ Micah Cawley Micah Cawley, Mayor Certified to be a true and correct copy cT� plies original filed in my office. PT\�''� CITY CL•"I. B AN ORDINANCE ORDINANCE NO. 2010-30 amending the 2010 budget for the City of Yakima; and making an appropriation of $100,000 within the 151 — Public Safety Communications Fund for expenditure during 2010 to provide for the lease purchase of a replacement telephone system. WHEREAS, the amount of $100,000 must be appropriated within the 151 — Public Safety Communications Fund for expenditure during 2010 to provide for the lease purchase of a replacement telephone system, and WHEREAS, at the time of the adoption of the 2010 budget it could not reasonably have been foreseen that the appropriation provided for by this ordinance would be required; and the City Council declares that an emergency exists of the type contemplated by RCW 35.33.091 and that it is in the best interests of the City to make the appropriation herein provided, now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1: The amount of $100,000 is hereby appropriated from the Unappropriated Fund Balance in the 151 — Public Safety Communications Fund to the following accounts as a 2010 appropriation: Resources: Capital Lease Financing---- 151 -151 -124 -0000 -39150 -CLF —$100,000 Expenditures: Leased Equipment--------------- 151-151-124-0000-59428-660 — $100,000 Section 2: This ordinance is one making an appropriation and shall take effect immediately upon its passage, approval and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 6th day of July, 2010. ATTEST: ,.:41 CITY CLERK First Reading: June 15, 2010 Publication Date: Effective Date: July 9, 2010 August 8, 2010 MICAH CAWLEYJMAYOR fled to be a tree end correct copy of the original filed lc my office. C1TY CLERK By Cje ORD NO 2010-30 New telephone system purchase doc 7/12/2010 EXHIBIT 4 Payment ofProceeds Instructions Key Govemment Finance, Inc. 1000 South McCaslin Blvd. Superior, CO 80027 Re. Property Schedule No. 7 (the "Property Schedule") to Masts Tax -Exempt Installment Purchase Agreement between Key Govemment Finance, Inc. ("Seller "), ander of Yakima ("Purchaser") Ladies and Gentlemen* The undersigned, an Authorized Representative of the Purchaser hereby requesltand authorizes Seller to disburse the net proceeds of the Property Schedule as follows: Name of Payee: Cerium Networks By check XXX By wire transfer City of Yakima By: Name R. A. Zais. Jr. Title: City Manager EXHIBIT 6 Key Govemment Finance, Inc. 1000 South McCaslin Blvd. Superior, CO 80027 Bank Qualified Tax -Exempt Obligation Re: Property Schedule No. 7 to Master Tax -Exempt Installment Purchase Agreement between Key Government Finance, Inc. and City of Yakima Qualified Tax -Exempt Obligation Purchaser hereby designates this Property Schedule as a "qualified tax-exempt obligation" as defined in Section 265(b)(3)(B) of the Code. Purchaser reasonably anticipates issuing tax-exempt obligations (excluding private activity bonds other than qualified 501(c)(3) bonds and including all tax-exempt obligations of subordinate entities of the Purchaser) during the calendar year in which the Commencement Date of this Property Schedule falls, in an amount not exceeding $30,000,000. Purchaser: City of Yakima By l/ 3.(111.Ah-ra->"... Name: Cindy Epperson Title: Asst. Di rPrtnr Fi nanrP Arrt **Please fill out this form and fax it to your insurance company*" Request for Certificate of Insurance TO: Insurance Carrier: (Name) (Address) (Contact Name) tit I .Ji e M k j V a l�-� ? I C-k'e71 (Contact. Phone) SU ri a y g 7 y n (Contact Fax) SD 9 ' a q • "I 0O7 FROM: Customer/Purchaser: City of Yakima 129 N 2nd St. Yakima, WA 98901-2613 Contact Name: Mr. Jon Lorberau Contact Phone: 509-575-6024 Contact Fax: 509-575-6364 City of Yakima is in the process of financing Communication equipment with Key Government Finance, Inc. $98,288.49 City of Yakima requests that Key Govemment Finance, Inc. be listed as "Key Govemment Finance, Inc., their successors and assigns" and that it be named ADDITIONAL INSURED as to liability coverage and LOSS PAYEE as to property coverage A copy of said certificate should be forwarded to Key Govemment Finance, Inc. as described below. NOTE: Coverage is to include: (1) (2) (3) insurance against all risks of physical loss or damage to the Equipment; commercial general liability insurance (including blanket contractual liability coverage and products liability coverage) for personal and bodily injury and property damage of not less than $1,000,000; and if applicable, automobile liability coverage of not less than $3,000,000. Key Govemment Finance, Inc. is to receive 30 days prior written notice of cancellation or material change in coverage. Qualifying language such as "endeavor to provide"; "but failure to do so shall impose no obligation or liability of any kind upon the insurer, its agents or representative" or the like will NOT be accepted and will delay funding. ❑ 1. Please FAX this completed information to: Key Govemment Finance, Inc. Janice Thoman, Account Manager Phone Number: 720-304-1636 Fax Number: 866-840-3016 ❑ 2. Please MAIL a Certificate of Insurance to: Key Govemment Finance, Inc. Janice Thoman 1000 S. McCaslin Boulevard Superior, CO 80027 ❑ 3. Please CONTACT the Account Manager ✓ When faxing this Certificate. 1 If this cannot be completed today ✓ If you have any questions. ACORD. CERTIFICATE OF PROPERTY INSURANCE. DATE (MMIDOIYYI PRODUCER WELLS FARGO INS SERVICES USA INC. PO Box 2547 Yakima, WA 98907 (509)248-7460 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY ANO CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. TYPE OF INSURANCE COMPANIES AFFORDING COVERAGE coMPANY A Affiliated FM Insurance Corp. INSURED City of Yakima 129 N. 2nd Street Yakima, WA 98901 I COMPANt B LINTS COMPANY C X ( PROPERTY COMPANY D 1/10/10 • rn.w 1 V VCR 11rr 1 nn 1 1 nc r ,ut;ltw ur InJurwnl:t Us 1 EU ISELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POUCIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POUCIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS, CO Lot TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE IMWDOD/Y) POLICY EXPIRATION DATE(MW0onr COVERED PROPERTY LINTS A X ( PROPERTY P5379 1/10/10 1/10/11 BUILDING s CAUSES OF LOSS PERSONAL PROPERTY S — BASIC _• BUSINESS INCOME S BROAD EXTRA EXPENSE $ X SPECIAL EARTHQUAKE FLOOD ~— BLANKET BUILDING s BLANKET PERS PROP BLANKET BLDG a PP $ X $ 98 , 2 8 9 s s rYPE INLAND MARINE OF POUCY — $ ,J s --1 CAUSES OF LOSS NAMED PERILS OTHER $ s $ $ I CRIME ---, $ TYPE OF POLICY s s. EOILER a MACHINERY —1 $ s OTHER LOCATION OP PRENISESIOESCRIPTION OF PROPERTY CERTIFICATE HOLDER IS INCLUDED AS LOSS PAYEE REGARDING A NEW AVAYA AURA PHONE SYSTEM. SPECIAI. CONDITION&DTNER COVERAGES CERTIFICATE. HOLDER Key Government Finance 1000 S. McCaslin Blvd. !Superior, CO 80027 ACORD 24 (1/95) ' CANCELLA710N;,�. SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE !WRUNG COMPANY WILL ENDEAVOR TO MAIL LO DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER HAYED TO THE LEFT. BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABWTY OF ANY KIND UPON THE COMPANY, ITS AGENTS OR REPRESENTATIVES. AUTHORIZE,DD,�- REPRESENTATIVE 0 AC CORPORATION 1995 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE MEMORANDUM OF COVERAGE (MOC) BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE SSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT if the certificate holder is an ADDITIONAL INSURED, the MOC must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the MOC, certain coverage may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s), PittbUttRe CANFIELD 18106 140TH AVENUE N.E. WOODINVILLE, WA 98072-6874 PHONE (425) 482-6767 FAX (425) 482-2777 kNSURED: City of Yakima 129 N. 2nd Street Yakima, WA 98901 GENERAL LIABILITY CIAW / Munich Re CIAW / Torus Specialty Insurance Company AUTOMOBILE LIABILITY CIAW / Munich Re CIAW / Torus Specialty Insurance Company PROPERTY CIAW / Munich Re CRIME 1 PUBLIC EMPLOYEE DISHONESTY CIAW / Munich Re cOvgRA6.60_ THIS IS TO CERTIFY THAT THE COVERAGES LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE COVERAGE PERIOD INDICATED, NOT WITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF CONTRACT OR OTHER DOCUMENT WTH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE MOC DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH MOC. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. tYPE:O iNWUMN >r°'... MOP: NU hi3J {:.. , .... MOC ....:..... ,MDC BXP...:........... tl S#jiQlPT1ON .... :040.4: - OENERA4.LtABILITY ..... COMMERCIAL GENERAL LIABILITY CIAW101134514 09/01/2010 OCCURRENCE FORM INCLUDES STOP GAP (LIABILITY IS SUBJECT TO A $ 100,000 SIR PAYABLE FROM PROGRAM FUNDS) 09/01/2011 GENERAL AGGREGATE PRODUCT-COMP/OP AGG PERSONAL & ADV INJURY EACH OCCURRENCE ANNUAL PROGRAM AGGREGATE $25,000,000 $25,000,000 $15,000,000 $15,000,000 $50,000,000 A UT.O MOBI LE ;LIABILITY ANY AUTO CIAW101134514 09/01/2010 (LIABILITY IS SUBJECT TO A $ 100,000 SIR PAYABLE FROM PROGRAM FUNDS) 09/01/2011 COMBINED SINGLE LIMIT ANNUAL PROGRAM AGGREGATE $15,000,000 $50,000,000 PROPERTY.. CIAW101134514 09/01/2010 (PROPERTY IS SUBJECT TO A $ N/A SIR PAYABLE FROM PROGRAM FUNDS' 09/01/2011 ALL RISK PER OCC EXCL EQ & FL EARTHQUAKE PER OCC FLOOD PER OCC ANNUAL PROGRAM AGGREGATE EXCLUDED Declined Declined NONE CRIMEIPUBLIC EMPLOYEE:DISHONESTY CIAW101134514 09/01/2010 09/01/2011 $1,000,000 OESCRIP:TION OP: pPERATIONSJ.LOCATIONS:I.VEHICL.E$ISPECIAL.ITEM$:,. Certificate Holder is named as an Additional Insured with regard to purchase of a AVAYA AURA Phone System, subject to coverage terms, conditions and exclusions. Additional Insured Endorsement attached. CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED COVERAGE BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE PROVISIONS OF THE MOC. : CE RTCFIOATE. H.tlLDER: AUTHORIZED REPRESENTAT)VE: Key Government Finance 1000 S. McCaslin Blvd. Superior, CO 80027 Gaiknq 44ax—) 2468030 ADDITIONAL INSURED ENDORSEMENT THIS ENDORSEMENT MODIFIES INSURANCE PROVIDED UNDER THE FOLLOWING: GENERAL LIABILITY COVERAGE PART How Coverage is Changed It is agreed that the interest of any Additional Insured Loss Payee, or Mortgagee is recognized as their interests may appear, providing the certificate of insurance that this is attached to has been issued and is on file with the Company. Other terms: All other terms of your Memorandum of Coverage remain the same. CIAW 9/1 [1011] Doc #: 2468030 Notification of Tax Treatment Key Government Finance, Inc. is required to collect and remit sales/use tax in the taxing jurisdiction where your equipment will be located. In the event we do not receive a valid sales tax exemption certificate prior to the date your financing commences, you will be charged sales/use tax. Personal property tax returns will be filed as required by local law. In the event that any tax abatements or special exemptions are available on the equipment you will be leasing from us, please notify us as soon as possible and forward the related documentation to us. This will ensure that your financed equipment will be reported correctly. Please indicate below if you feel that your purchase is subject to tax or whether a valid exemption exists X I agree that my purchase is subject to sales/use tax. I am exempt from sales/use tax and I have attached a completed exemption certificate to Key Govemment Finance, Inc. I have previously provided a completed exemption certificate to Key Govemment Finance, Inc. which is valid for this transaction am exempt from state tax but subject to local tax. I have attached a completed exemption certificate. I have a valid abatement or property tax exemption (documentation attached). If applicable to the tax rates in your state, are you outside the city limits or in an unincorporated area? Additional comments: Purchaser: City of Yakima By.. v-1. -, Name 7N- 1 Title. ••••>.r\''\\\\\_\,,,..4..) Form 8038 -GC (Rev November 2000) Department of the Treasury Internal Revenue Service Information Return for Small Tax -Exempt Governmental Bond Issues, Leases, and Installment Sales > Under Internal Revenue Code section 149(e) Caution: if the issue price of the issue is 3100,000 or more, use Form 8038-G OMB No. 1545.0720 Part I Reporting Authority Check box if Amended Return > 0 1 Issuer's name City of Yakima 2 Issuer's employer identification number 91-6001293 3 Number and street (or P 0 box if mail is not delivered to street address) 129 N. 2nd St Room/Suite 4 City, town, or post office, state, and ZIP code Yakima, WA 98901-2613 5 Report number 5 ()) 6 Name and title o o' cer or legal representative whom the IRS may call for more information Mr. Jon Lorberau 7 Telephone number of officer or legal representative 509-575-6024 Part It 8a b Description of Obligations, Check if reporting: a single issue ® or on a consolidated basis ❑ . Issue price of obligation(s) (see instructions) . . r, Issue date (single issue) or calendar year (consolidated) (see instructions) ► / d J 1 -I -10 8a $98,288 9 Amount of the reported obligations on line 8a: a Used to refund prior Issue(s) b Representing a loan from the proceeds of another tax-exempt obligations (e.g., bond bank) 10 If the issuer has designated any issue under section 265(b)(3)(B)(i)(III) (small issuer exception), check this box 11 If any obligation is in the form of a lease or installment sale, check this box 12 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check this box . 9a 0.00 9b 0.00 PLEASE SIGN HERE Under penalties of perjury, I declare that I have examined this retum and accompanying schedules and statements, and to the best of my know and belief, they are true, correct and complete. sl(O Issuer's authorized rep = =ntative Date C Ifv9V r PerSon - DI 1)eP r. Type of print name and title c t. gu d. General instructions Section references am to the Internal Revenue Code unless otherwise noted. Purpose of Form Font 8038 -GC Is used by issuers of tax-exempt governmental obligations to provide the IRS with the information required by section 149(e) and to monitor the requirements of sections 141 through 150. Who Must File Issuers of tax-exempt governmental obligations with issue prices of less than $100,000 must file Form 8038 -GC. Issuers of a tax-exempt govemmental obligation with an issue price of 5100,000 or more must file Form 8038.13, Information Return for Tax -Exempt Governmental Obligations. Filing a separate realm. -Issuers have the option to file a separate Form 8038 -GC for any tax-exempt governmental obligation with an issue price of less $t00,000. An issuer of a tax-exempt bond used to tnarwe construction expenditures must file a separate Form 8038 -GC for each issue b give notice to the IRS that an election was made to pay a penalty in lieu of arbitrage rebate (see the line 12 instructions). Filing s consolidated realm. - For at tax-exempt governmental obligations with issue prices of less than $100,000 that are not reported on a separate Form 8038 -GC, an issuer must Ole a consolidated information return including aU such issues issued within the calendar year Thus, an issuer may file a separate Form 8038 - GC for each of a number of small issues and report the remainder of small Issues Issued during the calendar year on one consolidated Form 8038 -GC. However, a Separate Fomi 8038 -GC must be filed to give the IRS notice of the election to pay a penalty in lieu of arbitrage rebate. When To File To file a separate return, file form 8038 -GC on or before the 15th day of the second calendar month after the dose of Inc calendar quarter in which the issue is issued. To file a consolidated return, file Fonn 8038 -GC on or before February 15th of the calendar year following the year in which the Issue is issued. Late tiling. An issuer may be granted an extension of time to file Form 8038 -GC under Section 3 of Rev. Proc. 88-10. 1988-1 C.B. 835, it it is determined that the failure to file on time is not due to willful neglect Type or print at the bottom of the form, "This Statement Is Submitted in Accordance with Rev Proc. 88.10." Attach to the Form 8038 -GC a letter briefly stating why the form was not submitted to Inc IRS on time. Also indicate whether the obligation 11 question is under examination by the IRS. Do not submit copies of any bond documents. leases, or installment sale documents. See Where to FIN below. When To File File Form 8038 -GC, and any attachments, with the Internal Revenue Service Center, Ogden. UT 84201 Other Forms That May Be Required For rebating arbitrage (or paying a penalty in lieu of arbitrage rebate) to the Federal government, use Form 8038-7, Arbitrage Rebate and Penalty in Lieu of Arbitrage Rebate. For private activity bonds, use Form 8038, Information Retum for Tax -Exempt Private Activity Bond Issues. Rounding Off to Whole Dollars You may show the money items on this retum as whole - dollar amounts. To do so, drop any amount Tess than 50 cents and increase any amount from 50 cents through 99 cents to the next higher dollar. Definitions Obligations. This refers to a single tax-exempt governmental obligation if Form 8038 -GC is used for separate reporting or to multiple tax-exempt governmental obligations if the form Is used f r consottdated reporting. Tax-exempt obligation. This is a bond, installment purchase agreement, or a financial lease, on which the interest is excluded from income under section 103. Tax-exempt governmental obligation. A tax-exempt obligation that is not a private activity bond (see below) Is a tax-exempt governmental obligation. This includes a bond issued by a qualified volunteer Ore department under section 150(e). Private activity bond. This includes an obligation issued as part of an issue in whidi: More than 10% of the proceeds are to be used for any private business use. and Cat. No. 641088 Form 8038 -GC (Rev 11-2000) PURCHASER INVOICE INSTRUCTIONS (The information you provide enables us to invoice you correctly) City of Yikima BILL TOADDRESS: Cityof Yakima Communications Administration 2202 Fruitvale Boulevard Yakima, WA 98902 BILLINOCONTACT: First, M.I.and Last Name: Title: Phone Number: Fax Numb: Wayne Wantland Public Safety Communications Manager (509) 575-6555(� (509) 575-6048, PURCHASE ORDER NUMBER: Invoices rbquire purchase order numbers: YES gg PurchaseOrder Number: Pending NO FEDERAL TAX ID NUMBER: 91-6001293 EQUIPMENT LOCATION (If different from Billing Address): ADDITIL INFORMATION NEEDED ON INVOICE: RE: Cerium Telephone System Lease June 3, 2010 Jon Lorberau City of Yakima 200 South 3rd Street Yakima, WA FINANCING OPTION The financing will be completed by Key Government Finance, Inc. Payments due under the financing will be made directly to Key Government Finance at P O Box 1187, Englewood, CO 80150-1187 LENDER: Key Government Finance, Inc. LESSEE: City of Yakima EQUIPMENT: Technology Equipment Technology Equipment Interest Rate $91,627.55 Sales Tax (est) 8.7% $7,971.60 TOTAL AMOUNT FINANCED $99,599.15 $99,599.15 FINANCING STRUCTURE: This is a tax-exempt state and municipal government lease purchase financing with the title to the equipment passing to Borrower This is a net financing under which Borrower pays all costs, including insurance, maintenance and taxes, for the term of the Financing. At the end of the financing term the equipment will be owned outright by the Borrower Amount to be Leased Interest Rate Monthly Payments Payment Factor(*) Pmts / Year Term Adv. / Arr. $99,599.15 4.17% $2,948.10 0.029600 12 36 months Arrears $99,599.15 4.74% $1,867.72 0.018752 12 60 months Arrears (*) The payment factor expresses the payment as a percentage of the Equipment Cost. To calculate the periodic lease payment for any Equipment Cost, multiply the payment factor by the Equipment Cost. RATE INDEX: APPROVAL: CONTACT: The interest rates quoted in this proposal are based on market rates as of June 3, 2010, and shall be subject to index based on market rates until the date of closing. After the closing date the interest rate on the financing will be fixed for the term of the financing. The financing contemplated by this proposal is subject to the execution and delivery of all appropriate documents (in form satisfactory to Lessor), including without limitation, to the extent applicable, Lease Agreement, any Schedule, financing statements, legal opinion or other documents or agreements reasonably required by Lender This proposal, until credit approved, serves as a quotation, not a commitment by Key Government Finance to provide credit. Final acceptance of this proposal is subject to credit, collateral and essential use review and approval by Lender The interest rate quoted herein assumes that the interest component of the Payments is exempt from federal income tax. Lessor will provide a taxable financing proposal if it is determined that the financing will not qualify for tax-exempt interest rates. Contact your financing representative with any questions - Kendall Hansen - kendall.hansen©key.com (503) 701-8476 NOTES: Alternative financing options available on request Contact: Kendall Hansen - Account Executive Key Government Finance, Inc. 1211 SW Fifth Ave, Suite 400 Portland, OR 97204 Tel: (503) 790-7624 Kendall.Hansen@key.com Lessee (Full Legal Name) Federal Tax ID # Street Address City, State, and Zip Fiscal Year Begins Customer Contact Title Phone and FAX No. e-mail address Contract Signer Title Phone and FAX No. e-mail address Key Government Finance, Inc. Lease Application for State, Local and Education Customers City of Yakima 91-6001293 129 North Second Street Yakima, WA 98901 January 1st, 2010 Jon Lorberau Treasury Services Officer 509-575-6024 509-575-6364 (f) jlorbera(a,ci.yakima.wa.us Richard A. Zais City Manager 509-575-6040 509-576-6335 (f) dzais@ci.yakima.wa.us Invoices to be sent to: Contact Department Street Address City, State, and Zip Phone and FAX No e-mail address Special Instructions Wayne Wantland Public Safety Communications Ad 2202 Fruitvale Boulevard Yakima, WA 98902 509-575-6048 509-576-6555 (f) wwantlan@ci.yakima.wa.us 5. From which fund will the lease payments be made? 1. Please described the equipment being financed: Cerium Network provided telephone system - see attached. 2. Please fully explain the use of the equipment, including any specific department that may be its primary user: This system provides service to all City Departments and is a major upgrade from the existing telephone system. 3. Is the equipment new, upgrade, additional or replacement? Replacement 4. If replacement, how old is the existing equipment? 15 years 5. From which fund will the lease payments be made? ) Public Safety/Communications 6. Will any loan or grant monies be directly used to make lease payments? No 7. Have funds been appropriated for lease pmts in the current fiscal year? Yes Submitted by Jon Lorberau/Treasury Sevices Date. Please Fax this application along with your equipment quote, and the financing proposal to 216-357-6106. Please send your most recent 2 years audited financial statements to Key Government Finance, Inc. 1211 SW 5th Ave, Suite 400 Portland, OR 97204 ATTN. Kendall Hansen Cerium Networks" SOLUTIONS FON VOICE, DATA AND VIDEO COMMUNICATIONS Sold To: City of Yakima - HQ Wayne Wantland 200 South 3rd Street Yakima, 98901 Ln # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Qty 0 1 1 2 1 1 1 1 1 1 901 10 1 1 1 1 1 1 1 2 2 2 1 2 4 1 Part# 185446 184716 179546 195313 207943 212337 212487 224271 224273 225204 226717 228390 228744 228745 228746 228747 228932 228933 226872 227814 228990 228991 405362641 700170012 700178056 Cerium Networks 1011 E 2nd Ave , Suite 10 Spokane, WA 99202 800-217-0933 cscaceriu mnetworks.com Ship To: City of Yakima - HQ Wayne Wantland 200 South 3rd Street Yakima, 98901 Description AVAYA COMMUNICATIONS SOLUTION CM S8700 MULTI CONNECT MODEL UPG SCC1 IPSI CABLES COMPACT FLASH READER W/FLSHCRD RHS R10+ TO CM5 0 S87XX MIG SFTW LIC SOFTWARE DATABASE MIGRATON Pre CM5 IM ASA VAM CLIENT CM LIC ADMIN TOOLS CC R5 BASIC UPG RFA RELEASE INDICATOR IPSI2 CP TN2312BP - NON GSA VAL CP TN2501AP - NON GSA AURA STD ED R5 101-1000MULTI UPG LIC UCE R1.X STD/W CM5+ NEW SEAT 1 UCE R1.X IP SOFTPHONE R6.X LIC /E UCE R5.2+ ONE -X MBL R1/5.X CLIENT /E UCE R5.2+ ONE -X COMM R5.X SFTW /E UCE R5.2+ ONE -X PORTAL R5.X STD /E UCE R5.2+ AE SVCS R5.X UNFD DSKTP /E UCE R5.2+ EC500 R8.X SM LIC /E UCE R5.2+ IP SOFTPHONE R6.X LIC /E IP AGT R7 MULTI UPG PER AGT IP SOFTPHONE R6 PRE CM6 UPG ONE LIC S8800 SERVER CM5.2.1+ S8800 SERVER SES (SIP ENABLING SERVER) PWR CORD USA CABLE GREEN 5 METER CABLE GREEN 25 METER QUOTE Project # Date Sales Rep. CERQ32937 May 27, 2010 Jamie Harris jharris(a�ceriumnetworks.com Spokane Location: 1011 E 2nd Ave, Suitel0 Spokane, WA 99202 800-545-3324 Purchase Price/Unit Purchase Price/Total $0 00 $0.00 $0 00 $0 00 $152.50 $152.50 $137.25 $274 50 $0 00 $0 00 $3,000 00 $3,000 00 $0 00 $0 00 $0 00 $0 00 $4,422.50 $4,422.50 $3,660 00 $3,660 00 $25 62 $23,083 62 $36 60 $366 00 $0 00 $0 00 $0 00 $0 00 $0 00 $0 00 $0 00 $0 00 $0 00 $0 00 $0 00 $0 00 $0 00 $0 00 $85 40 $170 80 $11 59 $23.18 $4,575 00 $9,150 00 $4,575 00 $4,575.00 $5 49 $10 98 $15.25 $61 00 $24 40 $24 40 Page 1 Ln # Qty Part # Description Purchase Price/Unit Purchase Price/total 27 1 700456270 ADMIN TOOLS 5.2 CD $0 00 $0 00 28 1 700463482 FACILITY TEST CP TN771 DP - NON GSA $1,198.65 $1,198 65 29 2 700464506 USB MODEM USR5637-OEM 56K ROHS 6 $182.50 $365 00 30 4 700466014 DS1 INTF TN464HP - NON GSA $2,650 45 $10,601 80 31 2 700476344 CM5.2.1 LINUX UNITY SFTW CD NEW SYS $61 00 $122.00 32 1 700479439 PROGNOSIS VOIP MONITORING CD R2 $0 00 $0 00 33 1 PPN TO EPN CONVERSION KIT $4,000 00 $4,000 00 34 1 EPN RECONFIGURATION & INSTALLATION $660 00 $660 00 35 0 Product and Software $0 00 $0 00 36 1 195476 SOFTWARE SUPPORT COMMUNICATION MGR $0 00 $0 00 MODEL 37 901 219328 SS AURATM5 STD ED 101-1000 PP $9 00 $8,109 00 38 1 PROJECT MANAGEMENT, ENGINEERING, $21,800 00 $21,800 00 IMPLEMENTATION 39 1 AVAYA AURA STANDARD REBATE -$6,000 00 -$6,000 00 40 SubTotal Avaya CM5.2 Upgrade $89,830 93 41 1 KCDA 2% Service Fee (89,830 93 x 02%) $1,796.62 $1,796 62 Above hardware and software purchased under the KCDA Bid Number 06-007 Does not include applicable sales tax and shipping. Approved: Signature R. A. Zais, Jr., City Manager Print Name & Title Date CITY CONTRAC t N0: RESOLUTION N0: 222LP i3 7// 0 Subtotal $91,627.55 Page 2 ITEM TITLE: BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 2-1-1 For Meeting of: 06/15/10 Legislation regarding the lease purchase of a new City telephone system: A. A Resolution approving and authorizing a new purchase lease for the City's telephone system pursuant to the Municipal Lease /Purchase Agreement with Key Government Finance Inc. B. An ordinance amending the 2010 Budget and making an appropriation in the 151 — Public Safety Communications Fund to purchase a telephone system SUBMITTED BY: Wayne Wantland, 911 Director/Communications Manager 575-6048 Jon Lorberau, Treasury Services Officer, 575-6024 7 Cindy Epperson, Deputy Director of Accounting & Budgetinge"G131��V CONTACT PERSON: Wayne Wantland, 911 Director/Communications Manager 575-6048 SUMMARY EXPLANATION: The City's existing telephone system utilizes 1990's era equipment, which lacks modern features and the system has become prone to periodic failure. While limited upgrades have been done, there are approximately 200 units still reliant on old technology. Cerium Technologies in conjunction with the Communications Department has put together a system upgrade that not only addresses the current system's interdepartmental incompatibility issues, but also enhances our system with the new generation of telephone features and capabilities. Installation of this system will solve the instability issues of the City's existing system, adds enhanced voice mail services and auto - attendant features, and standardizes systems among the various City departments. Continued on next page Resolution X Ordinance X Other (Contract) Municipal Lease Purchase Agreement Mail to (name and address): Key Government Finance, Inc P.O. Box 1187 Englewood, CO FUNDING SOURCE: Capital Lea,se in Public Safety Communications Fund -151 APPROVED FOR SUBMITTAL: ���„ ��_ := , °• City Manager STAFF RECOMMENDATION: A) Adopt Resolution; B) Read Ordinance by title only at the June 15, 2010 Council Meeting. Pass Ordinance after the second reading at the July 6, 2010 Council Meeting. BOARD/COMMISSION RECOMMENDATION: The Council Public Safety Committee was briefed on the need for this equipment at their May 19th meeting, and recommended that it be brought forward for consideration by the full Council. COUNCIL ACTION: The enclosed Resolution, if approved by Council, authorizes a lease/purchase arrangement with Key Government Finance, Inc for the telephone system. Financing will be provided under this agreement as per the payment schedule/terms in the attached lease agreement. This is a three-year installment agreement to purchase equipment that has an estimated cost of $100,000 at an interest rate of 4.17%. Monthly payments will be about $2,948 for an annual amount of $35,377. Three bids from Key Bank, US Bancorp and Avaya Leasing were reviewed and Key Bank offered the best balance of rate and term, although the US Bank offer was very close. This loan, if approved by Council, will close and be completed by July 31, 2010. The enclosed Ordinance to amend the 2010 budget is required to authorize the acceptance of funds from the financing lease and appropriates the full cost of the proposed telephone system. Note: This is a housekeeping transaction to complete the financing of the telephone system. The lease payment of approximately $35,377 a year can be paid within the current telephone budget (421 accounts) while leaving some ongoing money available for continued replacement of older telephone sets. As this technically represents a financing, accounting rules require that the full cost of the equipment (approximately $100,000) be appropriated in this year's budget even though the payments in 2010 will be approximately 1/6 of the total costs. The attached appropriation ordinance is balanced in the Public Safety Communications Fund, as the financing is considered a source of revenue, which is then being used to purchase the equipment. Appropriation for the monthly payments is already available in the current telephone budget. Page 2 of 2