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HomeMy WebLinkAboutS2- Public Services CI'T'Y OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Pat Malloy , Director Subject: Purchase and financing of 9,800 ninety gallon automated refuse containers. Dept: Public Services Date: 9/1/94 Synopsis of Previous Council action: 1/12/94 Resolution No. 94-6 - to purchase six automated refuse trucks 1/12/94 Resolution No. 94-7 - to finance same AD 1N OFFiCEI 2 SEP ac, 10: 40 Recommended motion: t Adopt Resolutions I Signature ( Contactperson. Kevin Barnes, Refuse Superintendent Phone: 5053 Supporting data attached: Two Resolutions, Staff Report Ward: All FUNDING REQUIREMENTS: Amount:_ $535 , 217 . 30 Source: Acct. No. 127-412-56102 Acct. Description) Lease Payments (Refuse Enterprise Fund) Finance: i c Council Notes: -1/ 3 75-0262 Agenda Item No._S U i Z 8 i CITY OF SAN BERW RDINO = REQUEST FIR COUNCIL ACTION STAFF REPORT RECONEUENDATION Approve a purchase order to Toter, Inc. of Statesville, North Carolina for $429,083.50 to provide 9,800 ninety gallon automated refuse containers; approve financing of same over seven years on a lease/purchase contract with First Public Finance Corporation. BACKGROUND The City of San Bernardino has successfully phased in automated refuse service for 18,000 homes, or half the City, during the last four years. The Refuse Division budgeted for 9,800 new containers during F/Y 93-94, to automate 7,600 more homes and provide additional containers for businesses, apartments, and replacements. Due to the timing of truck manufacturing, the container bid was held late in the fiscal year. Funds have been carried over to F/Y 94-95 in the Refuse Enterprise Fund. The lowest price from a formal bid was $42.99 per container. Staff also received a price of$38.00 with an offer (Attachment A) from Toter, Inc. to extend the City of Bakersfield's pricing to the City of San Bernardino per Bakersfield purchase order #6715 (Attachment B) from a bid opening on ' 7/15/94. This saves the City $51,219.40. DISCUSSION One would anticipate lower pricing with San Bernardino's earlier bid. However, material prices fluctuate with time. Seizing the opportunity to purchase from another City's bid within the last year, the City can save $51,219.40 on the currently needed order. The amount to finance is $429,083.50. Fourteen semiannual payments decreasing from $44,800 to $31,659.62 will be made. Total payout is $535,217.30. The cost of finance is $106,133.80 over seven (7) years. SUMMARY The City of San Bernardino has an opportunity to save $51,219.40 on acquiring 9,800 automated refuse containers budgeted for F/Y 93-94. The savings is available via purchasing from the City of Bakersfield's 7/15/94 bid for acceptable equipment per San Bernardino Municipal Code Section 3.04.010, B.2. The savings is due to fluctuation of material prices which occurred after San Bernardino's bid. San Bernardino went out to bid at an earlier date than Bakersfield to coincide with delivery of new trucks. However, Bakersfield's lowest bidder has extended lower pricing to San Bernardino. IMPACT ON THE BUDGET This lease/purchase has no impact on the General Fund Budget. Pat Malloy Dated Dean Meech Dated � 9 Kevin Bar Dated 75-0264 i RESOLUTION NO. 1 RESOLUTION OF THE CITY OF SAN BERNARDINO ACCEPTING A LEAS PURCHASE MASTER AGREEMENT FOR FIRST PUBLIC FINANCE CORPORATION AM 2 AWARDING A LEASE PURCHASE SCHEDULE 1 AGREEMENT TO FIRST PUBLI FINANCE CORPORATION FOR THE FINANCING OF NINETY-EIGHT HUNDRE 3 (9, 800) 90 GALLON AUTOMATED REFUSE COLLECTION CONTAINERS, TO B UTILIZED BY THE PUBLIC SERVICES DEPARTMENT. 4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY O t 5 SAN BERNARDINO AS FOLLOWS: i 6 SECTION 1 . That First Public Finance Corporation is the lowest 7 and best responsible bidder for the financing of ninety-eight 8 hundred (9, 800) 90 gallon automated refuse collection containers i 9 accordance with financing bid #412-449 for the total amount of 10 $429, 083 . 50 at 6 . 5960% interest payable six (6) months in arrear 11 over seven (7) years for a total payment of $535, 217 . 30; pursuant t 12 this determination, the Purchasing Agent is hereby authorized an 13 directed to issue a Lease Purchase Schedule 1 Agreement for sai E 14 ninety-eight hundred (9, 800) each, automated refuse collectio 15 containers to said lowest and best responsible bidder; such awar 16 shall only be effective upon the issuance of a Lease Purchas 17 Schedule 1 Agreement by the Purchasing Agent; and all othe 18 quotations therefore are hereby rejected. 19 SECTION 2 . The authorization to execute the above reference 20 Lease Purchase Schedule 1 Agreement is rescinded if the parties t 21 the agreement fail to execute it within sixty (60) days of th 22 passage of this resolution. 23 24 25 26 27 September 13 , 1994 -1- 28 � 1 RESOLUTION OF THE CITY OF SAN BERNARDINO ACCEPTING A LEASF PURCHASE MASTER AGREEMENT FOR FIRST PUBLIC FINANCE CORPORATION ANI 2 AWARDING A LEASE PURCHASE AGREEMENT TO FIRST PUBLIC FINANCF CORPORATION FOR THE FINANCING OF NINETY-EIGHT HUNDRED (9, 800) 9( 3 GALLON AUTOMATED REFUSE COLLECTION CONTAINERS, TO BE UTILIZED BY THE PUBLIC SERVICES DEPARTMENT. 4 5 I HEREBY CERTIFY that the foregoing resolution was duly adoptec 6 by the Mayor and Common Council of the City of San Bernardino at 7 meeting thereof, held on the day of 8 199_, by the following vote, to wit : 9 10 Council Members : Ayes Nays Abstain Absent 11 NEGRETE 12 CURLIN 13 HERNANDEZ 14 OBERHELMAN 15 DEVLIN 16 POPE-LUDLAM 17 MILLER i8 City Clerk 19 20 The foregoing resolution is hereby approved this day of 1994 . 21 22 TOM MINOR, Mayor City of San Bernardino 23 Approved as to form and 24 legal content : 25 James F. Penman, City Attorney 26 By 27 September 13 , 1994 -2- 28 RESOLUTION NO. 1 RESOLUTION OF THE CITY OF SAN BERNARDINO AWARDING A PURCHAS ORDER TO TOTER, INC. FOR THE FURNISHING AND DELIVERY OF NINETY-EIGH 2 HUNDRED (9, 800) 90 GALLON AUTOMATED REFUSE COLLECTION CONTAINERS, T BE UTILIZED BY THE PUBLIC SERVICES DEPARTMENT. 3 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY O 4 SAN BERNARDINO AS FOLLOWS: 5 SECTION 1 . That Toter, Inc. is the lowest and best responsibl 6 bidder for the furnishing and delivery of ninety eight-hundre 7 (9, 800) 90 gallon automated refuse collection containers i 8 accordance with Purchase Order #6715 dated 7/15/94 in the City of 9 Bakersfield, CA; pursuant to this determination, and San Bernardin 10 Municipal Code Section 3 . 04 . 010, B. 2, the Purchasing Agent is hereb 11 authorized and directed to issue a Purchase Order for said ninety 12 eight hundred (9, 800) each, automated refuse collection container 13 to said lowest and best responsible bidder; such award shall only b 14 effective upon the issuance of a Purchase Order by the Purchasin 15 Agent; and all other g quotations therefor are hereby rejected. 16 SECTION 2 . The authorization to execute the above reference 17 Purchase Order is rescinded if the parties to the agreement fail t 18 execute it within sixty (60) days of the passage of this resolution. 19 20 21 22 23 24 25 26 27 September 14 , 1994 -1- 28 1 RESOLUTION OF THE CITY OF SAN BERNARDINO AWARDING A PURCHAS ORDER TO TOTER, INC. FOR THE FURNISHING AND DELIVERY OF NINETY-EIGH 2 HUNDRED (9, 800) 90 GALLON AUTOMATED REFUSE COLLECTION CONTAINERS, T BE UTILIZED BY THE PUBLIC SERVICES DEPARTMENT. 3 4 I HEREBY CERTIFY that the foregoing resolution was duly adopte 5 by the Mayor and Common Council of the City of San Bernardino at 6 meeting thereof, held on the day o 7 199_, by the following vote, to wit : 8 9 Council Members: Ayes Nays Abstain Absent 10 NEGRETE 11 CURLIN 12 HERNANDEZ 13 OBERHELMAN 14 DEVLIN 15 POPE-LUDLAM 16 MILLER 17 City Clerk 18 19 The foregoing resolution is hereby approved this day of 1994 . 20 21 TOM MINOR, Mayor City of San Bernardino 22 Approved as to form and 23 legal content : 24 James F. Penman, City Attorney 25 26 By: 27 28 September 14 , 1994 -2- CALIFORNIA MASTER LEASE WITH OPTION TO PURCHASE AGREEMENT THIS CALIFORNIA MASTER LEASE WITH OPTION TO PURCHASE AGREEMENT (this 'Lease' , dated as of the day set forth on the execution page hereof, is made and entered into by and between First Public Finance Corporation,a corporation duly organized and existing under the laws of the State of Oklahoma, as Lessor ("Lessor's, whose principal business address is as shown on the execution page hereof; and the Lessee identified on the execution page 12 hereof, a political subdivision of the State of California (the 'State"), as Lessee ("Lessee'), whose address is as shown on the execution page hereof. In consideration of the mutual covenants herein contained, the parties hereto recite and agree as follows: ARTICLE 1: Definitions and Exhibits Section 1.1. Definitions. Unless the context otherwise requires, the terms defined in this Section shall, for all purposes of this Lease, have the meanings herein specified. or Contractor: Each of the manufacturers�rLessee's request) has Lcontracted o�w�rcorrtra�ctforthemantufacturerdde�delivery will order or with whom Lessee and/or installation of the Equipment. Equipment or Equipment Group: An item or items of personal property designated from time to me by Lessee which are described in an Equipment Schedule, and which are being or will be leased with option to purchase by Lessee pursuant to this Lease. An Equipment Group consists of the Equipment listed on any single page or set of pages of Exhibit A. .guipment Schedule: A schedule consisting of the separate but like numbered pages of Exhibits A and B which have been completed with respect to Equipment Group and executed by Lessor and Lessee as indicated herein. Final Termination Date: With respect to any Equipment Group, the date specified in the Equipment Schedule relating thereto, which date corresponds to the end of the useful life of such Equipment Group. Fiscal Year: The 12-month fiscal period of Lessee which commences in every year on the date shown on the execution page hereof and ends on the following date shown on the execution page hereof. Counsel: An attorney duly admitted to the practice of law before the highest court of the State who could be a full-time employee of Lessor or Lessee. Interest: The portion of any Rental Payment designated as and comprising interest as shown in any Equipment Schedule. L ease: With respect to each Equipment Group, this California Master Lease With Option to Purchase Agreement and the Equipment Schedule in which such Equipment Group is described, which shall constitute a separate contract relating to such Equipment Group. Net Proceeds: Any insurance proceeds or condemnation awards paid with respect to any Equipment remaining after payment therefrom of all expenses incurred in the collection thereof. Payment Date: The date upon which any Rental Payment is due and payable as provided in any Equipment Schedule. °ermitted Encumbrances: As of any particular time: (i) liens for taxes and assessments not then delinquent, (ii) this .ease and amendments hereto and (iii Lessor's interest in the Equipment. Principal: The portion of any Rental Payment designated as principal in any Equipment Schedule. CafdomiaLease.Pags 1 p� rrhase Option Price: With respect to any Equipment Group, as of the Payment Date specified in the Equipment :hedule relating thereto, the amount so designated and set forth opposite each such date in such Equipment -ichedule. Rent a1 nt:Payme With respect to any Equipment Group, the payment due from Lessee to Lessor on each Payment Date during the Lease Tenn, as shown in the Equipment Schedule relating thereto. aggg ications, The bid specifications and/or purchase order pursuant to which Lessee has ordered any Equipment from a Contractor. State and Federal Law or Laws: The Constitution and any law of the State and any charter, ordinance, rule or regulation of any agency or political subdivision of the State; and any law of the United States, and any rule or regulation of any federal agency. Term of This Lease or Lease Term: With respect to any Equipment Group, the period during which this Lease is in effect as specified in Section 4.1. Section 1.2. Exhibits Exhibit A: A schedule executed by Lessor and Lessee describing an Equipment Group being leased by Lessee pursuant to this Lease, and setting forth the date and amount of each Rental Payment coming due during the Lease Term with respect to such Equipment Group, the amount of such Rental Payments comprising Principal and Interest, and the price at which Lessee may exercise its option to purchase Lessor's interest in such Equipment Group in accordance with Article X. Lessee hereby and authorizes Lessor to insert the serial or other identifying numbers relating to the Equipment and the due date of each Rental Payment in Exhibit A when available, and Lessee hereby agrees to sign and return to Lessor any such schedule so completed by Lessor within three days of request by Lessor (provided that no failure by '.essee to sign and return any such schedule shall affect the validity and enforceability of any such schedule completed by -essor pursuant to the terms hereof). Exhibit B: A form of Certificate of Acceptance of Lessee indicating that the Equipment Group described therein has been delivered and installed in accordance with the Specifications, and has been accepted by Lessee, the date on which Rental Payments shown in the page of Exhibit A relating thereto shall commence, and that certain other requirements have been met by Lessee. Exhibit C: A form of opinion of Counsel to Lessee as to the organization, nature and powers of Lessee; the validity, execution and delivery of this Lease and various related documents; the absence of litigation; and related matters. Exhibit D: A form of resolution of the governing body of Lessee relating to the Lease in the form of Exhibit D-1 hereto and, if applicable, also relating to certain federal tax matters in the form of Exhibit D-2 hereto. ARTICLE II: REPRESENTATIONS, WARRANTIES AND COVENANTS Section 2.1. Representationa Warranties and Covenants of Lessee. Lessee represents and warrants to and covenants with Lessor with respect to this Lease and each Equipment Schedule, as follows: (a) Lessee is a political subdivision of the State, duly organized and existing under the Constitution and laws of the State, and is authorized under the Constitution and laws of the State to enter into this Lease and the transactions contemplated hereby, and to perform all of its obligations hereunder. (b) The execution and delivery of this Lease by the officer of Lessee executing it has been duly authorized by a duly adopted resolution of Lessee's governing body, or by other appropriate official action, and such action has complied and/or will comply with all public bidding and other State and Federal Laws applicable to this Lease and the acquisition and financing of the Equipment by Lessee. CardortoaLe"e.Page 2 (c) Lessee will use the Equipment during the Lease Term only to perform essential governmental functions. (d) Lessee will take no action that would cause the interest portion of the Rental Payments to become includable in gross income of the recipient for federal income tax purposes under the Internal Revenue Code of 1986, as amended (the 'Code ), and Treasury Regulations promulgated thereunder (the 'Regulations', and Lessee to will take and ensure will cause its officers, employees and agents to take all affirmative actions legally within Its power necessary the interest portion of the Rental Payments does not become includable in gross income of the recipient for federal income tax purposes under the Code and Regulations; all as amended from time to time (including, without limitation, the calculation and payment of any rebate required to preserve such exclusion). f information r statements and other information (e) Lessee will submit to the Secretary of the Treasury� � relating to this Lease and each Equipment Schedule at the times and in the farms required by the Code and the Regulations; and if applicable, Lessee will cause a resolution substantially in the form lattached hereto as Exhibit D to be adopted by its governing body with respect to this Lease and each Equipment (f) Upon delivery and installation of any Equipment Group, Lessee will provide to Lessor a completed and executed copy of a Certificate of Acceptance relating thereto in the form attached hereto as Exhibit 8, and upon execution of this Lease and/or each Acceptance Certificate Lessee will provide to Lessor an opinion of its Independent Counsel in the form attached hereto as Exhibit C. (g) Lessee finds and determines that the amount of the Rental Payments set forth al Year oEquipme t Schedules are equal to the fair rental value of the related Equipment Groups during the respect which such Rental Payments are made. (h) The Equipment will have a useful life that is substantially in excess of the Lease Term. 4RTICLE III: LEASE OF EQUIPMENT Section 3.1. of Equipment. Lessee shall advise Lessor of its desire to lease Equipment and of the desired lease terms for the Equipment Group. Upon agreement by Lessor and Lessee as to the lease of the Equipment and such terms, Lessor shall furnish to Lessee a proposed Exhibit A relating to the Equipment Group completed insofar as possible. Lessee (or Lessor at Lessee's request) shall order the Equipment Group from the appropriate Contractor or Contractors and notify Lessor in writing of the Equipment cost and the estimated delivery period. Nothing herein shall obligate Lessor to lease any Equipment to Lessee until Lessor shall have so concurred in writing. Section 3.2. f ipment Delivery' Documentation Lessor and Lessee shall complete and execute an Exhibit A with respect to each Equipment Group. Upon delivery of any Equipment Group, Lessee shall inspect such Equipment, and if such Equipment meets Lessee's Specifications, Lessee shall, within three (3) business days from the date of delivery of the Equipment Group, provide to Lessor a completed and executed copy of a Certificate of Acceptance relating thereto in the form attached hereto as Exhibit B. Simultaneously with the delivery, Lessor and Lessee shall take all actions necessary to vest legal title to the Equipment Group in Lessee, and to perfect a security interest therein in favor of Lessor or a person, firm or corporation designated by it. Section 3.3. Lea-see Enjoyment: inspection Lessor hereby leases to Lessee each Equipment Group made subject to this Lease, and Lessee hereby leases from Lessor such Equipment Group, upon the terms and conditions set forth in this Lease. Lessor hereby covenants to provide Lessee during the Lease Term with the quiet use and enjoyment of the Equipment, and Lessee shall during the Lease Term peaceably and quietly have and hold and enjoy the Equipment, without suit, trouble or hindrance from Lessor, except as expressly set forth in this Lease. Lessor will, at the request of Lessee and at Lessee's cost, pin in any legal action in which Lessee asserts its right to such possession and enjoyment to the extent Lessor lawfully may do so. Lessee agrees that Lessor shall have the right at all reasonable times to examine and inspect the Equipment. Lessee further agrees that Lessor shall have such rights of access to the 'Equipment as may be reasonably necessary to cause the proper maintenance of the Equipment in the event of failure by essee to perform its obligations hereunder. Caib�.Pap 3 ARTICLE iV: TERM OF LEASE Section 4.1. cease Term. This Lease shall be in effect for a Lease Term commencing upon its date of execution and ending as provided in Section 4.2. This Lease shall be in effect with respect to each Equipment Group for a Lease Term commencing upon the date of execution of Exhibit A of the Equipment Schedule relating thereto and ending as provided in Section 4.2. unless such Lease Term is extended as provided in this Section, provided that Rental Payments relating to an Equipment Group shall be due and payable commencing upon execution of the related Certificate of Acceptance. If on the date of termination of this Lease with respect to any Equipment Group the Rental Payments shall not be fully paid, or provision therefor made, or such Rental Payments shall have been abated at arty time and for any reason, then such Lease Term shall be extended until the date upon which all such Rental Payments shall be fully paid, except that such Lease Term shall in no event extend beyond the Final Termination Date. Section 4.2. ==WV== The Lease Term with respect to any Equipment Group will terminate upon the occurrevents: (a) the exercise by Lessee of its txh E to quipment c nd interest in such Equipment Group pursuant to Article X; (b) a default by Lessee with respect Group Lessor's election to terminate this Lease with respect to such Equipment Group pursuant to Article XII; or (c) the payment by Lessee of all Rental Payments and all other amounts authorized or required to be paid by Lessee hereunder with respect to such Equipment Group. ARTICLE V: RENTAL PAYMENTS Section 5.1. Rental Payments. Subject to Section 5.2. Lessee agrees to pay Rental Payments with respect to each Equipment Group during the Lease Term, as rental for the use and possession of such Equipment Group, in the amounts and on the dates specified in the Equipment Schedule relating thereto, provided that Rental Payments relating to an Equipment Group shall be due and payable commencing upon execution of the related Certificate of Acceptance. Lessee hereby authorizes Lessor to insert the due date of each Rental Payment on Exhibit A when available, and Lessee hereby agrees to sign and return to Lessor any such schedule so completed by Lessor within three days of request by _essor (provided that no failure by Lessee to sign and return any such schedule shall affect the validity and enforceability of any such schedule completed by Lessor pursuant to the terms hereof). All Rental Payments shall be paid to Lessor; or to such other assignee(s) to which Lessor has assigned such Rental Payments as specified in Article XI, at such place as Lessor or such assignee(s) may from time to time designate by written notice to Lessee. Lessee shall pay the Rental payments exclusively from moneys legally available therefor, in lawful money of the United States of America. Section 5.2. Abatement. During any period in which, by reason of material damage or destruction or taking under the power of eminent domain (or sale to any entity threatening the use of such power) or material title defect with respect to any Equipment Group, there is substantial interference with the use and possession by Lessee of any part of such Equipment Group, the Rental Payments due hereunder with respect to such Equipment Group shall be abated proportionately in whole or in part. The amount of abatement shah be such that the remaining rental obligation for a given rental period represents fair consideration for the use and possession of the portions of such Equipment Group that are complete and are not affected by such interference. Such abatement shall commence on the date that Lessee's use and possession of all or a portion of such Equipment Grog is restricted because it has not been completed or because of such interference and end on the earlier of the date on which the use and possession thereof are restored to Lessee or the date on which Lessee uses the Net Proceeds of insurance or a condemnation awards to pay the Rental Payments or the applicable Purchase Option Price. In the event of any such interference, this Lease shall continue in full force and effect. Lessee waives the benefits of Civil Code Section 1932 and any and all other rights to terminate this Lease by virtue of any interference with the use and possession of the Equipment. Section 5.3. Appropriations. The person or entity in charge of preparing Lessee's budget will include in the budget request for each Fiscal Year the Rental Payments to become due in such Fecal Year with respect to each Equipment Group, and will use all reasonable and lawful means available to secure the appropriation of money for such Fiscal year sufficient to pay all such Rental Payments coming due therein. The covenants on the part of Lessee contained in this '_ease, including the covenant to budget and appropriate amounts necessary to make Rental Payments, shall be deemed .o be duties imposed by law, and it shall be the duty of each and every public official of Lessee to take such action and do such things as are requited by law in the performance of the official duty of such officials to enable Lessee to carry out and perform the covenants and agreements in this Lease agreed to be carried out and performed by Lessee. This Lease is a firm kale and not a non appropriation lease. CaftnikLease.Page 4 1 Section 5.4. Legally Available Funds. The obligations of Lessee under this Lease, including its obligations to pay .ie Rental Payments due with respect to any Equipment Group, in any Fiscal year for which this Lease is in effect, shall not -onstitute an indebtedness of Lessee within the meaning of the Constitution and laws of the State. Rental Payments shall be made from any funds legally available therefor, but nothing herein shall constitute a pledge by Lessee of any taxes or other moneys, other than moneys lawfully appropriated from time to time by or for the benefit of Lessee for this purpose and the proceeds or Net proceeds of the Equipment, to the payment of any Rental Payment or other amount coming due hereunder. Section 5.5. Rental Payments to be Unconditional. The obligation of Lessee to make Rental Payments or any other payments required hereunder shall be absolute and unconditional in all events except as otherwise specifically provided in this Lease. Notwithstanding any dispute between Lessee and Lessor or any other person, Lessee shall make all Rental Payments and other payments required hereunder when due and shall not withhold any Rental Payment or other payment pending final resolution of such dispute nor shall Lessee assert any right of set-off or counterclaim against its obligation to make such Rental Payments or other payments required under this Lease. Lessee's obligation to make Rental Payments or other payments during the Lease Term shall not be abated through accident or unforeseen circumstances except as provided in Section 5.2. ARTICLE V1: INSURANCE AND NEGLIGENCE Section 6.1. Liability Insurance Upon ordering any Equipment Group and prior to receipt of possession of the Equipment Group, Lessee shall take such measures as may be necessary to ensure that any liability for injuries to or death of any person or damage to or loss of property arising out of or in any way relating to the condition or the operation of the Equipment Group or any part hereof, is covered by a blanket or other general liability insurance policy maintained by lessee, with a coverage limit of not less than $1,000,000 per occurrence. The Net proceeds of all such insurance shall be applied toward extinguishment or satisfaction of the liability with respect to which any Net Proceeds may be paid. Section 6.2. Property insurance. Upon receipt of possession of any Equipment Group, Lessee shall have an .ssume the risk of loss with respect thereto. Lessee shall procure and maintain continuously in effect during the Lease Term, all-risk insurance (including, if requested by Lessor, insurance against earth quakes), subject only to the standard exclusions contained in the policy, in such amount as will be aft least sufficient so that a claim may be made for the full replacement cost of any part of the Equipment damages or destroyed and to pay the applicable Purchase Option Price of the Equipment. Such insurance may be provided by a rider to an existing policy or under a separate policy. Such insurance may be written with customary deductible amounts acceptable to Lessor. The Net Proceeds of insurance required by this Section shall be applied to the prompt repair, restoration or replacement of the Equipment, or to the purchase of the Equipment, as provided in Section 6.8. Any Net Proceeds not needed for those purposes shall be paid to Lessee. Section 6.3. Worker's Compensation Insurance. If required by State Law, Lessee shall carry worker's compensation insurance covering all employees on, in, near or about the Equipment, and upon request, shall furnish to Lessor certificates evidencing such coverage throughout the Lease Term. Section 6.4. Rental Interruption and Loss of Use and Occupancy Insurance. Lessee shall maintain or cause to be maintained at its expense throughout the Lease Term, rental interruption insurance against Loss of use of the Equipment or portions thereof with coverage equal to the maximum total Rental payments payable by Lessee for any consecutive 24-month-period. The policy shall insure against abatement of Rental payments payable by Lessee resulting from Lessee's loss of use of the Equipment or any substantial portion thereof and caused by any and all perils, either insured or uninsured, including acts of God. Such insurance may be maintained in conjunction with or separate from any other similar insurance carried by Lessee. The Net Proceeds of such insurance shall be payable to Lessor in amounts proportionate to Lessee's loss of use of the Equipment and the corresponding rental abatement, if any, and shall supplement Lessee's applicable Rental Payments, if any, during the restoration period in sufficient amount to make Lessor whole. ,oection 6.5. Requirements for All Insurance. All insurance policies (or riders) required by this Article shall be taken out and maintained with responsible insurance companies organized under the laws of one of the states of the United States and qualified to do business in the State; and shall contain a provision that the insurer shall not cancel or revise coverage thereunder without giving written notice to the insured parties at least ten (10) days before the cancellation or revision becomes effective. Each insurance policy or rider required by this Article shall name Lessor as an Caifomial-ease.Page 5 � II additional insured party and loss payee and, if required by Lessor, shall include a lender's loss payable endorsement for `ie benefit of Lessor. Prior to delivery of the Equipment to the Lessee, Lessee shall deposit with Lessor policies (and iders and endorsements, if applicable) evidencing any such insurance procured by it, or a certificate or certificates of the respective insurers stating that such insurance is in full force and effect. Before the expiration of any such policy or rider, Lessee shall furnish to Lessor evidence that the policy has been renewed or replaced by another policy conforming to the provisions of this Article. Section 6.6. Self-Insurance. Notwithstanding the provisions of Sections 6.1 through 6.3, Lessee may elect to meet the requirements of any such Section through self-insurance provided by a Qualified Self-Insurance Program (defined below) having coverage limits equal to or greater than those specified in such Section. In such event, Lessee shall give Lessor notice of such election and provide to Lessor a full, true and correct copy of all documents providing for the establishment and administration of the Qualified Self-Insurance Program and shall execute an addendum to this Lease. As used herein, 'Qualified Self-Insurance Program' means a program of self-insurance which has been established by Lessee, or by Lessee and other political subdivisions of the State, pursuant to a State Law specifically authorizing the program, and which is funded in a manner similar to commercial insurance or in a manner specified in such State Law. Section 6.7. Lessee's Negligence, Lessee assumes all risks and liabilities, whether or not covered by insurance, for loss or damage to any Equipment and for injury to or death of any person or damage to any property, whether such injury or death be with respect to agents or employees of Lessee or of third parties, and whether such property damage be to Lessee's property or the property of others, which is proximately caused by the negligent conduct of Lessee, its officers, employees and agents. Lessee hereby assumes responsibility for, indemnifies Lessor against and agrees to reimburse Lessor for all liabilities, obligations, losses, damages, penalties, claims, actions, costs and expenses (including reasonable attorneys' fees) of whatsoever kind and nature, imposed on, incurred by or asserted against Lessor that in any way relate to or arise out of a claim, suit or proceeding based in whole or in part upon the negligent conduct of Lessee, its officers, employees and agents, or based upon the possession, use, operation, condition or storage of the Equipment (unless caused by Lessor or its agents) to the maximum extent permitted by law. ;ection 6.8. Damage to or Destruction of Equipment. If after delivery of any Equipment to Lessee all or any part of the Equipment is lost, stolen, destroyed or damages beyond repair, Lessee shall as soon as practicable after such event either: (a) replace the same at Lessee's sole cost and expense with equipment of equal or greater value to the Equipment immediately prior to the time of the loss occurrence, such replacement equipment to be subject to Lessor's reasonable approval, whereupon such replacement equipment shall be substituted in this Lease and the other related documents by appropriate endorsement or amendment or (b) pay the applicable Purchase Option Price of the Equipment Group to which such Equipment belongs as set forth in Exhibit A. Lessee shall notify Lessor of which course of action it will take within fifteen (15) days after the loss occurrence. If Lessee fails or refuses to notify Lessor within the required period, Lessor may at its option, declare the applicable Purchase Option Price of the Equipment Group to which such Equipment belongs set forth in Exhibit A immediately due and payable, and Lessee shall be obligated to pay the same. The Net Proceeds of all insurance payable with respect to the Equipment shall be available to Lessee and shall be sued to discharge Lessee's obligation under this Section. On payment thereupon of the Purchase Price Option with respect to any Equipment Group, this Lease shall terminate with respect to such Equipment and Lessee thereupon shall become entitled to such Equipment AS IS, WITHOUT WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR FITNESS FOR THE USE CONTEMPLATED BY LESSEE, except that such Equipment shall not be subject to any lien or encumbrance created by or arising through Lessor. ARTICLE VII: OTHER OBLIGATIONS OF LESSEE Section 7.1. Use: Permits. Lessee shall exercise due care in the installation, use, operation and maintenance of the Equipment, and shall not install, use, operate or maintain the Equipment improperly, carelessly, in violation of any State and Federal Law or for a purpose or in a manner contrary to that contemplated by this Lease. Lessee shall obtain all permits and licenses necessary for the installation, operation, possession and use of the Equipment. Lessee shall comply with all State and Federal Laws applicable to the installation, use, possession and operation of the Equipment, and if ,ompliance with any such State and Federal Law requires changes or additions to be made to the Equipment, such changes or additions shall be made by Lessee at its expense. Caktomialease.Page 6 Section 7.2. Maintenance of Equipment by Lessee Lessee shall, at its own expense, maintain, preserve and iep the Equipment in good repair, working order and condition, and shall from time to time make all repairs and .aplacements necessary to keep the Equipment in such condition. Lessor shall have no responsibility for any of these repairs or replacements. Section 7.3. Taxes Other Governmental Sharges and Utility Charges Except as expressly limited by this Section, Lessee shall pay all taxes and other charges of any kind which are at any time lawfully assessed or levied against or with respect to the Equipment, the Rental Payments or any part thereof, or which become due during the Lease Term, whether assessed against Lessee or Lessor. Lessees shall also pay when due all gas, water, steam, electricity, heat, power, telephone, and other charges incurred in the operation, maintenance, use, occupancy and upkeep of the Equipment, and all special assessments and charges lawfully made by any governmental body for public improvements that may be secured by a lien on the Equipment; provided that with respect to special assessments or other governmental charges that may lawfully be paid in installments over a period of years, Lessee shall be obligated to pay only such installments as are required to be paid during the Lease Term as and when the same become due. Lessee shall not be required to pay any federal, state or local income, inheritance, estate, succession, transfer, gift, franchise, gross receipts, profit, excess profit, capital stock, corporate, or other similar tax payable by Lessor, its successors or assigns,unless such tax is made in lieu of or as a substitute for any tax, assessment or charge which is the obligation of Lessee under this Section. Section 7.4. Advances. If Lessee shall fail to perform any of its obligations under this Artice, Lessor may, but shall not be obligated to, take such action as may be necessary to cure such failure, including the advancement of money, and Lessee shall be obligated to repay all such advances on demand, with interest at the rate of 18% per annum or the maximum rate permitted by law, whichever is less, from the date of the advance to the date of repayment. ARTICLE VIII:L TITLE; SECURITY INTEREST: LIENS section 8.1. Title. During the Lease Term with respect to any Equipment Group, and so long as Lessee is not in afault under Article XII, legal title to such Equipment Group and any and all repairs, replacements, substitutions and modification to it shall be in Lessee. Upon termination of this Lease with respect to any Equipment Group pursuant to Article XII, full and unencumbered legal title to such Equipment Group shall pass to Lessor, and Lessee shall have no further interest therein. In either of such events, Lessee shall execute and deliver to Lessor such documents as Lessor may request to evidence the passage of legal title to such Equipment Group to Lessor and the termination of Lessee's interest therein, and upon request by Lessor shall deliver possession of the Equipment Group to Lessor in accordance with Section 12.3. Upon termination of this Lease with respect to any Equipment Group through exercise of Lessee's option to purchase pursuant to Article X or through payment by Lessee of all Rental Payments and other amounts hereunder, Lessor's security or other interest in such Equipment Group shall terminate, and Lessor shall execute and deliver to Lessee such documents as Lessee may request to evidence the termination of Lessor's security or other interest in such Equipment Group. Section 8.2. Security Interest. Lessee grants to Lessor a continuing, first priority security interest in and to the Equipment, all repairs, replacements, substitutions and modifications thereto or thereof made pursuant to Section 8.5 and all proceeds of the foregoing in order to secure Lessee's payment of all Rental Payments due during the Lease Term and the performance of all other obligations herein to be performed by Lessee. Lessee will join with Lessor in executing such financing statements or other documents and will perform such acts as Lessor may request to establish and maintain a valid first lien and perfected security interest in the Equipment. If requested by Lessor, Lessee shall conspicuously mark the Equipment with appropriate lettering, labels or tags, and maintain such markings during the Lease Term, so as clearly to disclose Lessor's security interest in the Equipment. Section 8.3. Liens. During the Lease Term, Lessee shall not, directly or indirectly, create, incur, assume or suffer to exist any mortgage, pledge, lien, charge, encumbrance or claim on or with respect to the Equipment, other than the respective rights of Lessor and Lessee as herein provided and Permitted Encumbrances. Except as expressly provided ;n Section 7.3 and this Article, Lessee shall promptly, at its own expense, take such action as may be necessary duty to ischarge or remove any such mortgage, pledge, lien, charge, encumbrance or claim if the same shall arise at any time. Lessee shall reimburse Lessor for any expense incurred by Lessor in order to discharge or remove any such mortgage, pledge, lien, charge, encumbrance or claim. Calfomial-wse.Page 7 i Section 8.4. installation of Lessee's Egui2ment. Lessee may at any time and from time to time, in its sole 'iscretion and at its own expense, install other items of equipment in or upon the Equipment, which items shall be .jentified by tags or other symbols affixed thereto as property of Lessee, shall remain the sole property of Lessee, and may be modified or removed by Lessee at any time provided that Lessee shall repair and restore any and all damage to the Equipment resulting from the installation, modification or removal of any such items. Section 8.5. Modification of Equipment= Lessee shall, at its own expense, have the right to make repairs to the Equipment, and to make repairs, replacements, substitutions and modifications to all or any of the parts thereof. All such work and any part or component used or installed to make a repair or as a replacement, substitution or modification, shall thereafter comprise part of the Equipment and be subject to the provisions of this Lease. Such work shall not in any way damage the Equipment or cause it to be used for purposes other than those authorized under the provisions of State and Federal Law or those contemplafted by this Lease; and the Equipment, upon completion of any such work shall be a value which is not less than the value of the Equipment immediately prior to the commencement of such work. Section 8.6. Personal Property, The Equipment is and shall at all times be and remain personal property notwithstanding that the Equipment or any part thereof may be or hereafter become in any manner affixed or attached to or embedded in or permanently rested upon real property or any building thereon or attached in any manner to what is permanent by means of cement, plaster, nails, bolts, screws or otherwise. I ARTICLE IX: WARRANTIES Section 9.1. Selection of Equipment The Equipment and the Contractor have been selected by Lessee, and Lessor shall have no responsibility in connection with the selection of the Equipment, its suitability for the use intended by Lessee, the acceptance by the Contractor or its sales representative of the order submitted, or any delay or failure by the Contractor or its sales representative to manufacture, deliver or install the Equipment for use by Lessee. Lessee authorizes Lessor to add the serial number of the Equipment to Exhibit A when available. .ection 9.1.2 Installation and Maintenance of Equipment. Lessor shall have no obligation to install, erect, test, inspect, service or maintain the Equipment under any circumstances, but such action shall be the obligations of Lessee or the Contractor. Section 9.3. Contractor's Warranties. Lessor hereby assigns to Lessee for and during the Lease Term, all of its interest, if any, in all Contractor's warranties and guarantees, express or implied, issued on or applicable to the Equipment, and Lessor hereby authorizes Lessee to obtain the customary services furnished in connection with such warranties and guarantees at Lessee's expense. Section 9.4. Patent Infringement. Lessor hereby assigns to Lessor for and during the Lease Term, all of its interest, if any, in patent indemnity protection provided by any Contractor with respect to the Equipment. Such assignment of patent indemnity protection by Lessor to Lessee shall constitute the entire liability of Lessor for any patent infringement by Equipment furnished pursuant to this Lease. Section 9.5. Disclaimer of Warranties. THE EQUIPMENT IS DELIVERED AS IS, AND LESSOR MAKES NO WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, AS TO THE VALUE, DESIGN, CONDITION, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR FITNESS FOR THE USE CONTEMPLATED BY LESSEE OF THE EQUIPMENT, OR ANY OTHER REPRESENTATION OR WARRANTY WITH RESPECT TO THE EQUIPMENT, IN NO EVENT SHALL LESSOR BE LIABLE FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES IN CONNECTION WITH OR ARISING OUT OF THIS LEASE OR THE EQUIPMENT OR LESSEE'S USE OF THE EQUIPMENT. ARTICLE X: OPTION TO PURCHASE Section 10.1. When Available. Lessee shall have the option to purchase Lessor's interest in any Equipment Group n any Payment Date relating thereto for the then applicable Purchase Option Price set forth in the page of Exhibit A relating thereto, but only if Lessee is not in default under this Lease, and only in the manner provided in this Article. Cakfomiai-ease.Page 8 ection 10.2. Exercise of 0 lion. Lessee shall give notice to Lessor of its intention to exercise its option with .aspect to any Equipment Group not less than thirty (30) days prior to the Payment Date on which the option is to be exercised and shall deposit with Lessor on the date of exercise an amount equal to all Rental Payments and any other amounts relating to such Equipment Group then due or past due (including the Rental Payment relating thereto due on the Payment Date on which the option is to be exercised) and the applicable Purchase Option Price set forth in the Equipment Schedule relating thereto. The closing shall be on the Payment Date on which the option is to be exercised at the office of Lessor. Section 10.3. Release of Lessor's Interest. Upon exercise of the purchase option with respect to any Equipment Group by Lessee, Lessor shall convey or release to Lessee all of its right, title and/or interest in and to the Equipment Group by delivering to Lessee such documents as Lessee deems necessary for this purpose. ARTICLE XI: ASSIGNMENT, SUBLEASING, MORTGAGING AND SELLING Section 11.1. Assignment by Lessoc Lessor shall not assign its obligations under this Lease, and no purported assignment thereof shall be effective. All of Lessor's right, title and/or interest in and to any Equipment Schedule, Equipment Group, the Rental Payments and other amounts due with respect thereto, and the right to exercise all rights under this Lease relating to such Equipment Schedule and Group may be assigned and reassigned in whole or in part tone or more assignees or sub assignees by Lessor at any time, without the consent of Lessee. No such assignment shall be effective as against Lessee unless and until the assignor shall have filed with Lessee a copy or written notice thereof identifying the assignee. During the Lease Term, Lessee shall keep a complete and accurate record of all such assignments. In the event Lessor assigns participations in its right,title and/or interest in and to any Equipment Schedule, Equipment Group, the Rental Payments and other amounts due with respect thereto, and the rights granted under this Lease relating thereto, such participants shall be considered to be Lessor with respect to their participated shares thereof. Cection 11.2. Assignment and Subleasing by Lessee Neither this Lease nor Lessee's interest in an .quipment Group may be sold, assigned, subleased, transferred, pledged or mortgaged by Lessee without the written consent of Lessor. However, Equipment may be subleased by Lessee to a State agency or other political subdivision for the performance of essential government services by such agency or subdivision without the consent of Lessor, provided that: (a) this Lease and the obligation of Lessee to make Rental Payments hereunder, shall remain obligations of Lessee and (b) the sublessee assumes the obligations of Lessee under the Lease with respect to the Equipment subleased. Lessee shall immediately furnish to Lessor a true and complete copy of such sublease. No sublease shall cause the interest component of the Rental Payments due with respect to the Equipment Group to become includable in gross income of the recipient for federal income tax purposes. ARTICLE XII: EVENTS OF DEFAULT AND REMEDIES Section 12.1 Events of Default Defined. The following shall be `events of default' under this Lease with respect P to any Equipment Group and the Equipment Schedule relating thereto, and the terms "events of default" and "default" shall mean, whenever they are used in this Lease, with respect to any Equipment Group, any one or more of the following events: (a) Failure by Lessee to pay any Rental Payment or other payment required to be paid under this Lease with respect to any Equipment Group at the time specified herein and the continuation of said failure for a period of three (3) days. (b) Failure by Lessee to observe and perform any covenant, condition or agreement on its part to be observed or performed with respect to any Equipment Group, other than as referred to in Clause (a) of this Section, for a period of thirty (30) days after written notice specifying such time prior to its expiration; provided, however, if the failure stated in the notice cannot be corrected within the applicable period. Lessor will not unreasonably withhold its consent to in extension of such time if corrective action is instituted by Lessee within the applicable period and diligently pursued ,ntil the default is corrected. (c) The determination by Lessor that any representation or warranty made by Lessee in this Lease was untrue in any material respect upon execution of this Lease or any Equipment Schedule. CaifomiaLease.Page 9 (d) The filing by Lessee of a voluntary petition in bankruptcy, or failure by Lessee promptly to lift any <ecution, garnishment or attachment of such consequence as would impair the ability of Lessee to carry on its ,overnmental functions of adjudication of Lessee as a bankruptcy, or assignment by Lessee for the benefit of creditors, or the entry by Lessee into an agreement of composition with creditors, or the approval by a court of competent jurisdiction of a petition applicable to Lessee in any proceedings instituted under the provisions of the United States Bankruptcy Code, as amended, or under any similar acts which may hereafter be enacted. An event of default with respect to one Equipment Group shall not constitute an event of default with respect to any other Equipment Group. Section 12.2. Remedies on Default Whenever any event of default referred to in Section 12.1 shall have happened and be continuing with respect to any Equipment Group, Lessor shall have the right, at its option and without any further demand or notice,to take one or any combination of the following remedial steps: (a) Lessor, with or without terminating this Lease with respect to such Equipment Group, may collect each installment of Rental Payments as it becomes due and payable in accordance with the related Equipment Schedule. (b) Lessor, with or without terminating this Lease with respect to such Equipment Group, may repossess the Equipment Group by giving Lessee written notice to deliver such Equipment Group to Lessor, whereupon Lessee shall ' return the Equipment Group in the manner provided in Section 12.3; or in the event Lessee fails to do so within ten (10) days after receipt of such notice, Lessor may enter upon Lessee's premises where the Equipment Group is kept and take possession of the Equipment Group and charge Lessee for costs incurred in repossessing the Equipment Group, including reasonable attorneys' fees. Lessee hereby expressly waives any damages occasioned by such repossession. Notwithstanding the fact that Lessor has taken possession of the Equipment Group, Lessee shall continue to be responsible for the Rental Payments due with respect thereto as and when such Rental payments become or would have become due and payable. If this Lease has not been terminated with respect to such Equipment Group, Lessor shall •eturn the Equipment to Lessee at Lessee's expense when the event of default is cured. (c) If Lessor takes possession and disposes (whether by sale, lease or otherwise) of such Equipment Group or any portion thereof, Lessor shall apply the proceeds of any such disposition to pay the following items in the following order: (i) all costs incurred in securing possession of the Equipment Group; (ii) all expenses incurred in completing the disposition; and (iii) the balance of any Rental Payments with respect thereto as and when such Rental Payments would have become due and payable. Any disposition proceeds remaining after the requirements of Clauses (i), (ii) and (iii) have been met shall be paid to Lessee. (d) By action pursuant to the California Code of Civil Procedure, or as otherwise provided by law, for the issuance of a writ of mandamus enforcing, for the entire balance of the Lease Tern, duty of Lessee to appropriate and take all other administrative steps necessary for the making of Rental Payments. (e) Lessor may take any other remedy available at law or in equity with respect to such event of default, including (without limitation) those requiring Lessee to perform any of its obligations hereunder or to pay any moneys due and payable to Lessor hereunder, provided Lessor shall have no right to accelerate Rental Payments or otherwise declare any Rental payments not then in default to be immediately due and payable. Section 12.3. Return of Equipment. Upon the expiration or termination of this Lease with respect to any Equipment Group prior to the payment of all Rental Payments in accordance with Exhibit A, Lessee shall return such Equipment Group to Lessor in the condition, repair, appearance and working order required in Section 7.2, in the following manner as may be specified by Lessor: (a) by delivering the Equipment Group at Lessee's cost and expense to such place within the State as Lessor shall specify; or (b) by loading such portions of the Equipment Group are considered movable at Lessee's cost and expense, on board such carrier as Lessor shall specify and shipping the same, freight prepaid, to the place specified by Lessor. If Lessee refuses to return the Equipment Group in the manner designated, i.essor may repossess the Equipment Group and charge to Lessee the costs of such repossession nor pursue any amedy described in Section 12.2. CaifomiaLease.Page 10 Section 12.4. No Remedy Exclusive No remedy conferred upon or reserved to Lessor by this Article is intended be exclusive and every such remedy shall be cumulative and shall be in addition to every other remedy given under this ease. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof but any such right and power may be exercised from time to time and as often as may be deemed expedient by Lessor or its assignee. Section 12.5. Agreement to Pay Attorneys' Fees and Expenses. In the event either parry to this Lease should default under any of the provisions hereof and the non defaulting parry should employ attorneys and/or incur other expenses for the collection of moneys or for the enforcement of performance or observance of any obligation or agreement on the part of the defaulting parry herein contained, the defaulting party agrees that it will on demand therefor pay to the non defaulting party the reasonable fees of such attorneys and/or such other reasonable expenses so incurred by the non defaulting party. Section 12.6. Late Charge. Whenever any event of default referred to in Section 12.1, Clause (a) shall have happened and be continuing with respect to any Equipment Group, Lessor shall have the right, at its option and without any further demand or notice, to require a late payment charge for each thirty (30) day period or part thereof during which such event of default occurs equal to four percent (4%) of the delinquent amount, and Lessee shall be obligated to pay the same immediately upon receipt of Lessor's written invoice therefor; provided, however, that this Section shall not be applicable if or to the extent that the application thereof would affect the validity of this Lease. ARTICLE XIII: ADMINISTRATION PROVISIONS Section 13.1. Notices. All notices, certificates, legal opinions or other communications hereunder shall be sufficiently given and shall be deemed given when delivered or deposited in the United States mail in registered form with postage fully prepaid to the addresses specified on the execution page hereof; provided that Lessor and Lesseid, by notice given hereunder, may designate different addresses to which subsequent notices, certificates, legal opinions or other communications will be sent. Section 13.2. Financial Information. During the Lease Temp, Lessee annually will provide Lessor with current financial statements, budgets, proof of appropriation for the ensuing Fiscal year and such other financial information relating to the ability of Lessee to continue this Lease as may be requested by Lessor or its assignee. Section 13.3. Binding Effect. This Lease shall inure to the benefit of and shall be binding upon Lessor and Lessee and their respective successors and assigns. Section 13.4. Severability, In the event any provision of this Lease shall be held invalid or unenforceable by any court of competent jurisdiction, such holding s6dli no invalidate or render unenforceable any other p.cvicic: `�crcof. Section 13.5. Amendments Changes and Modifications This Lease may be amended or any of its tams modified only by written document duly authorized, executed and delivered by Lessor and Lessee. Section 13.6. Captions. The captions or headings in this Lease are for convenience only and in no way define, limit or describe the scope or intent of any provisions, Articles, Sections or Clauses of this Lease. Section 13.7. Further Assurances and Corrective Instruments. Lessor and Lessee agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonable be required for correcting any inadequate or incorrect description of the Equipment hereby leased or intended so to be, or for otherwise carrying out the expressed intention of this Lease. Section 13.8. Execution in Counterparts. This Lease may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 13.9. Applicable Law, This Lease shall be governed by and construed in accordance with the laws of the State of California. CaftmiaLeaee.Page t t Section 13.10. Financing Statement. A carbon, photographic or other reproduction of this Lease or of any lancing statements signed by Lessee is sufficient as a financing statement in any state to perfect the security interests .granted in this Lease. Section 13.11. Usury. It is the intention of the parties hereto to comply with any applicable usury laws; accordingly, it is agreed that, notwithstanding any provisions to the contrary in this Lease, in no event shall this Lease require the payment or permit the collection of interest or any amount in the nature of interest or fees in excess of the maximum amount permitted by applicable law. Any such excess interest or fees shall first be applied to reduce Principal, and when no Principal remains, refunded to Lessee. In determining whether the interest paid or payable exceeds the highest lawful rate, the total amount of interest shall be spread through the Lease Term so that the interest is uniform through such term. ARTICLE XIV: ADDENDA TO LEASE Section 14.1. Addenda. The addendum or addenda checked on the execution page hereof are attached hereto and made a part hereof. Date of Lease: Fiscal Year Commencement Date: Fiscal Year Ending Date: Addenda. The following addendum or addenda which have been checked are attached hereto and made a part of this Lease: Addendum for Escrow Funding Addendum for Self-Insurance Addendum for Environmental Provisions Special Addendum There are no addenda to this Lease. IN WITNESS WHEREOF, Lessor has caused this Lease to be executed in its corporate name by its duly authorized officer, and Lessee has caused this Lease to be executed in its name by its duly authorized officer. LESSEE: LESSOR: First Public Finance Corporation 5800 E. Skelly Dr., Suite 1200 Tulsa, Oklahoma 74135-6416 By: By. Title: Title: Date: Date: CardomiaLease.Page 12 SEP-13-'94 TUE 14:46 lU: 1 CL ivV• �_ FIRST PLJL/C FINANCE CORF JRATION A Capital Acquisition Company 5800 East Skelly Drive, Suite 1200 Tulsa, Oklahoma, U.S.A. 74136-6416 918-627.6928, FAX 918-663-4066 or 1-800-364.9933 FAX # 909-384-6464 PL =ASMDPLIVER ASAP Thank VOti TOTAL PAaSS INCLUDING TRANSMITTAL: 1 TO: DEAN MEECH - City of San Bernardino, California FROM: Cathy Flemming DATE; September 13, 1994 RE: Lease Language Changes I left a message earlier today; below are the suggested changes (underscored portions), please let me know what Change is requested regarding page 7, 18% per annum Interest on advance payments. (page 4 of lease): section 5.03. Non-ancroeri i n. In v I r f LassAe su kleru l�ntaLparnents renulr�I4�G ,Ilan J,g.�ee's next ts[II11nato this Anr ngnt Ao of the end of its than currerl ffacaLgamiod afxt{I rtat ]ice to env the nee al Payimintz bavo,^.d SiisJl=AUAIE, Las4ee agrees to slue Le"Or Wrtn notice of s "lent least sixty t6g) days Wor to tr&1ho then nmrartt tle01 VOL, 11 lk taminate d ungear rya■,12=0 6,011 e3sQi r --- tii.Sleltver the �a.::�^_�-;erL to Leeso�8��1�ion I n ated-4 I-macy. at-L.W12o's solo cost and e2werise as Lmor maY reasonably renuM Section 12.1(a) (page 9 of lease): (a) ralieae by Lo"aa to pay emy nemal r'aymerd ar other pcir"em Pequlpad to bo paid undor thlo - Lease with respect to any Equipment Group at the time specified herein and the continuation of said failure for a period of-&a=dwp. Thanksl Post-It-Fax Note 7871 Date p;9or► lb _ S Fran CoJDW. Co. Phone f Phung• Fox M Fix r Attachment "A" INCORPORATED Tomorrow's Waste SolutionsTodayc " August 11, 1994 Mr. Kevin Barnes Refuse Superintendent City of San Bernardino 182 S. Sierra Way San Bernardino, CA 92408-1454 FAX (909)384-5013 Dear Kevin: I want to thank you for the opportunity which you have afforded to Toter Incorporated to work with the City of San Bernardino on its refuse containers. We have enjoyed serving your needs over the last several years and look forward to working with you again as you move forward with your automated collection programs. Toter would be pleased to offer the City of San Bernardino the opportunity to buy 101 gallon automated and universal refuse containers from the City of Bakersfield bid process under which Toter was recently awarded a contract for 26,000 refuse containers. Bakersfield is using the same model container which the City of San Bernardino has purchased from Toter over the last several years, the Toter Model #60001. I have attached specifications on this product (as the bid to the City of Bakersfield) as well as a copy of the Bakersfield specifications. While the City of Bakersfield purchased these containers in tan color,we would be happy to supply them to the City of San Bernardino in the black color (or green) which you utilize. The price on these units is $38.00 each plus $250 assembly and distribution plus .75c per container delivery charges. Sales would be as applicable in San Bernardino County. This offer is for immediate delivery on these products. Thank you again. If you have questions on this information, please feel free to contact me at your convenience. Warmest Regards, TOTERINCORPORATED Skip L n Vice President, Sales Western Division SL:sam cc: Cathy Thiebaud Sherry Kilby pc:\sales\bames.811 841 Meacham Road•PO Box 5338•Statesville NC 28677.704-872-8171 •Fax:704-878-0734 1980 Industrial Way • PO Box 7 • Sanger CA 93657 • 209-875-7130 •Fax:209-875-7137 IN)OL D- IQUVIUOL PURCHME ORDER Attachment "B" Post-It•Pay�rc!e 7671 c>�e�� ;7 To ! Frp c,. y4•. CO,oECt i • i X715 � Fhone w Prcne •�� Fox d /22/+ 4 TO: B4 I WACHAN AM STATESVILLE, t# 28677 DEUVER M,: CORP. YARD , w , .TRLX7V t.A I" t � �. F O.a POM RMS �� DEBT beuv>:av pROM-sFO ouo�8v _ NET 30 AYS ,UANtrry 9/9/94 6iC1P/8ja i S OESGR!AY1pW ' 3+O EA ftFu" CNN At AS Po SP C F S : _3 to , N MAST I t Ai ONE 40 t� ; CCNTAIt�n$ A6 R ,BPECZFtTIp AIQ., , Y' .. 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