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HomeMy WebLinkAbout98-160 Resolution No. 98-160 RESOLUTION AUTHORIZING EXECUTION OF A LEASE AGREEMENT AMENDMENT WITH IBM CORPORATION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Joyce A. Parker, City Manager, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute a lease agreement amendment on behalf of the City of Elgin with the IBM Corporation, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: June 24 , 1998 Adopted: June 24, 1998 Omnibus Vote: Yeas 7 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk New Orchard Road ISM CORPORATION Armonk, NY 10504 914/499-1900 ADDENDUM TO INSTALLMENT PAYMENT MASTER AGREEMENT (STATE AND LOCAL GOVERNMENT) Installment Payment Enterprise No. 2763800 Master Agreement No. ICCO237 Customer No. 2767067 Addendum No. E0820798 We and CITY OF ELGIN (You) agree that the Installment Payment Master Agreement between the parties is hereby modified as follows: A On the first page, replace the next to last paragraph above the signature block with the following; 'This Agreement and each applicable Supplement are the complete Agreement regarding each Transaction listed on the Supplement and replace any prior oral or written communications between both parties. " Prepared by: L PANITZ July 9, 1998 Accepted by: IBM ftj Oor ,ati CITY OF ELIN ) 5162140 a. tQAL___- Aut qmp a o ze ignature .Os.Mra. ame ype or ran e Name (Type or 'print) Date This Addendum is valid if accepted by CITY OF ELGIN and IBM Corporation no later than August 20, 1998. E0820798/BP5 Addendum No. E0820798 1 ZS"d SOTT 9Z8 01 L66S 82b tTL WEN ad BP:SI 86, TT 90d U 4$TAUJAENT r PAYMENT SUPPLEMENT Data Pretend:oerte�el ru IpOrD144t8 I) Magee OF E Woke" $°F➢�prt tK�� @ Ageless o! STY HALL ELGIh1 Customer Na ZT61lfQ? itslotenose CITY OFEtAliy EW NO Ln IED LStarlrn t Nara [L HALL 1BD MKT ER 0.401 RD: cram M j SepfY MtMnanostaredrit t Na F 15U p�CTER COURT Claw ,IL2b7 lialbit quite IMPtill. Il 6s012ri Sd�T I ' 071t401.1 ¢per Matron Rdarenc WG 598201! [d++��Irocsta}pn a a. 1 cn shoe kolienut ISMVp� 5 Worthen 900 CREDITMO CN� ORATION r lidded Furman ' n oi Weir r Member CO A3 tT0lI A-CA S-500 Maim,Craw a Cuss C{ .4 Ouzo mar IttH6 COSTA MESA-CA 1 �4aeu►s RrlivMo� MIN:DEPT GL Tg11a�1tf1A padatl� �� a(lQ�1�36e9I � 3 G�It G) [Hi1 Rant Pi rctare Prid' State (Front»Tr04144► - us AStsamn lRarer or IUPIA MO crr eT M sad 10101001.4erceier *mow* !s`1sM1 PAmid aya>rot »� " Icy H ( iii1, r ty a MO pr,eepeee a iw��+ Tame Dent PAWN re Tema, 5.25 5711_@4 IG 55 Oahe tea. Ei0/02siwa pillpMothe DUPLEX PRINTER 18,4113.U0 c i 2?670Q7 313o1 a / 7 34g.5Q Io 55 ili';!B 2767118 {pT STANDALONE LIB S(JQSYS VI IA i7,D113 00 55 7f15i9 002 IC 27 357JSS1 � 2b,71S 00 5.�5 56a.56 g• 2767118 3 26.715A0 lil 003 n27nsT 57e3afssl & � k �,slaoo o T71 � sYST�i 244.52 IG 55 7r15fs 2767118 ,41 LIKE MATRIX PRINTER 1f,233,0(1 11,903.00 5.25 DIM 27670 7 I DR 4fQrY "i 11,93300 5.25 2�•5A IG 55 Ili � ro A 2767118 f. 5',Ce LIII4E MA7RIX PRINTER 11.233AD 0 7787067 B4i3<1181r"�� DAD 5,25 d,61 IG 55 7f1�t m 2787116116 � w pr38 2767067 7852I4]Z ►d,Y` T852-400(AS1400 7SP MODEL) *0.00 00 a,moo 1;r5:25 �� �.�, IG 55 711y! 27B7116 SYSTEM 11FtlT d4 � -� O[37 2767047 9dQ6162fl 1597D 84QS 1 D 27671 1 B ' 2- o - co NiA m 9 Ir►lUC7l Ni n 4' . PAYME iT PEWQI A3 r.Date RfJI#AP�LlCl►T104ES LY#7 Oammenorsr►srA A m TOTAL MOM ALL eft 1.1� AT( It Annual o 071101 >' �Er _ r M .. PLR Dt0.�iE PFIaCE ��,Y&r COAT(ap k 7731 yAENT9 (]R ADtI� >D OR QHi TIME QtJ\RGES tri Stheriaa itlsoots(check}, 0 1A > Y EKf pND AlIY AP?L1CA7 1Z y T r OROTISERAMOUNT THE INSTALLMENT PJIYYElfT AiJ18TER RF$IESIT NEFEtADIG1&D ABOVE, Y THESE DOCUIiEitTs gi]PfR9E AFtY PRIQ BY E �Ut•PIEhiE J THE COMPLETE EXCLUSIVE STATEMENT OF THE A[9A#1ALH PARTIES AO N; TO TH, 6 TE%ig REP1lMY BE OEE71 8E .+ T(tAOEeN T 001�V bRY OF1QFt5 $ETMEER THEOP or( BY SICS CG UJUEBELOW. BadTHAT WE .1. OET601Ie AOD E DOWN PAYmENT +� a FEC11V df 1k[t EL PUfi EI3 S OF A1iY OF ESE OOQ1aAEttTS BY FACSIMILE OR pTr�R RE1.tA8lf MEANS �1 �QA MANUALLY E>tECI TED COP .CUSTOSLIP ACKI OTHER Rit1W 3r 17/'" Io T DO FLAUM All IN ascIsS AS OEO M Of AGREES THAT COPY REPRODUCED f ; T TC}A!i r. • STATE OR LOCAL TAXES r THESE DOCUMENTS IN ELFCT11014LC FORM MD AQR T �p + S(�EXAMPLE,PHOTOCOPY,IMAGE OR IAG534tE1 L IN ALL RESPECTS 8E(VOID 3 A1lOUFIT FINANCED babel Dare M 1)14 CITY E}F 1lI _ for eitOAMMO m OM fMARCE CHARGE lie I/J 5/420100e IN lWNFN APPI!CAR'S T1 S TAX IS 1 _.___ • INSTALLMENT PAYMENT SUPPLEMENT oat .ep�ra� � F te Continuation Sheet n. Mom andA.ddress of Customer Instal tad at location Page 2 of 3 CtTY OF ELGIN CCTV OF ELGtN t kS1ortler Ma: 2T8767 Suppisenont ito: ID00141St c_cc c CITY tiALL CITY HALL IBM COO Lacetten: 1 ED Neleradrad Pttrsf><ase Agreement No: HQ122S I 130 DEXTER COURT 150 DEXTER COURT lrwEilftaent Riysnsrnt t8efererlRed Limos Agreement lie r E1.0 IN ,IL 8012o-S527 Et GIN , IL 601203627 Wdtsr Agroseasnt PM ICC3237 Italknend Traded Agrearnant No: IDNA Amendment Noir Annotated Supplement No; s� - Quoits Vilfdfty Astiro7rlarse in op Mgt*Egtllpakertt Lo coda n C90 tdai3lan A6dreti Fta?sreitaatlGLala latter No: QGTSS6281400 1 n MIIIIPLIA C pr Number IBM CREDIT CORP ORATION 2767067r2787116 600 ANTON BLVD SS03 Estimett>d Instalrtfton Date or '' COSTA MESA,CA 92628 Intended FlnanNny Late or •l Weimer Reference ATM: DEFT GCCF mom data of ocdbonea Ti 800-42 559 Uaanse TI run(Number of Paysnertt PMa6e} TC TED Option Credi _ m Flari in I..aeatton Machin" lf7rder art Purchase briar Stets (From IBIS Tiede-in 1,rj Cudomer or L.PY YES or or Orts.Tdns and Agreerstenq e liil Una Member Typeillodel Serial Charges or toad welter Amsted interest Paymcsrrt Planning Z Ito. d.eitAPWA° Retitle Ikaeber Desodo fan Other Amount Tares Dawn Payment Pranced Bite JIan7tire Date H 008 2767067 9043/002 FINANCING Of IBM SERVICES 10,750.00 01— �/ 10,750.00 5.25 220.34 ! S' 55 7/15/08 2787116 (rX r?4► oe 309 2767087 9635/007 SYSTEMS SERVICES AMENDMENT165, . 6" / kyt_Aiet10Zm 5.25 274,6442-1-S' 55 7/15411 m 2787118 I `'t �r -' a .A LJ w W IX -.] -I - o 0-1 0 07 `�°" I A� i I w a rLil Rho I t 'O - PAYM NT PERrCO 1 D ,.J.tonttvy m Anrt l � , ,.Oiler (s tyl: � Schedules Mulled(clack): 0 • .L Supplement Number 1130014189 r . r • rt F • OQTIOH CODES 1.Ohio, Maryland, Mississippi, 1(rrglnia, or West Virginia, you must be i ~ OPTION I Transaction for a Machine or a f+fodiFicalion, a corporation as defined by the applicable state law, cc c OPTION IG - Transaction for a Machine or a Modification financed with 2. Pennsylvania, you rt+uet be a business corporalian as defined by .CC .. Taw Exempt Interest. Pennsylvania laws;and ►10 e- 3. Alabama or W s onsin, the Machines, Modifications, or Art bans Nu V OPTION R - Transactionpurchased for a used Machine supplied by IBM Credit may not be purased for agricultural purposes-. ie nisi Corporation. co WARRANTY DISCLAIMER: a F-' OPTION RG- Transaction ter a used Machine supplied by IBM Credit Any warranties associated with Products or Services chosen by yew ,3 T Corporation financed vli[ft Tax Exempt interest arid fronted by us may be available to you under the teems of any rri A cr, applicabto agreement between you and the provider of such Products or �{ el OPTION S - Transaction for an IBM one-time charge or a Machine or a Services Modification supplied by 18M Credit Coepilratlon. UNDER "MIS AGREEMENT, WE MAKE NO WARRANTY, 311 ,- OPTION 5` - Transaction for an ISM one t[me charge or a Machine or a EXPRESS OR 1MPtIED, AS TOANY MATTER WHATSOEVER, �� a Modification supplied by IBM Credit Corporation financed INCLUDING, RUT NOT UNITED TO, THE CAPABILITY OF THE _a with Tax Exempt interest MACHINES OR PROGRAMS TO CORRECTLY PROCESS, PROVIDE z AND/OR RECEIVE DATE DATA WRITTEN WITHIN AND BETWEEN -n CPTION T - Transaction for a non-IBM one-time charge. THE 20114 AND 21ST CEN1UR{ES,AND THE iMPLi€D WARRANTIES z'-` OPTION T' - Transaction for a non lBei one-time charge flnaeced with OF MERCFIAl TABILfTY OR FiTiESI FOR A PARTICULAR Tax Exempt interest. PURPOSE, AND YOU TAKE THE PRODUCTS AND/OR SERVICES 6 `AS IS". 4N NO EVENT WiLL WE HAVE AMY LIABILITY FOR, NOR TAX EXEMPT RNU[REMENTS (FOR OPTIONS IG, RG, S', and T') WILL YOU HAVE ANY REirfEDY UNDER THIS AGREEMENT m THE RATES Al THIS AGREEMENT ARE RASED ON YOUR UNDERLYING AGAINST US FOR CONSEQUENTIAL DAMAGES. ANY LOSS Of w t}EB'T OBLIGATION OUAUtYING TO PAY INTEREST WHICH IS EXEMPT PROFITS OR SAVINGS, LOSS OF USE, OR ANY OTHER M FROM FEDERAL INCOME TAX UNDER SECTION 103(a)OF THE INTERNAL COMMERCIAL LOSS. REVENUECODE (Code). Accordingly, you represent that you qurtify as :ri A a State or political subdivision et a State tar purposes at Section 163(a). TERMS FOR NON-IBM EQUIPMENT AND FOR EQUIPMENT NOT SOURCED A You agree that any misrepresentation of your status under Section 1031e) FROM IBM G °J is an event of default under this agreement You further agree to comply u promptly with ail information reporting requirements of Code section Uup 149te) and Treasury Regulations thereunder. You also agree to fie When non-IBM Equipment ardfar a Supplier ether than ISM Is spaei d U up Internal Revenue Service Form 8038-G of 8035-GC whichever Gristle fiords of this Supplement,these term;apply. id appropriate,far this transaction. 11 you do not file line above IRS forth On - o a timely basis or are unable upon request to demonstrate that the IRS This amends the installment Payment Master Agreement referenced on co 0 has determined you are quatiFred under Section 103(a) of the Code, then False 1. u nJ you shall pay us on derrrand a sum to be determined by us that wits return 1. Section 2.1 - Machines- replace the first sentence with the following: �H Cr, to us the economic results we would otherwise stave received. 'We finance charges far Machines you purchase from us or your PREPAYMENT FEE supplier.' a1' m The Prepayment Fee is charged to raver administrative expense and 2 Section 2,2 -Modifications and Additions • replace the first sentence FA 0 changes in tending coat associated with the early liquidation of a wilts the following: We final= charges for Modifications and kul Ira esartion. Additions you purchase from IBM, IBM Credit or your supplier_' kw Charges in funding costs wilt only be lettered if interest rates, based 3. Section 2.3 - Other Charges - add the following to the end of the --J on the 3-year Treasury Rate averages as published by the Federal section: 'We may agree to finance one-lime charges from yore Reserve, decline from the date interest starts to the date of the supplier.' [iquidatirn The cost will be determined using a factor of 2.8 multiplied 4. Section 2.4 - Discounts, Allowances and Adjustments - replace tta -t by the change in the 3-year Treasury Rates and them multiplied by the first sentence with the following: '[he purdrase price or one-tinge v re remaining Transaction principal. The 21 faster will decrease with the charge we t5nanoe is the same amount that you would have paid us number of months remaining in the ortgtnal term of the contract or you supplier after all diroounts and artvetmentL` - AFh-ninlstrative expense will be determined using a factor of 2.50% 5. Section 3..2 - Interest ContmenCeinent - replace the entire section multiplied by the remaining Transaction prindpai. with the. f liewr'U nrnInca nth,ewI rea uveraftedR the tiiinmle"err m The Prepayment Fee will be the sown of these nUrnbera interest starts on (for OPTIONS IG, RG, S', and T" trantactIons. FOR FINANCED MACHINES, MODIFICATIONS, OR ADDITIONS interest starts on the first day of the month following)the acceptance FOR COMMERCIAL CUSTOMERS LOCATEa Ifit ._._,,.....,..+r_sfe..� 3.._.,�.�.- �. -.,r.• _w._...�r INSTALLMENT PAYMENT SUPPLEMENT e jue Date Prepared:07/30/98 lams-and Address of Customer Installed at Location Page 1 of 3 :ITV OF ELGIN CITY OF ELGIN Customer No: 2767057 Supplement No: 100014199 D 1:ITY HALL CITY HALL IBM CSO Location: 1 E0 Referenced Purchase Agreement No: HQ12251 ISO DEXTER COURT 150 DEXTER COURT Inslallment Payment Referenced License Agreement No: itGIN , IL 601205,527 ELGIN , IL 60120-5527 Master Agreement No: IGCO237 Referenced Trade-In Agreement No: N IPMA Amendment Nos: Associated Supplement No: Quote Validity Dale: 07/14/96 angle Equipment Location CSO Location Address Referenced Quote Letter No: Q01 59 6 2 01 03 coin BMAPMA Customer Number IBM CREDIT CORPORATION 767067/2767116 600 ANTON BLVD S500 Estimated Installation pale or COSTA MESA,CA 92626 Intended Financing Date or 1,, ;ustomer Reference ATTN: DEPT GCCF Effective pate of Additional Cn &IQ-426 3889 License it Term [Number of Payment Periods) zi Option IBM Plant Credit Location Machine Order or Purchase Price State (From IBM Trade-in Customer or LPM YES or or One-Time and Agreement) Line Number Type/Model Serial Charges or Local and/or Amount Interest Payment ! I Planning No. IBM1APMAA Feature Number Descriplion Other Amount Taxes Down Payment Financed Rate Amount 001 2767067 3130/02D 14729 DUPLEX PRINTER 18,483.00 18,483.00 5.25 378.84 IG 55 7/15/98 2767116 002 2767067 3570/C01 50866 STANDALONE LIB SUBSYS W/1 TA 17,003.00 17,003.00 5.25 348.50 IG 55 7/15/98 2767116 003 2757067 5769/SS1 B4R3K AS/400 OPERATING SYSTEM 28,715.00 28,715.00 5.25 588.56 S' 55 7/15/98 2767116 004 2767067 6400/012 E7576 LINE MATRIX PRINTER 11,933.00 11,933,00 5.25 244.58 IG 55 7/15198 - 2767116 X5 2767067 6400/012 E7785 LINE MATRIX PRINTER 11,933.00 11,933.00 5.25 244.58 IG 55 7/15/98 2767116 41, W )06 2767067 7852/40Z 421-13666 7852-400 (AS/400 TSP MODEL) 420.00 420.00 5.25 1 8.61 IG 55 7/15/98 CO 2767116 w UZI )07 2767067 9406/620 1567D 9406 SYSTEM UNIT 87,500.00 87,500.00 5.25 1,793,45 IG 55 7/15/98 -I 2767116 0 00 n2 PAYMENT PERIOD Fiscal year Supplier Name interest Total Payment N TOTAL FROM ALL PAGES; 1. Monthly ED Annual 0 Start Date REAL APPLICATIONS LTD Commencement. (all pages) URCHASE PRICE 2. Outer (specify): 07/01 Supplier Customer no_ m R ONE TIME CHARGES Schedule attached (check): 0 Month/Day 2731234 5,797 67cri R OTHER AMOUNT $282,861.00 THE INSTALLMENT PAYMENT MASTER AGREEMENT REFERENCED ABOVE, THIS SUPPLEMENT AND ANY APPLICABLE ATTACHMENTS OR ADDENDA ZADE-IN/CREDIT ARE THE COMPLETE EXCLUSIVE STATEMENT OF THE AGREEMENT. THESE DOCUMENTS SUPERSEDE ANY PRIOR ORAL DR WRITTEN OWN PAYMENT COMMUNICATIONS BETWEEN THE PARTIES, BY SIGNING BELOW, BOTH PARTIES AGREE TO THE TERMS REPRESENTED BY THIS SUPPLEMENT. DELIVERY OF AN EXECUTED COPY OF ANY OF THESE DOCUMENTS BY FACSIMILE OR OTHER RELIABLE MEANS SHALL BE DEEMED TO BE AS rATE OR LOCAL TAXES EFFECTIVE FOR ALL PURPOSES AS DELIVERY OF A MANUALLY EXECUTED COPY, CUSTOMER ACKNOWLEDGES THAT WE MAY MAINTAIN A COPY OF THESE ti1OuNT FINANCED $282,661.00 ,MEANS(FOR EXAMPLE, PHOTOCOPY,OCUMENTS IN ELECTRONIC FORM AGE OR FACS MILE) SHALL AND AGREES THAT YN LLPRODUCED RESPECTS BE CONSIDERED EQFROM SUCH UIVALENT ENTTNIC FORO AN ORIGINAL,OR BY ANYOTHER RELIAELEili Accepted by: Initial here CITY OF ELGIN to request IBM Maintenance AX ON FINANCE CHARGE for equipment 41EN APPLICABLE THIS TAX IS I By: By: 1 DYABLE WITH FIRST INSTALLMENT) Authorized Signature Authorized Signature I1ll111111111IU+I I1IIF 11111II1l1Iifll liii 111 MI Ill INSTALLMENT PAYMENT SUPPLEMENT Date Prepared: 07/30/98 lame and Address of Customer Installed at Location Continuation Sheet Page 2 of 3 D •ITY OF ELGIN CITY OF ELGIN Customer No: 2767067 Supplement No: 100014189 c 'ITV HAIL CITY HALL IBM CSO Location: 1 EO Referenced Purchase Agreement No: HQ12291 50 DEXTER COURT 150 DEXTER COURT installment Payment Referenced License Agreement No: N LOIN , IL 801 2 0-552 7 ELGIN , IL 60120-5527 Master Agreement No: ICCO237 Referenced Trade•ln Agreement No: '— IPARA Amendment Nos: Associated Supplement No: Quote Validity Date: 07/14/98 ingre Equipment Location CSO Location Address Referenced Quote Letter Ho: Q01 5 9 6 201 03co IMIIPMA Customer Number IBM CREDIT CORPORATION Ui t6706712767116 600 ANTON BLVD S-500 A COSTA MESA,CA 92626 Estimated Installation Dale or ustomer Reference ATTN: DEPT GCCF Intended sle oinp Dala ar 800-426-3889 Effective Dla of Additional Term(Number of Payment Periods) license IBM Plant Option —to Location Machine Order orCredit 3 Purchase Price Slate (From IBM Trade-In i iCustomer or L ARES or or One-Time and Agreement) 1 /tie Number TypelModel Serial Charges or Local and/or Amount Interest Payment I PM io. IBM/IP MAW Feature Number Description Other Amount Taxes Down Payment Financed Rate Amount I te f PlDa Da te 108 2767067 9993/002 FINANCING OF IBM SERVICES 10,750.00 10,750.00 5.25 I 220.34 S" 55 7/15/98 2707116 09 2767087 9995/007 SYSTEMS SERVICES AMENDMENT 96,124.00 96,124.00 5.25 1,970.21 S' 55 7/15/98 2767116 --.] A A LJ co (J1 up lD -1 O CO RJ Cr) fL1 r-� m cn -13 LJ ID PAYMENT PERIOD 1 1. Monthly la Annual Q I 2.Other(specify): Schedule attached check): El Supplement Number 1130014189 • OPTION CODES FOR FINANCED MACHINES, MODIFICATIONS, OR ADDITIONS . OPTION I - Transaction for a Machine or a Modification, FOR COMMERCIAL CUSTOMERS LOCATED IN; D 1 OPTION IG - Transaction fora Machine or a Modification financed with 1. Ohio, Maryland, Mississippi, Virginia, orC yg West Virginia, a corporation as defined g you must be o Tax Exempt Interest. po by the applicable state law; le 2. must,Penns lvania Y yoube a business corporation a s defined by OPTION R - Transaction for a used Machine supplied by IBM Credit Pennsylvania laws; and p Corporation. 3. Alabama or Wisconsin, the Machines, Modifications, or Additions `a may not be purchased for agricultural purposes. m OPTION RG • Transaction for a used Machine supplied lay IBM Credit WARRANTY DISCLAIMER; ol Corporation financed with Tax Exempt Interest. Any warranties associated with Products or Services chosen by you OPTION S Transaction for an IBM one-time charge or a Machine or a and financed by us may be available to you under the terms of any -n applicable agreement between you and the provider of such Products or Modification supplied by IBM Credit Corporation. S _ Services. UNDER THIS AGREEMENT, WE MAKE NO WARRANTY °tl OPTION S' - Transaction for an IBMone-time charge or a Machine or a 3 Modification supplied by IBM Credit Corporation financed EXPRESS OR IMPLIED, AS TO ANY MATTER WHATSOEVER, with Tax Exempt Interest. INCLUDING, BUT NOT LIMITED TO, THE CAPABILITY OF THE MACHINES OR PROGRAMS TO CORRECTLY PROCESS, PROVIDE AND/OR RECEIVE DATE DATA WITHIN AND BETWEEN THE 20TH OPTION T - Transaction for a non-IBM one-time charge. AND 21ST CENTURIES, AND THE IMPLIED WARRANTIES OF OPTION T' - Transaction for a non-IBM one-time charge financed with MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, Tax Exempt Interest, AND YOU TAKE THE PRODUCTS AND/OR SERVICES "AS IS", IN NO EVENT WILL WE HAVE ANY LIABILITY FOR, NOR WILL YOU TAX EXEMPT REQUIREMENTS (FOR OPTIONS IG, RG, S', and T') HAVE ANY REMEDY UNDER THIS AGREEMENT AGAINST US FOR THE RATES IN THIS AGREEMENT ARE BASED ON YOUR UNDERLYING CONSEQUENTIAL DAMAGES, ANY DEBT OBLIGATION QUALIFYING TO PAY INTEREST WHICH IS EXEMPT LOSS OF PROFITS OR I-FROM FEDERAL INCOME TAX UNDER SECTION 103(a)OF THE INTERNAL SAVINGS, LOSS OF USE, OR ANY OTHER COMMERCIAL LOSS, A REVENUE CODE (Code_ Accordingly, you represent that you qualify as Ja TERMS a State or political subdivision of a State for purposes of Section 103(a). FOR NON-IBM EQt11PMENTAND FOR EQUIPMENTHOT SOURCED !BM m FRROMOM You agree that any misrepresentation of your status under Section 103(a) cn is an event of default under this agreement. You further agree to comply When non-IBM Equipment andlor a Supplier other than IBM is specifiedlin promptly with all Information reporting requirements of Code section up 149(e) and Treasury Regulations thereunder. You also agree to file on the front of this Supplement, these terms apply. Internal Revenue Service Form 8038-G or 8038-GC whichever o Tais amends the Installment Payment Master Agreement referenced on o appropriate, for this transaction. If you do not file the above IRS form on page 1. a timely basis or are unable upon request to demonstrate that the IRS i" has determined you are qualified under Section 103(a) el the Code, then 1' Section 2.1 - Machines - replace the first sentence with the following: rce you shall pay us on demand a sum to be determined by us that will returnYe finance charges for Machines you purchase from us or your N to us the economic results we would otherwise have received. supplier.' m PREPAYMENT FEE 2. Section 2.2 - Modifications and Additions replace the first sentencecri with the following: 'We finance charges for Modifications and The Prepayment Fee is charged to recover administrative expense and Additions you purchase from IBM, IBM Credit or your supplier." changes in funding cost associated with the early liquidation of a 3. Section 2.3 - Other Charges - add the following to the end of the Transaction. section: We may agree to finance one-time charges from your Changes in funding costs will only be incurred if interest rates, based supplier.' on the 3-year Treasury Rate averages as published by the Federal 4. Section 2.4 - Discounts, Allowances and Adjustments - replace the GJ Reserve, decline from the date interest starts to the date of the first sentence with the following: 'The purchase price or one-time liquidation. The cost will be determined using a factor of 2.8 multiplied charge we finance is the same amount that you would have paid us by the change in the 3-year Treasury Rates and then multiplied by the or your supplier after all discounts and adjustments.' remaining Transaction principal. The 2.8 factor will decrease with the 5. Section 3.2 - Interest Commencement - replace the entire section number of months remaining in the original term of the contract. with the fo!!owingi'Unless otherwise ri�i i i i', the Supplement, Administrative expense will n© determined using a factor of 2.50% interest starts on (forr OPTIONS IG, RG, S', and T` transactions, multiplied by the remaining Transaction principal. interest starts on the first day of the month following)the acceptance The Prepayment Foe will be the sum of these numbers. „ • r--- , 0_, , City of Elgin Agenda Item No. o?n-/'AT E D fE� June 4 , 1998 TO: Mayor and Members of the City Council FROM: Joyce A. Parker, City Manager SUBJECT: City Mainframe Computer Upgrade PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information regarding the upgrade of the City' s AS/400 mainframe computer. BACKGROUND In conjunction with Elgin' s Five-Year Financial Plan, the City' s Management Information Services (MIS) Committee estab- lished a five-year Information Services Capital Equipment Plan. This study provided a long-term prioritization of the City' s technology requirements and identified the need for: 1) Replacement equipment . 2) Additional equipment to meet the expanding service areas as the community grows. 3) Appropriate new technology. The plan also identified the dollars that would be required to fund these equipment priorities . The IBM AS/400 (Model 310) is a mid-range computer and is scheduled to be upgraded this year to an IBM AS/400 (Model 620) advanced series . The upgrade allows the computer to continue operating while at the same time becoming a Cli- ent/Server that supports the growing networks (Local Area Network/Wide Area Network) . The attachments to the mainframe have grown from 83 workstations at one site in 1990 to 235 workstations (110 terminals and 125 PCs) at 18 remote sites . The additional growth, although providing more useful informa- tion, has brought the computer system to its maximum poten- tial . The amount of space for information storage has become dangerously low and having a machine working this close to capacity degrades the response time for the users and results in unproductive work time . :City Mainframe Computer Upgrade June 4 , 1998 Page 2 The upgrade accomplishes the following: - Provides additional storage (267% increase . - A larger central processing unit will result in quicker processing of data and a quicker response time to users, thus benefitting the public . - IBM will be dropping support on older versions of the operating system software (V3R2) and older processors (CISC) before the year 2000 . We currently utilize both the older version software and the CISC processor. - The upgrade to the RISC system supports the Windows NT network directly and eliminates the need for various communication equipment (e .g. , Routers, Gateways, etc . ) . It also simplifies maintenance activities performed by the internal staff . - HTE, the City' s software provider, is upgrading their software to run on RISC systems and will be dropping support for their older versions (CISC) by the year 2000 . - The new 8mm tape system will hold more data, which will eliminate having operators come in to change tapes in the middle of the night . - A spool file module is being added to assist with optical library storage, eliminating the need to store paper reports . IBM obtained bids from three vendors that are authorized sellers of their equipment . Prices ranged from the low bid of $340, 639 to $358, 809 . COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED MIS Committee . FINANCIAL IMPACT The total cost of the upgrade equals $340, 639 . The equipment that is required can be structured in a five-year lease agreement with similar terms as the existing lease at a lower interest rate (5 . 250) . Annual payments of $71, 000 , as outlined in the Five-Year Financial Plan, can accommodate the revised lease . An additional $135, 000 has also been budgeted to fund the computer upgrade and other system enhancements . The terms of the lease will be changed to maximize the benefit to the City by limiting both the principal and interest expense . The account numbers that will be charged are : 385-0000-795 . 92-46, project number 209808 , and 275-0000-791 . 92-50, project number 209801 - AS/400 upgrade . ,_ . , %City Mainframe Computer Upgrade June 4 , 1998 Page 3 LEGAL IMPACT /li The lease agreement will require review. ALTERNATIVES None . RECOMMENDATION It is recommended that the City enter into a lease agreement with IBM Credit Corporation for the purchase of computer upgrade equipment . Respectfully submitted, (-T: VA/(./(- 4jr-i ---.' J ce il. Parker City Manager amp Attachment