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