R 4544 RESOLUTION NO. 4544
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE REGARDING THE MASTER LEASE
PURCHASE AGREEMENT DATED SEPTEMBER 12, 2013
BETWEEN SOVEREIGN BANK, N.A. AND THE CITY OF
ARROYO GRANDE AND SCHEDULE NO. 000 THEREOF
FOR THE FINANCING OF PUBLIC WORKS VEHICLES
WHEREAS, at its August 27, 2013 meeting the City Council approved staffs
recommendation to award the bid for a lease agreement to Sovereign Bank, N.A. related
to the financing of ten Public Works vehicles; and
WHEREAS, Sovereign Bank has provided the City with a Master Lease Purchase
Agreement, which includes Schedule No. 000, a copy of which is attached hereto; and
WHEREAS, Sovereign Bank's leasing procedures require that the City Council adopt a
resolution making certain determinations and providing for the authorization for the
designated person to execute and deliver the Master Lease Purchase Agreement and
Schedule as well as any other documents necessary to the consummation of the
transaction.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande as
follows:
Section 1. Determination of Need. The City Council has determined that a true and very
real need exists for the acquisition of the Equipment described on Exhibit A of Schedule No.
000 to the Master Lease Purchase Agreement (Agreement) dated as of September 12,
2013 between the City of Arroyo Grande (Lessee) and Sovereign Bank, N.A. (Lessor).
Section 2. Approval and Authorization. The City Council has determined that the
Agreement and Schedule, substantially in the form presented at this meeting, are in the
best interests of the City for the acquisition of such Equipment, and the City Council hereby
approves entering into the Agreement and Schedule and hereby designates and authorizes
the City Manager, Steven Adams, to execute and deliver the Agreement and Schedule on
Lessee's behalf with such changes thereto as the City Manager deems appropriate, and
any related documents, including any Escrow Agreement, necessary to the consummation
of the transaction contemplated by the Agreement and Schedule.
On motion of Council Member Guthrie, seconded by Council Member Costello, and on the
following roll call vote, to wit:
AYES: Council Members Guthrie, Costello, Ray, Brown, and Mayor Ferrara
NOES: None
ABSENT: None
the foregoing Resolution was passed and adopted this 10th day of September 2013.
RESOLUTION NO. V5Y7
PAGE 2
TO ��•*rf AYOR
ATTEST:
MitikieUL--
KELLY A TM E, CITY CLERK
APPROVED AS TO CONTENT:
STE N ADAMS, CITY MANAGER
APPROVED AS TO FORM:
T1M0 1 J. CLcliTY ATTORNEY
MASTER LEASE PURCHASE AGREEMENT
Lessee Lessor
City of Arroyo Grande Sovereign Bank, N.A.
300 East Branch Street 3 Huntington Quadrangle, Suite 101N
Arroyo Grande,CA 93420 Melville,NY 1174T
Dated as of September 12, 2013
This Master Lease Purchase Agreement dated as of the date listed above is between Lessor and Lessee listed directly above.Lessor desires from time to
time to lease the Equipment described in Equipment Schedules(each a'Schedule') to be attached hereto to Lessee and Lessee desires to lease such
Equipment from Lessor subject to the terms and conditions of this Agreement,which are set forth below,and the applicable Schedule.
Definitions:
Section 1.01. Definitions.The following terms will have the meanings indicated below unless the context dearly requires otherwise:
'Agreement'means this Master Lease Purchase Agreement_
'Budget Year'means the Lessee's fiscal year.
`Commencement Date is the date when Lessee's obligation to pay rent begins.
"Equipment'means the items of Equipment listed on Exhibit'A'to each Schedule and all replacements,restorations,modifications and improvements.
'Lease'means this Agreement and an individual Schedule hereto,which shall collectively constitute the terms and conditions applicable to the lease of the
Equipment Subject thereto.
'Lessee"means the entity fisted above as Lessee and which is leasing the Equipment from Lessor under the provisions of this Agreement and a Schedule.
'Lessor'means the entity originally listed above as Lessor or any of its assignees.
'Lease Term'means the Original Term and all Renewal Terms applicable to a Lease.
'Original Tenth'means the period from the Commencement Date until the end of the Budget Year of Lessee.
'Renewal Term'means the annual term which begins at the end of the Original Term and which is simultaneous with Lessee's Budget Year.
'Rental Payments' means the payments Lessee is required to make under this Agreement as set forth on Exhibit'B`to each Schedule made subject
thereto.
'Schedule'means a schedule substantially in the form attached hereto and all exhibits thereto pursuant to which Lessor and Lessee agree to the lease of
the Equipment described therein and which together with the terms of the Agreement applicable thereto constitutes an individual Lease.
'State'means the state in which Lessee is located_
II. Lessee Warranties
Section 2.01. With respect to each Lease,Lessee represents,warrants and covenants as follows for the benefit of Lessor or its assignees_
(a) Lessee is the State or a political subdivision of the State within the meaning of Section 103 of the internal Revenue Code of 1986,as amended(the
'Code)or a constituted authority authorized to issue obligations on behalf of the State or political subdivision of the State within the meaning of the
treasury regulations promulgated under the Code.
(b) Lessee is authorized under the Constitution and laws of the State to enter into this Agreement and each Schedule, and has used such authority to
property execute and deliver this Agreement and each Schedule. Lessee has followed all proper procedures of its governing body in executing this
Agreement and each Schedule. The Officer of Lessee executing this Agreement and each Schedule has the authority to execute and deliver this
Agreement and such Schedule_ This Agreement and each Schedule constitute a legal, valid, binding and enforceable obligation of the Lessee in
accordance with their terms.
(c) Lessee has complied with all statutory laws and regulations that may be applicable to the execution of this Agreement and each Schedule.
(d) Lessee shall use the Equipment only for essential,traditional government purposes.
(e) Should the Lessee cease to be an issuer of tax exempt obligations or if the obligation of Lessee created under any Lease ceases to be a tax exempt
obligation for any reason,then Lessee shall be required to pay additional sums to the Lessor or its assignees so as to bring the after tax yield on any
Lease to the same level as the Lessor or its assignees would attain if the transaction continued to be tax-exempt.
(f) Lessee has never non-appropriated funds under an agreement similar to this Agreement.
(g) Lessee will submit to the Secretary of the Treasury an information reporting statement as required by the Code with respect to each Lease.
(h) Upon request by Lessor.Lessee will provide Lessor with current financial statements,reports,budgets or other relevant fiscal information.
(1) Lessee shall retain the Equipment free of any hazardous substances as defined in the Comprehensive Environmental Response.Compensation and
Liability Act.42 U.S.C.9601 et.seq.as amended and supplemented.
(j) Lessee presently intends to continue each Lease for the Original Term and all Renewal Terms as set forth on Exhibit'B' to the Schedule relating
thereto_ The official of Lessee responsible for budget preparation will include in the budget request for each Budget Year the Rental Payments to
become due in such Budget year.and will use all reasonable and lawful means available to secure the appropriation of money for such Budget Year
sufficient to pay the Rental Payments coming due therein. Lessee reasonably believes that moneys can and will lawfully be appropriated and made
available for this purpose.
Section 2,92. Escrow Agreement. in the event both Lessor and Lessee mutually agree to utilize an escrow account, then immediately following the
execution and delivery of any Schedule,Lessor and Lessee agree to execute and deliver and to cause an escrow agent to execute and deliver an escrow
agreement.Such Lease shall take effect only upon execution and delivery of the escrow agreement by the parties thereto.Lessor shall deposit or cause to
be deposited with the escrow agent for credit to an equipment acquisition fund the sum specified in such Schedule which shall be held, invested and
disbursed in accordance with the escrow agreement.
ill. Acquisition of Equipment,Rental Payments and the Purchase Option Price
Se¢ion 3.01, Acquisition: Lessee shall advise Lessor of its desire to lease Equipment and of the desired lease terms. Upon agreement by Lessor and
Lessee as to the lease of such Equipment and such terms. Lessee shall be solely responsible for the ordering of the Equipment and the delivery and
installation thereof.Lessor shall furnish to Lessee a Schedule relating to such Equipment,which shall become effective upon the execution and delivery of
such Schedule, all documents contemplated hereby and thereby with respect to such Schedule, and the earlier of Lessee's written acceptance of such
Equipment or the deposit into escrow of moneys to pay for such Equipment as provided in Section 2.02. Nothing herein shall obligate Lessor to lease any
Equipment to Lessee until Lessor shall have concurred in writing to the lease of such Equipment.
Section 3.02. Rental Payments. Lessee shall pay Rental Payments exclusively to Lessor or its assignees in lawful, legally available money of the United
States of America. The Rental Payments shall be sent to the location specified by the Lessor or its assignees. The Rental Payments shall constitute a
current expense of the Lessee and shall not constitute an indebtedness of the Lessee. Lessor shall have the option to charge interest at the highest lawful
rate on any Rental Payment received later than the due date.The Rental Payments will be payable without notice or demand.
Sect'ipn 3.03.Rental Payments Unconditional. Except as provided under Section 4.01,THE OBLIGATIONS OF LESSEE TO MAKE RENTAL PAYMENTS
AND TO PERFORM AND OBSERVE THE OTHER COVENANTS CONTAINED IN THIS AGREEMENT SHALL BE ABSOLUTE AND UNCONDITIONAL IN
ALL EVENTS WITHOUT ABATEMENT,DIMINUTION,DEDUCTION.SET-OFF OR DEFENSE.
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Section 3.04. Purchase Option Price.With respect to each Schedule,upon 30 days written notice. Lessee shall have the option to pay,in addition to any
Rental Payment due thereunder.the corresponding Purchase Option Price which is listed on the same line on Exhibit B to such Schedule.If Lessee chooses
this option and pays the Purchase Option Price to Lessor then Lessor will transfer any and all of its rights.title and interest in the Equipment subject to such
Lease to Lessee.
Section 3.05.Lease Term.The Lease Term of each Lease shall be the Original Term and all Renewal Terms thereunder until all the Rental Payments due
thereunder are paid as set forth in the applicable Schedule except as provided under Section 4.01 and Section 9.01 below.lf,after the end of the budgeting
process which occurs at the end of the Original Term or any Renewal Term. Lessee has not terminated a Lease pursuant to Section 4.01 hereof then the
Lease Term for such Lease shall be extended into the next Renewal Term and the Lessee shall be obligated to make the Rental Payments that come due
during such Renewal Term.
Section 3 0 Disclaimer of Warranties. LESSOR MAKES NO WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED. AS TO THE
VALUE,DESIGN,CONDITION, MERCHANTABILITY,AND FITNESS FOR PARTICULAR PURPOSE OR ANY OTHER WARRANTY WITH RESPECT TO
THE EQUIPMENT.LESSOR SHALL NOT BE LIABLE FOR ANY INCIDENTAL,INDIRECT,SPECIAL OR CONSEQUENTIAL DAMAGE ARISING OUT OF
THE INSTALLATION.OPERATION,POSSESSION,STORAGE OR USE OF THE EQUIPMENT BY LESSEE.
EV. Non-Appropriation
Section 4.01. Non-Appropriation. If insufficient funds are available in Lessee's budget for the next Budget Year to make the Rental Payments for the next
Renewal Term under any Lease,then Lessee shall have the option to non-appropriate the funds to pay the Rental Payments for the next Renewal Term with
respect to such Lease.Lack of a sufficient appropriation shall be evidenced by the passage of an ordinance or resolution by the governing body of Lessee
specifically prohibiting Lessee from performing its obligations under such Lease for a designated Budget Year and all subsequent Budget Years. If Lessee
chooses this option,then all obligations of the Lessee under such Lease regarding Rental Payments for all remaining Renewal Terms shall be terminated at
the end of the then current Original Term or Renewal Term without penalty or liability to the Lessee of any kind provided that if Lessee has not delivered
possession of the Equipment subject to such Lease to Lessor as provided herein and conveyed to Lessor or released its interest in such Equipment by the
end of the last Budget Year for which Rental Payments were paid,the termination shall nevertheless be effective but Lessee shall be responsible for the
payment of damages in an amount equal to the amount of the Rental Payments thereafter coming due under Exhibit'B'to the Schedule for such Lease
which are attributable to the number of days after such Budget Year during which Lessee fails to take such actions and for any other loss suffered by Lessor
as a result of Lessee's failure to take such actions as required. Lessee shall immediately notify the Lessor as soon as the decision to non-appropriate is
made. If such non-appropriation occurs, then Lessee shall deliver the Equipment to Lessor or to a location designated by Lessor at Lessee's expense.
Lessee shall be liable for all damage to the Equipment other than normal wear and tear. If Lessee fails to deliver such Equipment to Lessor,then Lessor
may enter the premises where such Equipment is located and take possession of the Equipment and charge Lessee for costs incurred.
V. Insurance,Damage,Insufficiency of Proceeds,Indemnification
Section 5.01. Insurance. Lessee shall maintain both casualty insurance and liability insurance at its own expense with respect to the Equipment.Lessee
shall be solely responsible for selecting the insurer(s) and for making all premium payments and ensuring that all policies are continuously kept in effect
during the term of any Lease. Lessee shall provide Lessor with a Certificate of Insurance,which lists the Lessor and/or assigns as a foss payee and an
additional insured on the policies with respect to the Equipment.
(a) Lessee shall insure the Equipment against any loss or damage by fire and all other risks covered by the standard extended coverage
endorsement then in use in the State and any other risks reasonably required by Lessor in an amount at least equal to the then applicable
Purchase Option Price of the Equipment.Alternatively,Lessee may insure the Equipment under a blanket insurance policy or policies.
(b) The liability insurance shall insure Lessor from liability and property damage in any form and amount satisfactory to Lessor.
(c) Provided that,with Lessor's prior written consent, Lessee may self-insure against the risks described in(a)and (b)above. Lessee shall furnish
Lessor evidence of such self-insurance coverage throughout each Lease Term. Lessee shall not materially modify or cancel such self-insurance
coverage without first giving written notice thereof to Lessor at tease 10 days in advance of such cancellation or modification.
(d) All insurance policies issued or affected by this Section shall be so written or endorsed such that the Lessor and its assignees are named
additional insured and loss payees and that all losses are payable to Lessee and Lessor or its assignees as their interests may appear. Each
policy issued or affected by this Section shall contain a provision that the insurance company shall not cancel or materially modify the policy
without first giving thirty 30 days advance notice to Lessor or its assignees.Lessee shall furnish to Lessor certificates evidencing such coverage
throughout each Lease Term.
Section 5.02.Damage to or Destruction of Equipment. Lessee assumes the risk of loss or damage to the Equipment.If the Equipment or any portion thereof
is lost, stolen,damaged,or destroyed by fire or other casualty,Lessee will immediately report all such losses to all possible insurers and take the proper
procedures to attain all insurance proceeds. At the option of Lessor, Lessee shall either (1) apply the Net Proceeds to replace, repair or restore the
Equipment or(2)apply the Net Proceeds to the applicable Purchase Option Price. For purposes of this Section and Section 5.03,the term Net Proceeds
shall mean the amount of insurance proceeds collected from all applicable insurance policies after deducting all expenses incurred in the collection thereof.
Section 5.03.Insufficiency of Net Proceeds. If there are no Net Proceeds for whatever reason or if the Net Proceeds are insufficient to pay in full the cost of
any replacement. repair, restoration. modification or improvement of the Equipment, then Lessee shall, at the option of Lessor, either complete such
replacement, repair, restoration, modification or improvement and pay any costs thereof in excess of the amount of the Net Proceeds or apply the Net
Proceeds to the Purchase Option Price and pay the deficiency,if any,to the Lessor.
Section 5.04. Lessee Negligence. Lessee assumes all risks and liabilities,whether or not covered by insurance, for foss or damage to the 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 including, without limitation, liabilities for loss or damage
related to the release or threatened release of hazardous substances under the Comprehensive Environmental Response,Compensation and Liability Act,
the Resource Conservation and Recovery Act or similar or successor law or any state or local equivalent now existing or hereinafter enacted which in any
manner arise out of or are incident to any possession,use,operation.condition or storage of any Equipment by Lessee which is proximately caused by the
negligent conduct of Lessee,its officers,employees and agents.Lessee hereby assumes responsibility for and agrees to reimburse Lessor for all liabilities,
obligations,fosses,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,to the maximum extent permitted by law.
VI. Title and Security Interest
Section 6.01.Title.Title to the Equipment shall vest in Lessee when Lessee acquires and accepts the Equipment. Title to the Equipment subject to a Lease
will automatically transfer to the Lessor in the event Lessee non-appropriates under Section 4.01 with respect to such Lease or in the event Lessee defaults
under Section 9.01 with respect to such Lease. 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 the Equipment subject to such Lease to Lessor.
Section 6.02_ Security Interest. To secure the payment of all Lessee's obligations under each Lease, Lessee hereby grants to Lessor a security interest
under the Uniform Commercial Code constituting a first lien on the Equipment described more fully on Exhibit'A'to each Schedule_The security interest
established by this section includes not only all additions,attachments,repairs and replacements to the Equipment but also all proceeds therefrom.Lessee
agrees that Lessor or its assignee may execute such additional documents including financing statements,affidavits, notices, and similar instruments,for
and on behalf of Lessee which Lessor deems necessary or appropriate to protect Lessor's interest in the Equipment and in this Agreement and each Lease.
Lessee authorizes Lessor to record such documentation as necessary for Lessor to perfect its security interest.
Section 6.03. Personal Property. The Equipment is and shall at all times be and remain personal property notwithstanding that the Equipment or any part
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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,piaster,nails,bolts,screws or otherwise.
VII. Assignment
Section LOt.Assignment by Lessor.All of Lessor's rights,title and/or interest in and to each Lease may be assigned and reassigned in whole or in part to
one or more assignees or sub-assignees (including a registered owner for lease participation certificates) by Lessor at any time without the consent of
Lessee. No such assignment shall be effective as against I ecsee until the assignor shall have filed with Lessee written notice of assignment identifying the
assignee.Lessee shall pay all Rental Payments due under each Lease to or at the direction of Lessor or the assignee named In the notice of assignment
Lessee shall keep a complete and accurate record of all such assignments.
Section 7.92.Assignment by Lessee.None of Lessee's right,title and interest under this Agreement,each Lease and in the Equipment may be assigned by
Lessee unless Lessor approves of such assignment in writing before such assignment occurs and only after Lessee first obtains an opinion from nationally
recognized counsel stating that such assignment will not jeopardize the tax-exempt status of the obligation.
VIII. Maintenance of Equipment
Section 8.01.Lessee shall keep the Equipment in good repair and working order.Lessor shall have no obligation to inspect,test,service,maintain,repair or
make improvements or additions to the Equipment under any circumstances. Lessee will be liable for all damage to the Equipment,other than normal wear
and tear, caused by Lessee, its employees or its agents. Lessee shall pay for and obtain all permits, licenses and taxes necessary for the installation,
operation,possession, storage or use of the Equipment. If the Equipment includes any titled vehicles, then Lessee is responsible for obtaining such titles
from the State and also for ensuring that Lessor is listed as first lien holder on all of the titles. Lessee shall not use the Equipment to haul, convey or
transport hazardous waste as defined in the Resource Conservation and Recovery Act,42 U.S.C. 6901 et. seq. Lessee shall not during the term of this
Agreement create,incur or assume any levies, Dens or encumbrances of any kind with respect to the Equipment except those created by this Agreement
The Equipment is and shall at all times be and remain personal property,Lessee shall allow Lessor to examine and inspect the Equipment at all reasonable
times.
IX. Default
Section 9.01.Events of Default defined.The following events shall constitute an'Event of Default'with respect to a Lease:
(a) Failure by Lessee to pay any Rental Payment listed on Exhibit'B'to the Schedule for fifteen 15 days after such payment is due according to the
Payment Date listed on Exhibit B.
(b) Failure to pay any other payment required to be paid under this Agreement and the Schedule at the time specified herein and therein and a
continuation of said failure for a period of fifteen 15 days after written notice by Lessor that such payment must be made. If Lessee continues to
fail to pay any payment after such period,then Lessor may, but will not be obligated to, make such payments and charge Lessee for all costs
incurred plus interest at the highest lawful rate.
(c) Failure by Lessee to observe and perform any warranty,covenant,condition,promise or duty under this Agreement or the Schedule for a period
of thirty 30 days after written notice specifying such failure is given to Lessee by Lessor,unless Lessor agrees in writing to an extension of time.
Lessor will not unreasonably withhold its consent to an extension of time if corrective action is instituted by Lessee.Subsection(c)does not apply
to Rental Payments and other payments discussed above.
(d) Any statement,material omission,representation or warranty made by Lessee in or pursuant to this Agreement or the Schedule which proves to
be false,incorrect or misleading on the date when made regardless of Lessee's intent and which materially adversely affects the rights or security
of Lessor under this Agreement or the applicable Schedule.
(e) Any provision of this Agreement or the Schedule which ceases to be valid for whatever reason and the loss of such provision,would materially
adversely affect the rights or security of Lessor.
(Q Lessee admits in writing its inability to pay its obligations. Lessee defaults on one or more of its other obligations.Lessee applies or consents to
the appointment of a receiver or a custodian to manage its affairs.Lessee makes a general assignment for the benefit of creditors.
Section 9.02. Remedies on Default, Whenever any Event of Default exists with respect to any Lease, Lessor shall have the right to take one or any
combination of the following remedial steps:
(a) With or without terminating the Lease, Lessor may declare all Rental Payments and other amounts payable by Lessee thereunder to the end of
the then current Budget Year to be immediately due and payable.
(b) Nth or without terminating the Lease,Lessor may require Lessee at Lessee's expense to redeliver any or all of the Equipment subject thereto to
Lessor to a location specified by Lessor.Such delivery shall take place with in 15 days after the event of default occurs_If Lessee fails to deliver
such Equipment.Lessor may enter the premises where such Equipment is located and take possession of such Equipment and charge Lessee for
cost incurred. Notwithstanding that Lessor has taken possession of such Equipment, Lessee shall still be obligated to pay the remaining Rental
Payments under the Lease due up until the end of the then current Original Term or Renewal Term. Lessee will be liable for any damage to such
Equipment caused by Lessee or its employees or agents.
(c) Lessor may take whatever action at law or in equity that may appear necessary or desirable to enforce its rights.
Section 9.03.No Remedy Exclusive. No remedy herein conferred upon or reserved to Lessor is intended to be exclusive and every such remedy shall be
cumulative and shall be in addition to every other remedy given under the Lease now or hereafter existing at law or in equity. No delay or omission to
exercise any right or power accruing upon any default shall impair any such right or shall be construed to be a waiver thereof,
X. Miscellaneous
Section 10.01. Notices. All notices shall be sufficiently given and shall be deemed given when delivered or mailed by registered mail,postage prepaid,to
the parties at their respective places of business as first set forth herein or as the parties shall designate hereafter in writing.
Section 10.02. Binding Effect. This Agreement and each Schedule shall inure to the benefit of and shall be binding upon Lessee and Lessor and their
respective successors and assigns.
Section 10A)3. Sever ability. In the event any provision of this Agreement or any Lease shall be held invalid or unenforceable by any court of competent
jurisdiction,such holding shall not invalidate or render unenforceable any other provision hereof.
Section 10.04.Amendments. Addenda. Changes or Modifications. This Agreement and each Lease may be amended, added to,changed or modified by
written agreement duty executed by Lessor and Lessee.
Section 10-05,Execution in Counterparts.This Agreement and each 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 10.06.Captions.The captions or headings in this Agreement do not define,limit or describe the scope or intent of any provisions or sections of this
Agreement.
Section 10.07.Entire Writing. This Agreement and all Schedules executed hereunder constitute the entire writing between Lessor and I et.. No waiver,
consent,modification or change of terms of this Agreement or any Lease shall bind either party unless in writing and signed by both parties,and then such
waiver, consent, modification or change shall be effective only in the specific instance and for the specific purpose given. There are no understandings.
agreements, representations, conditions, or warranties, express or implied,which are not specified herein regarding this Agreement or any Lease or the
Equipment leased thereunder.Any terms and conditions of any purchase order or other documents submitted by Lessee in connection with this Agreement
which are in addition to or inconsistent with the terms and conditions of this Agreement or any Lease will not be binding on Lessor and will not apply to this
Agreement or any Lease.
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Section 10-08 Choice of Law.Venue,and Jury Waiver.Jurisdiction and Venue. Lessee irrevocably submits to the nonexclusive jurisdiction of any Federal or
State court sitting in New York, over any suit, action or proceeding arising out of or relating to this Agreement. Lessee irrevocably waives,to the fullest
extent it may effectively do so under applicable law, any objection it may now or hereafter have to the laying of the venue of any such suit, action or
proceeding brought in any such court and any claim that the same has been brought in an inconvenient forum. Lessee hereby consents to any and all
process which may be served in any such suit,action or proceeding,()by mailing a copy thereof by registered and certified mail,postage prepaid,return
receipt requested,to the Lessee's address shown in this Agreement or as notified to the Lessor and a by serving the same upon the Lessee in any other
manner otherwise permitted by law.and agrees that such service shall in every respect be deemed effective service upon Lessee.
Lessor and Lessee have caused this Agreement to be executed in their names by their duty authorized representatives listed below.
Lessee: City of Arroyo Grande Lessor. Sovereign Bank,N.A.
By: By:
Typed: Typed:
Title: Title:
Date: Date:
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Schedule No.000
EXHIBIT A
DESCRIPTION OF EQUIPMENT OF LEASE AGREEMENT
RE: Master Lease Purchase Agreement dated as of 09/12/2013, between Sovereign Bank,
N.A. (Lessor) and City of Arroyo Grande (Lessee)
Below is a detailed description of all the items of Equipment including quantity,model number and serial number where applicable:
Quantity VIN blSerial Number Type,Make,Model,Department
1 John Deere 310D Backhoe(Water Department) PW-1
1 Ford F-250 Pick Up Truck(Sewer Department) PW-44
1 Ford F-450 Paint Truck(Streets Department)PW-33
9 Ford F-150 Pick Up Truck (Streets Department) PW-16
1 Ford F-150 Pick Up Truck(Streets Department) PW-58
1 Ford F-550 Dump Truck(Streets Department) PW-19
1 Ford F-550 Water Truck(Parks Department)P-7
1 Ford F-150 Pick Up Truck (Parks Department)P-57
1 Toyota Tacoma Pick Up Truck(Soto Department) P-901
1 Ford F-150 Pick Up Truck(Government Buildings Department) P-16
EQUIPMENT LOCATION Complete only if equipment will not be located at Lessee's address
BILLING ADDRESS:
GARAGING ADDRESS:
Lessee: City of Arroyo Grande Lessor: Sovereign Bank, N.A.
By: By:
Typed: Typed:
Title: Title:
Date: Date:
A-1
Schedule No.000 of Lease Agreement
EXHIBIT B
SCHEDULE OF PAYMENTS
Totals: $431,994.18 $10,505.18 $421,489.00 Rate 1.8500%
Payment Payment Purchase Outstanding
Pmt# , Date Amount , Interest , Principal Price , Balance
9/12/2013 $421,489.00
1 9/12/2013 $107,998.55 $0.00 $107,998.55 $313,490.45
2 7/1/2014 $107,998.55 $4,655.77 $103,342.78 $210,147.68 $210,147.68
3 7/1/2015 $107,998.55 $3,887.73 $104,110.81 $106,036.86 $106,036.86
4 7/112016 $107,998.55 $1,961.68 $106,036.86 $0.00 $0.00
Lessee: City of Arroyo Grande
BY:
TITLE:
DATE:
B-1
OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that the attached
Resolution No. 4544 is a true, full, and correct copy of said Resolution passed and
adopted at a Regular meeting of the City Council of the City of Arroyo Grande on the
10th day of September, 2013.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 11th day of
September 2013.
KELLY = MOir
, CITY CLERK