REPORT TO THE CITY COUNCIL
FROM: BRYON HORN, Chief Information Officer
Information Services Department
BY: KIM JACKSON, Administrative Manager
Information Services Department
SUBJECT
Title
Approve Addendum to Lease Agreement with Ray Morgan Company
Body
RECOMMENDATION
Staff recommends City Council approve the Addendum to Lease Agreement with Ray Morgan Company with the following changes:
1. Removing the Termination for Convenience clause in RFP 9592, SERVICE CONTRACT, III GENERAL CONDITIONS. The current contract has a Termination for Cause clause, and the City would not terminate this agreement for convenience, so there is no risk to the City with this change.
2. Revising 4. INSURANCE; COLLATERAL PROTECTION; INDEMNITY; LOSS OR DAMAGE, removing the notification of any changes to insurance.
3. Reassign leasing agent to be Great America Financial Services Corporation in the lease agreement 5. ASSIGNMENT.
4. Remove in its entirety 7. INSPECTIONS AND REPORTS. Removing the ability to have impromptu inspections.
5. Amend 8. END OF TERM by deleting "12-month renewal term(s)" and replacing with "month-to-month terms" in the first sentence.
EXECUTIVE SUMMARY
On August 30, 2021, the City released Request for Proposals (RFP #9592). On December 2, 2021, Council approved an agreement with Ray Morgan Company in the amount of $386,500.00 per year for 5 years with an option for four one-year extensions. In order for Ray Morgan to secure their financing for the lease, Great America is requiring Ray Morgan to have the Termination for Convenience clause removed. Termination for Convenience puts the leasing company and Ray Morgan at much higher financial risk if the City is allowed to terminate on any given day, and without cause. The current contract does have a Termination for Cause clause giving the City an option to terminate based on performance.
BACKGROUND
On August 30, 2021, the City released Request for Proposals (RFP #9592). On December 2, 2021, ...
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