HomeMy WebLinkAbout2017-32 CC Reso - Approving I.T. Server Equipment Lease RESOLUTION 2017-32
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING PURCHASE OF
EQUIPMENT AND APPROVING AND AUTHORIZING EXECUTION OF LEASE PURCHASE
AGREEMENT AND RELATED DOCUMENTS
WHEREAS:
1. The City has determined to acquire Five (5) "End of Life" Dell servers, Dell Compellent
Storage, Two (2) Dell Network Switches and New Backup Software (collectively"the Equipment")
as essential components of the City's computer network; and
2.The City Council has determined that acquiring the Equipment under a Lease-Purchase
Agreement with IBM Corporation is in the best interests of the City; and
3. Under the Lease-Purchase Agreement and related documents the City, as Lessee of
the Equipment, assigns for security purposes to IBM the City's right to purchase the Equipment
from Dell. Although IBM is obligated to pay Dell for the Equipment, title to the Equipment passes
immediately to the City, subject to IBM's security interest in the Equipment; and
4. The City is obligated under the Lease-Purchase Agreement with IBM to make annual
lease payments which will total the purchase price of the Equipment plus interest, provided the
City Council appropriates funds each year to make the lease payments; and
5. IBM is satisfied that the terms of the Lease Purchase Agreement avoid the limitation on
loans by the City imposed by California Constitution, Article XVI, §8;
NOW, THEREFORE, BE IT RESOLVED that:
1. The purchase of the Equipment from Dell for the total amount of$285,662.94 including
sales tax, is hereby approved.
2. The Lease Purchase Master Agreement, substantially in the form presented to the City
Council, for a term of 5 years at an annual interest rate of 22 and the documents incorporated
therein or required to complete the City's lease-purchase of the Equipment are hereby approved.
3. The City Manager is hereby authorized to sign the Lease Purchase Master Agreement
and related documents on behalf of the City.
PASSED AND ADOPTED on June 21, 2017, by the following Roll Call Vote:
AYES: Councilmembers Scalmanini, Crane, Mulheren, Doble, and Mayor Brown
NOES: None
ABSTAIN: None
ABSENT: None
Jim , Brown, Mayor
ATTEST:
Kristine ! awler, City Clerk
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