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HomeMy WebLinkAbout2/16/2000 - STAFF REPORTS (6) DATE: FEBRUARY 16, 2000 TO: CITY COUNCIL FROM: DIRECTOR OF MANAGEMENT &BUDGET APPROVE SUPPLEMENT NUMBER 5 TO CALEASE MASTER LEASE/PURCHASE AGREEMENT FOR THE PURCHASE OF TWENTY SEVEN(27)VEHICLES FOR THEPOLICE DEPARTMENT RECOMMENDATION: That the City Council approve Supplement(Takedown)Number 5 in an amount not to exceed $800,000 under the Master Lease Agreement with CaLease to finance the purchase of eighteen (18)fully equipped police patrol units,six(6)detective units,two(2)commander units and one (1) animal control truck. BACKGROUND: The Office of Management & Budget recommends that the purchase of eighteen (18) fully equipped police patrol units, six (6) detective units, two (2) commander units and one (1) animal control trick (total equipment cost not to exceed $765,551) be financed on a lease/purchased basis over three years under the Master Lease Agreement with CaLease approved by the City Council on October 21, 1998. The vehicle purchase is described in a separate staff report to Council. Part of the assigned vehicle program, these police vehicles will have a useful life of at least six (6)years. Paying cash for these vehicles places a substantial burden on the cash reserves of the City's Motor Vehicle Replacement (MVR) fiord. CaLease's program will provide the required funding with a three-year payback term at an interest rate in the mid 5% range. CaLease will finalize the rate through placement in the competitive market within ten(10)days after notification of approval by the City Council. The payments will be semi-annual, due on December 30 and June 30. This financing program was created as a joint powers authority of the League of California Cities and the California State Association of Counties; it was intended to provide California cities and counties access to the best possible financing for large capital acquisitions by leveraging tax-exempt rates. The police vehicles will become property of the City outright at the end of the three year payme t term. J HN S. YMO Dir of Management &Budget APPROVED: City Manager ATTACHMENTS: 1. Minute Order • • DATE: FEBRUARY 16, 2000 TO: CITY COUNCIL FROM: DIRECTOR OF MANAGEMENT &BUDGET APPROVE SUPPLEMENT NUMBER 5 TO CALEASE MASTER LEASE/PURCHASE AGREEMENT FOR THE PURCHASE OF TWENTY SEVEN(27)VEHICLES FOR THE POLICE DEPARTMENT RECOMMENDATION: That the City Council approve Supplement('Takedown)Number 5 in an amount not to exceed $900,000 under the Master Lease Agreement with CaLease to finance the purchase of eighteen (18)fully equipped policepatrol units,six(6)detective units,two(2)commander units and one (1) animal control truck. BACKGROUND: The Office of Management & Budget recommends that the purchase of eighteen (18) fully equipped police patrol units, six (6) detective units, two (2) commander units and one (1) animal control truck (total equipment cost not to exceed $765,551) be financed on a lease/purchased basis over three years under the Master Lease Agreement with CaLease approved by the City Council on October 21, 1998. The vehicle purchase is described in a separate staff report to Council. Part of the assigned vehicle program, these police vehicles will have a useful life of at least six (6)years. Paying cash for these vehicles places a substantial burden on the cash reserves of the City's Motor Vehicle Replacement (MVR) fund. CaLease's program will provide the required funding with a three-year payback term at an interest rate in the mid 5% range. CaLease will finalize the rate through placement in the competitive market within ten(10)days after notification of approval by the City Council. The payments will be semi-annual, due on December 30 and June 30. This financing program was created as a joint powers authority of the League of California Cities and the California State Association of Counties; it was intended to provide California cities and counties access to the best possible financing for large capital acquisitions by leveraging tax-exempt rates. The police vehicles will become property of the City outright at the end of the three year payme term. JOHN S. AYMO Direaueof Management c Budget APPROVED: �� City Manager ATTACHMENTS: 1. Minute Order MASTER LEASE AGREEMENT SUPPLEMENT NO. 5 X442a DATED AS OF: March 1,2000 LESSOR: CaLease Public Funding Corporation 1100 K Street, Suite 101 Sacramento,CA 95814 LESSEE: City of Palm Springs,California 3200 E. Tahquitz Canyon Way Palm Springs,CA 92263 MASTER LEASE AGREEMENT: Master Lease Agreement dated as of November 15, 1998, between Lessor and Lessee FINAL ACQUISITION DATE: No later than September 1,2000 WITNESSETH: WHEREAS,Lessor desires to lease the Equipment, as hereinafter defined, to Lessee, and Lessee desires to lease the Equipment from Lessor, in accordance with the Master Lease Agreement and this Master Lease Agreement Supplement; NOW, THEREFORE, in consideration of the above premises and of the mutual covenants hereinafter contained and for other good and valuable consideration,the parties hereto agree as follows: A. Incorporation of the Standard Terms and Provisions. The terms and provisions of the Master Lease Agreement, which is attached to this Supplement, are incorporated herein by this reference as though fully set forth in this Supplement. The Master Lease Agreement,together with this Supplement,and the documents and other items referred to therein and herein related to this Supplement or the Equipment, attached thereto or hereto or required thereby or hereby are collectively referred to herein as the "Lease Agreement." Capitalized terms used in this Supplement and not otherwise defined shall have the meanings ascribed thereto in the Master Lease Agreement. B. Lease of Equipment. There is hereby subject to the terms of this Lease Agreement the following described property, together with (i) all substitutions for, products and proceeds of any of the following described property, (ii)all accessions thereto, and(iii)all accessories, attachments, parts, equipment and repairs nor or hereafter attached or affixed to or used in connection with any of the following described property(the "Equipment"): DESCRIPTION OF EOUIPMENT: Eauioment Cost (18)Completely Equipped Police Patrol Units; $765,551.00 (6)Police Detective Units; (2)Commanders Units; (1)Animal Control Truck (See Attachment A for a detailed list) Useful Life of Equipment: 5 years Lessee certifies that the Equipment being acquired will, immediately after its acquisition by Lessee as agent for Lessor, be owned by Lessee free and clear of all liens or claims of others, except for the rights of Lessor under the Lease Agreement. Lessee further certifies that the Equipment is not currently owned or leased by Lessee and that Lessee is prepared to accept the Equipment from the Vendor thereof upon delivery and satisfaction of performance criteria, if any. C. Acquisition Date and Lease Term. The Equipment shall be acquired by the Final Acquisition Date, and the Lease Term shall commence on the Commencement Date., D. Base Rental Payments. Base Rental Payments shall be comprised of principal components and interest components and shall be payable at the times and in the amounts as set forth in Schedule 1. E. Fair Rental Value. Lessee hereby certifies that the foregoing Base Rental Payments plus Additional Rental Payments payable pursuant to Section 6.02 of the Master Lease Agreement represents, on an annual basis, the fair rental value of the Equipment specified herein. In making this determination, consideration has been given to the cost of the acquisition and installation of the Equipment, other obligations of the parties under the Lease Agreement, the uses and purposes which may be served by the Equipment, and the benefits therefrom which will accrue to Lessee and the general public. F. Prepayment Terms. The Base Rental Payments are subject to prepayment as provided in Section 6.06 of the Master Lease Agreement. An optional prepayment pursuant to Section 6.06(c) of the Master Lease Agreement may be made on any Payment Date beginning at the prepayment price indicated above. G. Entire Agreement. This Lease Agreement, together with Schedule 1 and all Exhibits and Attachments, constitutes the entire agreement between Lessee and Lessor and supersedes all prior and contemporaneous writings, understandings, agreements, solicitations documents and representations, express or implied. No waiver, consent, modification or change of terms of this Lease Agreement shall bind either party unless in writing signed by both parties, and then such waiver, consent, modification or change shall be effective only in the specific instance and for the specific purpose given. There are no understandings, agreements, representations or warranties, express or implied, not specified herein regarding this Lease Agreement or the Equipment acquired hereunder. Any terms and conditions of any purchase order or other document submitted by Lessee in connection with this Lease Agreement which are in addition to or inconsistent with the terms and conditions of this Lease Agreement will not be binding on Lessor and will not apply to this Lease Agreement. Lessee by the signature below of its authorized representative acknowledges that it has read this Lease Agreement, understands it, and agrees to be bound by its terms and conditions. H. Assignment by Lessor. Lessee acknowledges and consents to Lessor's assignment of its right to receive Base Rental Payments Additional Rental Payments and certain of its rights to enforce payment hereunder to various assignees and hereby agrees to make Base Rental Payments and Additional Rental Payments to such address in the United States as shall be designated by Lessor; provided that any assignment shall not be effective until Lessee has received written notice, signed by the assignor, of the name and address of the assignee. Lessee shall retain all such notices as a register of all assignees and shall make all payments to the assignee or assignees designated in such register. 1. Certification as to Arbitrage and Tax Covenants. Lessee hereby represents as follows: (a) The estimated total costs of the Equipment will not be less than the total principal portion of the Base Rental Payments listed in this Supplement. (b) The Equipment has been ordered or is expected to be ordered within six months of the commencement of this Lease Agreement and the Equipment is expected to be delivered and installed, and the Vendor fully paid within 18 months from the commencement of this Lease Agreement �i93 VrAr (c) Lessee has not created or established, and does not expect to create or establish any sinking fund or other similar fund (i) that is reasonably expected to be used to pay the Base Rental Payments, or(ii)that may be used solely to prevent a default in the payment of the Base Rental Payments. (d) The Equipment has not been and is not expected to be sold or otherwise disposed of by Lessee, either in whole or in major part, prior to the last maturity of the Base Rental Payments. (e) To the best of Lessee's knowledge, information and belief, the above expectations are reasonable. (f) Lessee has not been notified of any listing or proposed listing of it by the Internal Revenue Service as an issuer whose arbitrage certificates may not be relied upon. IN WITNESS WHEREOF, Lessor has executed this Lease Agreement in its corporate name and attested by its duly authorized officers, and Lessee has caused this Lease Agreement to be executed in its name by its duly authorized officers. All of the above occurred as of the date first written above. LESSOR: CALEASE PUBLIC FUNDING CORPORATION By Name: Tracy A.McWilliams Title: CaLease Program Manager LESSEE: CITY OF PALM SPRINGS,CALIFORNIA By Name: Dallas Flicek Title: Interim City Manager ATTEST: Name: Title: Counterpart No._or 3 SCHEDULE 1 DATED AS OF: March 1,2000 LESSOR: CaLease Public Funding Corporation 1100 K Street,Suite 101 Sacramento,CA 95814 LESSEE: City of Palm Springs,California 3200 E.Tahquitz Canyon Way Palm Springs,CA 92263 MASTER LEASE AGREEMENT: Master Lease Agreement dated as of November 15, 1998,between Lessor and Lessee MASTER LEASE AGREEMENT SUPPLEMENT: Master Lease Agreement Supplement No. 5 dated as of March 1, 2000, between Lessor and Lessee INTEREST AND PRINCIPAL COMPONENT PAYMENT SCHEDULE Interest Prepayment Base Rental Total Base Principal Component - Purchase Due Date Rental Payment Component at 5.68% Option 01-Sep-00 140,570.29 118,828.64 21,741.65 650,255.05 01-Mar-01 140,570.29 122,203.37 18,366.92 526,916.52 01-Sep-01 140,570.29 125,673.95 14,896.34 400,309.52 01-Mar-02 140,570.29 129,243.09 11,327.20 270,347.43 01-Sep-02 140,570.29 132,913.59 7,656.70 136,941.35 01-Mar-03 140,570.29 136,688.36 3,881.93 843,421.74 765,551.00 77,870.74 PROOF OF PUBLICATION This is space for County Clerk's Filing Stamp (2015.5.C.C.P) N0.3997 - CITY OF PALM SPRINGS NOTICE INVITING BIDS For constructing Heritage Trail Bikeway Project - Project 93-49 N-1 NOTICE IS HEREBY GIVEN that sealed bids for the construction of the Hentage Trail Bikeway Project will be received at the office of the Pro- curement Manager of the City of Palm Springs, California, until 2 P.M. on March 7, 2000, at which time they will be opened and read aloud N-2 DESCRIPTION OF THE WORK: The Work comprises the improvement of the Heritage Trail Bikeway Project. The project consists of removal, disposal, and construction of asphalt concrete pavement and overlay, removal of existing and construction of new sidewalk, curb, and drive ap- STATE OF CALIFORNIA I proaches, striping, stamped concrete, signage, cast in place concrete, pre-cast concrete pavers, County of Riverside landscaping, irrigation system installation, and - -- - n'—. . ste l v.=«JlI hw for bohgnn (a)The City reserves the right after opening bids to reject any or all bids,to waive any informality(non- responsiveness) in a bid, or to make award to the I lowest responsive responsible bidder on the basis of the sum of Bid Schedule "A" (Base Bid) and Bid Schedule "B", and reject all other bids, as It may best serve the interest of the City. Bidders shall submit bids on all bid schedules (b) As condition of award, the successful bidder I am a citizen of the United States and a resident of will be required to submit payment and perfor- mance bonds and insurance. the County aforesaid; I am over the age of eighteen N-4 BID SECURITY: Each bid shall be acconi years,and not a party to or interested in the riled by a certified or cashier's check of Bid Bond in the amount of 10 ercent of the total bid price, above-entitled matter.I am the principal clerk of,a Bid Schedule "A" (Vase Bid) plus Bid Schedule printer of the,DESERT SUN PUBLISHING "B" La of. m the City of Palm Springs COMPANY a newspaper of general circulation Nuara tee thOe T EM Blid PrPioe for hoe adder shall g , 9 period of 45 printed and published in the city of Palm Springs, calendar days from the date of the bid openi nq N-6 CONTRACTOR'S LICENSE CLASSIFI A- County of Riverside,and which newspaper has been TION:The Contractor shall possess a valid Class A adjudged a newspaper of general circulation by the Contractor license at the time of submitting bids Superior Court of the County of Riverside,State of The Contractor CALIFORNIA WAGE the RATE REQUIREMENTS: P ty of per diem wages as determinedaby prevailing Director torr rate California under the date of March which the Case of the Department of Industrial Relation of the Number 191236;that the notice,of Which the State of California for the locality where the work is annexed is a printed copy(set in type not smaller to be performed. A copy of said wage rates is on file at the office of the City Engineer. The Contrec- than non panel,has been published in each regular tar and any subcontractors shall pay not less than and entire issue of said newspaper and not in any said specified rates and shall post a copy of said wage rates at the project site. supplement thereof on the following dates,CO wit: N-8 FEDERAL WAGE RATES:The general prevail- ing rate of wages by the Security of Labor are in- February 19th cluded In the Contract If there is any difference between the State oror Federal wa es rates, the ----------- ----- --- N-9ContRctor must u tn, the In he, ENTSt o ratter Con- tractor may elect to receive 100 percent of pay- -_-___-___--__—_�_--__ ments due under the Contract Documents from time Lo Lime, without retention of any portion of the payment by the City, by depositing securities of Al! in the year 2000 __ equivalent value with the City in accordance with _ " the provisions' of Section 22300 of the Public Con- tract Code. I certify(or declare)under penalty of perjury that the N-10 FEDERAL NON-DISCRIMINATION PROVI- SION: Bidders shall comply with the President's foregoing is true and correct. Executive Order No 11246. 21st N-11 FEDERAL INTEREST EXCLUSION:Any con- Dated at Palm Springs,California this---day tract or contracts awarded under this Notice Invit- ing Bids are expected to be funded in part by a February rant from the United States Government. Neither 9is United States nor any party to this Notice Invit- Of----------------^------- 2000 ing Bids or any resulting Agreement. This procure- ment will be sub act to regulations contained in 40 CFR Part 33 antl 35. JJJJJJ / p N-12 OBTAINING OR INSPECTING CONTRACT DOCUMENTS: (a) Contract Documents may be inspected without Signature charge at the office of the City Engineer, 3200 East Ted itz Canyon Way, Palm Sprngs, CA 92262 (b) Compplete sets of said Contract Documents may be at $25.00 per set and are obtainable from the office of the City Engineer, 3200 East Tah%itz Can ion Way Palm Springs, CA 92262. No refund will de made of any charges for sets of Contract Documents (c) An additional fee of $15 00 will be charged for sets of documents sent by mail. N-13 ADDRESS AND MARKING OF BIDS: The envelope enclosing the Bid shall be sealed and ad- dressed [o the City of Palm Springs, and shall be delivered or mailetl to the Procurement Manager at 3200 East Tahqurtz Canyon Way, Palm Springs, CA 92262 The envelope shall be plainly marked in !-� the upper left hand corner with the name and ad- f� ,J dress of the Bidder and shall bear the wortls "Bid For " followed by the title of the Project and the J date and hour of opening Bids. The certified of one shier's check or Bid Bond shall be enclosed in the same envelope with the Bid. BY ORDER OF THE CITY OF PALM SPRINGS Date Feb.8,2000 CITY OF PALM SPRINGS By Is/David J. Baraken, PE Cny Engineer City of Pa Snrmnc CITY OF PALM SPRINGS NOTICE INVITING BIDS For constructing Heritage Trail Bikeway Project - Project 93-49 N-1. NOTICE IS HEREBY GIVEN that sealed bids for the construction of Heritage Trail Bikeway Project will be received at the office of the Procurement Manager of the City of Palm Springs, California, until 2:00 p.m. on September 21, 1999 at which time they will be opened and read aloud. N-2 DESCRIPTION OF THE WORK: The Work comprises the improvement of the Heritage Trail Bikeway Project. The project consists of removal, disposal, and construction of asphalt concrete pavement and overlay, removal of existing and construction of new sidewalk, curb, and drive approaches, striping, stamped concrete, signage, cast in place concrete, pre-cast conc. Pavers, landscaping, irrigation system installation, and electrical system installation for lighting. N-3 AWARD OF CONTRACT: (a) The City reserves the right after opening bids to reject any or all bids, to waive any informality (non- responsiveness) in a bid, or to make award to the lowest responsive, responsible bidder on the basis of the sum of Schedules A plus B Base Bids and reject all other bids, as it- may -best serve the interest of the City. Bidder shall submit bids on all bid schedules. (b) As a condition of award, the successful bidder will be required to submit payment and performance bonds and insurance, N-4 BID SECURITY: each bid shall be accompanied by a certified or cashier's check or Bid Bond in the amount of 10 percent of the total bid price, Schedules A plus B Base Bids, payable to the City of Palm Springs. N-5 BIDS TO REMAIN OPEN: The Bidder shall guarantee the Total Bid Price for a period of 45 calendar days from the date of bid opening. N-6 CONTRACTOR'S LICENSE CLASSIFICATION: The Contractor shall possess a valid Class A Contractor license at the time of submitting bids. N-7 CALIFORNIA WAGE RATE REQUIREMENTS: The Contractor shall pay the general prevailing rate of per diem wages as determined by the Director of the Department of Industrial relations of the State of California for the locality where the work is to be performed. A copy of said wage rates is on file at the office of the City Engineer. The Contractor and any subcontractors shall pay not less than said specified rates and shall post a copy of said wage rates at the project site. Heritage Trail Bikeway Project CP#93-49 08111/99 11:21 AM NOTICE INVITING BIDS PAGE 1 N-8 FEDERAL WAGE RATES: The general prevailing rate of wages by the Secretary of Labor are included in the Contract. If there is any difference between the State or Federal wages rates, the Contractor must pay the higher of the 2 rates. N-9 RETAINAGE FROM PAYMENTS: The Contractor may elect to receive 100 percent of payments due under the Contract Documents from time to time, without retention of any portion of the payment by the City, by depositing securities of equivalent value with the City in accordance with the provisions of Section 22300 of the Public Contract Code. N-10 FEDERAL NON-DISCRIMINATION PROVISION: Bidders shall comply with the President' s Executive Order No. 11246. N-11 FEDERAL INTEREST EXCLUSION: Any contract or contracts awarded under this Notice Inviting Bids are expected to be funded in part by a grant from the United States Government. Neither the Untied States nor any of its departments, agencies, or employees is or will be a party to this Notice Inviting Bids or any resulting Agreement. This procurement will be subject to regulations contained in 40 CFR part 33 and 35. N-12 OBTAINING OR INSPECTING CONTRACT DOCUMENTS: (a) Contract Documents may be inspected without charge at the office of the City Engineer, 3200 East Tahquitz Canyon Way, Palm Springs, CA 92262 . (b) Complete sets of said Contract Documents may be purchased at 25 dollars per set and are obtainable from the office of the City Engineer, 3200 East Tahquitz Canyon Way, Palm Springs, CA 92262 . No refund will be made of any charges for sets of Contract Documents . (c) An additional fee of $15.00 will be charged for sets of documents sent by mail. N-13 ADDRESS AND MARKING OF BIDS: The envelope enclosing the Bid shall be sealed and addressed to the City of Palm Springs, and shall be delivered or mailed to the Procurement Manager at 3200 East Tahquitz Canyon Way, Palm Springs, CA 92262 . The envelope shall be plainly marked in the upper left hand corner with the name and address of the Bidder and shall bear the words "Bid For. . followed by the title of the Project and the date and hour of opening Bids. The certified or cashier' s check or Bid Bond shall be enclosed in the same envelope with the Bid. Heritage Trad Bikeway Project NOTICE INVITING BIDS CP#93-09 PAGE2 BY ORDER OF THE CITY OF PALM SPRINGGS Date /v(,,(' 2-a 19 / CITY OF PALM SPRINGS By- David J. Barakian, PE City Engineer City of Palm Springs Heritage Trail Bikeway Project NOTICE INVITING BIDS CP#93-49 PAGE3 MINUTE ORDER NO. APPROVING SUPPLEMENT (TAKEDOWN) NUMBER 5 UNDER THE MASTER LEASE/PURCHASE AGREEMENT WITH CALEASE IN AN AMOUNT NOT TO EXCEED $800,000 TO FINANCE THE PURCHASE OF POLICE VEHICLES I HEREBY CERTIFY that this Minute Order, approving a Supplement Number 5 to the Master Lease/Purchase Agreement with CaLease in an amount not to exceed$800,000 to finance the purchase of police department vehicles,was adopted by the City Council of the City ofPalm Springs, California,in a meeting thereof held on the 16"' day of February, 2000, PATRICIA A. SANDERS City Clerk