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HomeMy WebLinkAboutPitney Bowes for Pitney Bowes EquipmentPitney Bowes EngPneering the flow of communica[ion°- yygCA InstalMent Option A Agreement Accalrnt it 60 L_I 1 1 1 1 I I Your Business Information CITY OF MEj21DIAN 82 6000?25 Futl Legal Nam®ot rertter D8A Interne o[ tattler Tett ID A (FEp~i/IlM 33 E tBIkH9--L~,PD/~Dlu,6rv i4V~ ERIDIAN ID 83642-2631 Btllirrg Address Oily S1aDe 71p•4 Credit Cant t Nerve On Card ~ Defle Type or Card r0 / Sri 9~3b Tax Exempt ~ State Tax (e app6cebte) Fiscal Period (Nom - to) Your Business Needs . Qty Business Solution Description aleck Items ~ be beduded In customer's payment flAall St[wm Solution - 4 Q Equipment Mairrterrence (1st year included) 1 DM525 Digital Mailing System P,ovAdes servloe oove-age b-dudhtg oaEeln par4s and labor arum r r uu wirr trv t r~ ~ gym Maintenance (1st year included) Fiovi~s-ev~n updates and EerlnJca/sssistance 0 SoR-Guar~da~ Subscription or 101b Scale PfD1~~~'' a you do not erect m bratude Batt pmteodon ~ you lease, you vrm I eutom~muy nrc~ve updates et 9re Ber-acrerd rates ^x Inte111LirtkT~ Subscri~lonlMtrter Rental Provides sbrrpld6ed t~ aad brdrrdes (I~sPwl~ ( ) cordaraafiarr services m postai oordinrmtion ~~ Your Payment Plan -- - ~ - . Number of monttm Mond amount" First 7 0.89 Required advance check of $ received Tax Exempt oertiBcate attached initial rerdal tens Your Acknowledgement _ By your slgrrelure below. You are tartterirtg biro a Installment Lease Agreerrrent pursuant tiD your Participating Addendrun to the WSCJI Contract # EPS06t1076-A2-21'hetTemis arld Conditions of such WSCA Installment Lase Agreemert Optlon A govern this transaction. Slgnahua ~J " ~ ~~ DetQe KEITH WATTS ~ BUSINESS MANAGER Print Name Trite F.rrmO Address Linda-Diane Hi8 0~ Aocot-rrt ~ Dlstr~t Olflce PBGFS AccepQarroe INSTALLMENT LEASE AGREEMENT OPTION A The State will have the option to acquire Pitney Bowes Mailing Equipment through an Installment Lease Agreement, subject to the applicable terms and conditions set forth herein. The pricing plan for the Installment Lease Agreement is as follows: Monthly Billing: Quarterly Billing: Term Lease Rate Term Lease Rate 36 .0317 36 .0960 48 .0247 48 .0750 60 .0205 60 .0625 The terms and conditions are as follows: 1. GENERAL. All Installment Lease Option A Agreements (each referred to herein as "Installment Agreement") consist of the following terms and conditions in addition to the applicable terms and conditions of the State Contract. By issuing a Purchase Order under this Installment Lease Option A, the State is requesting that Contractor leases the referenced equipment (the "Equipment's for essential governmental purposes. Such Equipment does not include any referenced IntelliLinkTM Control Center or postage meter, which remain the property of Contractor or one of its wholly owned subsidiaries. Any IntelliLinkTM Control Center or postage meter is subject to the applicable USPS regulations and meter terms and conditions as may be provided by Contractor. 2. TERM. This Agreement shall commence upon acceptance of the Equipment and shall continue until the earlier of (i) termination at Contractor's Option upon the occurrence of an event of default, (ii) the occun~ence of an event of non-appropriation or termination for Contractor default under the State Contract, (iii) termination in accordance with paragraph 3 below, or (iv) the expiration of the specified term. 3. CANCELLATION OR TERMIIVATION. The State intends to enter into each Installment Agreement for the entire agreed upon term and Contractor has relied upon such represented intention when determining the applicable pricing plan. If the State cancels or terminates an Installment Agreement prior to its expiration (other than for non-appropriations or Contractor default pursuant to the State Agreement), the State shall. pay a termination charge equal to the net present value of the monthly payments remaining through the completion of the term, discounted to present value at a note of 6% per year. Notwithstanding the foregoing, the State may not terminate an Installment Agreement to obtain the same or similar equipment at more favorable terms. 4. REMEDIES. If the State defaults, Contractor may, at its option and with out demand or notice, take one or any combination of the following actions: terminate the relevant Installment Agreement, take possession of the relevant Equipment (including meters), declare the entire amount of all payments, and other amounts due and to become due, for the then current fiscal period for which funds have been appropriated to be immediately due and payable, and pursue any other remedy permitted by law or in equuty. 5. REPRESENTATIONS; MISCELLANEOUS. The State represents and warrants that: (a) it shall timely file an information reporting return (e.g. Form 8038 - GC or, as necessary, 6. 7. $. 9. Form 8038 - G) with the Internal Revenue Service in accordance with Section 149(e) of the Internal Revenue Code of 1986, as amended (the " Code', and the regulations thereunder and the State hereby appoints Contractor as its Agent for the purpose of maintaining a registration system as required by Section 149(x) of the Code; and the State is (and shall continue to be) a State or local government entity, and that any obligation arising out of this Agreemen constitutes an obligation by or on behalf of a state or political subdivision thereof, within the meaning of Section 103 of the Code and the regulations thereunder. The State aclmowledges that the Agreement is entered into based on the assumption that the interest portion of each Period Payment is not includible in gross income of the owner thereof for Federal income tax purposes under Section 103(a) of the Code. A portion of each Period Payment that the State shall pay includes interest. ff any interest is determined not to be excludible from gross income in accordance with Section 103(x} of the Code, the State's Period Payment shall be adjusted in an amount sufficient to maintain Contractor's original after tax yield utilizing Contractor's consolidated marginal tax rate, which adjusted Period Payments the State agrees to pay as provided in this Agreement. The late at which the interest portion of Period Payments is calculated is not intended to exceed the maximum note or amount of interest permitted by applicable law. If such interest portion exceeds such maximum, then at Contractor's option, if permitted by law, the interest portion will be reduced to the legally permitted maximum amount of interest, and any excess will be used to reduce the principal amount of the State's obligation or be refunded to the State. ASSIGNMENT. The State may not assign, transfer or sublet any interest in this agreement or the equipment without Contractor's prior written consent. TITLE. Title to the equipment passes to the State at the time and place of delivery to the State of each unit of equipment. The State will have a grace period of sixty (60) days after the equipment is delivered to aotify Contractor of any defects in the equipment If the State does not notify Contractor within the grace period, it will be deemed accepted. The Contractor or its duly authorized assignee shall have a purchase money security interest in the equipment, until payment of all installments are made. Upon payment of the final installment, or any concluding payment option, the Contractor or his duly authorized assignee shall have no further interest in the equipment PURCHASE OPTION. The State shall have the option to purchase the Equipment at any time during the Term "as is, where is" by paying the remainder of all installment payments. INSURANCE. The State is responsible for Equipment loss, damage or destruction from any cause, whether or not insru~ed. The State shall provide, maintain, and pay for: (a) insurance against Equipment loss, theft, or damage, for the full replacement value thereof, with loss payable to Contractor, and (b) public liability and property damage insurance naming Contractor as an additional insur~i. No Equipment loss, theft or damage shall relieve the State of its obligation to pay the Period Payments or any other obligation under this Agreement Notwithstanding the foregoing, the State shall not be responsible for Equipment loss, damage or destraction if Contractor has delivered non-conforming goods. W$CA OPTION A Pam (Rev OS107) Form 803$-GC Information R®turn for Small Tax-Ex®mpt Governmental Bond Issu®s, L®as®s, and Installm®nt Sal®s oMS No.,sas-orlo cam. nrotier~er zooo> t~ranerrt mtrre Treasruy - Under Internal Revenue Code section 149(e) ~nUemel lietrenue Nervioe Caution: If the Issue p~Ca of the issue iS $900,000 or more u~ Form 8038-G. ' Reporting Authority Check box if Amended Return ~ 1 IasueYs name 2 Issuers~~m+plover Identlficatlon number CITY OF MERIDIAN Pfe~I ` 3 Number and atrect (or P.O. box if mail ie not de6vmed to street address) Room/suite 33 E IDAHO 4 C town, or post office atede, and ZIP wde 3 Report number ~RIDIAN ID 8384-2631 g 6 Name and title of officer or legal reoreaentaWe whom the IR3 may tali for more irrlonnatlon 7 Teleuhone number of otficer or legal reorecentatir ~ D~crliption of Obligations Check if retsortina: a single issue LU or on a t~nsolidated basis U 6a Issue prices of obligation(s) (see instructions) .... .. ... ..................... Sa .. . .. ... .. ... . b Issue data (single issue) or calendar year (consolidated) (see instructions) - ................. . 9 Amount of the reported obligation(s) on line 8a: a Used to refunti prior issue(s) ...... ................ .......... 9a . .. .......... ... ... ... b Representing a loan from the proceeds of anothertax-exempt obligation (e.g., bond bank) .......... . 10 If the issuer has designated any issue under section 2ti5(b)(3)(B~ixlll) (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 pay a penalty in lieu of arbitrage rebate, check this box ..................................... - Under penalties o perjury, I declare .Sl9n and belief, the ( 1n o t n Here ' I General Instructions Section references are to the Internal Revenue Code unless otherwise noted. Purpose of Form Form 8038fisC is used by the issuers of tax-euempt govea-mental obligations to pmvide the IRS with the information requires by section 149(e) and to monitor the requirements of sections 141 through 1s0. Who Must File Issuers oftax-exempt governmental obligations with issue prices of less than $100,000 must file Form 8038-GO. Issuers of atax-exempt governmental obflgation with ao issue price of $100,000 or mare must file Fonn 8038-G, Information Kelton for Tax-Exempt Governmental Obligations. FIBng 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 $100,000. 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 (seethe line 12 irrsnvctions). Filing a consolidated return. For all tax~rrempt governmental obGgatimrs with issue prices of less than $100,000 that are not reported on a separate Form 8038-GC, an i~rer must file a consolidated information return including all such issues issued within the calendar year. I have examined this return and aceomparrying schedules and statemerds, arM to the beat of my Imowledge D~ate'~ ' Ty~ l n rra ~'nd ~ ~IZL' ~ Thus, an is~rer may file a separate Fonn 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 Farm 8038-C1C. However, a separate Form 8038-GC must be filed to give the IRS notice of the election to pay a perelty in lieu of arbitrage rebate. When To File To file a separate return, file Fonn 8038-C1C on or before the 15th day of the second calendar month a&er the close of the calendar quarter in which the issue is issued To file a cortsopdated return, file Form 8038-LiC on ar before February 15th of the calendar year following the year in which the issue is issued Late Alin®. An issuer may be granted an extension of time to file Form 8038-CC under Section 3 of Rev. Prot. 88-10, 1988-1 C.B. 63s, if it is determined that fire failure to file on time is not due to willfit! neglect. Type or print a! the top of the form, `°I7ris Statement Is Submitted in Accordance with Rev. Prot. 88-10.° Attach to the Form 8038- GC aletter briefly stating why the fomr was not submitted to the IRS on time. Also indicate whether the obligation in question is under examinatiaur by the IRS. Do not submit copies of any bond docrmments, leases, or installment sale docrmrents. See Where To File below. Where To File File Form 8038-GC, and any attachments, with tire 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 far Tax- Exempt Private Activity Bond Issues. Rounding to Whole Dollars You may show the money items on this return aswhole-dollar amounts. To do so, drop arty amount less than s0 cuts and increase any amount from s0 to 99 cents to the next higher dollar. Deftnltlons ObBgatlons. Thla refers to a single tax-exempt governmemal obligation if Form 8038- GC is used for separate reporting or to multiple tax exempt governmental ob8gations if the form is used for cxmsoGdated reporting. Tax-exempt obllgaAon. This is a bond, installment purchase agreement, or financial lease, on which the interest is excluded flrom income ands section 103. Tax~+xempt governmental obligation. Atax- exempt obligation that is not a private activity band (see below) is a tax~rrentpt governmental obligation. This includes a band issued by a qualified volunteer fire department under section 1s0(e) Private activity bond. This includes an obligation issued as part of m issue in which: • More than 10°!0 of the procceds ate to be use for any private activity business use, and Ca#. No. 641088 Form 8038-GC (Rev.11-2000) Form 8038-GC (Rev. 11-2000) More than 10'/0 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 paymects 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 goveromental units and (b) exceeds the lesser of 5% of the proceeds or $5 million. Issue. Generally, 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 germ 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 agreemect and are issued under a common financing arrangemect (e.g., under the same official statement periodically updates 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 amour 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 installmem 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 Unites 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 toads that meets both of the following conditions: 1. At last 75% of the available conshvction proceeds of the issue are to be used far construction expenditure 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. [n lieu of rebating any arbitrage ~ may be owed to the United Stains, the issuer of a consnuction Issue may make an irrevocable election to pay a penalty. The penalty is equal to 1 % 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- Specific Instructions In general, a Form 8038-GC must be completed on the basis of available information and reasonable expectctions 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 retum. Yf 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 II 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 the 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 idemifiation number (EIN) should apply for one an Forth SS-4, Application for Employer Identifiation Number. This farm may be obtained at Social Security Administration offices or by calling 1-800-TAX-FORM. If the EIN has not been received by the due date for Form 8038-GC, write "Applied for" in the space for the E1N. Line b. After the preprinted 5, enter two self- designated numbers. Number reports consecutively during any calendar Year (eg., 534, 535, etc. ). Part 11-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. Ltne 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. Far issues reported on a conrolidated basis, enter the calendar year during which the obligations were issued Page 2 Lines 9a and 8b. For line 9a, emer the amount of the proceeds that will be used to pay principal. interest, or cell 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 refimd prior issues which represent loans from the proceeds of another tex- 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 momhly paymems. (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 end principal. Oo not check this box if the procxa;ds of the obligation are received in the form of cash, even if the term "leap" 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 base 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. Pros. 92-22, 1992-I C.B. 736, for rules regarding the "election document." Paperwork Reduction Act Notice We ask fur the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensm~e that you are complying with these laws. You are not required to provide the information requested on a forn- that is subject to the Paperwork Redaction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contains 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 Conn .....................1 hr., S8 min. Preparing the form .................3 hr., 3 min. Copying, assembling, and Sending the form to the IRS ...........16 min. If you have commems concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. You an write to the Tax Foams Committee, Western Ara Distribution Cam, Rancho Cordova, CA 95743-0001. Do not sand the form to this address. lasted, see Where To Flle on page 1.