Loading...
HomeMy WebLinkAbout1989-359 " \, 10 11 17 18 19 20 21 22 23 24 25 26 27 28 1 RESOLUTION NO. 89-359 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF ADDENDUM SCHEDULES 5 & 6 TO EXISTING LEASE PURCHASE 3 AGREEMENT NO. 86-1112 WITH PACIFIC CORP CAPITAL INC. FOR THE FINANCING OF THREE (3) STREET SWEEPERS, AND FOUR (4) AUTOMATED 4 REFUSE TRUCKS IN ACCORDANCE WITH LEASE PURCHASE QUOTATION LP9003. 5 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 6 SECTION 1. That Pacific Corp. Capital Inc. has been 7 determined to be the lowest and best responsible bidder for the 8 financing of three (3) each street sweepers, and four (4) 9 automated refuse trucks in accordance with Lease Purchase Quotation LP 9003 and Lease Purchase Contract 86-1112 previously approved by the Mayor and Council and attached hereto and 12 incorporated herein as Exhibit "A", and Addendum Schedules 5 and 13 6, attached hereto and incorporated herein as Exhibi ts "B" and 14 "c" respectively, for the total amount of $777,615.98; pursuant 15 to this determination, the Purchasing Agent is hereby authorized 16 and directed to prepare the necessary lease purchase transaction documents for said financing of three (3) each street sweepers, and four (4) automated refuse trucks to said lowest and best responsible bidder Pacific Corp Capital Inc.; such award shall only be effective upon the execution of Schedules 5 and 6 by the Mayor of the City of San Bernardino and the tender of a Purchase order by the Purchasing Agent. SECTION 2. No other transaction shall be initiated under the Master Lease contained in this agreement without the prior approval of the Mayor and Common Council. SECTION 3. The Purchasing Agent, the Director of Finance, the City Attorney and the Mayor are hereby authorized to execute DCR:mg August 21, 1989 1 ., .. 10 1 RESOLUTION...AUTHORIZING THE EXECUTION OF ADDENDUM SCHEDULES 5 & 6 TO EXISTING LEASE PURCHASE AGREEMENT NO. 86-1112 WITH PACIFIC 2 CORP CAPITAL INC. FOR THE FINANCING OF THREE (3) STREET SWEEPERS, AND FOUR (4) AUTOMATED REFUSE TRUCKS IN ACCORDANCE WITH LEASE 3 PURCHASE QUOTATION LP9003. 4 5 such documents as are necessary for the administration of this 6 transaction. 7 I HEREBY CERTIFY that the foregoing resolution was duly 8 adopted by the Mayor and Common Council of the City of San 9 meeting thereof, held on the Bernardino at a regular 18th day of September , 1989, by the following vote, to 12 11 wit: 21 22 23 24 25 26 27 28 AYES Council Members Estrada, Reilly, Flores, Maudsley, 13 Minor. Pope-Ludlam. Miller 14 NAYS: None 15 ABSENT: None 16 ~(///!2/P~ / City Clerk /1 The foregoing resolution is hereby approved this ~~?~ day of ~;:Z;;~:~ , 1989. 17 18 19 20 HOLCOl'l1B, May of San Bernardino Approved as to form and legal content: JAMES F. PENMAN City Attorney By: ~ .,. p~ C DCR:mg August 21, 1989 2 /-/ HUNICIP~L LE~SING CORPORATION AGREEMENT Dated as of: February 6, 1986 Agreement No. 86-1112H CONTR~CT PARTIES MUNICIPAL LEASING CORPORATION DBA MUNICIPAL FINANCE CORPORATION IN CALIFORNIA 8260 Greensboro Drive, Suite 225 McLean, Virginia 22102 A Virginia corporation, hereinafter referred to as 8HLC8. . CITY OF SAN BERNARDINO 300 North D Street San Bernardino, California 92418 An agency or political subdivision of the state of California hereinafter referred to as -Municipality8. These addresses are to be used for all correspondence and notices (all notices are to be by certified mail return receipt requested) from one party to the other and may be changed by notifying the other party in writing. THE PARTIES (MUNICIPALITY AND HLC) AGREE AS FOLLOWS: I. DEFINITIONS por purposes of this Agreement and related documents, the listed definitions will apply: 1.1 ACCEPTANCE DATE. Unless otherwise agreed to by the prior written consent of MLC, it is defined as the acceptance by the Municipality of the first item of equipment delivered under this Agreement. 1.2 ASSIGNEE. The person(s) or entity(ies) to whom HLC transfers its rights, title and interest to a Schedule including the right to receive payments, a security interest in the Equipment, and rights under the related Insura~~e. 1.3 EQUIPHENT. The goods enumerated on the attached ScheduleCs). 1.4 RESERVE FUND. A fund established by HLC with a national banking association for the benefit of Municipality and to assure the Investor or Registered OWners the timely distribution of Payments due hereunder, and to provide interest and principal payments to HLC's Assignee(s) subsequent to an event described in Sections 7.1, 8.1, 8.2 or a loss occurring under Section 8.4 hereof. ':. 1.5 SCHEDULE. The document signed by the parties which authorizes the installation of Equipment by MLC, describes the Agreement term for that Equipment, and Municipality's obligations with respect to payment, the assignable contract. 1.6 TRANSACTION DOCUMENTS. The Agreement, the Schedu1e(s), and all related documents. II. PURPOSE 2.1 MLC sells Equipment listed on Schedule(s) to Municipality, for consideration indicated in those Schedule(s). O .-. . . -.. · \ 'I ~;' ." I:~'" ~ ~ \.. i ~ --.. "'-',. ~~ . '-~. -1- 8214P EXHIBIT "A" /"'1- I I I . TERM 3.1 The term of each Schedule will begin on the Acceptance Date of the Equipment listed thereon and will terminate, except as otherwise provided herein, at the expiration of the number of periods indicated on such Schedule. IV. PAYMENT ~.l AMOUNT AND TIMES OF PAYMENT. The total purchase price indicated in the Schedule(s) will be paid in the Payment amounts set forth in the Schedule(s). Charges will accrue from the Acceptance Date. ~.2 LATE CHARGES. Payments received more than fifteen days after the due date will be subject to a late charge at the rate indicated in the appropriate Schedule (or at the highest rate allowed by law, if less). ~.3 ABATEMENT OF PAYMENTS. There will be no abatement or reduction of payments by the Municipality for any reason. It is the intention of the parties that the payments be made in all events, unless the obligations to pay such amounts are terminated as provided herein. V. RESPONSIBILITIES OF MUNICIPALITY 5.1 CARE AND USE OF EQUIPMENT. Municipality, at its own expense, will obtain remedial and preventive maintenance during the term of this Agreement to keep the Equipment in good operating condition and appearance. The Municipality agrees to use and provide maintenance for the Equipment only in manner and to standards contemplated by the Equipment manufacturer. Selection of the firm to provide maintenance coverage will be subject to approval by MLC, which approval will not be unreasonably withheld. Municipality agrees not to relocate the Equipment without the prior written permission of MLC. 5.2 INSPECTION. with reasonable prior notice, Municipality will allow HLC to enter the premises where the Equipment is located during normal business hours to inspect the Equipment in order to determine whether Municipality is fulfilling its responsibilities. 5.3 INDEMNITY. Municipality hereby agrees to indemnify and save MLC harmless from all liability, claims, loss, damage or expenses of any kind, made or suffered by any party, during or after the terM of this Agreement caused directly or indirectly by the .inadequacy of the Equipment, any interruption or loss of service, any 10s8 of business or other damage resulting from any fault of or in the Equipment or arising out of the ownerShip, selection, possession, operation, control, use, maintenance, delivery or return of the Equipment, inclUding but not limited to personal injury, property damage, death or consequential damages. Indemnifications shall include costs and expenses, inCluding reasonable attorneys' fees incurred in negotiations, trial or appeal by MLC in connection with any claim or action resulting from any such liability. Municipality will be credited with any amounts received by HLC from any liability insurance secured by HLe. -2- O::,,~ :~~i'~J;L 8214P /-'.7 5.4 TAXES AND LICENSES. Municipality will comply with all laws and pay all taxes relating to the Equipment and Municipality's obligations hereunder, including, but not limited to, sales and use taxes, gross receipts taxes (including business and occupational taxes which are based on "LC's gross revenues related to this transaction), registration fees, license fees, documentary stamp taxes, personal property and ad valorem taxes and all other taxes, licenses and charges imposed on the ownership, possession or use of the Equipment during the term of this Agreement, together ~ith any interest and penalties. Notwithstanding the foregoing, Municipality will not be obligated to pay taxes based solely upon HLC's net income. 5.5 ASSIGNMENT OR DELEGATION BY MUNICIPALITY. Municipality agrees not to lease~ assign or transfer all or part of its rights and obligations under this Agreement or in the Equipment. , , " 5.6 DELIVERY OF RELATED DOCUMENTS. Municipality will sign or prOVide as required the following documents satiSfactory to HLC: a) An Agreement Certification confirming Municipality's Acceptance of the E9uipment as of the date installed. UO) An Opinion of Counsel confirming Municipality's authority, warranties and representations. c) An Opinion of Counsel confirming Municipality's capacity to issue obligations qualifying Municipality as a political subdivision within the meaning of Section 103 of the Internal Revenue Code and the related regulations and rulings and that the portion of payments identified as deferred interest charges to maturity, upon receipt, will not be includable in Federal gro~s income under Statutes, regulations, court decisions and rulings existing on the date of this opinion and consequently will be exempt from present Pederal income taxes and income tax of the State of California. d) Documents evidencing title and delivery. e) Municipality's maintenance contract on Equipment. f) Pinancing statements or other documents perfecting HLC's security interest. .g) Ho-Arbitrage Certificate. h) Written acknowledgement of assignment and other documents required by the Assignee. i) Municipality's liability insurance and casualty insurance policy covering Equipment, if applicable. ~'j) Municipality's representations as to the essential nature and use of the Equipment. Municipality shall forward items b through j (as required) to MLC prior to Equipment installation. 5.7 TRANSPORTATION AND INSTALLATION. CHARGES. Municipality shall be responsible for all charges relating to the transportation of Equipment to Municipality's location and installation at such location. MLC may at its option either prepay such charges and invoice Municipality or forward to Municipality transportation and installation invoices as they are received, whereupon Municipality shall remit payment in a timely manner. -3- O . ... .~ "\. I \l i .~: G.j '~/~ 82l4F /-1( VI. EQUIPMENT 6.1 TITLE. Title to the Equipment will pass to the Municipality on the Acceptance Date. Title will revert to HLC upon termination pursuant to Article VII or VIII. 6.2 SECURITY INTEREST. The Municipality grants to HLC and MLC retains a purchase money security interest in the Equipment. Municipality will not change or remove any insignia or lettering which MLC may place on the Equipment to indicate its interest therein. Until all installment payments are made or prepayment is complete Municipality will keep the Equipment free from any lien, encumbrance or legal process and the Municipality will promptly discharge any claim which might become a lien or charge against the Equipment. 6.3 PILING. Municipality authorizes HLC to make HLC's security interest a matter of public record by filings of any documents HLC deems necessary for that purpose and to be responsible for any costs associated therewith. Hunicipality agrees to sign or execute such documents at its expense to evidence its consent to the filings. 6.4 PERSONAL PROPERTY. The Equipment will remain personal property and not be so affixed to realty as to change its character to a fixture or realty. 6.5 ALTERATIONS, ADDITIONS, ATTACHMENTS. In the event title to the Equipment reverts to MLC, and at MLC's request, Municipality at its expense, will remove all alterations, additions and attachments and repair the Equipment as necessary to return the Equipment to the condition in which it was furnished, reasonable wear and tear excepted. Any replacements or repair parts are Equipment subject to the terms of the Agreement. 6.6 EQUIPHENT RETURN. Hunicipality is responsible for the return costs related to the termination of this Agreement pursuant to Article VII or VIII including deinstallation, rigging, drayage, freight, and insurance to destination within the continental United states. Municipality will provide HLC with a current Original Equipment Manufacturer's certificate of maintainability and arrange and pay for such repairs necessary to ensure that the manufacturer accepts the Equipment for contract ~aintenance at its then standard rates. In the event Municipality fails to provide such certificate, MLC ~ay but is under no Obligation to obtain the certificate and any Charges associated therewith will be borne by '~ Municipality. VII. DEPAULT AND REMEDIES 7.1 DEFINITION. Any of the following events will constitute default under this Agreement: a) Municipality fails to make payment required when due, provided such failure is not a direct result of an earthquake and does not continue beyond such time as normal business operations are resumed, and such failure continues after written notice by HLC for a period of fifteen (15) days after receipt of such written notice, or b) Municipality fails to observe or perform any other 'covenant, condition, agreement or warranty of the Agreement and such failure continues for thirty (30) days without cure after MLC provides Municipality written notice of the failure. 0 r"\ f l'.' ~ 'L 'At ' " ~ \..;; i~ ~"'4 -4- ^ 1lII'\' ..... .-/ /'./ c) Municipality becomes insolvent, makes an assignment for the benefit of creditors, Applies for or consents to the Appointment of a receiver, trustee, conservator or liquidator of Municipality or of all or a substantial part of its Assets, or a petition is filed by or Against Municipality under the Federal Bankruptcy Lawn or any similar state or federal laws providing for relief of debtors. 7.2 REMEDIES. If the Municipality defaults, MLC may at its option do any or all of the following: a) Terminate this Agreement by providing written notice to Municipality. b) Take possession of the Equipment wherever situated without liability for entering the premises; . c) Se'l, lease or rent and use the Equipment at its sole discretion. Municipality remains liable for arrears of payments, the costs of taking possession including storage and repair, court costs and attorney's fees, sale or lease costs, and the balance due under the Agreement. The proceeds of such sale or lease of the Equipment shall be applied toward the balance due after deducting the aforementioned costs and payments. For the purposes of this provision, the balance due shall be equal to the Prepayment Amount plus any principal deficiency in the Reserve Fund, d) Declare immediately due and payable all monies during the Agreement Term by providing written notice to Municipality, and e) Take any court action at law or in equity to enforce performance of the obligations or covenants of this Agreement and to recover damages for the breach thereof. Municipality shall remain liabl~ for reasonable damages provided by law including all costs and expenses incurred by MLC due to the default by Municipality. VIII. TERMINATION ,. . . ' 8.1 TERMINATION FOR NON-APPROPRIATIONS. Municipality's obligations to pay any amounts due for those fiscal periods succeeding the current fiscal period are contingent upon legiSlative appropriation or approval of funds for that purpose. Therefore, the Municipality ~ay terminate this Agreement with respect to not less than the entire Schedule effective as of the end of any of its succeeding fiscal periods (the -Termination Date.) by giving MLC and its assigns sixty (60) days prior written notice of the termination and advising HLC of the location(s) vhere the Equipment may be found on the Termination Date. All obligations of Municipality,to make payments due after the Termination Date will cease and all interests of Municipality in the Equipment will terminate. Notwithstanding the foregoing, Municipality agrees (i) not to terminate a Schedule under this provision if any funds are appropriated to it for the acquisition (by either purchase or lease) of the Equipment or functionally similar Equipment or Equipment performing similar applications and procedures for the fiscal period in question and (ii) that it will use its best efforts to obtain appropriation of the necessary funds to avoid termination of each Schedule by taking all appropriate action inclUding the inclusion in Municipality's budget request for each fiscal period during the term hereof a request for adequate funds to meet its obligations and to continue the Schedule in force and (Iii) that it will not give prjorit~ or parity in the application of funds to any other functionally similar O '," ,,...... ... '- I ' L . ,~i l.:; i ..~A -5- 8214' /-- ? equipment for use by the Municipality, (iv) that if the Contract is terminated pursuant to this Section 8.1, the Municipality will not in the then current or succeeding fiscal years purchase, lease or rent Equipment perfor~ing functions similar to those performed by the Terminated Equipment, and agrees not to permit functions similar to those performed through the use of the Equipment to be performed by its own employees or by any agent or entity affiliated with or hired by Municipality. Municipality represents and warrants it has adequate funds to ~et its obligations during its current fiscal appropriation period. Municipality acknowledges that the monies and securities in the Reserve Fund shall be retained upon any Termination for the benefit of the Investor or Registered Owners, and any deficiency in the principal amount of the Reserve Fund shall be restored by Municipality, except, Municipality's only r~sponsibility shall be for a deficiency (Reserve Fund Deficiency) in the principal amount resulting from Municipality's failure to timely make payments prior to the effective date of a non-appropriation of funds pursuant to this Section 8.1. 8.2 PREPAYMENT. So long as Municipality is not in default, Municipality will have the right, upon providing MLC with sixty (60) days prior written notice, to prepay its obligation for the amount set forth in the Prepayment column on the dates provided in the Schedule(s) plus the amount by which the principal amount originally deposited in the Reserve Fund exceeds the principal amount realized from such Fund upon its liquidation. Payment must be received by the specific date established. 8.3 MUNICIPALITY'S RIGHTS ON PREPAYMENT OR PAYMENT IN PULL. Upon (i) Municipality's exercise of its right of prepayment and/or (ii) Municipality'. having satisfied all of its monetary and other obligations hereunder, MLC will release its security interest in the Equipment. 8.4 DESTROCTION OF EQUIPMENT. In the event any of the Equipment is destroyed, stolen or in the reasonable opinion of Municipality, damaged beyond economical repair, Municipality shall give prompt written notice of such event to HLC and its assigns. If HLC replaces such Equipment within 60 days of notification then this Agreement will continue in force. Municipality at this time will pay MLC for the replacement cost of the Equipment. If at the end of the sixty day period the Equipment cannot be replaced then the Municipality will immediately pay to MLC an amount in cash equal to that share of the Prepayment Amount set forth in the appropriate Schedule(s) which is attributable to such Equipment. Said amount shall be based on the percentage that the purchase price of the Equipment bears to t~e total purchase price of all Equipment included in such Schedule. There shall be no abatement of periodic payments through the end of the sixty-day period. In the event there are insurance proceeds covering this obligation in excess of the amounts due then such excess shall be retained by Municipality. The Municipality agrees, upon prepayment under the terms hereof, resulting from the total damage, destruction, or theft of all the Equipment, to replenish the Reserve Fund as set forth in Section B.l of this Agreement. IX. ASSIGNMENT BY HLC 9.1 ASSIGNMENT. Hunicipality understands that HLC contemplates separately assigning (or reassigning) its right, title and interest in each Schedule, the Equipment listed thereon, and all rights to receive further payments to another party (-Assignee-), subject to the rights of Municipality hereunder. Municipality consents to such assignments and agrees to send Oi~(Git~Al -6- 0"'11 A" /--//' all Agreement notices to both MLC and its assignees. All rights of and indemnf.fications to MLC will inure to the Assignee. Any such Assignee will not be obligated to perform any of the obligations of MLC. Municipality agrees to make payments required under the Schedule directly to the Assignee without abatement or reduction of any kind. Municipality will not assert against any Assignee or transferee of HLC's rights any claim, a~y defense, counterclaim, offset or recoupment of any kind, variety or nature which Municipality may now or hereafter have against HLC whether accruing under the Agreement or otherwise. 9.2 ADVICE OF ASSIGNMENT. Upon assignment of HLC's interests to an Assignee, HLC will cause a written notice of such assignment to be sent to Huni,ipality which shall be sufficient if it discloses the name of the Assignee and the address to which further payments hereunder should be made. No further action will be required by HLC or by Hunicipality's consent to the Assignment. Notwithstanding the foregoing, no such assignment shall be effective against the Hunicipality unless the Hunicipality receives notification in writing of such Assignment designating the name and address of any such assign. In compliance with Section 103(j) of the Internal Revenue Code, the Hunicipality agrees to affix a copy of each notification of assignment to the Hunicipality's counterpart of the Agreement. X. WARRANTIES AND REPRESENTATIONS - , : 10.1 WARRANTIES AND REPRESENTATION OP MUNICIPALITY. Tbe Municipality represents and warrants to HLC and, so long as this Agreement is in effect or any part of Municipality's obligations to MLC remain unfulfilled, shall continue to warrant at all times, that: a) Municipality is a state or a duly organized and validly existing political subdivision or agency thereof and has the power and authority to enter into the Transaction Documents to which it is a party and to carry out the terms thereof. b) This Agreement and all other Transaction Documents and the performance of Hunicipality's obligations thereunder have been duly and validly authorized and approved under all laws and regulations and procedures applicable to Municipality, the consent of all necessary persons or bodies has been obtained and all of the Transaction Documents executed by Municipality have been duly and validly executed and delivered by authorized representatives of Hunicipality and constitute valid, legal and binding obligations of Hunicipality enforceable against Municipality in accordance with their respective terms. XI. DISCLAIHER OP WARRANTIES 11.1 The Municipality acknowledges that the Equipment is of a size, design and capacity, and manufacture selected by the MuniCipality. HLC is not a manufacturer of the Equipment. 11.2 MLC MAKES NO WARRANTIES OR REPRESENTATIONS OP ANY KIND, EXPRESS OR IMPLIED, RELATING TO THE EQUIPMENT OR PATENTS RELATING THERETO, AND MLC HAS EXPRESSLY MADE NO WARRANTY AS TO THE VALUE, DESIGN, CONDITION, MERCHANTABILITY OR FITNESS POR A PARTICULAR PURPOSE OP THE EQUIPMENT. -7- O 1-".'.IAf .'\lVij "tAL 8214p " . /-,;-; 11.3 HLC will not be liable to the Municipality for any liability, loss or damage caused or alleged to be caused, directly or indirectly, by the Equip~ent or by any inadequacies thereof or deficiency or defect therein, by any incident whatsoever in connection therewith or in any way related to or arising out of this Agreement. Notwithstanding the foregoing, the Municipality will be entitled to the benefit of any available manufacturer's ~arranties. MLC agrees to execute and deliver such further instrument as may be necessary, in the reasonable opinion of the Municipality, to enable it to enforce such warranties and obtain the warranties and service furnished for the Equipment by the manufacturer. XII. GENERAL . 12.1 WAIVER. No delay or omission by the parties in exercising any right in any of -the Transaction Documents shall operate as a waiver of that or any other right and no single or partial exercise of any right shall preclude the parties from any or further exercise of any right or remedy. 12.2 HEADINGS. All section headings contained herein are for clarification and convenience of reference only and are not intended to limit the scope of any provision of this Agreement. 12.3 SEVERABILITY. In the event any portion of this Agreement shall be finally determined by any court of competent jurisdiction to be invalid or unenforceable, such provision shall be deemed void and the remainder of this Agreement shall continue in full force and effect. 12.4 AMBIGUITY. The parties -to this Agreement, and each of them, hereby represent that the language contained herein is to be construed as jointly proposed and jointly accepted, and in the event of any subsequent determination of ambiguity, all parties shall be treated as equally responsible for any such ambiguity. 12.5 GOVERNING L~WS. This Agreement shall be construed in accordance with and governed by the laws of the state where Municipality's principal place of operations exists. , ." 12.6 IMPLEMENTATION. This Agreement shall be implemented through Schedule(s). por purposes of construing a transaction as an integrated agreement and for the purposes of the provision of Article IX, the following shall be considered a single transaction and legal and binding Agreement: a) The Agreement, which provides basic terms and conditions. b) A Schedule. 12.7 AMENDMENT. Any of the Transaction Documents may only be amended in writing by obtaining the signature of the parties. No assigned Transaction Document ~ay be modified without the prior written consent of Assignee. 12.8 EXECUTION. Each Schedule may be executed in any number of counterparts but only the counterpart that is labeled, .Original. will be deemed to be the original Schedule for purposes of perfection of a security interest therein and shall be the only counterpart which may be transferred and given to transfer the rights of MLC thereunder. This Agreement and Schedule(s) issued pursuant thereto shall not be effective until accepted (as evidenced by an authorized signature) by HLC. -8- O~!Gi~~/\'- 8214P ,^ /-7' 12.9 FORMATION OF AGREEMENT. MLC shall not be bound by this Agreement until it is excecuted by an officer of HLC. XIII. SIGNATURES IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written. . MUNICIPAL LEASING CORPORATION DBA MUNICIPAL PINANCE CORPORATION IN CALIPORNIA CITY OF BY: IJ;(fLA~~:J h~. ~. BY: NAME: i..JllLltf-ttt J. /I1lJ-..ll-t?T'(, J~ NAME: Dean TITLE: f),,((.FlTo/f.. of (~,.rr;f,if<.Tr TITLE: Purchasinq Aqent DATE: .~/(31 r(., DATE: March. 5. 1986 Jy.. OAre ..2/.2~ f~ , :. -9- 0,....1 G~NAL 8214P EXHIBIT A MODIFICATION NO. 1 Dated as of July 1, 1988 Agreement No. 1112 Modification No. 1 dated July 1, 1988 to Agreement No. 1112 dated as of February 6, 1986 and all schedules thereto (the "Agreement") between Municipal Leasing corporation, as MLC, and the City of San Bernardino, as Municipality. 1. It ~s acknowledged that MLC has, prior to the date hereof, been merged into Systems Leasing Corporation, and that the name of the surviving corporation is "PacifiCorp Capital, Inc." and its state of incorporation is virginia. It is further acknowledged and agreed that as a result of the foregoing, Pacificorp capital, Inc. has succeeded to all rights and interests of Municipal Leasing Corporation under the Agreement and any and all Purchase Orders or subcontracts issued thereto. In connection therewith, the name "PacifiCorp Capital, Inc." is substituted for the name Municipal Leasing Corporation in the Agreement in each place where the name "Municipal Leasing corporationll appears, and any and all Purchase Orders or subcontracts issued which may hereafter be acknowledged by MLC under the Agreement shall be issued to Pacificorp Capital, Inc. in its own name (with the same force and effect as if Pacificorp Capital, Inc. were originally named as IIMLCII under the Agreement. 2. Municipality agrees to appoint PacifiCorp Capital, Inc.'s assigns as its agent for. the purpose of -maintaining a book entry system as required by the Internal Revenue Code of 1986. 3. No more than 10% of the use of any unit of the Equipment in any month will be by persons or entities other than the Municipality or its employees on matters relating to such employment, and no more than 5% of use of any Unit of the Equipment in any month will be unrelated to use by or for the Municipality. No management contract shall be entered into with respect to any unit if the Equipment unless (a) at least half the compensation is on a periodic, fixed-fee basis; (b) no compensation is based on a share of net profits and (c) the Municipality is able to terminate the contract without penalties at the end of any three years. 4. As an inducement of pacifiCorp Capital, Inc. to enter into this Agreement, Municipality agrees to cooperate with Pacificorp Capital, Inc. in the assimilation and verification of information with regard to any matters whatsoever concerning this Agreement, and further agrees to execute such documentation as may be required for the purpose of properly reporting this Agreement including, without limitation, IRS form 8038G or 8038GC, as required under the Internal Revenue Code of 1986 or any related rulings and regulations thereunder. ORIGINAL Modifioation No. 1 Agreement 1112 page 2 5. The Agreement, as amended hereby, shall continue in full force and effect in accordance with its terms. IN WITNESS-WHEREOF, the undersigned have executed this Modification as of the date first above written. PACIFICORP CAPITAL, INC. as suooessor to Munioipal L~l.~ng cor.poration (If") ? -- .., , By , . . (In- f'Jr' Name /' I~~ ~~-f) N ;-'OA'J;> Title (/tjJt<. [/ ~fi- {;{~,1,.Li~ ( CITY OF BAN BERNARDINO Munioirality By /t~t~~~ / J'du;7 Name Title 71T ORIGINAL EXHIBIT B SCHEDULE NO. 5 Dated as of: August 1, 1989 To Agreement No. 1112 THIS SCHEDULE is issued pursuant to Agreement dated as of February 6, 1986, between the parties to the Agreement to authorize installation of the Equipment listed herein. All terms used herein have the meanings ascribed to them in the Agreement. A. Payment No. 1 shall be due on February 1, 1990 and subsequent payments shall be due semi-annually thereafter as set forth hereunder: PAYMENT SCHEDULE payment Number 1 2 3 4 5 6 7 8 9 10 Payment Date Payment Amount Amount Allocable to Interest Prepayment Amount.. 01-Feb-90 01-Aug-90 01-Feb-91 01-Aug-91 01-Feb-92 01-Aug-92 01-Feb-93 01-Aug-93 01-Feb-94 01-Aug-94 56,297.91 56,297.91 56,297.91 56,297.91 56,297.91 56,297.91 56,297.91 56,297.91 56,297.91 56,297.91 18,000.42 16,496.13 14,932.75 13,307.97 11,619.36 9,864.42 8,040.56 6,145.05 4,175.09 2,127.63 430,775.46 389,016.22 345,847.60 301,222.05 255,090.38 207,401.78 158,103.68 107,141.76 54,459.89 0.00 ** The Prepayment Amount is due on the date specified in the Payment Schedule above and is in addition to the payment then due. B. LATE PAYMENTS. There will be a charge of 1.5% per month based on the amount of any late payments. C. FISCAL YEAR. The Municipality's fiscal period is from July 1 to June 30. D. PREPAYMENT AND TERMINATION AMOUNTS. The Prepayment Amount as provided in the Agreement is set forth in Paragraph A above. E. DEFERRED INTEREST TO MATURITY. Deferred interest charges to maturity are as set forth in Paragraph A above. G. INSURANCE: RISK OF LOSS. As against Pacificorp capital, Inc., Municipality shall bear all risk of loss or damage to the Equipment until the Equipment is returned to PacifiCorp Capital Inc. pursuant to Agreement Article VII or VIII. The Municipality agrees to hold harmless and indemnify Pacificorp capital, Inc. from all liability for Page 1 of 2 EXHIBIT "B" ORIGINAL damages to the equipment or personal injury ar1s1ng out of the use of the Equipment. The Municipality further agrees to secure self - insurance for the Equipment for the duration of the Agreement term and to complete Exhibit J hereto describing such self - insurance program. H. EQUIPMENT DESCRIPTION. The Equipment as defined in the Agreement includes the following: EQUIPMENT LIST Manufacturer: Haaker Equipment Company Quantitv Description Equipment Cost serial Number 4 Automated Refuse Vehicles Subtotal Sales Tax Total Equipment Cost $434,992.00 $434,992.00 26,099.52 $461,091.52 THE TERMS GOVERNING THIS SCHEDULE ARE CONTAINED IN THE AGREEMENT REFERENCED ABOVE AND APPLY WITH THE SAME FORCE AND EFFECT AS IF SET FORTH FULLY HEREIN. THIS SCHEDULE IS SEPARATELY ASSIGNABLE. PacifiCorp Capital, Inc. shall not be bound by this Agreement until it is executed by an officer of PacifiCorp Capital, Inc. TITLE: PACIPICORP, CAPITAL, INC. BY: DATE : '~",J~: 7( /l .---1.;~ / >/ I' ,~I _.- ! DATE: Page 2 of 2 OR\G\NAL EXHIBIT B SCHEDULE NO. 6 Dated as of: August 1, 1989 To Agreement No. 1112 THIS SCHEDULE is issued pursuant to Agreement dated as of February 6, 1986, between the parties to the Agreement to authorize installation of the Equipment listed herein. All terms used herein have the meanings ascFibed to them in the Agreement. A. Payment No. 1 shall be due on February 1, 1990 and subsequent payments shall be due semi-annually thereafter as set forth hereunder: PAYMENT SCHEDULE Payment Number 1 2 3 4 5 6 7 8 9 10 Payment Date Payment Amount Amount Allocable to Interest Prepayment Amount.. 01-Apr-90 01-0ct-90 01-Apr-91 01-0ct-91 01-Apr-92 01-0ct-92 01-Apr-93 01-0ct-93 01-Apr-94 01-0ct-94 38,646.70 38,646.70 38,646.70 38,646.70 38,646.70 38,646.70 38,646.70 38,646.70 38,646.70 38,646.70 12,356.71 11,324.06 10,250.85 9,135.49 7,976.31 6,771.61 5,519.58 4,218.38 2,866.07 1,460.55 295,713.46 267,047.09 237,413.23 206,779.23 175,111.32 142,374.63 108,533.08 73,549.37 37,384.96 0.00 ** The Prepayment Amount is due on the date specified in the Payment Schedule above and is in addition to the payment then due. B. LATE PAYMENTS. There will be a charge of 1.5% per month based on the amount of any late payments. C. FISCAL YEAR. The Municipality's fiscal period is from July 1 to June 30. D. PREPAYMENT AND TERMINATION AMOUNTS. The Prepayment Amount as provided in the Agreement is set forth in Paragraph A above. E. DEFERRED INTEREST TO MATURITY. Deferred interest charges to maturity are as set forth in Paragraph A above. G. INSURANCE: RISK OF LOSS. As against Pacificorp Capital, Inc., Municipality shall bear all risk of loss or damage to the Equipment until the Equipment is returned to PacifiCorp Capital Inc. pursuant to Agreement Article VII or VIII. The Municipality agrees to hold harmless and indemnify Pacificorp Capital, Inc. from all liability for Page 1 of 2 EXHIBIT "e" ORtG'NAL .- damages to the equipment or personal injury ar1s1ng out of the use of the Equipment. The Municipality further agrees to secure self - insurance for the Equipment for the duration of the Agreement term and to complete Exhibit J hereto describing such self - insurance program. H. EQUIPMENT DESCRIPTION. The Equipment as defined in the Agreement includes the, following: EQUIPMENT LIST Manufacturer: Nixon-Egli Equipment Company Quantity Description Eauipment Cost serial Number 3 Street Sweepers $298,608.00 Subtotal Sales Tax Total Equipment- Cost $298,608.00 17,916.48 $316,524.48 THE TERMS GOVERNING THIS SCHEDULE ARE CONTAINED IN THE AGREEMENT REFERENCED ABOVE AND APPLY WITH THE SAME FORCE AND EFFECT AS IF SET FORTH FULLY HEREIN. THIS SCHEDULE IS SEPARATELY ASSIGNABLE. PacifiCorp Capital, Inc. shall not be bound by this Agreement until it is executed by an officer of PacifiCorp Capital, Inc. PACIFICORP, CAPITAL, INC. BY: TITLE: DATE: DATE: ( .. .. l .,.- / /, . ..... (J ." JC',/i1 .:-;;-';)" )/ ,}/7 , ,/ Page 2 of 2 ORIG!;JAL