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Item 5DCity of Southlake, Texas MEMORANDUM May 24, 2005 TO: Shana Yelverton, City Manager FROM: Rick Smith, Interim Director of Public Safety (Ext. 2406) SUBJECT: Authorize the Mayor to enter into a Rental Agreement for 21 Stalker Patrol Radars between Applied Concepts, Inc. of Plano and the City of Southlake Action Requested: City Council approval of a rental agreement for 21 Stalker SDSL2KA Dual Antenna Patrol Radars between Applied Concepts, the local dealer for Stalker Radars, and the City of Southlake. Background Information: The City of Southlake Department of Public Safety Police Services utilizes radars in all patrol vehicles to enforce speed laws within the city. The current Kustom radars are over 12 years old and lack new technology for differentiating moving targets accurately. This three year rental agreement allows the City of Southlake to maintain current technology by obtaining new equipment with new technology every three years if needed. Financial Considerations: This rental agreement provides a fee of $1,280.42 per month for 36 months or $60.97 per month per unit for a total of $15,365.04 annually. Funds were budgeted for this expense. Financial Impact: There is a financial impact of $15,365 annually. This is significantly less than the cost of purchasing and maintaining radars. Radar technology is improving rapidly and renting equipment allows the greatest opportunity to keep up with advancing technology. Citizen Input/ Board Review: No citizen input has been received. Not subject to any Board review. Legal Review: This agreement has been reviewed and approved by City Attorney Tim Sralla. Alternatives: Purchase price for these radars is $2,195 each for a total of $46,095, with standard equipment and dual antennas. Supporting Documents: Rental Agreement with Applied Concepts of Plano. Staff Recommendation: Place the Rental Agreement for renting 21 Stalker Radars from Applied Concepts, Inc. on the June 7, 2005 City Council meeting agenda for approval. RS /mrp TEXAS GOVERNMENTAL REAL AGREEMENT RENTOR: Applied Concepts, Inc. (also referred to as ACI) (DBA: Stalker Radar) 2609 Technology Drive, Plano, TX 75074 -7467 Sales Phone: 972- 398 -3780 Fax: 972- 398 -3781 Accounting: 972- 398 -3750 Ext 1.45 Fax: 972- 398 -3751 RENTER: Southlake Police Dept Attention: Chief M. Price 667 N Carroll Ave, Southlake, TX 76092 Phone: (817)481 -5581 Fax: (817) 481 -2850 Description of Equipment: SDSD2KA Dual Antenna Radars Quantity: 21 each Each Price: $2,195.00 Extended Price: $46,095.00 Total Monthly Payment: 51,280.42 for 36 months. NOTE: EQUIPMENT UNDER THIS AGREEMENT REMAINS THE SOLE PROPERTY OF APPLIED CONCEPTS, INC. NO TITLE TO THE PROPERTY IS PASSED UNDER THIS AGREEMENT. SEE SECTION 14 FOR PURCHASE OPTION OR CONSIDER A LEASE /PURCHASE AGREEMENT! 1. Renter hereby agrees to Rent the above described Radar Equipment, subject to the terms, provisions, conditions and agreements of this Rental Agreement herein set forth: 2. Said equipment is rented beginning with the delivery of said equipment to the renter for the term specified above. Renter acknowledges that upon delivery of said equipment that Applied Concepts, Inc. has fulfilled its obligation of performance under the Rental Agreement except for requirements later stated in this agreement. 3. Renter agrees to pay Applied Concepts, Inc. the monthly payment specified above, by the 15 of the month following shipping by Applied Concepts, Inc. and equal successive monthly payments during the term of the Rental Agreement. Applied Concepts, Inc. will mail monthly invoices at the beginning of each month, but is not responsible if the invoice does not reach the Renter. At the end of the term of the Rental Agreement, Renter agrees to return said equipment to Applied Concepts, Inc. within 30 days. 4. Renter hereby assumes and shall bear the entire risk for loss or damage to the equipment from abuse, fire, flood, theft, neglect, unauthorized use or other circumstances beyond the control of the Rentor. No loss or damage to the equipment or any part thereof, shall impair any obligation of Renter under this agreement, which shall continue in full force and effect. 5. The warranty period for the merchandise is the standard factory warranty at the time the order is received. Renter agrees that the warranty may be a shorter period of time than this rental agreement and that any repair cost outside of that warranty period will be at the renters expense. An extended warranty period may be purchased to cover any gap in time. Such extended warranty may be purchased and made part of this rental agreement or under a separate agreement. If Renter, with regard to any item or items of equipment fails to pay any payment or other amount herein provided within 90 days after the same is due and payable, or if Renter with regard to any item or items of equipment fails to observe, keep, or perform any other provision of this rent required to be observed, kept or performed by Renter, Applied Concepts, Inc. shall have the right to exercise any one or more of the following remedies: a.) To sue for and recover all payments then accrued with respect to any or all items of equipment. b.) To terminate this rent as to any or all items of equipment. c.) To pursue any other remedy at law or in equity. All such remedies are cumulative, and may be exercised concurrently or separately. The renewal and continuation of such contract is contingent upon the appropriation of funds by the governing body to fulfill the requirements of the contract and if the local governmental entity, after a diligent and good faith effort, fails to appropriate sufficient monies to provide for payments under the contract, the obligation to make payment under the contract shall terminate in accordance with the terms of the contract on the last day of the fiscal year for which funds were appropriated, provided the equipment is returned to the lessor or his agent, as provided in the equipment rental contract, and such contract shall not be a long -term debt of the local governmental entity. 8. The governmental agency reserves the right to terminate contract and or purchase order with a written thirty (30) day notice for non performance on the part of ACI. The cancellation will be without penalty under the provisions of this section only. 9. Applied Concepts, Inc. reserves the right not to rent or lease any further product to Renter if the rental is canceled for any reason prior to term end of the term. If Renter cancels for any other reason than those listed in section # 7, # 8, or # 14 an amount equal to 3 months rent will be due an payable as a penalty for early termination. lo. The parties hereto agree to bring any judicial action arising directly or indirectly in connection with this agreement or any transaction covered hereby in Courts located within the County of the Renter, Texas. The parties also consent to the laws of the State of Texas in interpreting provision of this contract. 11. 1 certify that I am duly authorized to act within the powers of my office by executing this Agreement, and the equipment being rented is essential to its governmental mission. 12. The portions of Rental payments are herein agreed upon for which funds shall have been appropriated and budgeted or are otherwise available and Renter's other obligations and liabilities under this rent relating to, or accruing or arising prior to such termination. The Renter is obligated only to pay Rental payments under this rent as may lawfully be made from 1.) funds budgeted and appropriated for that purpose during such fiscal period; or 2.) funds made available from a lawfully operated revenue producing source. In the event of such termination, Renter agrees to peaceably surrender possession of the Equipment to Applied Concepts, Inc. or its assignee on the date of such termination in the manner set forth in Section 5 hereof and Applied Concepts, Inc. will have all legal and equitable rights and remedies to take possession of the Equipment. 13. The prices quoted in this rental agreement are valid for a period of 120 days from the date signed by Applied Concepts, Inc. Any rental agreement executed after that date must be approved by Applied Concepts, Inc. prior to it being valid. Acceptance of an order and or shipping of the above - described merchandise constitutes acceptance by Applied Concepts, Inc. 14. At any time during or within 30 days after the final payment in accordance with this agreement is made, the Renter may purchase any or all of the described equipment in their possession at the time and receive 50% of the payments made on that unit as credit toward the above listed price. 15. It is agreed by Rentor and Renter that any fax or electronic transmitted document(s) will be considered as an original for all purposes of this agreement and therefore any signatures transmitted by fax or other electronic form are the same as a hand signed document. By: (Paul Hataway) For: Tim Carrio, Regional Sales Manager Dated: April 6, 2005 (revised per customer) Approved by Sales Management Signature of Authorized Official on behalf of Southlake Printed Name Title dav of 2005