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HomeMy WebLinkAbout22-Purchasing CITY OF SAN BERtORDINO - REQUEST OR COUNCIL Ac110N Dept: Purchasing Purchasi ng Agen'<<Ec'n. - A8IMt'*:t!l~'ti ons #37 & #38, 7~5-89 8 ~~ 8P3~ious Bids F-88~15. F-89-21 & LP9003 lSSS JUl 2 M" From: Dean R. Meech, Date: July 27, 1989 Synopsis of Previous Council. action: 7/5/89 Council authorized purchase of 3 street sweepers & 4 automated refuse trucks. Recommended motion: Adopt Resolution ...,h 4 ~teH~ Signature Dean R. Con tact person: Dean R. Meech Phone: 384-5085 Supporting data attached: Yes Ward: N/A FU.NDING REQU.IREMENTS: Amount: $754,781.12 127-412-55131 . Source: (Acct. No.) 127-414-55129 Acct.Oescri tion Refuse Vehi cl Finance: Council Notes: 75-0262 Agenda Item NOJ.~I.l, ,CITY OF SAN BERtODINO - REQUEST lOR COUNCIIt''jfCTION STAFF REPORT Motions #37 & #38, 7-5-89 Previous Bids F-88-15, F-89-21 & LP9003 The proposed purchase is for three (3) new street sweepers and four (4) new automated refuse trucks to be uti 1 i zed in dai ly operati ons by the Public Services Department. Council Action 7-5-89 form motions #37 and #38 authorized this purchase. Both moti ons authori zed util i zi ng previ ous low bi ds for thi s equi pment (Bid F-88-15 for the automated refuse trucks and Bid F-89-21 for the . street sweepers). The vendors i nvol ved have acknowl edged the purchase by 1 etter (see letters attached). The equipment will be procured by lease purchase over a five (5) year period with lease payment semi-annually in arrears. The lease purchase arrangement is with the existing finance vendor who has the original bids financing. The additional equipment will simply be an addendum schedule (see letter attached). Specifications .as bid have been reviewed with the Fleet Manager who concurs that the equi pment bui 1 t to the previ ous specifi cati ons meets speci fi cati ons and requi rements. It is therefore recommended that the additional equipment be accepted for contract. The equipment funding is a lease purchase arrangement. Account Number: 127-412-55131 Refuse Vehicle 127-414-55129 Street Sweepers Total Amount: $456,173.12 Refuse Vehicles $298,608.00 Street.Sweepers ----------- ----------- $754,781.12 ~k~ Dean R. Meech, Purchaslng Agent 75-0264 . . . o o HAAKER EQUIPMENT COMPANY A CALIFORNIA CORPORATION 3505 ~O"ONA IOULIEVAItD ~O"ONA. CALI'OItNIA .".. 71"'5"'270' FAX '71"'5"-'''27 / ....... o.t-.", () /-'- U/ June 23, 1989 City of San Bernardino 300 N. D Street San Bernardino, CA Attention: Manuel P. Marino, Director. of Public Works Desr Mr. Merino: Baaker Equipment Company is pleased to extend an option to the City of San Bernardino to purchase four more units on the City Bid No. E-8815. The only differnce in the unit will be in ~he model year of the truck chassis, a 1990 peterbuilt. This additional unit option is extended only to the City of San Bernardino. No additional units can be ordered on this contract from the City' of San Bernardino or any other agency. The contract price will be per your Purchase Order No. 90327 in the amount of $107,588.00 per unit plus the additions of the modification from the 33 to the 36 cubic yard tail gate assembly at $535.00 each. The total contract price will be $108,748.00 per machine plus sales tax. Again we are pleased to offer this extension to the City of San Bernardino. If you should have any further questions or need any additional information please do not hesitate to contact us. BB/ln (t) @) o 0 NIXt.I-15til.115tallll'.\\liNT t:t.. o SO. CAUFOfIINIA: '2030 Clark St.. San.. ... Spn.., CA 10170 . 11'31 t&4<< o No.CAUFOfIINIA: 2.70' CI.I., Road. HlIYM'd. CA "~5 . (.'51_" May 12, 1989 1=-89....,;.) 1.../9vo'3 Mr. Robert Torbitt Equipment Superintendent City of San Bernardino 182 S. Sierra Way San Bernardino, Ca 92408 Dear Mr. Torbitt: It is our understanding that the City of San Bernardino is contemplating the purchase of Four (4) additional Sweepers in the 1989-1990 budget. If this is the case, we will be happy to furnish Four (4) additional Sweepers at the same price of our Bid No: F-89-21 of December 28, 1988 and your PO NO: 002421.Dated April 27, 1989, provided an order is placed prior to October 31, 1989. We appreciate the opportunity of being of service. Thank you for your consideration. ' Very Truly Yours, ;;;?EGLI . ~~ nsen Vice President Munic~pal Sales CB:ka co " .' 0 ~PACIFICORP ~. Capital, Inc. A /{JciliCorp Financial SelVices Company o t--'" f\C C' A,"J P-::-'!I;f,i::~:.," , .... l ","' ~ -.., ",,' "... ~. . , .,. ,L' . ," .- . . ..... ....1'.:-. ~,\r-?~nTl~~p :!: .: I,~~>: 1';:": l...r_ ;-,,, 11'1:...';' . \ II'! ")C: ''"' "), /,1. I oj,~'... ._ _,) I ~ I t"" '. ., :~.~~:_; -~.. ~', :._ tj Public Finance Division July 24, 1989 Mr. Dean Meech city of San Bernardino 250 W. Cluster st. San Bernardino, CA 92408 RE: Lease-Purchase Agreement dated as of February 6, 1986 between PacifiCorp Capital, Inc. and the City of San Bernardino, Contract No. 86-1112. Dear Dean: This proposal will confirm that the city may addend the Lease-Purchase Agreement referenced above. Schedules 5 and 6 will be added. Lease payment dates will be determined when you have received delivery information from .the suppliers. Five year, semi-annual payments are quoted. Price Ouotation Amount Interest Description Quantitv Financed PaYment Rate Automated 4 $456,173.l2 $55,697.38 7.61% Refuse Vehicle Street Sweeper 3 298,608.00 36,459.15 7.61% Please acknowledge below your acceptance of this proposal and return to me so that the necessary documentation may be prepared. We look forward to working with you on this transaction. Sincerely, W~Q,o~ -j.l\1AL...~~ WilliamL. 6t;:~~" Regional Vice President FOR: CitV))/san B;:r;nardino.. C:. /If?: ~f2 t: if ... l Dean R. Meech BY: NAME: TITLE: Purchas; ng Agent WLJ: pah Home. Office: 1801 Robert Fulton Drhe. Third Floor, Reston, Virginia 22091 (703) 620-4502 Telecopy: (703) 476-5767 San Diego Office: 4045 Bonita Road. Suile 308. Bonita California 92002 (619) 475-1524 Telecopy: (619) 475-4462 o o I RESOLUTION NO. 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE ISSUANCE OF A PURCHASE ORDER TO ijAAKER EQUIPMENT COMPANY FOR THE FURNISHING AND DELIVERY OF 3 FOUR (4) AUTOMATED REFUSE TRUCKS, TO BE UTILIZED BY THE PUBLIC SERVICES/STREET DEPARTMENT IN ACCORDANCE WITH BID SPECIFICATION F-BB~15. 4 ,BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN 5 I BERNARDINO AS FOllOWS: 6 7 SECTION 1. That Haaker Equipment Company was declared the lowest and , I best responsible bidder for the furnishing and delivery of four (4) Automated I II refuse trucks by Resolution No. 88-272 in accordance with Bid Specification r F-88-15 for the total amount of $461,091.53; pursuant to this determination, the Purchasing Agent is hereby authorized and directed to issue a purchase I order for said four (4) automated refuse trucks to said lowest and best 8 9 10 II 12 13 responsible bidder; such award shall only be effective upon the issuance of a Purchase Order by the Purchasing Agent; and all other quotations therefor are hereby rejected. 14 15 I HEREBY CERTIFY that the foregoing resolution was duly adopted by 16 the Mayor and Common Council of the City of San Bernardino at a 17 I II of I I to wit: 20 .1',' AYES: II Ii I, " " I 18 meeti ng thereof. hel d on the day ,198___, by the fOllowing vote, 19 'Counci 1 Members 21 22 NAYS: 23 ABSENT: 24 25 Ci ty Cl erk 2(, Ii / / / / i / / / / I / / / / / / / / / / / / / / / / 27 28 / / / / :, Ii / / / / Ii 07-31-89 !i 09-06-89 (Revi sed) ~1- 20 21 22 2.1 24 .25 2(, 28 o o RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE ISSUANCE OF A PURCHASE ORDER TO HAAKER EQUIPMENT COMPANY FOR THE FURNISHING AND DELIVERY OF 2 FOUR (4) AUTOMATED REFUSE TRUCKS TO BE UTILIZED BY THE PUBLIC SERVICES/STREET DEPARTMENT DEPARTMENT IN ACCORDANCE WITH BID SPECIFICATION F-B8-15. j 4 The foregoing resolution is hereby approved this day 5 of , 198 6 7 8 . W. R. Holcomb, Mayor City of San Bernardino 9 Approved as to form and legal content: Oa-z- 1, IL lfiY Attorney I, vi III II 12 u 14 15 16 17 18 19 I. 27 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / 07-31-89 -2- (,\11_l"\c_on fn.......~...........l, o o RESOLUTI ON NO. 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE ISSUANCE OF A PURCHASE ORDER TO NIXON-EGLI EQUIPMENT COMPANY FOR THE FURNISHING AND DELIVERY 3 OF THREE (3) STREET SWEEPERS, TO BE UTILIZED BY THE PUBLIC SERVICES/STREET DEPARTMENT IN ACCORDANCE WITH BID SPECIFICATION F-B9-21. 4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY .OF SAN 5 BERNARDINO AS FOLLOWS: (j 7 SECTION 1. That Nixon-Egli Equipment Company was declared the lowest and best responsible bidder for the furnishing and delivery of three (3) street sweepers by Resolution No. 89-60 in accordance with Bid Specification F~89-21 for the total amount of $316,524.45; pursuant to this determination, the Purchasing Agent is hereby authorized and directed to issue a purchase order for said three (3) street sweepers to said lowest and best responsible bidder; such award shall only be effective upon the i'ssuance of a Purchase Order by the Purchasing Agent; and all other quotations therefor are hereby rejected. I HEREBY CERTIFY that the foregoing resolution was duly adopted by 8 9 10 11 12 13 14 15 the Mayor and Common Council of the City of San Bernardino at a 16 meeting thereof, held on the day I7 Iii of 18 1 to wit: I Ii I' I! II Ii II ii ,198___, by the following vote, 19 AYES: Council Members 20 21 NAYS: 22 ABSENT: 23 24 Ci ty Cl erk 25 !: / / / / Ii ii / / / / !: / / / / / / / / .1 07-31-89 I 09~06-89 (Revised) 1 .1 : -1- 20 / / / / / / / / / / / / / / / / 27 28 . - o o RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE ISSUANCE OF A PURCHASE ORDER TO NIXON-EGLI EQUIPMENT COMPANY FOR THE FURNISHING AND DELIVERY 2 OF THREE (3) STREET SWEEPERS TO BE UTILIZED BY THE PUBLIC SERVICES/STREET DEPARTMENT DEPARTMENT IN ACCORDANCE WITH BID SPECIFICATION F-89-21. 3 4 The foregoing resolution is hereby approved this day 5 of , 198 6 7 8 W. R. Holcomb, Mayor City of San Bernardino 9 Approved as to form and. legal content: /1 -7 jJ '~1;-0< . ~.,.,.......... I " Attorney v 10 II 12 13 14 15 16 17 II I I 18 19 i' i I , 20 21 22 i :1 'I 'I :1 iI i :i " Ii " Ii / / / / / / / / / I / / /l / / / / / / 23 24 25 26 27 / / / / , / / / / 28 i :1 / / / / il II 'I II 07-31-89 II 09-0fi-RQ (Rev; <;",(j) -2- . 10 11 12 13. 14 15 16 17. 18 19 20 21 22 23 24 25 26 27 28 o o 1 RESOLUTION NO. 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 8 determined to be the lowest and best responsible bidder for the 9 financing of three (3) each street sweepers, and four (4) automated refuse trucks in accordance with Lease Purchase Quotation LP 9003 and Lease Purchase Contract 86-1112 previously approved by the Mayor and Counci~ and attached hereto and incorporated herein as Exhibit "A", and Addendum Schedules 5 and 6, attached hereto and incorporated herein as Exhibits "B" and "c" respectively, for the total amount of $777,6l5.98; pursuant to this determination, the Purchasing Agent is hereby authorized 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 OI 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 o o 1 RESOLUTION...AUTHORIZING THE EXECUTION OF ADDENDUM SCHEDULES 5 & 6 TO EXISTING LEASE PURCHASE AGREEMENT NO. 86-ll12 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 day of , 1989, by the following vote, to 11. wit: l2 13 14 15 Council Members AYES NAYS: ABSENT: l6 l7 City Clerk 18 The foregoing resolution is hereby approved this 19 , 1989. day of 20 21 w. R. HOLCOMB, Mayor City of San Bernardino 22 Approved as to form 23 and legal content: 24 JAMES F. PENMAN City Attorney 25 n t By: i)C2rw..b;1 (J 'I I j (/Lvyo,...... 26 27 28 DCR:mg August 21, 1989 2 ;' o o MUNICIP~L LE~SING CORPOR~TION ~GRr.EMENT Dated as of: February 6, 1986 ~greement No.' 86-1112M CONTR~CT PARTIES MUNICIPAL LEASING CORPORATION DBA MUNICIPAL FINANCE CORPDRATION IN CALIFORNIA 8260 Greensboro Drive, Suite 22S McLean, Virginia 22102 A Virginia Corporation, hereinafter referred to as -MLC.. . 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 "Municipality" . 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 (MUNICIP~LITY ~ND MLC) AGREE AS FOLLOWS: I. DEFINITIONS For purposes of this Agreement and related documents, the listed definitions will apply: 1.1 ACCEPT~NCE 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 MLC 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 Insuan~~./.' ",' A'c' >.-.?',!> " EQUIPMENT. The goods enumerated on the attached 1.4 Schedule(s). ~. J';;" RESERVE FUND. A fund established by MLC with a national ban~{hg 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 MLCts Assignee(s) subsequent to an event described in Sections 7.1, 8.1, 8.2 or a loss occurring under Section 8.4 hereof. 1.3 .to'. 1.S 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 I the assignable contract. 1.6 TRANSACTIDN DOCUMENTS. The Agreement, the Schedule(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). 0,-,; ..-, , I' " U . j'\\ :'- I Ii ... "-". '\1' 't.. -1- 8214F EXHIBIT "A" , o 0 III. 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 4.1 AMOUNT AND TIMES O~ 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. . 4.2 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). 4.3 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 ~aintenance 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 HLC. 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. .J: 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 loss 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 HLC in connection with any claim or action resulting from any such liability. Municipality will be credited with any amounts received by MLC from any liability insurance secured by MLC. -2- 0,. ....~., <\ L ,'~ '-....;.; ~l "(r\ 8214P ~ - - - o o 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 MLC's gross revenues related to this transaction), registration fees, license fees, documentary stamp taxes, personal property and ad valorem taxes and sll 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 MLC'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 MLC: a) An Agreement Certification confirming Municipality's Acceptance of the E9uipment as of the date installed. JO) 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 Pederal gross 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) Financing statements or other documents perfecting MLC's security interest. .g) No-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- 0', ...... "'c I :\L i -..0. j >~/~"'\ 8214F .. o 0 I VI. EQUIPMENT 6~1 TITLE; Title to the Equipment viII pass to the MuniCipality on the Acceptance Date. Title viII revert to MLC upon termination pursuant to ~rticle VII or VIII. 6.2 SECURITY INTEREST. The MuniCipality grants to MLC and MLC retains a purchase money security interest in the Equipment. Municipality viII not change or remove any insignia or lettering which MLC may place on the Equip~ent to indicate its interest therein. Until all installment payments are made or prepayment is complete Municipality viII keep the EqUipment free from any lien, encumbrance or legal process and the Municipality will promptly disCharge any claim vhich might become a lien or charge against the Equipment. 6.3 PILING. MuniCipality authorizes MLC to make MLC's security interest a matter of public record by filings of any documents MLC deems necessary for that. purpose and to be responsible for any costs associated therewith. MuniCipality agrees to sign or execute such documents at its expense to evidence its consent to the filings. 6.4 PERSONAL PROPERTY. The Equipment viII 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, viII 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 Agree~ent. 6.6 EQUIPMENT RETURN. Municipality 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 MLC with a current Original Equipment Manufacturer's cerU.Bcate of maintainability and arrange and pay for such repairs necessary to ensure that the manufacturer accepts the Equipment for contract maintenance at its then standard rates. In the event Municipality fails to prOVide such certificate, MLC may but is under no obligation to obtain the certificate and any charges associated therewith will be borne by .f., Municipality. VII. DEPAULT AND REMEDIES 7.1 DEPINITION. 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 nor~al business operations are resumed, and such failure continues after written notice by MLC 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 . 0.....-."'....1 MuniCipality vritten noUce of the failure. ..J Gi~ "tAL -.1- ..w 4ll - - - o o cl 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 Mun1clpallty or of all or a substantial part of its assets, or a petition Is filed by or against Municipality under the pederal Bankruptcy Lawa 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: al Terminate this Agreement by providing written notice to MuniCipality. bl Take possession of the Equipment wherever situated without liability for entering the premises; . cl Se11, 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. Por the purposes of this provision, the balance due shan be equal to the Prepayment Amount plus any principal deficiency in the Reserve Pund, . d) Declare immediately due and payable all monies during the Agreement Term by providing written notice to MunicipalitYt 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 liable for reasonable damages provided by law including all costs and expenses incurred by MLC due to the default by MuniCipality. VIII. TERMINATION .r:_ 8.1 TERMINATION POR 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 may 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 (601 days prior written notice of the termination and advising MLC of the location(sl where the Equipment may be found on the Terllination Date. .All obligations of Municipality. to lIake 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 terllinate a Schedule under this provision if any funds are appropriated to it for the acquisition (by either purchase or leasel of the Equipment or functionally similar Equipment or Equipment performing similar applications and procedures for the fiscal period in question and (iil 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 priority or parity in the application of funds to any other functionally similar Ol:JGi~~AL -5- 8214P - o o 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 performing functions similar to those performed by the Terminated EqUipment, snd 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 reet its obligations during its current fiscal a.ppropriation 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 IReserve Fund Deficiency) in the principal amount resulting from Municipality's failure to timely make p~yments 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 Schedulels) 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 FULL. Upon Ii) Municipality's exercise of its right of prepayment and/or (ii) Municipality's having satisfied all of its monetary and other Obligations hereunder, MLC will release its security interest in the Equipment. .': 8.4 DESTRUCTION 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 MLC and its assigns. If MLC 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 HLC 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 the 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 8.1 of this Agreement. IX. ASSIGNMENT BY HLC 9.1 ASSIGNMENT. Municipality 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 O~~!c;;~\1At -6- ~ o o all Agreement notices to both HLC and Its assignees. All rights of and Indemnifications to HLC will inure to the Assignee. Any such Assignee will not be obligated to perform any of the obligations of HLC. Hunicipality 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 MLC's rights any claim, any defense, counterclaim, offset or recoupment of any kind, variety or nature which Municipality may now or hereafter have against MLC whether accruing under the Agreement or otherwise. 9.2 ADVICE OF ASSIGNHENT. Upon assignment of MLC's interests to an Assignee, MLC will cause a written notice of such assignment to be sent to Munl~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 MLC or by Municipality's consent to the Assignment. Notwithstanding the foregoing, no such assignment shall be effective against the MuniCipality unless the Municipality 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 Municipality agrees to affix a copy of each notification of assignment to the Hunicipality's counterpart of the Agreement. X. WARRANTIES AND REPRESENTATIONS 0': 10.1 WARRANTIES AND REPRESENTATION OF MUNICIPALITY. The Hunicipality represents and warrants to HLC and, so long as this Agreement is in effect or any part of Hunicipality's obligations to MLC remain unfulfilled, shall continue to warrant at all times, that: a) Hunlclpality 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 Municipality's obligations thereunder have been duly and validly authorized and approved under all laws and regulations and procedures applicable to Hunlcipality, 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 Hunicipallty enforceable against Hunlcipality in accordance with their respective terms. . XI. DISCLAIHER OF WARRANTIES 11.1 The Hunicipality acknOWledges that the Equipment is of a size, design and capacity, and manufacture selected by the Municipality.. MLC is not a manufacturer of the Equipment. 11.2 HLC HAKES NO WARRANTIES OR REPRESENTATIONS. OF ANY KIND, EXPRESS OR IHPLIED, RELATING TO THE EQUIPHENT OR PATENTS RELATING THERETO, AND HLC HAS EXPRESSLY HADE NO WARRANTY AS TO THE VALUE, DESIGN, CONDITION, HERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE EQUIPMENT. -7- O 1.........\.1 A , hlVd 'lfAL 82HF o o 11.3 HLC will not be liable to the Hunlclpallty for any liability, loss or damage caused or alleged to be caused, directly or indirectly, by the Equlp~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 ~arrantles. 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. X II. 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 READINGS. 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 ~ompetent 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. ,1,'- 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. bl A Schedule. 12.7 AMENDKENT. Any of the Transaction Documents may only be amended In writing by obtaining the signature of the parties. No assigned Transaction Document may 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, .Orlglnal. 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 I Issued pursuant thereto shall not be effective until accepted (AS evidenced by an authorized signature) by MLe. -8- O~!Gir~/~\L R?'Ap .A o o , 12.9 FORHATION OF AGREEHENT. HLC ehall not be bound by this Agreement until it ie excecuted by an officer of HLC. XIII. SIGNATURES IN WITNESS WREREOF, the parties hereto have caused this Agreement to be executed as of the day and year firet above written. . MONICIPAL LEASING CORPORATION DBA MUNICIPAL FINANCE CORPDRATIDN IN CALIFORNIA CITY OF BY: IJ;l/~'. h~G' 9. BY: NAME: W/LL/At<{ J. /I1C~T'f, JIC NAME: Dean TITLE: IJ//l.nTo/C of (~NT-foi<Tr DATE: .,,</t3 IN. TITLE: Purchasinq Aqent DATE: March' 5. 1986 --- ,';::.~~~ .............. ..._h...__....._... .1Y.. DA.fe ..z/.2//J'~ .':. -9- O.....lG:NAL 8214F o o 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 Js 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 sUQstituted for the name Municipal Leasing Corporation in the Agreement in eqch place where the name "Municipal Leasing Corporation" 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 "MLC" 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 o o Modification 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 successor to Municipal I Ljl~ng ~o~foration By iff. (i',J/,JJ / . -> /r .. Name f\ !. ,';-1) tV! (iA']:> Title ,/tj.,t.-. {"/~Jc (;'In,.LL' ( CITY OF SAN BERNARDINO Municipality By&.1v-/11LLu;7 Name Title 71T ORIGINAL o o EXHIBIT B SCHEDULE NO. 5 To Agreement No. 1112 Dated as of: August 1, 1989 THIS SCHEDULE is issued pursuant 1986, between the parties to the of the Equipment listed herein. meanings ascribed to them in the to Agreement dated as of February 6, Agreement to authorize installation All terms used herein have 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 01-Feb-90 01-Aug-90 01-Feb-91 01-Aug-91 01-Feb-92 01-Aug-92 01-Feb-93 01-Aug-93 Ol-Feb-94 01-Aug-94 payment Amount Amount Allocable to Interest Prepayment Amount.. 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 30l,222.05 255,090.38 207,40l.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 o o damages to the equipment or personal injury arising 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 E.quipment as defined in the Agreement includes the following: EQUIPMENT LIST Manufacturer: Haaker Equipment Company Ouantitv Description Eauipment Cost Serial Number 4 Automated Refuse Vehicles $434,992.00 Subtotal Sales Tax Total Equipment Cost $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. PACIFICORP, CAPITAL, INC. CITY OF SAN BERNARDINO BY: BY: TITLE: TITLE: DATE: DATE: Page 2 of 2 OR\G\NAL o o EXHIBIT B SCHEDULE NO. 6 Dated as of: August 1, 1989 To Aqreement No. 1112 THIS SCHEDULE is issued pursuant 1986, between the parties to the of the Equipment listed herein. meanings ascFibed to them in the to Agreement dated as of February 6; Agreement to authorize installation All terms used herein have 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 SCHEDULB 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,l35.49 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" ORIGINAL o o damages to the equipment or personal injury ar~s~ng 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 Quantitv Description Equipment Cost Serial Number 3 street Sweepers $298,608.00 $298,608.00 17,916.48 $316.524.48 Subtotal Sales Tax Total Equipment Cost 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. CITY OF SAN BERNARDINO BY: BY: TITLE: TITLE: DATE: DATE: Page 2 of 2 OR I G; ;JAL