ORDER NO.3 0629 PURCHASE OF NICE CALLFOCUS III RECORDER SYSTEM Came to be heard this the 26th day of November, 2007, with a motion made by Commissioner Williams, seconded by Commissioner Baldwin. The Court unanimously approved by vote of 4-0-0 to: Approve the purchase, rather than the lease as previously budgeted, of the NICE CallFocus III Recorder System from Voice Products, Inc. 3o~a9 1>>`~ COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORIGINAL AND TEN COPIES OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT. MADE BY: W.R Hierholzer MEETING DATE: November 26 2007 SUBJECT: Consider, discuss and take appropriate action on the purchase rather than the lease of the NICE Ca1lFocus III Recorder System from Voice Products, Inc. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT: Sheriff Hierholzer ESTIMATED LENGTH OF PRESENTATION: 5 minutes IF PERSONNEL MATTER -NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with 'Title 5, Chapter SS I and 552, Government Code, is as follows: `~rir Meeting scheduled for Mondays: THIS REQUEST RECEIVED BY: THIS REQUEST RECEIVED ON: OFFICE: Kerr County Sheriff s Office TIME PREFERRED: 5:00 P.M. previous Tuesday. All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be appreciated and contribute towards your request being addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners' Court. ~r+ November 26, 200? TO: Kerr County Judge Pat Tinley and Kerr County Commissioners' Court FROM: Sheriff W.R. Hierholzer RE: Voice Products Contract Consider, discuss and take appropriate action on the purchase rather than the lease of the NICE CallFocus III Recorder System. ~. VQICE PRODUCTS INC. Proposal Prepared For: Kerr County Sheriff 400 Clearwater Paseo -Kerrville, TX 78028 Phone: 830-896-1216 -Fax: 830-257-7904 Contact: Sheriff Rusty Hierholzer rhierholzer@co.kerr.tx.us April 25, 2007 Nl~f NICE Ca1lFocus III Recorder Svstem Qty. Description Unit Price Total 1 12 Channel Nice Call Focus III Bundle U radeable to 48 Channels $10,500.00 $10,500.00 1 250 GB Hard Drive (50,000 hours on line stora e) Included Included 1 9.4 GB DVD Drive Included Included 1 Mixed Confi uration Enabler 2,000.00 2,000.00 1 Microsoft SQL Server 2000 Software Included Included 1 Nice Monitor User License Included Included 1 Nice Administrator License Included Included 1 Nice Su ervisor License Included Included 1 Nice Basic Software Package -Includes: • 3 x Last Message Replay • 1 x Scenario Repla Software 1,000.00 1,000.00 1 User Manual - CD Included Included 2 9.4 GB DVD Double Sided O tical Media Included Included 1 30 Minute UPS 599.00 599.00 1 DVD Cleanin Kit Included Included 1 Ke board, Monitor, Mouse 350.00 350.00 1 Recorder Cablin and Connectors 290.00 290.00 1 On-Site Confi uration & Trainin Included Included 1 Recorder Installation 2,300.00 2,300.00 1 Software Installation Per Workstation 250.00 each 250.00 250.00 1 One 1 Year Hardware Warrant Included Included 1 One 1 Year Software Warrant Included Included Sub-Total $17,289.00 H-GAC Discount 4,556.25 H-GAC Processin Fee +227.81 TOTAL $12,960.56 Leslie Yowefl -District Manager Voice Products, tnc. - 8555 E. 32ntl Street North -Wichita, KS 67226 1-800-466-1152 - www.voiceproductsinc.com Page 1 of 2 V®~C~ C ~ NI~f .err County Sheriff -Kerrville, TX Nice Call Focus I11 Options Descri tion Unit Price Totat Additional Scenario Repla License 1,000.00/Seat Additional Last Messa a Re la License Instant Recall 80.00/Seat Sin le AIT turbo Drive - 4800 Hours Total (NCF3-AIT-T-1) 1,500.00 1,500.00 U rade #o Dual DVD Drives - 4880 Hours Totat 1,000.00 1,000.00 ANI/ALI Ta in Software 1,000.00 1,000.00 ANI/ALI Software Installation 1,000.00 1,000.00 • Delivery, Training and Support Included • One Year Warranty Included • 110v AC should be located within six (6) feet of the Nice installation. • Prices firm for sixty (60) days. • Sales Tax not included. (All applicable sales tax will be billed in addition to quote). General Maintenance Agreement (GMA) Software and Hardware Year One 1 ------- Warrant Included 'ear Two (2) $2,653.00 Fear Three 3 $2,839.00 Year Four (4) $3,037.00 Year Five (5) $3,250.00 Fleetwood Lease Rates with General Mainte nance A reement GMA (1) Year Warran (Hardware ~ Software) Included 5 Year Term Lease Monthly Pa ment Annual Payment $478.86 $5,576.60 Terms and Conditions • First payment in advance for Annual Payments • First and Last payment in advance for Monthly Payments • Equipment OWNED at end of lease Leslie Yowell -District Manager Voice Products, Inc_ - 8555 E. 32n° Street North -Wichita, KS 67226 1-800-466-1152 - www.voiceproductsinc.com Page 2 of 2 ~iYrr+' A Lease Program For: STATE AND MUNICIPAL EQUIPMENT LEASE VOICE PRODUCTS I ( include ma e, mod sepal r>a. and a I attachments Lessee authorizes Lessor to reAed any reconfguration of the Equipment by altering the Description d Equipment as described herein a on an Exhibit °A' (Schedule of EquipmenQ: NiceCall Focus III as further described on Exhibit "A" (schedule of equipment) Schedule of Rental Pa merits arm o Lease (tn Months Total Number of Rental Payments Amount o Each ayment Advance Payments SIXTY (60} MONTHS FIVE (5) $5,576.60 $5,576.60 (plus applicable taxes) (Plus applicable taxes) PAYMENT FREQ. Month x Annual Other essee Kerr Cournty Billing Address Equipment Location (it oCter than Billing Address) 700 Main Streei Kerr County Sheriff Kerrville, TX 78028 400 Clearwater Paseo, Kerrville, TX 78028 1. REPRESENTATIONS, COVENANTS AND WARRANTIES OF LESSEE. LESSEE represents, wvenads anti waranis ro the atxxe mentioned leasing canpany ('LESSORS as tdkrws: (a) LESSEE is a state or possession of the Untied States a political sutxtivision d the state of ib domicile ('State') as described in Section 103(c) tithe Intema Revenue Cow of 1986, as amrended (the'Cafe~, ad Treasuy Regulations promulgated thereunder (Cre'Regulatiors'), corporate and pok3c, ~y organized and existing order the Constihtiorr ad Wws of the Stale; (b) LESSEE is authorized under the Constitirtion and lawsof the Statero enbr into this EquipmerdLease- Puchase Option Ageemerd ('Lease') ad ro perform audits obligations hereunder, (c) the officer of LESSEE exearting thle Lease haz been duly authorized ro exewte and dekver this Lease under the tams ad provisions of a resokrtion d LESSEE'S govemirg body, a by other appropriate official action; (d) in authodzing and executing this Lease, LESSEE has oompfred wNh all public bidding ant other Slate ad Federal taws appNwble ro Cris Lease and the acquisitim tithe equilxnerdidentified above ('Equryxnerd~ by LESSEE; (e) LESSEE has sWfident appropriations d other Nnds evadable ro pay aN araurbdue hereunder far the curemfiscal yea; m fhe Equipmentcovered uder this Lease isessentia to LESSEE'sproper, elRcierrt and economic operation; (g) LESSEE has nave terminated a lease pudnase a sbnda contract d~ to non-appropdation dttmdsa defauded uriderihe terms thereof (h) LESSEE will take ro action thatwould pose the interest portion tithe Lease PaymreMS (~ hereinafter defined) ro becorrne indWable in gross inncortre of the recipemror federal rtncerrre tai purposes under the Code and Regulations, anti LESSEE wiN take ad wiN cause its officers, empbyees and agerdsro take all alTannative actions IegaMy vvilhin its power rrecessary b ensue thattfre hterestportion tithe Lease Paymerds doesnot become kndudable in Boss income of the recipientfa faders incorre tax purposes under the Code ad Regulations; () LESSEE will submit b ttre Secrday tithe Treasury an information reporting statement she time ad inCre form required by the Code and Regulations. In the eventtha LESSEE should (alto periarm its obligations order this Section 1(i) ant Cne interest tanrponrent of any tease Paymemreceived by LESSOR should be determined to be incWdabte in gross irncorrre d LESSOR forfederal income tax purposes, Oren LESSEE shah payro LESSOR as additiaralrem hereader such anounf as isnecessayro rdun ro LESSOR an after-tax yield equal b LESSOR'S taxaxenpt yield witir rasped ro such Lease Paymam ad ro raimbuse LESSOR fa aN penalties, inbrest costs, fees and administrative and odrer expenses (including reasonable legafees) irnamed wNfr respedtlterero; Q) LESSEE hereby determires and dedaes that LESSEE (anti any entity acting on behaBota subordinate ro LESSEE) does notreasonabty artidpateb issue in the calerida yea in which the Lease was exeaaed tax~xempt obfga6orrs in an aggegate pdrndpa annum greater than $10.000,0110 (exdusive d private activNy bonds as defined b Cre Code). LESSEE hereby spedfically designates the Lease as a'quaffied tax~xempt obigation'within the meaning d Section 265(b) dihe Code, and covenantsthat tt wiN not le any event designate inihe calends yea in which the Lease was executed mere than $t0,000,000of Its obligations as such'quakfied taxexerrptobigations ; (k) LESSEE preserdty expects tlnd all Boss proceeds dCre LeasewiN be expended fur the govemrrrerrtal purposes fa wfrkdr Cre Lease was issued no later than the day whidr is six months after Cre doe d issuance of the Lease. In the event the sucfr gross proceeds ere not so expended, LESSEE shah oompty with all requtremenb tithe Code and Reguiationsrelating to the rebate d abitrage profit ro Cie United States government and (G LESSEE shat compy wNh the imarnation reporting requiertrerds of Section 149(e) of the Code, including but not be kmited ro, the campietion ad execution 46036-G a 8038-GC Information Retains 2. LEASE OF EQUIPMENT. LESSEE hereby leases kom LESSOR, ad LESSOR leases ro LESSEE, the Equipnwm wrier the lams stated herein. LESSEE aWfraizes LESSOR ro inset the Equipment Lease number ad other missing terms above (rf any} folkwwng LESSEES execution of this Lease. The LESSEE agrees that LESSOR shah have the right a aN reasonable times ro examine ant irisped the Equpment. 3. COMPLETKIN OF LEASE. Lassa s authorized ro compleb a correct this Lease, even ttaugh previousy sgned by Lessee, by the insertion a correction d serial numbers, makeymodel rumbersordesignations acdbr other identiTyirig referencesroCre Equipmem TheLessee acknaxledges ad ageesthacbrica erorsshaN Trot affect the va6drfy of this ageement and Lessor shall be entitled ro urelabraNy cerred the same. 4. TERM OF LEASE. This Lease shall rid commence u~l LESSOR accepts ad signs the Lease. Once th Lease commences, LESSEE ogees d will continue for the fuN tam shown above ('Term7, unless olherwlse terminated as outlined herein. 5. PURCHASE AND ACCEPTANCE. lessee shag inspect tfre Equipment within five (5) business days aAer defvery. Unless, within such five-business dal period, Lessee provides Lessor with writbn entice d any detects a problems with the Equipment Cre Lessee shah be deemed ro have accepted Cre Equipment th good wrdition and raper and in fuNcempNarce rxiUr the bans of Cps Lease. tts agreed thatfive-business days asareasenabb time period fa Lesseeroinspect Cre Equipment and povidewdtien nroticebL~ssa. CLessee rejects the equipment alter defvery,the Lessor shalretan aN advace payments as iqudabd damages, ad Lessee ageesro assume a8 of Lessor's oblgatons ands arty purchase agreememfa theequipmem ad Lessee ogees to indenrrrNy anddefarrd Lessakam any claims including ary demand fa payments by the manufacturer a vendor of the equipnent 6. LEASE PAYMENTS. TheaggegateleasePaymenbrobepadoverthetermdthisLeasesh~beequalrothetotalntanberdLeasePaymenismultipfedbylhearprantdeachpaymentplus atry other amounts chaged hereunder. The Lease Payments will be payable without races a demand a the office d the LESSOR (a such oCrer place as LESSOR a TLS assigns may from time ro time designate in writing), a the time ant in the anounb as set font above. LESSEE understands that LESSOR'S obligation is to purchase the Equipment for LESSEE'S use. M wnsirteration therefore, andto Induce LESSOR ro purchase the EquipmeMandemer imothe LeasR LESSEE agrees that ib oGigation ro malnethe Lease Paymema is absolute, unconditional and irdependem, anti is notsufgedto any abatement sdoff, defenseorcounterclamlor any reason whaboever, including wfthou! limitation, equipment talure, damage, boa or any other cwseorptoblem. LESSEE ogees thatN aN a any pat d a Lease Paymrerttis ratracerved by ilsdue dale, LESSEE shall pay a late chage aqua to 10%of Cre anountdue ache ma~dmum aNowed by law, vnttichever shall be less. Tire obTgations d LESSEE under Cris Lease, inckxtirg its obfigatlon ro pay the Lease Paymems due with respect to the Equipment in any fiscal yea for which this Lease is in erect shay conslCute a current expense of LESSEE tar such fiscal yea ant shat not constiWle an indefxednessd LESSEE wNhin the meaning d the Constitution and the laws of the State. A portion of each Lease Paynrentis pad as acrd represens the payment d interest 7. NONAPPR~RIATION OF FUNDS LESSEE behaves that funds car be obtained in araurb sufiidamta make aN Lease Payments drxirg the Lease tam. LESSEE'S fiscal oRaer hereby covenants that helshe wfN do all things wiCdtr hisRrer power ro obtain, mantas ad property request ad pursue Nnds Irorrn which Lease Payments mat be made, spedficalty ircludirg in LESSEE'S annua budget regrresb amountssuffirierrf to make Lease Paynienbfar thefuN Lease feint. LESSEE hteMsb make LeasePaymentsfor Crafulll.ease tamitturdsaelegaly a/aNablafar Coat ptwpose. HIESSEf is not aNdted fundstor ifre next fiscal yea ro corntinue ttre Lease PaYrnerds under this Lease, ad has no IegaNy available funds (a Nte puchasse, lease a nodal d egrripmema servicesb perhxm furrctiorrs similar b Case pentamad by the EquipmerR LESSEE mat terrrrinateCds Lease at the end d Cre then axrem fiscal yea, by giving ninety (90) days wdCerr notice ro LESSOR, and enncbsirg thereaith as>rem statement from LESSEE'sfisca officer Crat the Magoing conditions exist In this sole event LESSEE shop not be obigatedromake Lease Paymenb beyond the end dMrethen wrem fiscalyea. llponifre oocurerroe d tlds evem, 8this lease is terminabd fry LESSEE rt acoordatce with this paagaph, rotlw exrom permitled by law. LESSEE ogees rndro purchase, lease or red pensonagoperlyro perform Cne sane functions as, a functiorrstaking Cre place d, those pertarmed bythe Equipment ad ogees sotto pemdt suchiunctiorrsto be perfomred by itsown empbyeesa by any agerxy cr entity alfitabd vrkh a tired by LESSEE, for a perbd dthree Fxmdred sixty (3601 days; provided. trowevwr, that these restrictions shag rat be apprit~le in the evem the Equpmem shag be sold by LESSOR ad the anamtreceived from such sale, less aN cosh d such sale, is sufficient b pay the then apprcable Lease Terrtdnatian Amount or'rfro the extent thatthe appication of Cress resinictims would aced Cne validity dthis Lease. LESSEE agreesroprovide LESSOR with an opinion tills counselreletingroCre ricumsfancesdnon-appropriation. Upon theaaurencedthis event LESSEE shah, at its sole expense, both restore tfre Equipment ro Csorginal condition, aNowingtor reasarable wee and tea, anti retain droCre LESSOR, as provided in Seution 18.1. Upon termination of this Lease as provided in this SecLear 6, LESSEE shatl not be responsible for the paymem d any additions Lease Pay~nb cemirg due witlt respect ro succeedvg fisca yeas, but C LESSEE has rat defvered possession d the Equqxnem ro LESSOR in aocadance wdh Section 18. t and conveyed b LESSOR a released its iderest in th Equpment wNNn ten (10) days afbr the temrinatim of this Lease, Cre termin~on shall nevertheless ba effective, but LESBEE shah be responsible for the payrremddanagas in at annum equalfo the annum d the Lease Paynrerds thereafter caning due which ere attributable b the numbs d days after satin len (10)day period drxirg wfridn LESSEE faits ro fake satin actions ad fa arty oCier bss suCered by LESSOR as a resole d LESSEE'S fadue ro take such actions as requred. 8. DISCLAIMER OF WARRANTY AND WAIVER OF LIABNlTY. To induce LESSOR ro purchase the Equipnrem aMerder rtdo the Lease. LESSEE ageesthat (A) Seledbn d F~lpmem. The Equgrrent ad the venndor as previously berltifred have been selerfed by LESSEE, ad LESSOR shalhave noresponsibiily in aoarection rrith Cre selection tithe C-qu'rymerrt iR aritabifty fa tfre use intended by LESSEE, Cne accapfarrce fry Crevendar a ds sales represerdative d the order submitted, a any delay a fakre by theverda a its saiesrepreserdativero manufacNre, deNver a instaNt)w Egapmemfa use by LESSEE; (8) Installation and Mafinenance o1 Equipment LESSOR shaA have no obligation ro instaN, erect fast impact service a maintain the Equgrment txrder any draandaices, but suds actions shat be the oblgation of LESSEE a the vendor, (C) THE EQUIPMENT IS LEASED'AS IS'; (D) LESSOR MAKES NO REPRESENfAT10N, GUARANTEE, OR WARRANTY INCLUDCIG AN f1APUE0 WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICt1LAR PURPOSE WITH RESPECT TO THE EQUH'MENT, AND LESSOR HEREBY DtSCW MS THE SAME; (E) LESSOR shah rat be fable to arty bss a injuyro LESSEE, Cie Equgmam a other property, any thid persona otlrer paty (iciudmg without imitatiar, dFect indied consequential, inddematand Spada danages) caused by a reWbd ro the use. ownership a possession d Ure C-quipment (17 C the Egnpment does prof operas as represerrffid by the vector, a rfthe vends a any other thid DAY fats ro Prime art services relating ro the Equipmama dihe Equpment is unsatisfaday for any other reason, LESSEE shat mare any such claim solely agarrstthe veMa a such other third paty; anti (G) Norapresentation, guaantee a wararrty by Cre vendor a other thid paty is binding on LESSOR ran shah any breach thered relieve LESSEE d its obligations ro LESSOR. LEASE AGREEMENT CONTINUES ON REVERSE SIDES ~ Lessor trereby ogees b lease b Lessee, ad Lessee hereby ogees ro lease and rem from Lassa the Equipmem described above a on any exhibd attached herero, fa the brm and the rerdal payments set forth herein, all subject ro the terms ad wrditiars d this Equipment Lease. SignaNre Date Telephone No. (Area Cade) X Print Name & Title Witrress Date 9. IIISURANCE. LESSEE will, at its ezpense,maintan at altimes during the Lease term,fireaWexteriled coverage, pubfic Nabgily and property damagebwrance with respedbCre Equiprrientm suds ahem!, coverurg such risks, and wiN sudr inwrers as shill be satisladay to LESSOR a wiN LESSORS priorwritten consentmay seCinsure against ~ry c all wch risks. In no event wiG Neproperty inwrancelimi6 6eless than Ne araunt dCre tlren applicable Lease TarmbaAa!Amount wititrespecttowch Egapmenl Each insurance pdwy w~q none LESSEE asinsured and LESSORaits assignee as addtional inwred, and wdloontainadause requiring 8rer~ver to give LESSOR a lease Nirty (3g) days prior wntlen notice d arty aheration in Cie !arms of such pdicy a the cancdlaticn Nered. The procereds d any wch pdides will be payable toLESSEE and LESSOR a its assigns as (heir interests may appea. Upon aoeptaraedlhe Egdpmerd and upm each insaance raretvadate, LESSEE wrN define to LESSORaartificate evidendngwch mwrance. Nthe eventthatLESSEEhasbeenpemxlBedtoseH- inwre, LESSEEwid deliverroLESSORacerlificateevidencing such sdfanwrarxe In theeventdarry kiss,damage, injuryaaxidenlinvofvinq th Equipment LESSEE writ promptlypwide LESSOR wiN written nohcethered and make avalablea LESSOR aC information and dparment~on relating thereto. In Cie event LESSEE falsbssarrea mantam wch iraurarce, LESSOR may, a ilsoptim, obtam wch bsaanre ad chargeakebMe LESSEE as additional rent but LESSOR shall have no drligitien b do so. 70. DAMAGENEQUIPMENT. CaRerdelNerydCe Equipment roLESSEE allaanypartdNe Equipment is lost srolerrdeshoyedodamaged beyond repair, LESSEE shat assopnapracticable after such eyed dCier (i) replace the same at LESSEE'S sole oust ant expense wN equipment d egad or grealer value to the Equpment immeNaely pna to the time of the loss occurrence, such replacementegwppmmen[ ro be wbjed to LESSOR'S reasonable approval, whereupon such replapenant shall be wbsbbtedmttvs LeaseMappropriate erdosemenka(u pay Ne applicable LeaseTennination Amount LESSEE shah noty LESSORdwhidi coursedacfiaiitwip tpaakye witlnn fifteen (15) days after the loss oramence. IF LESSEE tails a refuses ro notify LESSOR within fhe regain perwd. LESSOR may, at is option, declare the applicable Lease Temnnatbn Amount imnrediatdy due and WARRANT ESEEXPRESS R MPI.IED. to pay the same. On payment d Cie Lease Termination Amount Ihis Lease shall tommnate and LESSEE Crereupon shah becarie enhtled to Me Equiprtiarf AS IS. WITHOUT ANY 11. LESSEE NEGLIGENCE LESSEE assumes all risksaM liabilities. whdherorrat covered by ir~.surance,fa bssadamageroNe EquipmentaMfor mjuryordeaNd arty personadamageroany property. wheNer sudr injury a death ba wiN rasped b agents a employees d LESSEE a d third paces, and wheNer such properly damage be b Lessee s property a the propertyd others, which le proxunaety caused by the negligent conduct d LESSEE. itsotircers employees and agents LESSEE hereby aswnresrespmsibiGryfa aiM ageestoirdemnily and reimbase LESSORfa a6 GabliCes, abhgalbns. ksses.damages,peialUes. claims. actions, costs sal eMpenms (indudmg reasonable attariey's teas) d whatsoever kuid ant nabre, imposed on, incurred by a asserted agars[ LESSOR Nat in any way relate to a wise out of a claim, suit a proceeding based le whdea in part upon Ne negligent cmdud d LESSEE, its dficers, employees and agents b the maximum extent pertndted bylaw. 12. TAXES AND OTHER FEES. LESSEE shat as additiatalrenlpay when due alfedeal, slate ad beat license foes, reygsbatim fees, filing fees,assessments,taxes(indudingwChodlimitatiar, sales. lease, use exdse and primal pacperly taxes, exdudug oMy taxes payable n reseed tolessofskrwnie) aid ah oNer rhagesd ury kmd which may now o herea#er be unposed upon LESSOR a LESSEE arisingin arty way oil dtheowr~erstnp, use,possessanorleasmgdtire Equrpment. LESSEE'S dtligadonsimder Nis parayaph shat continue ralwiNstandmg ury kCaedungemfedea,stateakr~law during NetermdNe Lease and shall survhe Netamnatiend This Lease. LESSEE aw represerds that RLs ex t hen aN personal properly taxes oriel sales andlor use lazes with respedtolhe Egwpment ad th lease Payments. In Neevent Nat LESSEE is found rid to be exempttran Nese taxes, all wch [axes shah lre paid by LESSEE, wtreNer wch taxes ere levled against LESSEE a LESSOR 13. USE;PERMffB. LESSEE shall exemseduecaein ttce instahation,use, operation ant maintenancedlhe Egwpmen[LESSEE shalobtain aN permits and licenses necessaylor Ne ustaXation, operahon,possession and use d the Equipment acid LESSEE shad compy wiN ad State and Federal laws applcable to Ne Equipment. LESSEE shall maintan, preserve ant keep the Egapnrent in goad raper, working ceder and caMition, and shall make all repairs and replacements rrecessay b keep Cre Equipment in such mrMition. LESSOR shall have ra responsOxGty fo any d Crew rapers a replacernenLS. 14. TRLE. During Neterm dthis Lease, and so long as LESSEE is riotmddautthereunda, legal titleb Cre Equipment shall be in LESSEE Upon lertnnafiondNis Leaw fa LESSEE'S ddadtanon-appropriatim.fudad unencumbered legal title to Cce Equipment shall pass to LESSOR and LESSEE shall have no hrrther interest Herein In dNer d sudr events, LESSEE shah ezeate ant deliver b LESSOR surh documents as LESSOR may request b eridencethe passaged legal title loNe Equipment b LESSOR Totheextent albwed by law, LESSOR shall have and rdain a security mterest under tla Ungonn Canmerdal Cade N Ne Equipment and the proceeds tltered m order b ware LESSEE'S payment d aC Lease Payments due during the term d This Lease. LESSEE hereby hrevocaGy empowersad appanlsLESSOR as hstrue ant IawhA atlomey-iMada prepare, exeateaMfile aN ownership ant fmaidng statements and an adminstratrve fee d hvo hundred fifty dohas (8250.OC) far such filing shag be pad by LESSEE. FurNemare, Nis Lease a a wpy d Nis Lease shall be wttxderit as a finandng statemrenl aril may be filed as such. LESSEE wiH perform such acts as LESSOR may request ro establiJr and maintain a veld security interest a tl~ Equipment including signing finandng statements m ceder hx LESSOR to publicly record its seedy interest : Dixing the term d Nis Lease, LESSEE shill rid, direxdty a indirectly, create, insure, aswme a wrier loexist arty motgage, pledge, hen, charge, enambrance a dam m awith respect rome quroment, oNa Nan the respective rights d LESSOR and LESSEE as herein provided. 15. VENDOR'S WARRANTIES. LESSOR hereby assigns b LESSEE fa ant during the term d Nis Lease„ ad d its interest C any, b all venda'swamanties ant guaran0ees, expresso implied, Lssuad m or ~PLcable tothe Equipment ant LESSOR txrreby aahaizes LESSEE b cbtam Cce astomary services famished in connection wiN wch wananties and guaraitees a LESSEE'S expense. 76. NO AGENCY. LESSEE acknowledges Nat(1)LESSOR amd thevenda aesepaale and irdependentcomparnes and rieiNa Cm vends rorary salesman, representativeooNer Nib persm is an agentd LESSOR; (2) riather th vendor nor ury oCra Nird person is auNonzed ro ad en LESSOR'S behalF, and (3) No persm oNer than an executive oCaa of LESSOR le autlarized ro waive a ceder any term a coMitian d Nis Lease. 17 EVENTS OF DEFAULT. The fdlowing events shall upon Cmee (3) days notice ro LESSEE be events d dated! under Nis Lease: (1) LESSEE fats ro pay ury Lease Payment a oNer amount payable byy LESSEE hereunder fa a pedal d ten (10) days; (2) LESSEE fats to perkxm adxserve any oNer term acpndition d Cie Lease a breaches ury representa~n contained harem err b aryoNer ageement a lease wdh LESSOR: (3) any a:tienaproceedin is brouglrt aganst LESSEE whereby Ne Equipment may be takenadistramed;(4)LESSEE becomes insdvent~5)apetitionsfiledbyaagainst LESSEE uderbadmWtuy YawsaoCxarlawsprovidingfor Cie rdid d debtors; a P6) LESSEE shad cause, ukur, aswme a suHa to exi5tarry mortgage, free, pledge a other encumbraae, aCachmed a invduntay transfer of any kiM upon a affecting the Eqmpmento this Leases arty d LESSOR'S interest Irerwnder. 18. REMEDIES UPON DEFAULT. Whatever any evenlddefault shad have happened and be continuing with respectbNe equipment LESSOR shallhavethe right,attsoP6on ad wilhat anylurNer demando notice,to face one or any cornbinatice of the fdbwing remedial daps: (i) Tothe extenlpeimiCed by law, LESSORmay caned Nis Lease and dedaean amount equal tothethen applcable lease Termination Amountimmedwkdy due and payable by LESSEE whereupm such amantshad be immediately due and payable, rat as a penalty but as fquidated dama~s. (ii) LESSOR, wiNowi[halterminating Nis Lease may repossessthe Equipment by giving LESSEE wriCen raticeto deliver Ne Equipmentt LESSOR, whereupon LESSEE shah do spin themamo pwided fa haein;a in Creevent LESSEE tabs to do so within ten (10) days after receipt d such nolke, LESSOR may enter upon LESSEE'S premises whore Ne Equippment is keel and take possassiar d the Equipment and chage LESSEE fa casts mcunedin repossessing Cie Equipment indudbg reasonable atromeys(ees. LESSEE hereby expressty waives ury danagesoaasioned by such repossesvai #Ihe Equipments arty paten drthas teen destroyedadamaged beymd repot, LESSEE shall pay the applicable Lease Tennmatirn Amoum (less aedaior proceeds d sale), to LESSOR NdwitlutardngCrefaGNat LESSOR Iws take[ possesson d Cre Equipment LESSEE shdcontinue bbe respons~b a for Ne Lease Payments due hereunder. (iii) Lt LESSOR terminates tins Lease aril lakes possession d Ne Equipment LESSOR shall within sixty (60) days Neredter use its best eCorts b sill Ne Equipment a any porfion thered b a commercially reasonable manner at public a private sale in awardaice wiN applicable Stale laws. LESSOR shall appty Ne proceeds d wrh sale b pay Ne fdbwing items m the fdlowin odes (a) all costs inanred in securing possession d Ne Equipment ant (b) al expenses incurted in canpleting Ne sale; (c) the applicable Lease Termination Amant. Any sale proceeds remaning ato the requirements o~Clauses (a), (b), and (c) have been met may be retained by LESSOR. (iv) U the procceds d the saleof the Equipment aenol wffident to pay the Lease Termination Amount LESSOR may take any oNer remedy available a law o in equity to require LESSEE IO perform any B its obligations hereunder. 18.1 Realm of Equipment Upon the expiration a !emanation of this Lease prior b the paymerit d aN Lease Payments in acardance wiN Exhibit'A', LESSEE shall reNm Cie Equipnent b LESSOR in the condition, raper, appeaaxx' and working ceder required herein, in the fdlawing maner as may be specified by LESSOR: (i) by daiveringthe Egdpmedat LESSEE'S cce1 and expense to such place vdNin the State as LESSOR shall a(ii)6y baring such portions of the Equipment as are consdered movable a[LESS E'smst andezpense, on board such Amer as LESSOR shall seedy aril shipping the sane, height prepad,rothe place sperfed bylF 0 C LESSEE refuses to rebm the Equipment in Cie manner designated, LESSOR may repossess Ne Equipment and chage b LESSEE the vests d such repossessan a pursue arty rertredy described in Nis Section. 18.2 No Remedy Ezdusive. Noremedyconfened upanareserved roLESSOR by this Section is mteMedrobeezdrsave end every such remedy shall be emulative and shallhen addi~nroevery other re'riedy given urida Nis Lease. Noddaya omrssionroezerase arty ngMapower accruing upon ury ddadt shaltimpar arty sudi dghta powerashal beconsbued to heawaver tlrered but arty wch right and poxer may be ezercisedfmm time to time and as dlen as may be deemed expedient by LESSOR a its assignee. 1C 3 LESSORS Casts. LESSEE shall be Fable Tor all costs ircuned by LESSOR in edordng the lease, including eawnable attorney's fees and court costs b purwing any monetary a equitable remedy. 19. ASSIGNA~Ni;SUBLEASE. ANd LESSORsdght title aril!orinterestin and bthis Lease,Cie Lease Payments and otlreramountsdcehereurider grid ttce Equipmenimay be assigied and reassi mwholeain pat b one a more assignees a subassigrrees by LESSOR at any time, whhat the consent d LESSEE LESSORS assignee shalt succeed to ad of LESSOR'S rights aril interests undo the Lease, axi LESS E's obligations ro the asstyg~~eee shill be as prwrded in the Lease, but Cie assgnee shall not be fiable b pedorm aarrtyry d LESSOR'S obligations. No wch asagnrtrent abet be eCechve as agartsl LESSEE unless end until Cie asagna have Filed with LESSEEacapya wriCen naticeNoedidentifyinggtlre assignee. LESSEE shall pay atl LeasePayments due hereunder toodNeduectiondLESSORotheassigxre named in the mostrecerdassigurientarioticedassignment filed wiNLESSEE. During Ne Lease term LESSEEshah keep acanplde ant a:arate recorddall such assigunenls andhereby appoints LESSOR asits agentfa puryosesdrecad keepingdaC asvgnmentsmade. In Cse+enl LESSORasagns paticipatansin its right, title andlo interest m and loMis Lease, Cie Lease Paymentsand oNer anountsdue hereunder and Ne Equipment such partiapants shag be considered to be LESSORwilh respedtotlreir partidpaed shares Nered. LESSEE may rat assign a dispose d any of its interests under Ne Lease to any oNa person a enter into arty wblease d aN a pat d Ne Equpment wiNal Ne price wMten consent d LESSOR. 20. LEASE TERMHLITpN AMOUNT, tithe eventdearlyterminationdNe Cease, the Lessee shad payto Lesser the presentvaluedthe remainingunpad Leasepaymenls discounted atNree pacentpa annum. IfNe Lease le in ddadt Ne LESSEE shy also he obligated ro pay Ne above discounted present vauepkrs interest Hereon aterghteen patent per annum hom Ne dale d defaul(to Cre date d payment but in ra event more Nan Cie maximum roe permitted by law. 21. ADMIMSfRATIVE PROVISpNS. 27.1 Notices. Aq notices,certificates, Iega opinionsa oNa canmunications hereunder shad be suffidenCy given a>dshal bedeemed gven when ddiveredadepcsitedbthe Udted Statesmalin regi5eredfam wiN postage blry prepaid to the addresses sd loth herein. 21.2 Finandal lnformatian. Drwbglhe Termdlhis Lease, LESSEE annuahy veil provide LESSOR wiN artenlannuafinaw;ice repots,budgets, proofd apprepnatia fa the ensuing Fiscal Yea aril wch dhofmaxial idormatim relating b tle ability d LESSEE to continue Nis Lease as may be requested by LESSOR a its assignee. 21.3 Se/erabitity. In Ne event any provision of Nis Lease shah be heal invalid a urienlaceable by ury caul d oompelent jurisdictiar, wch Ialding shat nor irnaidale a rerMer unenfaceaMe any oNer provision Nerenf. 214 This Lease con(ars theerAre and only urMerslaMing beMeen LESSOR ant LESSEE rdaNrg aCiesubjeclmaCerhereof. trio representations,promises,amrMitions other Nan Nose contaned heranshalbe binding unless in writing and signed by duty autlrorized representatives d each eery. Title: Date: Lease #: ~Y Form $~38-GC Information Return for Small Tax-Exempt Governmental Bond Issues, Leases, and Installment Sates (Rev. November 2000) - Under Internal Revenue Code section 149(e) Department or the Treawry Caution: If the issue price of the issue is $100,000 or more, use Form 8038-G. Internal Revenue Service OMB No. 1545-072Q Reporting Authority Check box if Amended Return - U • Descri lion of Obli ations Check if re rtin : a sin le issue or on a consolidated basis 8a Issue price of obligation(s) (see instructions) . 8a b Issue date (single issue) or calendar year (consolidated) (see instructions) - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9 Amount of the reported obligation(s) on line 8a: a Used to refund prior issue(s) - - _ 9a b Representing a loan from the proceeds of another tax-exempt obligation (e.g., bond bank) 9b 10 If the issuer has designated any issue under section 265(b)(3)(B)(i)(111) (small issuer exception), check this box -[ 11 If any obligation is in the form of a lease or installment sale, check this box - - / 12 If the issuer has elected to a a enalt in Lieu of arbitra a rebate, check this box Under penalties of perjury, I declare [hat I have examined this return and accompanying schedules and statements, and to [he best of my knowledge Sign and belief, they are true, correct, and complete. Here ' Issuer's authorized representative Date ' Type or print name and title 1 Issuer's name 2 Issuer's employer identification number Kerr County 3 Number and street (or P.O. box if mail is not delivered to street address) Room/suite 700 Main Street 4 City, town, or post office, state, and ZIP code 5 Report number Kerrville, TX 78028 5 6 Name and title of officer or legal representative whom the IRS may call for more information 7 Te~phone number of officer a legal representative ( ) General Instructions Section references are to the Internal Revenue Code unless otherwise noted. Purpose of Form Form 8038-GC is used by the issuers of tax-exempt governmental obligations to provide the IRS with the information required by section 149(e) and to monitor the requirements of sections 141 through 150. Who Must File Issuers of tax-exempt governmental obligations with issue prices of less than $100,000 must file Form 8038-GC. Issuers of a [ax-exempt governmental obligation with an issue price of $100,000 or more must file Form 8038-G, Information Return for Tax-Exempt Governmental Obligations. Filing a separate return. Issuers have the option to file a separate Form 8038-GC for any tax-exempt governmental obligation with an issue price of less than 3100,000. An issuer of atax-exempt bond used to finance construction expenditures must file a separate Form 8038-GC for each issue to give notice to the IRS that an election was made to pay a penalty in lieu of arbitrage rebate (see the line 12 instructions). Filing a consolidated return. For all tax-exempt governmental obligations with issue prices of less than $100,000 that are not reported on a separate Form 8038-GC, an issuer must file a consolidated information return including alt such issues issued within the calendar year. Thus, an issuer may file a separate Form 8038-GC for each of a number of small issues and report the remainder of small issues issued during the calendar year on one consolidated Form 8038-GC. However, a separate Form 8038-GC must be filed to give the IRS notice of the election to pay a penalty in lieu of arbitrage rebate. When To File 7o file a separate return, file Form 8038-GC on or before the 15th day of the second calendar month after the close of the calendar quarter in which the issue is issued. To file a consolidated return, file Form 8038-GC on or before February 15th of the calendar year following the year in which the issue is issued. Late filing. An issuer may be granted an extension of time to file Form 8038-GC under Section 3 of Rev. Proc. 88-10, T988-1 C.B. 635, if it is determined that the failure to file on time is not due to willful neglect. Type or print at the top of the form, "This Statement Is submitted in Accordance with Rev. Proc. 88-10." Attach to the Form 8038-GC a letter briefly stating why the form was not submitted to the IRS on time. Also indicate whether the obligation in question is under examination by the IRS. Do not submit copies of any bond documents, leases, or installment sale documents. See Where To File below. Where To File File Form 8038-GC, and any attachments, with the Internal Revenue Service Center, Ogden, UT 84201. Other Forms That May Be Required For rebating arbitrage (or paying a penalty in lieu of arbitrage rebate) to the Federal government, use Form 8038-T, Arbitrage Rebate and Penalty in Lieu of Arbitrage Rebate. For private activity bonds, use Form 8038, Information Return for Tax-Exempt Private Activity Bond Issues. Rounding to Whole Dollars You may show the money items on this return as whole-dollar amounts. To do so, drop any amount less than 50 cents and increase any amount from 50 to 99 cents to the next higher dollar. Definitions Obligations. This refers to a single tax-exempt governmental obligation if Form 8038-GC is used for separate reporting or to multiple tax-exempt governmental obligations if the form is used for consolidated reporting. Tax-exempt obligation. This is a bond, installment purchase agreement, or financial lease, on which [he interest is excluded from income under section 103. Tax-exempt governmental obligation. A tax-exempt obligation that is not a private activity bond (see below) is atax-exempt governmental obligation. This includes a bond issued by a qualified volunteer fire department under section 150(e). Private activity bond. This includes an obligation issued as part of an issue in which: • More than 10% of the proceeds are to be used for any private activity business use, and Cat. No. 641086 Form 8038-GC (Rev. 1 t -2000) Form 8038-GC (Rev. 11-2000) Page 2 ~irr~ • More than 10% of the payment of principal or interest of the issue is either (a) secured by an interest in property to be used for a private business use (or payments for such property) or (b) to be derived from payments for property (or borrowed money) used for a private business use. It also includes a bond, the proceeds of which (a) are to be used to make or finance loans (other than loans described in section 141(c)(2)) to persons other than govemmental units and (b) exceeds the Lesser of 5% of the proceeds or $5 million. Issue. Generaly, obligations are treated as part of the same issue only if they are issued by the same issuer, on the same date, and as part of a single transaction, or a series of related transactions. However, obligations issued during the same calendar year (a) under a loan agreement under which amounts are to be advanced periodically (a "draw-down loan") or (b) with a term not exceeding 270 days, may be treated as part of the same issue if the obligations are equally and ratably secured under a single indenture or loan agreement and are issued under a common financing arrangement (e.g., under the same official statement periodically updated to reFlect changing factual circumstances). Also, for obligations issued under adraw-down loan that meets the requirements of the preceding sentence, obligations issued during different calendar years may be treated as part of the same issue if all of the amounts to be advanced under the draw-down loan are reasonably expected to be advanced within 3 years of the date of issue of the first obligation. Likewise, obligations (other than private activity bonds) issued under a single agreement that is in the form of a lease or installment sale may be treated as part of the same issue if all of the property covered by that agreement is reasonably expected to be delivered within 3 years of the date of issue of the first obligation. Arbitrage rebate. Generally, interest on a state or local bond is not tax exempt unless the issuer of the bond rebates to the United States arbitrage profits earned from investing proceeds of the bond in higher yielding nonpurpose investments. See section 148(f). Construction issue. This is an issue of tax-exempt bonds that meets both of the following conditions: 1. At least 759'° of the available construction proceeds of the issue are to be used for construction expenditures with respect to property to be owned by a governmental unit or a 501(c)(3) organization, and 2. All of the bonds that are part of the issue are qualified 501(c)(3) bonds, bonds that are not private activity bonds, or private activity bonds issued to finance property to be owned by a governmental unit or a 501(c)(3) organization. In lieu of rebating any arbitrage that may be owed to the United States, the issuer of a construction issue may make an irrevocable election to pay a penalty. The penalty is equal to 1'/z% of the amount of construction proceeds that do not meet certain spending requirements. See section 148(f)(4)(C) and the Instructions for Form 8038-T. Specific Instructions In general, a Form 8038-GC must be completed on the basis of available information and reasonable expectations as of the date the issue is issued. However, forms that are filed on a consolidated basis may be completed on the basis of information readily available to the issuer at the close of the calendar year to which the form relates, supplemented by estimates made in good faith. Part I-Reporting Authority Amended return. ff this is an amended Form 8038-GC, check the amended return box. Complete Part I and only those lines of Form 8038-GC that are being amended. Do not amend estimated amounts previously reported once the actual amounts are determined. (See the Part 11 instructions below.) Line 1. The issuer's name is the name of the entity issuing the obligations, not the name of the entity receiving the benefit of [he financing. In the case of a lease or installment sale, the issuer is the lessee or purchaser. Line 2. An issuer that does not have an employer identification number (EIN) should apply for one on Form SS-4, Application for Employer Identification Number. This form may be obtained at Social Security Administration offices or by calling 1-800-TAX-FORM. ff the EIN has not been received by the due date for Form 8038-GC, write "Applied for" in the space for the EIN. Line 5. After the preprinted 5, enter two self-designated numbers. Number reports consecutively during any calendar year (e.g., 534, 535, etc.). Part II-Description of Obligations Line 8a. The issue price of obligations is generally determined under Regulations section 1.148-1(b). Thus, when issued for cash, the issue price is the price at which a substantial amount of the obligations are sold to the public. To determine the issue price of an obligation issued for property, see sections 1273 and 1274 and the related regulations. Line 8b. For a single issue, enter the date of issue, generally the date on which the issuer physically exchanges the bonds that are part of the issue for the underwriter's (or other purchaser's) funds; for a lease or installment sale, enter the date interest starts to accrue. For issues reported on a consolidated basis, enter the calendar year during which the obligations were issued. Lines 9a and 9b. For line 9a, enter the amount of the proceeds that will be used to pay principal, interest, or call premium on any other issue of bonds, including proceeds that will be used to fund an escrow account for this purpose. Both line 9a and 9b may apply to a particular obligation. For example, report on line 9a and 9b obligations used to refund prior issues which represent loans from [he proceeds of another tax-exempt obligation. Line 11. Check this box if property other than cash is exchanged for the obligation, e.g., acquiring a police car, a fire truck, or telephone equipment through a series of monthly payments. (This type of obligation is sometimes referred to as a "municipal lease.") Also check this box if real property is directly acquired in exchange for an obligation to make periodic payments of interest and principal. Do not check this box if the proceeds of the obligation are received in the form of cash, even if the term "lease" is used in the title of the issue. Line 12. Check this box if the issue is a construction issue and an irrevocable election to pay a penalty in lieu of arbitrage rebate has been made on or before the date the bonds were issued. The penalty is payable with a Form 8038-T for each 6-month period after the date the bonds are issued. Do not make any payment of penalty in lieu of rebate with Form 8038-GC. See Rev. Proc. 92-22, 1992-1 C.B. 736, for rules regarding the "election document." Paperwork Reduction Act Notice We ask for the information on [his form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it [o ensure that you are complying with these laws. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless [he form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103. The time needed to complete and file this form varies depending on individual circumstances. The estimated average time is: Learning about the law or the form 1 hr., 58 min. Preparing the form . 3 hr., 3 min. Copying, assembling, and sending the form to the IRS 16 min. If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. You can write to the Tax Forms Committee, Western Area Distribution Center, Rancho Cordova, CA 95743-0001. Do not send the form to [his address. Instead, see Where To File on page 1. CERTIFICATE OF CLERK OR SECRETAR Y I, the undersigned, do certify that: The person, ,who executed the State and Municipal Equipment Lease, dated by and between Fleetwood Financial, A Division of IDB Leasing, Inc. ("Lessor") and Kerr County ("Lessee") on behalf of Lessee and whose genuine signature appears thereon, is a duly qualified and acting officer of the Lessee as stated beneath his/her signature and has been authorized to execute the Lease. By: x (Seal) (SIGNATURE OF CLERK/SECRETARY) (IF AUTHORIZED SIGNER OF DOCUMENTS IS SECRETARY OR CLERK, PLEASE HAVE THIS SECTION EXECUTED BY A DIFFERENT BOARD MEMBER) (NAME & TITLE - Printed or Typed) ~~ ESSENTIAL USE/SOURCE OF FUNDS LETTER RE: State And Municipal Equipment Lease ("Lease") dated by and between FLEETWOOD FINANCIAL, A DIVISION OF IDB LEASING, INC. ("Lessor') and KERR COUNTY ("Lessee") Ladies and Gentlemen: This confirms and affirms that the Equipment described in the Lease is essential to the function of the undersigned or to the service we provide to our citizens. Further, we have an immediate need for, and expect to make immediate use of, substantially all such Equipment, which need is not temporary or expected to diminish in the foreseeable future. Such Equipment will be used by us only for the purpose of performing one or more of our governmental or proprietary functions consistent with the permissible scope or our authority. Specifically, such Equipment was selected by us to be used as follows: The estimated useful -ife of such Equipment based upon manufacturer's representations and our projected needs is years. Our source of funds for payments of the rent due under the Lease for the current fiscal year is We expect and anticipate adequate funds to be available for all future payments of rent due after the current fiscal year for the following reasons: LESSEE: KERR COUNTY By: Date: (Authorized Signature) (Name and Title -printed or typed)