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02-0604_AVAYA COMMUNICATIONS, INC_Lease AgreementFINANCIAL SERVICES CIIS71DAUR EVFORMA77ON SUPPLLER INFORM47YON I • I' 6 AFS-SLGLP 10/00 EASE AGREEMENT TO ALLIED CUSTOMER., This Lease has been written in -Plain English' When we use the wads you and your in this Lease, we mean you, ~ "sterner, which is the Losses indicated below. When we use the wads we, sa and our in this Lease, we mean the Losses, GT Com nuMeat/ons Fkanoe Corpurstice Our address is 650 CIT Dries, Llubmston, Now Jorsey 07039, Phare 1600.549.7619. Lessee Name CITY OF SAN JUAN I Bitting Street Address/City/0 32400 PASEO ADELAI Equipment Locatton Street A 32400 PASEO ADELAI Supplier Name ('SuppW COMPUWAVE INC. Street Address/Ciry/State?ll 69 SANTA FELICIA Quantity SAN JUAN CAPO, CA 92675-3603 ( 949 ) 493-1171 Cdy/County/State/Tp Phone No SAN JUAN CAPISTRANO, CA 92675 ( SANTA BARBARA, CA 93117-2804 x IDM 956006666 ase M W407192 hedule M 00080 w e No. 805 ) 685-7575 Make/Model Serial Number DEFINITY SETS, PACKS 6 EPNS TERMAND Lease Term (Months) Lease Payment Documentation Fee Tou" Cash Price Annual fiats of Interest TFd lig 39 $1,410.71 - 0 - $48,561.61 7.66 PAYMENF Additional Provisions SC( ULE SEE ATTACHMENT "A" 777LE (Check applicable box. if no box is checked, m N both boxes are checked, Idle Option A wily apply) OP77ON (I Title Option A—Title to the Equipment will be in Lessee's name during the Lease Tenn ❑ Title Option B—Tide to the Equipment will be in Lessor's name during the Lease Term INSURANCE AND TAXES You are required to provide and maintain Insurance related to the Equipment, and to pay any property, use and other taxes related to this Lease or the Equipment (See Sections 4 and 6 on the back of this Lease.) If you are tax-exempt, you agree to furnish us with satisfactory evidence of your exemption. 7TRA4SAND 1. LEASE; DELIVERY AND ACCEPTANCE You agree o lease the equipmentdescribed above (cgAeclivey.'Equ pment•) on the terms and coriditiors shown on the CONDMONS front and back of this lease agreement ("Lease'). If you have entered into arty purchase or supply contract ('Supply Contract') with any Supplier, you assign In us your is rights under such Supply Contract, but none of your obligations (other Nan the obligation o pay for to Egiipmem A it accepted by you as stated below and you timely deliver to us such documents and assurances as we request). If you have not entered Into a Supply Contract you aWxxize us to emer into a Supply Contract on your behalf. You will arrange for the delivery of the Equipment to you. When you receive are Equipment you agree to inspect it o determine lf it is in good working oder. The tens of this Lease will begin on the date when you sign a Delivery and Acceptance Certificate at which time to Equipment will be deemed irrevocably accepted by you and will continue for the number of months specified in this Lease, unless earlier terminated in accomimce with Section 16 of this Lease. The first Lease Payment's due on or before the date the Equipment is delivered to you. The remaining Lease Payments will be due on the day of each subsequent month (or such other erne period specified above) designated by us. You will make all payments required under this Lease to us at such address as we may specify in writing. If any Lease Payment or other amant payable to us is not paid within 10 days of its due date, you will pay us a late charge equal to the greater of (i) 5% of each late payment or (ii) $5.00 for each late payment (or such lesser amount as is the maximum annum allowable under applicable law). (NOTE. AddHieMl terms and conditions she err the pack. Certain state and local goverrunard lessess rmast sign an addendum.) BY SIGNING THIS LEASE: m YOU ACKNOWLEDGE THAT YOU HAVE READ AND UNDERSTAND THE TERMS AND CONDITIONS ON THE FRONT AND BACK OF THIS LEASE WHICH IS DOCUMENTED ON OUR FORM AFSSLGLP 10!00, 00 YOU AGREE THAT IF A COPY OF THIS LEASE IS SKLNED BY YOU AND THE FRONT OF THE COPY IS DELIVERED TO US BY FACSIMILE TRANSMISSION OR OTHERWISE, TO THE EXTENT ANY PROVISIONS ARE MISSING OR ILLEG- ISLE OR CHANGED (ANO NOT INITIALED BY BOTH YOU AND US), THE TERMS AND CONDITIONS OF OUR FORM AFSSLGLP 10= IN USE ON THE DATE WE RECEIVE THE COPY SIGNED SYYOU WILL BE THE TERMS AND CONDITIONS OF THE LEASE, 09) YOU AGREE THAT THIS LEASE IS A NET LEASE THAT YOU CANNOTTERMINATE OR CANCEL EXCEPT AS SPECIFICALLY PROVIDED HERON, YOU HAVE AN UNCONDITIONAL OBWATON TO MAKE ALL PAY- MENTS DUE UNDER THIS LEASE, AND YOU CANNOT WITHHOLD, SETOFF OR REDUCE SUCH PAYMENTS FOR ANY REASON, (Iv) YOU AGREE THAT YOU WALL USE THE EQUIPMENT ONLY FOR BUSINESS PURPOSES, (v) YOU WARRANT THAT THE PERSON SMOM THIS LEASE FON YOU HAS THE AUTHOR- ITY TO 00 SO, M YOU CONFIRM THAT YOU DECIDED TO ENTER INTO THIS LEASE RATHER THAN PURCHASE THE EQUIPMENT FOR THE LOWER TOTAL CASH PRICE, AND (rHq YQU AGREE THAT THIS LEASE WILL BE GOVERNED BY THE LAWS OF THE STATE 6N WHICH YOU ARE LOCATED. YOU CONSENT TO THE JURISDICTION Of ANY COURT LOCATED WITHIN THAT STATE YOU AND WE EXPRESSLY WANE ANY RIGHT TO A TRIAL BY JURY. CI Y SAN JUN CAPISTRANO CIT COMMUNICATIONS FINANCE CORPORATION(Lessor) Le X d natu3 ea_Authorized Signature I- bo arm nm N Tale1` i 1 y M Q _L f to Prim Name & Title Date CERIMC47YON 1. t I , a resident of in the State of DO HEREBY ay ala) CERTIFY that I am the duly elected or appointed and acting of the Lasses Ideraffed above, which is a State or a s political subdivision or agency, duly organized and existing under the laws of the State of ; and Mal I have custody of the records to of Lessee; and, as of the date set font below the Individual named and executing above on behalf of the Lessee, ams of Authorized 519ruffixy is the n of Lessee and is duly authorized to execute and deliver the Lease (including any addendum) and all related documents, in the name and on behalf of Lessee; and that the signature of such individual is his/her authentic signature. IN WITNESS WHEREOF, 1 have hereto set my hand and affixed the seal of Lessee this day of Certifier's Signature -SEAL- 2. NO WARRANTIES. -We are leasing the Equipmen' 'i "AS4S". YOU ACKNOWLEDGE THAT WE Do NOT MANUFACTURE THE EOUIPMEA : DO NOT REPRESENT THE MAN. UFACTURER OR THE SUPPLIER, AND YOU HAVE Sc,.ECTED THE EQUIPMENT AND THE SUPPLIER BASED UPON YOUR OWN JUDGMENT. WE MAKE NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PAR- TICULAR PURPOSE OR OTHERWISE. YOU AGREE THAT REGARDLESS OF CAUSE, WE ARE NOT RESPONSIBLE FOR AND YOU WILL NOT ASSERT ANY CLAIM AGAINST US FOR ANY DAMAGES, WHETHER CONSEQUENTIAL, DIRECT, SPECIAL, OR INDIRECT. YOU AGREE THAT NEITHER THE SUPPLIER NOR ANY SALESPERSON, EMPLOYEE OR AGENT OF THE SUPPLIER IS OUR AGENT OR HAS ANY AUTHORITY TO SPEAK FOR US OR TO BIND US IN ANY WAY. We befffer o you or the term of this Lease any warrarhties made by the manufacturer or the Supplier under a Supply Contract. 3. EQUIPMENT LOCATION; USE AND REPAIR; RETURN. You will keep and use the Equipment only at the Equipment Location shown on the front of this Lease. You may not move the Equipment w4rcad our prior written consent. At your own cost and expense, you will keep the Equipment eligi- ble or any manufacturers certification, n compliance with all applicable laws and in good repair, condition and warkag order. except nor adnary wear and tear. You Wil not make any abera0as. additions or n placemerha to ne Equipmern wi0out sur prior written consent All a0erations. add! - bons and replaoements; Will became par of the Equpment and air property at he cast or expense to W. We may inspect Oe Equlo mem at any reasonable fine. Unless you purchase the Equipment in accordance wth this Lease, upon termination of this lease you will immediately deliver the Equipment to us in m good condition as when you received it, except for ordinary wear and tear, to my place in the United Slates Mat we tell you. You will pay all expenses of denstaling, craft g and shipping, and you will insure the Equprrem for is full replacement value during shipping. 4- TAXES AND FEES. You win pay when due, sada directly or to us upon our demand, all taxes, fires and penalties relating to this Lease or the Equipment Mat are nox or to the future assessed or levied by any sale, local or other gavemmeat au0ody. We will file all personal property, use or other tax rafters (umess we notify you mhennse in wrong) and you agree to pay m a fee la making such filings. We do not have to =east any taxes, fires or penalties. You will pay estimated property taxes with each Lease Payment or annually, as invoiced. S. LOSS OR DAMAGE. As between you and us, you are responsibb, for any loss, MMI or dela xc tion of, or damage to, the Equipment (collectively "Loss') from any rause al 29, whot er a rat insured, until t is delivered o us at the end of this Lease. You are required to make all Lease Payments even 9 Mere is a Loss. You must rosy us in wnNng Irmhedaley of any Laos. Than, at aur option, you will eller (a) repair the Equipment so flat it is In good condition and waking order. eligi- ble or any man factufars cerlifcalion, or (b) Pay us the amounts specified in Section B(b) below. 6. INSURANCE. You agree to Pravda and maintain at your own expense (a) Property insurance against the loss, dieff, destruction of. or damage to, the Ecb*m I or is full replacement value, namng us as lass payee, and NI public liability and Mad Part pmxperty, insurance, naming us as an additional insured. If you so request and t we give our prior written consent. in ieu of maintaining the irsaarhce described in the preceding sentence. you may set insure against such real. provided dill air Merests are protected to fie same edam are it the insurance required n dauues (a) and (b) above had been obtairred by aid party nsumnce carriers and provided further that such self saw- ante Program is consistent with prudent business Practices with respect to insuring such risk You will give us certificates or other evidence of such inwmnce an the commencement date of this Lease, and at such fines as we request. AN irauraroa obtained from a firm part' insurer will be in a farm, amount and with companies acoeptable to us, and will provide Mal we will be given 30 days advance roots of any cancellation or matanal flange of such insurance. 7. TITLE; SECURITY INTEREST, It Title Option A in Ors Lease has been dasen, you will hod We to the Equipment in accordance with to Supply Contract. N Tithe Option B in this Lease has been chosen, we wffl hold Bte to the Equipment. 0 (a) you have not terminated this Lease in accordance with Section 16 of Out Lease and (b) ne Default exista firm upon your payment to us of all Lease Payments and other amounts due under this Lease, at the and of fie ono of fids Lease, you will be entitled to our Merest in the Equipment, 'AS IS, WHERE IS"wthoul any warranty or representation kom us, express or Implied, other Man the absence at any sere by, through or under us. To severe payment of all amounts due to us, to the extent permitted by law, you grist us and air assigns a purchase money security interest in the Equipment (including any replaceents. substitutions, addt rias allachmenls and proceeds). You all keep the Equipment free of all other lima and moum- brences. You will deliver to us signed financing g statements or other documents that we request o protect our interest in Oe Equipment. 8. DEFAULT. Each of the following is a "Default' under this Lewis: (a) you fail to pay any Lease Payment or any otiker payment within 10 days of is due date, (b) you do not perform any of your alar obligations under firs Lease or m any other agreement with a or with any of our affiliates and ths faAme continues or 10 days after we have notified you of 4, (c) you became insolvent, you ds - solve or are dissolved, or you assign your assets far the benefit of your creditors, or enter (voluntarily a uwok ntadly) any baW4upoy a reorganization proceadmg; or (d) any mpmsenta kim V warranty made by you under this Lease or in any instrument you have provided us poxes to be incorrect in any, material respect. 9. REMEDIES. If a Default occurs, we may do one or more of Me ooveng: (a) we may cancel a terminate this Lease or any or all other agreements that we have entered into with you or withdraw any offer of aedrt; (b) subjaS to de provisions of Section 16, we may declare an amount equal to al amounts then due under this Lease, and the unpaid pinnal balance under this Lease as of the due date of the last Lease Payment paid when due and payable, whereupon One same shall be immsd- ateiy due and payable; (c) we may require you o deliver the Equipment o us as set font In Section 3; (d) we or our agent may peacefully repossess the Equipment without nun order and you will not make any claims against us for damages or trespass or any other reason; and (e) we may exercise arty differ right or remedy available at law or in equity. You agree to Pay all of our costs of enforce Mg our rights against you, knduang ressonaba attorneys' fees. O we take possession of dke Equipnem, we may sal or otherwise dispose of it with or wi0out notice, at a public a private sale, and apply the ret proceeds (after we have deducted all ase related to this sale or dsposifion of the Equipment) to the amounts Mal you owe us. You agree drat it notice of sale Is Abjulred by law to be given, 10 days' notice will constitute reasonable notice. You win remain responsible fa any amounts Mat are due after we have applied such nil proceeds. 10. FINANCE LEASE STATUS. You agree that if Addie 2A -Leases of the Uniform Commercial Code applies to this Lease. Has Lease will be considered a'finarce case' m that term is defined in Aside 2A. By signing this Lease, you agree that either (a) you have reviewed, approved, and received a copy of the Supply Contract or (b) that we have informed you of the identity of the Supplier. Mat you may have rights under Supply Contract, and that you may contact the Supplier W a description of Ouse rights. TO THE EXTENT PERMITTED BY APPLICABLE LAW, YOU WANE ANY AND ALL RIGHTS AND REMEDIES CONFERRED UPON A LESSEE BY ARTICLE 2A. 11. ASSIGNMENT. YOU MAY NOT ASSIGN, SELL, TRANSFER OR SUBLEASE THE EQUIP - MEM OR YOUR INTEREST IN THIS LEASE We may, with nomicaam o you, sell, assign, or transfer this Lease or our rights in the Equipment. You agree that the new owner will have the same rights and benefits that we have now under this Lease but not our obligations. The rights of the new owner will not be subject to any claim, defense or set off that you may have against us. 12. LEASE PAYMENT EPAYMENT OPTION. You agree be pay us the lease Payments. Including both the pmx d ntenesl portions (the amount of principal and intere& irldiced in each Lease Payment has omen, and will be determined according to the sandard actions! method c cah"Ung imerest, which applies Me Annual Rate of Interest specified above an a raw" basis to fie declining balance outstanding). 6 you give us 30 days' prior written notice and no Default exists, you may prepay and terminate Ms Lease by paying us on any lease Payment due date the Lease Payment and any offer amounts then due under this Lease, the unpaid prey pal balance m of such date, and a service carge related to the prepayment of Drs lease. 0 you k M such condi- tions, you will be entitled to our interest in the Equipment as set orfh In Section 7 of firs Lima. 13. INDEMNIFICATION. With respect o any claims, arsons, or suits that are made against is as a result of your actions, machine, negligence a wilful misconduct (Claims), to the extent pertdfied by law, you agree to reimburse us for and, I we realest. defend us against any such Claims. 14. MISCELLANEOUS. You agree that the tams and coodbons contained in this Lease make up Its, entire ayeenom between you and us regarding the lease of the Egrpmwm. This Lease's not binding on us until we sign it. Any canoe in any, of the terns and cordons of Drs Lease must be in writing and signed by us. You agrx however, that we ars erNprized, without notice to you4 to supply missing Information or correct obvious error In this Lease. N we delay or fail to enforce any of our rights under Drs Lease, we wiN still be erthieci to enforce thaw rights at a later lime. All notices shag be given in writing by to party sending the notice and shall be effective when deposited in the U.S. Mail, addressed to like party receiving the Weak of tts address shown an the front of firs Lease (or to any minor address specified by that party in wNag) with first class postage Prepaid. AN of our rights and indarmi xis wig survive to temnnatan of On lease. I is the express intent of the parries not to Wdaa any applicable usury laws or to exceed the maximum amount of time price differential or interest, as applicable, permi0ed to be charged or collided by applicable law, ant any such excess Payment will be applied to Lease Payments in inverse oder of maturity, and arty isimor cq excess will be refunded to you. 9 you do not per am any of your chosore under that Lease. we have the right but not the obligation, to take any action or pay any amounts that we believe are necessary to protect our interests. You agree to reimburse us irmredaby upon aur demand far any such amounts that we pay. IF A SIGNED COPY OF THIS LEASE IS DELIV- ERED TO US BY FACSIMILE TRANSMISSION, IT WILL BE BINDING ON YOU. HOWEVER, WE WILL NOT BE BOUND BY THIS LEASE UNTIL WE ACCEPT IT BY MANUALLY SIGNING IT OR BY PURCHASING THE EQUIPMENT SUBJECT TO THE LEASE, WHICHEVER OCCURS FIRST. YOU WAIVE NOTICE OF OUR ACCEPTANCE AND WAIVE YOUR RIGHT TO RECEIVE A COPY OF THE ACCEPTED LEASE. YOU AGREE THAT, NOTWITHSTANDING ANY RULE OF EVIDENCE TO THE CONTRARY, IN ANY HEARING, TRIAL OR PROCEEDING OF ANY KIND WITH RESPECT TO THIS LEASE, WE MAY PRODUCE A COPY OF THE LEASE TRANSMIT- TED TO US BY FACSIMILE TRANSMISSION THAT HAS BEEN MANUALLY SIGNED BY US AND SUCH COPY SHALL BE DEEMED TO BE THE ORIGINAL OF THIS LEASE. TO THE EXTENT (IF ANY) THAT THIS LEASE CONSTITUTES CHATTEL PAPER UNDER THE UNI- FORM COMMERCIAL CODE, NO SECURITY INTEREST IN THIS LEASE MAY BE CREATED THROUGH THE TRANSFER AND POSSESSION OF ANY COPY OR COUNTERPART HEREOF EXCEPT THE COPY WITH OUR ORIGINAL SIGNATURE. IF YOU DELIVER THIS LEASE TO US BY FACSIMILE TRANSMISSION, YOU ACKNOWLEDGE THAT WE ARE RELYING ON YOUR REPRESENTATION THAT THIS LEASE HAS NOT BEEN CHANGED. If more than ane Lessee has signed this Lease, each of you agree that your liability is joint and several. 15. FUNDING INTENT. You reasonably believe fiat funds can be obtained suffxiera o make ori Lease Payments, and other paymems during the tam of this lease. You agree that your chief exec- utive or administralve officer (or your adnnsaaove office that has the resporsoiliry of preparing t e budget submiae l to your governing body. as applicable) wil provide for funxing for such payments in your annual budget request submitted o your governing body. I your governing body dooses not to appropriate bunds for such payments, you agree that your governing body will evidence turn nenapprupdabon by omgting finds for such payments due during fie applicable fiscal period from the budget that It adopts. You and we agree that your obligation to make Lima Payments under the, Lima will be your Whom expense and wig net be interpreted to be a debt in violation of applicable law or constitutional imheians or regivenwms. Nothing contained in this Lease wig be interpreted as a pledge of your general tax revenues, funds or monkeys. 16. NONAPPROPRIATION OF FUNDS. 0 (a) sufficient funds are not appropriated and budgeted by your governing body in any fiscal period for Lease Payments or other payments due under this Lease. and (b) you have ei nausted all kinds legally available or such payments, than you will give us written roam and Mk Lease will tormnaa as of me last day at your fiscal period or which orris for Lease Payments are "I". Such termnabon is wltflGut any expense or penalty, except for the portions of the Lease Payments and those expenses associated with your return of the Equipment in accordance with Section 3 of this Lease for which birds have been budgeted and appropriated or are otherwise legally available. You agree that, to the extent permitted by law, (x) you wig not terminate Ms lease N any funds are appropriated by you or to you for the acquisition or use of equipment or services perlamkg functions similar to fie Equipment during your fiscal period in which such termination would occur and (y) you will not spend or commit funds or the acquisition or use of equipment w services performing functions shmlar to Oe Equipment until M9 fiscal perked following the fiscal period fa which funds were first not available for the Lease Payments. 17. AUTHORITY AND AUTHORIZATION. You represent and agree that: (a) you are a Sate of a political sutdivsion or agency o1 a State; (b) the entering into and performarnoe at this Lease s aut onzed under your Slate avis and Constitution and does not violate or contradict any judgment law. order. or regulation, or cause any default under any agreemert to which you are a party; (c) you have complied with all bidding requirements and, where necessary, have properly Presented flus Lease for approval and adoption as a valid obfigatim on your pan; and (d) you have sufficient appro- priated funds or other moneys available from unexhausted and unencumbered appropriations and/or kinds within your budget to pay all amounts due under this Lease for your anent fiscal penf- rid and that such applicators angor binds have been designated for the Payment of those Lima Payments that may acre due under this Lease or your current fiscal period. Upon our request, you agree to Rentals us with an opinion of counsel as to dauses (a) t tough (d) above, an incumbency cerfifxate, and other documents the we request, with all such documents being in a form satisfaclo- ryo us. 18. GOVERNMENT USE. You agree the (a) you will comply with all Information reporting requirements of the Infernal Revenue Code of 1986, as amended, inducing, bun not limned W, the execution and delivery to us of Information statements requested by us, Ib) you will not do, cause to be done a all to do any act 0 such act will cause the Interest porton of the Lease Payments to be or to became subject to Federal Income Location and (c) the use of the Equipment is essential for your proper, efficient and sconomic operation, you will be Me only entity to use the Equipment during the term o/ this Lease and you will use the Equipment only or your governmental purposes. Upon our request, you will provide us wth an essential use letter in a form satisfactory to us as to clause (c) above. 19. CHOICE OF LAW. REGARDLESS OF ANY CONFLICTING PROVISION IN THIS LEASE, THIS LEASE WILL BE GOVERNED BY THE LAWS OF THE STATE IN WHICH YOU ARE LOCATED. 0 Copyrght 2000 by CIT. AFS-SLGLP 10/00 Page 1 of 1 Mitzi Ortiz From: Diane Regier Sent: Monday, October 03, 2005 10:05 AM To: Mitzi Ortiz Subject: RE: Agreement Status Hi Mitzi, The Avaya lease agreement will not be re -issued. We own the equipment now. Can I possibly get a copy of the Mission Trail Stables lease agreement and agenda report? I don't remember doing that one, but if you can send me a copy I'll look into it! Thanks! Diane Diane Regier Management Analyst I City of San Juan Capistrano dingier@sanjuencapistmno.org (949) 443-6304 (949) 493-1053 (FAX) -----Original Message ----- From: Mitzi Ortiz Sent: Monday, October 03, 2005 10:00 AM To: Diane Regier Subject: Agreement Status Hi Diane, I have questions about the status of two agreements. I'm not sure if you're working on them, so let me know if I should talk to someone else. The first is the AVAYA lease agreement. The agreement was supposed to terminate by 9/4/05 The second is the Mission Trail Stables lease agreement. The agreement was supposed to terminate by 9/18/05 Can you please let me know what's going on with each agreement? Thanks! 10/3/2005 0 9 Dawn Schanderl To: Juliet Arvizu Subject: Request for documents I spoke to Cindy and she told me you would check for copies of the following documents for me: 1. The leas greements for the Canon copies approved last March 5, 2002; and need c y 2. A lease extension ith Avaya Co unications was approved last June 4, 2002 and I need a copy. 3 I Z 1 3 Also I shared with Cindy we don't have any documentation regarding the original lease with Avaya. She told me it went under the name of Lucent but the only phone agreement I have is with AT&T for Community Services. So if you "happen" to have any documentation on the original lease may I have a copy?^ Thanks Grams X's 5 for any help you can give me. z ,2;I • Dawn Schanderl 11 To: Cindy Russell Subject: Lease and Lease Extension with Avaya Communications Cindy, I don't have either one of these documents in file. Would you please let me know what the status is? Thanks RESOLUTION NO. 02-06-04-01 ADOPTED ENTITLED " A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, DETERMINING COMPLETION AND ACCEPTANCE OF WORK IN ACCORDANCE WITH APPROVED PLANS AND SPECIFICATIONS FOR THE CONSTRUCTION OF PUBLIC IMPROVEMENTS AND PRIVATE IMPROVEMENTS WITHIN THE PUBLIC RIGHT-OF-WAY, AS PREVIOUSLY CONDITIONS WITH FINAL MAP APPROVAL OF PARCEL MAP 99-107 (ASSESSOR'S PARCEL NO. 645-361-03) (TMC SAN JUAN, LLC/SYCAMORE COMMONS)(NORTHEAST CORNER, JUNIPERO SERRA ROAD & CAMINO CAPISTRANO) (600.30) —� 6. LEASE EXTENSION WITH AVAYA COMMUNICATION, INC. APPROVED AND THE CITY MANAGER AUTHORIZED TO EXECUTE THE APPROPRIATE DOCUMENTS (600.20) PUBLIC HEARINGS - one SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY: (Refer to Agency minutes) CAPISTRANO VALLEY WATER DISTRICT: (Refer to Water District Minutes) H1. CITY MANAGER a. RESOLUTION NO. 02-06-04-02 ADOPTED SUPPORTING EXTENDED PRODUCER RESPONSIBILITY LEGISLATION RELATED TO DISPOSAL OF COMPUTER AND RELATED PRODUCTS (660.40) Proiect Description: CRTs (Cathode Ray Tubes) contain hazardous materials and are subject to management controls based on the risk they pose to the environment and public health. Electronic waste is a rapidly growing portion of the solid waste stream contributing about 70% of the heavy metals found in landfills. Staff recommends support of Extended Producer Responsibility (EPR) legislation that would encourage electronics producers to take responsibility for product reuse and recycling. Written Communications: Agenda Report dated June 4, 2002, from Douglas D. Dumhart, Principal Management Analyst. Correspondence received June 3, 2002 from Kevin M. Greene, Policy Associate, Californians Against Waste Foundation, requesting support for SB 1523 and SB 1619. 06-04-02 3 City Council Minutes 6/4/2002 AGENDA ITEM D 6 TO: George Scarborough, City Manager FROM: Cynthia L. Russell, Administrative Services Director SUBJECT: Consideration of Lease Extension for City Phone System (AVAYA Communication, Inc.) RECOMMENDATION: By Motion, approve lease extension with AVAYA communication and authorize the City Manager to execute the appropriate documents. SITUATION: A. Summary and Recommendation Staff has evaluated keeping the City's current phone system versus putting out a Request for Proposal (RFP) to replace the system. As staff believed, the costs of replacing the system in total far out -weigh upgrades to our existing system. An initial review shows that system features for our current system and a comparable system are similar. The benefit of the current AVAYA system is that the system is already installed and the upgrade would be invisible to the end users. Additionally, there would be no outlay for a new PBX and installation. The difference in the cost over a five-year life cycle would be approximately $88,000 when comparing the two systems. The upgraded AVAYA proposal is also less costly per month than the current AVAYA system. Staff recommends the City Council make an exception to the formal bidding procedures pursuant to section 3-4.305(g)(4) of the municipal code and authorize the City Manager to execute the appropriate documents to extend the AVAYA lease and make certain upgrades. B. Background The City has reached the end of the lease for our current phone system. At this point, we must either extend the lease, buy-out the lease or replace the system. Additionally, the software used to run the system and provide on-going monitoring and maintenance is outdated. Rather than prepare an RFP for a new system, staff determined that it would be beneficial to evaluate the costs of installing a new system or extending the lease on our current system and upgrading the software to the most recent technology. To that end, we requested that our current provider make a proposal to extend the life of our current system and requested price and feature proposals from two other vendors that have contacted the City. FOR CITY COUNCIL AGENDA Agenda Item -2- June 4, 2002 C. Proposals AVAYA Communication Our current phone system, provided by AVAYA Communication, Inc. was installed in 1995. The current lease is ending and AVAYA has offered to extend the lease for 39 months. The difference between this lease and previous leases is that there will be no buy-out at the end. The City will own the system and can chose to continue with the system and just pay maintenance and support costs. Additionally, the system software would be upgraded to the current generation of software. The software version used by the City is currently no longer supported and we do not have the flexibility we would have with an up-to-date system. Features of the updated system are discussed further in this report. The software upgrade is the key to the AVAYA proposal. From an administration standpoint, the updated software would provide the ability to administer the system. from a desktop computer rather than from the main phone room. Additionally, each circuit pack would now provide 24 available ports as opposed to 8 or 16 under the current configuration. By increasing our ports per circuit pack, the City would be able to upgrade more desktop phones from analog to digital. The digital features provide user programmability, display, ease of use, multiple line capability for conferencing and expandability, if necessary. The digital phones combined with the updated software would also allow automatic station relocation without the assistance of an AVAYA technician making adds, moves and changes much more effective. The software upgrade combined with our current equipmentwould be commensurate with the system AVAYA would propose if we put an RFP out in the market. Essentially, it brings our system up-to-date. Centrex (Pac Bell) In an effort to compare costs, staff requested an updated price quote for installation of a new PBX system under Pac Bell's Cal -Net contract. The features of the Centrex system are similar and the monthly costs for the system are comparable, however the Centrex system as with any other new installation would require new equipment and installation costs that we would not incur by upgrading the current system. Additionally, one aspect of Centrex that is different than other providers, is that the main system is not acquired by the user. Under Centrex, the user pays a monthly access fee the entire time they are provided service with Centrex. With a traditional acquisition, whether outright or leased, that cost is fully paid for at some point. The only real benefit to the Centrex system would be a better solution to our connection with the Old Fire Station and the ability to connect to other Centrex users. Cox Communications Although Cox is very interested in providing a phone solution to the City, they are not currently able to offer a solution for a user of our size. 9 Agenda Item -3- June 4, 2002 D. Comparison of Costs As staff suspected, the AVAYA and Centrex systems are comparable in the monthly price. The Centrex system as with any new system would require an initial capital outlay to install the new system. With the AVAYA solution, the City could simply extend the lease and upgrade the software with no equipment costs. Table 1 below outlines the costs of each proposal. The proposals are based on 128 lines. The AVAYA package is a monthly lease for 3 years with the City owning the equipment at the end of the lease. The monthly maintenance figure for AVAYA is paid as long as we keep the system. Additionally, I have added the cost of upgrading 24 existing phones from analog to digital on the AVAYA system and some enhancements to the call accounting software. The Centrex package requires an initial capital outlay of $71,331, an annual cost of $1,562 per month for the entire five years to access the Centrex lines, and a monthly cost of $845 for voice mail per mailbox for a total cost of $2,407. Centrex did not provide digital equipment on the desktop and that upgrade would require additional cost. The cost comparison of the two proposals is as follows: Table 1 AVAYA (Current) AVAYA (Proposed) Pac Bell Monthly Monthly 3 year Life 5 year Life Monthly 3 year Life 5 year Life Monthly Lease/Centrex Lines $1,533 $1,410 $50,760 $54,990 $1,562 $56,232 $93,720 Monthly Maintenance/Voice Mail $1,400 $893 $32,148 $53,580 $845 $30,420 $50,700 One -Time Equipment Cost $71,331 $71,331 Add-ons $18,642 $18,642 Total $2,933 $2,310 1 $101,550 $127,212 $2,407 $157,983 $215,751 Add-ons include digital equipment upgrades and another software upgrade allowing staff to access the call accounting system directly from their desk top. The system currently has 73 analog and 42 digital ports being used. This leaves 6 digital ports and 7 analog ports available. If we upgrade 24 analog units to digital, we would have 66 digital and 49 analog. This would allow a majority of users to have the enhanced features. If we decided not to upgrade to digital we could save approximately $14,600 on the AVAYA equipment cost, however staff would recommend the upgrade. The balance of the Add-on cost is for software that will allow staff to administer the call accounting from the desktop. Currently, the call accounting system requires a separate stand-alone unit and printer. This configuration does not make the most effective use of space and requires the administrator to leave their workstation to prepare reports and monitor the system. AVAYA has also committed to providing a day of training for all users to be sure they are aware of the features of their equipment. Staff also 0 LJ Agenda Item -4- June 4, 2002 recommends regular training sessions (every six months) so that users can keep up to date on what features their equipment has and to communicate needs effectively. Basically, the AVAYA lease extension and upgrade proposal provides for an up-to- date system at less cost than the installation of a new system. Additionally, the monthly lease and maintenance cost is less than we are currently paying. AVAYA has also made commitments over the past year to providing good customer service and has been successful at delivering that service. E. Purchasing Requirements The City's formal bidding procedures require certain procedures for acquisitions exceeding $10,000 unless certain exceptions apply. Section 3-3.405(g)(4) provides for an exception in cases where the City Manager has presented evidence that adherence to the bid procedure would not produce the most economically -feasible result. Based on the information obtained to date, staff is recommending the City Council exempt the lease extension for the City's phone system from the bid procedures pursuant to this section of the code. COMMISSION/BOARD REVIEW AND RECOMMENDATIONS: Not Applicable FINANCIAL CONSIDERATIONS: Funds to provide for the monthly lease and maintenance costs for the City's phone system are provided in the budget based on our current costs. Staff estimates that replacement of our phone system would result in costs that would exceed our already budgeted amount by $600 per month. The AVAYA proposal provides for a reduction in the monthly costs incurred by the City of approximately $500. Additionally, the cost of add-ons proposed in the AVAYA solution can be funded from the current year budget for phone and computer equipment. NOTIFICATION: None ALTERNATE ACTIONS: 1. By Motion, approve lease extension with AVAYA communication and authorize the City Manager to execute the appropriate documents. P Agenda Item -5- June 4, 2002 2. Do not approve the lease extension and direct staff to prepare a formal RFP for replacement phone systems 3. Request additional information from staff. RECOMMENDATION: By Motion, approve lease extension with AVAYA communication and authorize the City Manager to execute the appropriate documents. Respectfully Submitted, Cyn is L. Russell Administrative Services Director