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HomeMy WebLinkAbout18-128 - Resolution RESOLUTION NO. 18-128 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING FINANCING LEASES FOR THE ACQUISITION OF EQUIPMENT AND SOFTWARE FOR THE CITY'S DATA CENTER INFRASTRUCTURE, AND TAKING RELATED ACTIONS A. RECITALS. 1. The City of Rancho Cucamonga (the "City"), a municipal corporation duly organized and existing under and pursuant to the Constitution and laws of the State of California, is authorized under Section 37351 of the California Government Code to purchase, lease, exchange, or receive such personal property as is necessary or proper for municipal purposes and to control, dispose of, and convey such property for the benefit of the City. 2. By minute action on October 3, 2018, the City Council approved the acquisition of certain hardware equipment (the "Equipment") and software (the "Software") for the City's data center infrastructure. 3. The City utilized the purchasing procedures set forth in the City's Purchasing Ordinance in effecting this procurement. 4. The City and has previously entered into a Master Lease Agreement No. 6649212, dated as of December 19, 2012 (the "Master Agreement"). 5. There has been presented to the City a proposal to finance the acquisition of the Equipment pursuant to the Master Agreement, as amended and supplemented by Amendment No. 1 ("Amendment No. 1"), and a Lease Purchase Schedule (the "Equipment Schedule"). The Master Agreement, as amended and supplemented by Amendment No. 1 and the Equipment Schedule, is referred to herein as the "Equipment Financing Lease"). 6. There has been presented to the City a proposal to finance the acquisition of the Software pursuant to the Master Agreement, as amended and supplemented by Amendment No. 1, and a Lease Purchase Schedule (the "Software Schedule"). The Master Agreement, as amended and supplemented by Amendment No. 1 and the Software Schedule, is referred to herein as the "Software Financing Lease") 7. Each of the Equipment Financing Lease and the Software Financing Lease (together, the "Financing Leases") will be entered into by and between Dell Financial Services L.L.C. ("Dell Financial"), as the lessor, and the City, as the lessee, with the understanding that Dell Financial intends, on or before the funding date, to assign Dell Financial's rights, title and interest in the Financing Leases to Dell Equipment Funding LP. B. RESOLUTION. NOW, THEREFORE, THE CITY COUNCIL HEREBY RESOLVES AS FOLLOWS: SECTION 1. This City Council finds and determines that all of the above recitals are true and correct. SECTION 2. The Mayor or, in the Mayor's absence, the Mayor Pro Tem, each acting individually, is hereby authorized, for and in the name of and on behalf of the City, to execute and deliver Amendment No. 1, in substantially the form on file with the City Clerk, with such changes Resolution No. 18-128 - Page 1 of 3 therein as the Mayor (or the Mayor Pro Tem, as the case may be) executing the same may approve (such approval to be conclusively evidenced by such execution and delivery). SECTION 3. The City Council hereby approves the lease financing of the Equipment. The Mayor or, in the Mayor's absence, the Mayor Pro Tem, each acting individually, is hereby authorized, for and in the name of and on behalf of the City, to execute and deliver the Equipment Schedule, in substantially the form on file with the City Clerk, with such changes therein as the Mayor (or the Mayor Pro Tem, as the case may be) executing the same may approve (such approval to be conclusively evidenced by such execution and delivery); provided that the total principal component of the Rent (as defined in the Financing Lease) payable by the City thereunder shall not exceed $1,824,838 and, except in an event of default as described in the Equipment Financing Lease, the interest rate evidenced by the interest components of the Rent shall be 4.715 percent per annum for the term of the Financing Lease. SECTION 4. The City Council hereby approves the lease financing of the Software. The Mayor or, in the Mayor's absence, the Mayor Pro Tem, each acting individually, is hereby authorized, for and in the name of and on behalf of the City, to execute and deliver Software Schedule, in substantially the form on file with the City Clerk, with such changes therein as the Mayor (or the Mayor Pro Tem, as the case may be) executing the same may approve (such approval to be conclusively evidenced by such execution and delivery); provided that the total principal component of the Rent payable by the City thereunder shall not exceed $639,914 and, except in an event of default as described in the Software Financing Lease, the interest rate evidenced by the interest components of the Rent shall be 0 percent per annum for the term of the Financing Lease. SECTION 5. The City Council hereby finds and determines that the lease financings approved hereby is consistent with the City's debt management policy (adopted on December 20, 2017, pursuant to Resolution No. 17-116). SECTION 6. The Mayor, the Mayor Pro Tem, the City Manager. the Finance Director and all other officers of the City, and each of them individually, are hereby authorized and directed, for and in the name of and on behalf of the City, to execute and deliver any and all documents, to do any and all things and take any and all actions (including, but limited to, the payment of any fee due to the California Debt and Investment Advisory Commission under Government Code Section 8856 in connection with the financing) that may be necessary or advisable in order to consummate the financing and to effect the purposes of this resolution. All actions heretofore taken by officers, employees, and agents of the City that are in conformity with the purposes and intent of this resolution are hereby approved, confirmed, and ratified Resolution No. 18-128 - Page 2 of 3 PASSED, APPROVED, AND ADOPTED this 5th day of December, 2018. L. Dennis Michael, Mayor ATTEST: Li . Troyan, City Clerk Services Director STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF RANCHO CUCAMONGA ) 1, Linda A. Troyan, City Clerk Services Director of the City of Rancho Cucamonga, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the City Council of the City of Rancho Cucamonga, at a Regular Meeting of said Council held on the 5th day of December 2018. AYES: Alexander, Kennedy, Michael, Williams NOES: None ABSENT: Spagnolo ABSTAINED: None Executed this 6th day of December, 2018, at Rancho Cucamonga, California. a . Troyan, City Clerk6ervices Director Resolution No. 18-128 - Page 3 of 3