CC 2021-07-27_08g Contract for Police and Public Works Fleet Leasing ProgramMEMORANDUM
TO: CITY COUNCIL
FROM: MICHAEL T. MARTINEZ, CHIEF OF POLICE
BILL ROBESON, ASSISTANT CM/PUBLIC WORKS DIRECTOR
BY: NICOLE VALENTINE, ADMINISTRATIVE SERVICES DIRECTOR
ZAK AYALA, POLICE COMMANDER
SUBJECT: CONSIDERATION TO AUTHORIZE AN AWAR D OF CONTRACT FOR
POLICE AND PUBLIC WORKS FLEET LEASING PROGRAM
INCLUDING VEHICLES, FINANCING, AND DECLARING VEHICLES AS
SURPLUS PROPERTY
D ATE: JULY 27, 2021
SUMMARY OF ACTION:
Approval of the recommended action will result in the purchase of six (6) unmarked
2021 Ford Explorer vehicles for use by the Police Department’s Administrative Staff
and Detectives; the purchase of two (2) marked 2021 police motorcycles for use by the
Police Department’s Traffic Enforcement officers; the purchase of one (1) 2022 Ford F-
350 Truck with a service bed for the use of the City’s Fleet Maintenance Coordinator;
and the purchase of one (1) 2022 Ford F-150 Truck for the use of the Public Works
Department, Streets Division staff.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Ford Explorer vehicles and motorcycles expenditures will be funded out of the
approved Police Department FY 2021-22 Budget, which allocates $76,225 to Lease
Purchase Payments. The Ford F-350 Truck, along with the service bed and F-150
Truck expenditures will be funded out of the approved Public Works General Fund and
Streets Department FY 2021-22 Budget, which allocates $33,200 to Lease Purchase
Payments. The vehicles will be under a full warranty during the terms of the lease.
RECOMMENDATION:
It is recommended that the City Council (1) Award a bid for the purchase of six police
patrol vehicles and two public works trucks to Mullahey Ford of Arroyo Grande; award a
bid for purchase of two police motorcycles to Long Beach BMW Motorcycles; and
award a bid to Douglass Truck Body for the installation of a service bed to one of the
new Public Works trucks (2) authorize financing these vehicles for a total not to exceed
the amount of $386,200 through a 4-year municipal lease from California First Leasing
Corporation at an APR of 4.0% (4 annual payments of approximately $96,539.16); 3)
adopt a Resolution declaring the 4 police administrative vehicles and 1 public works
Item 8.g. - Page 1
CITY COUNCIL
CONSIDERATION TO AUTHORIZE AN AWARD OF CONTRACT FOR POLICE AND
PUBLIC WORKS FLEET LEASING PROGRAM INCLUDING VEHICLES, FINANCING,
AND DECLARING VEHICLES AS SURPLUS PROPERTY
JULY 27, 2021
PAGE 2
truck as surplus and authorizing their sale; and 4) authorize the City Manager to
execute all necessary documents.
BACKGROUND:
The Arroyo Grande Police Department (Police Department) introduced the fleet leasing
program in 2008, and it has proven to be a viable and cost effective alternative to
traditional purchasing. Municipal leasing has become a viable alternative for
municipalities that operate small to medium sized fleets. The programs are competitive,
cost-effective and many times reduce the total average operating costs of operating the
fleet.
Vehicles purchased through the fleet leasing program are covered by a manufacturer’s
extended service contract during the entire term of the lease, which has proven valuable
in reducing the annual cost of fleet maintenance. The $1.00 end of lease purchase
option allows the vehicles to be declared as surplus and sold to cover equipment up-
fitting costs each time a new lease program is approved. The program rotates the fleet
every four years and the residual value of the fleet at the end of the lease term helps
maintain the ongoing program. The current Police Department administration fleet lease
concluded in FY 2019-2020. Replacement of the vehicles used by the Police
Department’s administrative staff and detectives was deferred for one year for financial
savings to the City during the COVID-19 pandemic. The residual value of the proposed
fleet is estimated to be approximately $90,000.
In addition, the Police Department currently has two 2009 Honda motorcycles utilized
for traffic enforcement. The current motorcycles have seen significant increases in
maintenance costs due to reaching the end of their service lives with 11 years of
operation. With these motorcycles approaching their end of use, it will benefit the Police
Department to include these with the fleet leasing program.
The City Fleet Maintenance Coordinator’s current vehicle is a 2007 Ford F-250 Truck
with mileage over 96,000 and the Streets Division’s current 2003 Ford F-150 Truck has
over 120,000 miles.
The City’s Administrative Policy and Procedure C-006 states that replacement of
equipment should consider the following criteria:
1. Condition of the equipment
2. Age of equipment (for autos – 5 years and/or 80,000 miles)
3. Maintenance history of the equipment
Item 8.g. - Page 2
CITY COUNCIL
CONSIDERATION TO AUTHORIZE AN AWARD OF CONTRACT FOR POLICE AND
PUBLIC WORKS FLEET LEASING PROGRAM INCLUDING VEHICLES, FINANCING,
AND DECLARING VEHICLES AS SURPLUS PROPERTY
JULY 27, 2021
PAGE 3
ANALYSIS OF ISSUES:
The current Police Department fleet operates (6) unmarked police vehicles used by
administration and detectives. The current proposal calls for replacing and maintaining
the same number of unmarked police vehicles.
The following unmarked police vehicles are in need of replacement:
Unit 4614: 2016 Dodge Charger
Unit 4615: 2016 Dodge Charger
Unit 4616: 2016 Dodge Charger
Unit 4617: 2016 Dodge Charger
Unit 4618: 2016 Dodge Charger
Unit 4619: 2016 Dodge Charger
The current police fleet operates (2) marked police motorcycles used by traffic
enforcement officers. The current proposal calls for replacing and maintaining the same
number of marked police motorcycles.
The following marked police motorcycles are in need of replacement:
Unit 4621: 2009 Honda Motorcycle
Unit 4622: 2009 Honda Motorcycle
A Vehicle Selection Committee was formed within the Police Department and evaluated
a number of police-rated vehicles. In 2017, the Committee recommended switching
from the Dodge Charger to the Ford Explorer for the entire fleet. The Department was
on schedule to transition the remaining administrative and detective Dodge Chargers to
Ford Explorers at the end of the four-year rotation during FY 2019-20 but delayed the
transition due to the budgetary impacts of the COVID-19 pandemic. The transition to
Ford Explorers for administrative fleet will provide consistency in vehicles and the
opportunity to establish an inventory of regular maintenance related parts and
equipment. The Ford Explorer addresses the specific needs for the administrative fleet
due to larger logistical carrying capacity than the Dodge Charger and the ability to be
used as a field command post during police operations. Up-fitting of the vehicles would
include emergency lighting, siren, and radio equipment.
In 2019, the Police Department developed a two-year strategic plan which included
expanding traffic enforcement activities and introducing a full-time motorcycle traffic
officer. These goals aimed to improve traffic enforcement requests from members of the
community and City staff. The Police Department currently has one full-time traffic
officer assigned to patrol with a motorcycle. The Department has two additional officers
certified to operate the patrol motorcycles, who routinely use them for directed patrol
Item 8.g. - Page 3
CITY COUNCIL
CONSIDERATION TO AUTHORIZE AN AWARD OF CONTRACT FOR POLICE AND
PUBLIC WORKS FLEET LEASING PROGRAM INCLUDING VEHICLES, FINANCING,
AND DECLARING VEHICLES AS SURPLUS PROPERTY
JULY 27, 2021
PAGE 4
and special events. The use of motorcycles to conduct traffic enforcement is a valuable
tool to reduce traffic collisions and ensure pedestrian safety.
Staff evaluated the available options for industry-standard police motorcycles and
determined the BMW R1250-RT -P to be the best fit for the Department’s needs and
specifications. Some of these specifications call for equipment, such as emergency
lighting and siren, to be installed by the factory and a 7-year extended factory warranty,
extending beyond the standard 3-year offering. The BMW Police motorcycle is a
purpose-built motorcycle explicitly designed for law enforcement. It has been widely
adopted as a standard motorcycle by law enforcement agencies throughout the nation
due to its design, safety rating, and flexibility for various assignments and purposes.
The City’s Fleet Maintenance Coordinator, a position within the Public Works
Department, has current vehicle PW -23, a 2007 Ford F-250 truck with over 96,000
miles. This truck is requested to be replaced because required repairs are increasing
each year and it no longer meets the needs of the City to provide mechanical servicing
to the City’s entire fleet of vehicles and equipment. The new fleet service truck will be
equipped with mechanic’s service style truck bed (i.e. larger flip top tool boxes on each
side with protective materials) and will serve as a Service Truck for the Citywide Fleet
Coordinator.
The service bed component is a separate cost from the new F350 and 3 quotes were
received to analyze the cost and Douglass Truck Bodies submitted the lowest quote at
$15,400.81. The other quotes were from Royal Truck Bodies at $17,900 and Scelzi
Truck Bodies at $18,500.
The Streets Department current vehicle PW -61 is a 2003 Ford F-150 Truck with over
120,000 miles. This truck is requested to be replaced because of increased frequency
of repairs and the significance of anticipated repair costs.
It is recommended that the City Council award the purchase of six police vehicles and
one F-150 Truck and one F-350 truck to Mullahey Ford of Arroyo Grande. This quote is
less than the State contract used by larger jurisdictions. Additional benefits include
purchasing from a local Arroyo Grande vendor and having the continued convenience of
local service on the vehicle fleet.
It is further recommended that the City Council award the purchase of two motorcycles
to Long Beach BMW Motorcycles. This quote matches the State contract price through
an existing CHP bid (State of California Contract CHP 1-19-23-30). Recently, Santa
Maria Harley Davidson partnered with BMW motorcycles to become a dealer for sales,
parts, and service, offering a local vendor for warranty work.
Item 8.g. - Page 4
CITY COUNCIL
CONSIDERATION TO AUTHORIZE AN AWARD OF CONTRACT FOR POLICE AND
PUBLIC WORKS FLEET LEASING PROGRAM INCLUDING VEHICLES, FINANCING,
AND DECLARING VEHICLES AS SURPLUS PROPERTY
JULY 27, 2021
PAGE 5
California First Leasing Corporation has proposed a competitive lease finance
agreement for (6) 2021 Ford Explorer’s; (2) 2021 BMW motorcycles; (1) 2022 Ford F-
350; (1) 2022 Ford F-150, and the service bed addition to the Ford F350. It is
recommended that the City enter into a municipal lease purchase agreement with
California First Leasing Corporation, with a lease financing rate of 4.00%, which results
in 4 annual payments of $92,459.47. California First Leasing Corporation is
headquartered in Newport Beach, CA. Other bids for financing were Ford Credit at
5.10% and Holman Capital at 4.10%.
California First Lease Corporation has agreed to the purchase option of $1.00 at the
end of the 4-year Term provided no event of default has occurred and is continuing at
the end of the Term. Based on the condition of the current Police Department
administrative fleet, a residual value is estimated at approximately $15,000 per vehicle.
The residual value of the 2 Public Works trucks is approximately $10,500 ($3,000 +
$7,500).
It is recommended that the City Council declare the surplus of four (4) 2017 Dodge
Chargers. Two of the six Dodge Chargers would be retained by the department as pool
vehicles until FY2022-23. Public Works will keep the 2007 Ford F250 as an extra
service truck and surplus the 2003 Ford F150.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
Recommended Alternative:
1. It is recommended that the City Council (1) Award a bid for the purchase on six
police patrol vehicles and two public works trucks to Mullahey Ford of Arroyo
Grande; award a bid for purchase on two police motorcycles to Long Beach
BMW Motorcycles; and award a bid to Douglass Truck Body for the installation of
a service bed to one of the new Public Works trucks (2) authorize financing these
vehicles for a total not to exceed the amount of $386,200 through a 4-year
municipal lease from California First Leasing Corporation at an APR of 4.0% (4
annual payments of approximately $96,539.16); and 3) adopt a Resolution
declaring the 4 police administrative vehicles and 1 public works truck as surplus
and authorizing their sale; and 4) authorize the City Manager to execute all
necessary documents.
2. Do not approve award the bids, or approve the municipal lease or adopt the
Resolution, and direct staff to seek new proposals; or
3. Provide other direction to staff.
ADVANTAGES:
The proposed plan will continue to provide for the police fleet leasing program, update
the police vehicle fleet, maintain standardized equipment, reduce maintenance costs,
Item 8.g. - Page 5
CITY COUNCIL
CONSIDERATION TO AUTHORIZE AN AWARD OF CONTRACT FOR POLICE AND
PUBLIC WORKS FLEET LEASING PROGRAM INCLUDING VEHICLES, FINANCING,
AND DECLARING VEHICLES AS SURPLUS PROPERTY
JULY 27, 2021
PAGE 6
and maintain residual values on the existing fleet for surplus sale. The purchase of the
Ford F-350 truck for the Public Works Department will greatly improve vehicle fleet
maintenance capabilities and both the F-350 and F-150 will replace aging and
expensive vehicles.
DISADVANTAGES:
No disadvantages are identified at this time.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
ATTACHMENTS:
1.Addendum “1” to Master Equipment Lease/Purchase Agreement – California
First Leasing Corporation
2. Proposed Resolution – Declaring Surplus Vehicles
Item 8.g. - Page 6
cityo1590-02.032
California First Leasing Corporation
‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗
July 22, 2021
Mr. Michael Martinez
Chief of Police
City of Arroyo Grande
300 East Branch Street
Arroyo Grande, CA 93420
Re: Master Equipment Lease/Purchase Agreement No. BL01590, dated as of May 1, 2017 (the
“Agreement”) and Schedule of Property No. 02, dated August 2, 2021 (the “Schedule”)
(“collectively, the Agreement and Schedule form the “Lease”)
Dear Mr. Martinez:
It is our understanding that one hundred percent (100%) of the project costs shall be considered a
capitalizable asset for the term of the Lease. Enclosed you will find the following Lease documents:
1.) Addendum "1" to Master Equipment Lease/Purchase Agreement No. Bl01590;
2.) Schedule of Property No. 02 (Exhibit A);
3.) Rental Payment Schedule relating to Schedule of Property No. 02 (Exhibit A-1);
4.) Final Acceptance Certificate or Partial Acceptance as relevant, relating to Schedule of Property No 02
(Exhibit B):
5.) Sample Form “Opinion of Counsel” (Exhibit C);
6.) Acceptance of Rental Payment Obligation relating to Schedule of Property No. 02 (Exhibit D);
7.) Essential Use/Source of Funds Certificate relating to Schedule of Property No. 02
8.) Insurance Coverage Requirements and Lease Payment Instructions relating to Schedule of property
No. 02;
9.) Municipal Certificate;
10.) Incumbency Certificate;
11.) Internal Revenue Service Form 8038G (partially completed as to information known to California First
Leasing Corporation); and
California First Leasing Corporation’s approval of this Lease is expressly conditioned upon (i) our review
and approval of all-final lease documents, (ii) there shall be (as determined by Lessor) no material adverse change
in Lessee’s financial condition, (iii) Vendor payments by Lessor shall take place on or after August 2, 2021
($364,444.11) and (iv) additional documentation, which may be required. In addition to items 1.) through 11.),
above, we will also require the following:
a.) Lessor shall file UCC-1 Financing Statements relating to Schedule of Property No. 02;
b.) Vendor shall provide Lessor with original invoices (reflecting Lessee as Purchaser) along with their
current Form W-9;
c.) Exhibit A-2, relating to Schedule of property No. 02, which specifically identifies the Equipment, as
applicable, by (i) Quantity, (ii) Description, (iii) Model No. and (iv) Serial No(s)/VIN No(s);
d.) A copy of the City of Arroyo Grande’s Authorizing Resolution for Schedule of Property No. 02 to Master
Equipment Lease/Purchase Agreement No. BL01590
e.) Payment of first payment due in the amount of $96,539.16; and
f.) DMV title showing California First Leasing Corporation as Lienholder (Titling Instructions attached)
5000 Birch Street, Suite 500, Newport Beach, California 92660
949-255-0500 – 800-496-4640 www.CalFirstLease.com
Item 8.g. - Page 7
Attachment 1
Item 8.g. - Page 8
cityo1590-02.032
ADDENDUM "1"
TO
MASTER EQUIPMENT LEASE/PURCHASE AGREEMENT NO. BL01590
This Addendum “1” (the "Addendum") is supplemental to and made a part of Master Equipment Lease/Purchase
Agreement No. BL01590, dated May 1, 2017 (the "Agreement") and other related documents under the Agreement. The
original parties to the Agreement include City of Arroyo Grande ("Lessee") and California First National Bank ("Bank"). In
January 2021, Bank transferred all of its rights, title and interest in the Agreement to California First Leasing Corporation
(“CFLC”) as successor Lessor, including the right to originate subsequent lease schedules pursuant to the Agreement.
Capitalized terms used in this Addendum without definition shall have the meanings set forth in the Agreement, unless
specifically required otherwise. This Addendum is to be construed as supplemental to, and part of, the Agreement.
Lessee agrees that, from here forward CFLC may enter into Lease Schedules with respect to the
Agreement (“CFLC Schedules”).
Lessee further agrees that all of the terms of the Agreement shall be incorporated into such CFLC
Schedules, with this modification: All references to “California First National Bank” shall be deleted and
replaced with “California First Leasing Corporation.”
Lessee and CFLC acknowledge and agree that CFLC and Lessee shall be the only parties to any Lease
that includes a CFLC Schedule. All notices directed to CFLC in connection with such Lease shall be sent
in accordance with the terms of the Agreement, to CFLC at the address below.
5000 Birch Street, Suite 500, Newport Beach, CA 92660
In all other respects, the terms and conditions of the Agreement, as originally written (except as modified by any other
addenda executed by the parties in connection therewith), shall remain in full force and effect. The Agreement, as
amended herein, sets forth the entire and final understanding between the parties with respect hereto. The terms of this
Addendum have been negotiated and jointly drafted by Lessee and CFLC and, therefore, the language of the Addendum
shall not be construed in favor or against any party. The undersigned represent that they have the authority to enter into
the Addendum, and that the same shall be legally binding and enforceable on the respective principals.
IN WITNESS WHEREOF the parties hereto, by their authorized signatories, have executed this Addendum at the date set forth below
their respective signatures.
LESSEE:
City of Arroyo Grande
LESSOR:
California First Leasing Corporation
BY: BY:
NAME:
Whitney McDonald
NAME:
Darren S. Higuchi
TITLE:
City Manager
TITLE:
Senior Vice President
DATE:
DATE:
Item 8.g. - Page 9
cityo1590-02.032
EXHIBIT A
SCHEDULE OF PROPERTY NO. 02
PAGE ONE OF ONE
RE: MASTER EQUIPMENT LEASE/PURCHASE AGREEMENT NO. BL01590 entered into as of May 1, 2017 ("Agreement"), between
California First Leasing Corporation ("Lessor") and City of Arroyo Grande ("Lessee").
All terms used and not otherwise defined herein have the meanings ascribed to them in the Agreement.
The following items of Equipment are hereby included under this Schedule to the Agreement.
DESCRIPTION OF EQUIPMENT
Quantity Description Model No. Serial No.
(05) New 2021 Ford Explorer Police Vehicles @ $35,816.10, together with all accessions, attachments, substitutions and
accessories ($179,080.50)
(01) New 2021 Ford Explorer Police Vehicle @ $37,127.42, together with all accessions, attachments, substitutions and
accessories ($37,127.42)
(02) New 2021 BMW R 1250 RT-P Police Motorcycles @ $29,985.13, together with all accessions, attachments, substitutions and
accessories ($59,970.26)
(01) New 2022 Ford F350 Cab Chassis 60” Cab Axle, 145” Wheel Base @ $41,291.01, together with all accessions, attachments,
substitutions and accessories ($41,291.01)
(01) New Custom 9’ SRW Douglass Low Profile Service Body w/ Fliptops @ $15,400.81, together with all accessions, attachments,
substitutions and accessories ($15,400.81) (Attached to New 2022 Ford F350 Cab Chassis above)
(01) New 2022 Ford F150 Extended Cab 2WD, Longbed Pick Up @ $31,574.11, together with all accessions, attachments,
substitutions and accessories ($31,574.11)
Total Cost = $364,444.11
THE ABOVE-REFERENCED EQUIPMENT SHALL BE MORE FULLY DESCRIBED ON EXHIBIT “A-2” TO RELATED DOCUMENTS AT A LATER
DATE.
Vendor(s): Mullahey Ford, 330 Traffic Way, Arroyo Grande, CA 93420
Long Beach BMW Motorcycles, 2125 E. Spring Street, Long Beach, CA 90806
Douglas Truck Bodies, 231 21st Street, Bakersfield, CA 93301
Initial Administrative Fee: N/A
Lessee hereby represents, warrants and covenants that its representations, warranties and covenants set forth in the Agreemen t are
true and correct as though made on the Commencement Date of Rental Payments under this Schedule. The terms and provisions of
the Agreement (other than to the extent that they relate solely to other Schedules or Equipment listed on other Schedules) ar e
hereby incorporated into this Schedule by reference and made a part hereof.
Lessee hereby designates the Schedule as a "qualified tax-exempt obligation" as defined in Section 265(b)(3)(B) of the Code. The
aggregate face amount of all tax-exempt obligations (excluding private activity bonds other than qualified 501(c)(3) bonds) issued or to
be issued by Lessee and all subordinate entities thereof during the calendar year in which the Schedule is executed is not reasonably
expected to exceed $10,000,000. Lessee and all subordinate entities thereof will not issue in excess of $10,000,000 of tax-exempt
obligations (including the Schedule but excluding private activity bonds other than qualified 501(c)(3) bonds) during the calendar year in
which this Schedule is executed without first obtaining an opinion of nationally recognized counsel acceptable to Lessor that the
designation of the Schedule as a "qualified tax-exempt obligation" will not be adversely affected.
Dated: August 2, 2021
Lessee: City of Arroyo Grande Lessor: California First Leasing Corporation
By:
By:
Name:
Whitney McDonald
Name:
Darren S. Higuchi
Title:
City Manager
Title:
Senior Vice President
Date:
Date:
Item 8.g. - Page 10
cityo1590-02.032
EXHIBIT A-1
RENTAL PAYMENT SCHEDULE
PAGE ONE OF ONE
Re: Schedule of Property No. 02, dated August 2, 2021, to Master Equipment Lease/Purchase Agreement No. BL01590,
dated as of May 1, 2017, between California First Leasing Corporation, as Lessor, and City of Arroyo Grande, as
Lessee.
Payment
No.
Payment
Due Date
Payment
Amount
Interest
Principal
Purchase
Price
1 08/02/2021 $96,539.16 $ 0.00 $ 96,539.16 $273,263.05
2 08/02/2022 $96,539.16 $ 10,716.20 $ 85,822.96 $185,723.63
3 08/02/2023 $96,539.16 $ 7,283.28 $ 89,255.88 $ 94,682.63
4 08/02/2024 $96,539.16 $ 3,713.05 $ 92,826.11 $ 1.00
Totals $386,156.64 $21,712.53 $364,444.11
COMMENCEMENT DATE: August 2, 2021
Lessee: City of Arroyo Grande
By:
Name:
Whitney McDonald
Title:
City Manager
Date:
Item 8.g. - Page 11
cityo1590-02.032
EXHIBIT B
PLEASE COMPLETE EITHER FINAL OR PARTIAL ACCEPTANCE, AS RELEVANT
FINAL ACCEPTANCE CERTIFICATE
Re: Schedule of Property No. 02, dated August 2, 2021, to Master Equipment Lease/Purchase Agreement No. BL01590, dated as of May 1, 2017,
between California First Leasing Corporation, as Lessor, and City of Arroyo Grande, as Lessee.
In accordance with the Master Equipment Lease/Purchase Agreement No. BL01590 (the "Agreement"), the undersigned Lessee hereby certifies and
represents to, and agrees with Lessor as follows:
(1) All of the Equipment (as such term is defined in the Agreement) listed in the above-referenced Schedule of Property No. 02 (the "Schedule")
has been delivered, installed and accepted on the date hereof.
(2) Lessee has conducted such inspection and/or testing of the Equipment listed in the Schedule as it deems necessary and appropriate and
hereby acknowledges that it accepts the Equipment for all purposes.
(3) Lessee is currently maintaining the insurance coverage required by Section 17 of the Agreement.
(4) No event or condition that constitutes, or with notice or lapse of time, or both, would constitute, an Event of Default (as defined in the
Agreement) exists at the date hereof.
LESSEE: City of Arroyo Grande
By:
Whitney McDonald
Title: City Manager
Acceptance Date:
> OR <
PAYMENT REQUEST and PARTIAL ACCEPTANCE CERTIFICATE
California First Leasing Corporation, is hereby requested to pay the person or entity designated below as Payee, the sum set forth below in payment of a
portion or all of the cost of the acquisition described below. The amount shown below is due and payable under the invoice of the Payee attached hereto
with respect to the cost of the acquisition of the equipment and has not formed the basis of any prior request for payment. The equipment described
below is part or all of the "Equipment" listed in Schedule of Property No. 02 (Exhibit A) to the Master Equipment Lease/Purchase Agreement No.
BL01590 referenced above.
Quantity Serial Number/Description: Amount:
Payee: ________________________________
Payee’s Federal ID Number:________________________________
Lessee hereby certifies and represents to and agrees with Lessor as follows: (i) the equipment described above has been delivered, installed and
accepted on the date hereof; (ii) Lessee has conducted such inspection and/or testing of said equipment as it deems necessary and appropriate and
hereby acknowledges that it accepts said equipment for all purposes; (iii) Lessee is currently maintaining the insurance coverage required by Section 17
of the Agreement; (iv) no event or condition that constitutes, or with notice or lapse of time or both would constitute, an E vent of Default (as such term is
defined in the Agreement) exists at the date hereof.
Dated: ________________________________ LESSEE: City of Arroyo Grande
By:
Whitney McDonald
Title: City Manager
PLEASE RETURN PAYMENT REQUEST TO:
CALIFORNIA FIRST LEASING CORPORATION
5000 Birch Street, Suite 500
Newport Beach, CA 92660
Item 8.g. - Page 12
cityo1590-02.032
Exhibit C
Lessee’s Counsel’s Opinion
[To be provided on letterhead of Lessee’s Counsel]
California First Leasing Corporation City of Arroyo Grande
5000 Birch Street, Suite 500 300 East Branch Street
Newport Beach, CA 92660 Arroyo Grande, CA 93420
Re: Schedule of Property No. 02 to Master Equipment Lease/Purchase Agreement
No. BL01590 between California First Leasing Corporation, as Lessor, and City
of Arroyo Grande, as Lessee
Ladies and Gentlemen:
We have acted as special counsel to City of Arroyo Grande (“Lessee”), in
connection with the Master Equipment Lease/Purchase Agreement No. BL01590, dated
as of May 1, 2017 (the “Master Agreement”), between City of Arroyo Grande, as Lessee,
and California First Leasing Corporation, as Lessor, and the execution of the Schedule
of Property No. 02 (the “Equipment Schedule”) pursuant to the Master Agreement. We
have examined the law and such certified proceedings and other papers as we deem
necessary to render this opinion.
All capitalized terms not otherwise defined herein shall have the meanings
provided in the Master Agreement and Equipment Schedule.
As to questions of fact material to our opinion, we have relied upon the
representations of Lessee in the Master Agreement and the Equipment Schedule and in
the certified proceedings and other certifications of public officials furnished to us without
undertaking to verify the same by independent investigation.
Based upon the foregoing, we are of the opinion that, under existing law:
1.) Lessee is a public body corporate and politic, duly organized and existing
under the laws of the State, and has a substantial amount of one or more
of the following sovereign powers: (a) the power to tax, (b) the power of
eminent domain, and (c) the police power.
2.) Lessee has all requisite power and authority to enter into the Master
Agreement and the Equipment Schedule and to perform its obligations
thereunder.
3.) The execution, delivery and performance of the Master Agreement and
the Equipment Schedule by Lessee have been duly authorized by all
necessary action on the part of Lessee.
4.) All proceedings of Lessee and its governing body relating to the
authorization and approval of the Master Agreement and the Equipment
Schedule, the execution thereof and the transactions contemplated
thereby have be conducted in accordance with all applicable open
meeting laws and all other applicable state and federal laws.
Item 8.g. - Page 13
cityo1590-02.032
5.) Lessee has acquired or has arranged for the acquisition of the Property
subject to the Equipment Schedule, and has entered into the Master
Agreement and the Equipment Schedule, in compliance with all
applicable public-bidding laws.
6.) Lessee has obtained all consents and approvals of other governmental
authorities or agencies that may be required for the execution, delivery
and performance by Lessee of the Master Agreement and the Equipment
Schedule.
7.) The Master Agreement and the Equipment Schedule have been duly
executed and delivered by Lessee and constitute a legal, valid and
binding obligations of Lessee, enforceable against Lessee in accordance
with the terms thereof, except insofar as the enforcement thereof may be
limited by any applicable bankruptcy, insolvency, moratorium,
reorganization or other laws of equitable principles of general application,
or of application to municipalities or political subdivisions such as the
Lessee, affecting remedies or creditors’ rights generally, and to the
exercise of judicial discretion in appropriate cases.
8.) As of the date hereof, based on such inquiry and investigation as we have
deemed sufficient, no litigation is pending, (or, to our knowledge,
threatened) against Lessee in any court (a) seeking to restrain or enjoin
the delivery of the Master Agreement or Equipment Schedule or of other
agreements similar to the Master Agreement; (b) questioning the authority
of Lessee to execute the Master Agreement or the Equipment Schedule,
or the validity of the Master Agreement or the Equipment Schedule, or the
payment of principal of or interest on, the Equipment Schedule; (c)
questioning the constitutionality of any statute, or the validity of any
proceedings, authorizing the execution of the Master Agreement and the
Equipment Schedule; or (d) affecting the provisions made for the payment
of or security for the Master Agreement and the Equipment Schedule.
9.) The Lessee is a political subdivision within the meaning of Section 103 of
the Internal Revenue Code of 1986, as amended, and the related
regulations and rulings thereunder, and the portion of payments identified
as the interest component of the rents (as set forth in the Rental Payment
Schedule attached to the Equipment Schedule, Exhibit A-1) will not be
includable in Federal gross income of the recipient under the statutes,
regulations, court decisions and rulings existing on the date hereof and
consequently will be exempt from Federal income taxes.
This opinion may be relied upon by Lessor, its successors and assigns, and any
other legal counsel who provides an opinion with respect to the Equipment Schedule.
Very truly yours,
By :
Dated :
Item 8.g. - Page 14
cityo1590-02.032
EXHIBIT D
ACCEPTANCE OF RENTAL PAYMENT OBLIGATION
Re: Schedule of Property No. 02, dated August 2, 2021, to Master Equipment Lease/Purchase Agreement No. BL01590,
dated as of May 1, 2017, between California First Leasing Corporation, as Lessor, and City of Arroyo Grande, as
Lessee.
In accordance with the Master Equipment Lease/Purchase Agreement No. BL01590 (the “Agreement”), the undersigned hereby
acknowledges and represents that:
All or a portion of the Equipment (as such term is defined in the Agreement) listed in the above-referenced Schedule of Property
(the “Schedule”) has not been delivered, installed, or available for use and has not been placed in service as of the date hereof;
Lessee acknowledges that Lessor has agreed to set aside funds in an amount sufficient to provide financing (to the extent
requested by Lessee and agreed to by Lessor) for the Equipment listed in the Schedule (the “Financed Amount”);
The Financed Amount is set forth as the “Principal Component” of Rental Payments in the Rental Payment Schedule attached to
the Schedule as Exhibit A-1 (“Exhibit A-1”); and
Lessee agrees to execute a Payment Request Form, attached to the Agreement as Exhibit B, authorizing payment of the
Financed Amount, or a portion thereof, for each disbursement of funds.
NOTWITHSTANDING that all or a portion of the Equipment has not been delivered to, or accepted by, Lessee on the date
hereof, Lessee warrants that:
(a) Lessee’s obligation to commence Rental Payments as set forth in Exhibit A-1 is absolute and unconditional as of the
Commencement Date of the Schedule and on each date set forth in Exhibit A-1 thereafter, subject to the terms and conditions of
the Agreement;
(b) Immediately upon delivery and acceptance of all the Equipment, Lessee will notify Lessor of Lessee’s final acceptance of the
Equipment by delivering to Lessor a “Final Acceptance Certificate” in the form set forth as Exhibit B to the Agreement;
(c) In the event that any surplus amount remains from the funds set aside or an event of nonappropriation under the Agreement
occurs, any amount then remaining shall be applied or distributed in accordance with Lessor’s standard servicing procedures,
which includes, but is not limited to, application of the remaining amount to the next Rental Payment and other amounts due;
and
(d) Regardless of whether Lessee delivers a Final Acceptance Certificate, Lessee shall be obligated to pay all Rental Payments
(including principal and interest) as they become due as set forth in Exhibit A-1.
AGREED TO on _______________________.
Lessee: City of Arroyo Grande
By:
Name:
Whitney McDonald
Title:
City Manager
Item 8.g. - Page 15
cityo1590-02.032
ESSENTIAL USE/SOURCE OF FUNDS CERTIFICATE
City of Arroyo Grande (Lessee)
300 East Branch Street
Arroyo Grande, CA 93420
Re: Master Equipment Lease/Purchase Agreement No. BL01590, dated as of May 1, 2017,(the “Agreement”),
Schedule of Property No. 02 dated August 2, 2021 (collectively, the “Lease”)
This certificate confirms and affirms that the Equipment described in the Lease referenced above is essential to the
functions of the Lessee or to the services Lessee provides its citizens. Further, Lessee has an immediate need for, and
expects to make immediate use of, substantially all such Equipment, which need is not temporary or expected to diminish
in the foreseeable future. Such Equipment will be used by Lessee only for the purpose of performing one or more of
Lessee’s governmental or proprietary functions consistent with the permissible scope of its authority.
1. Is the Equipment new, upgrade, additional or replacement? Replacement
2. If replacement, how old is the existing equipment? Ford Explorers – 2016, Motorcycles – 2009, F350 –
2009, F150 -2003
3. Please fully explain the use of the Equipment including any specific department that may be its primary user.
The purchase of six (6) unmarked Ford Explorer vehicles for use by the Police Department’s Administrative Staff
and Detectives; the purchase of two (2) marked police motorcycles for use by the Police Department’s Traffic
Enforcement officers; the purchase of one (1) Ford F-350 Truck for the use of the City’s Fleet Manager; and the
purchase of one (1) Ford F-150 Truck for the use of the Public Works Department, Streets Division staff.
4. If the Equipment is computer hardware or software, on what hardware will the software run and is the existing
hardware owned or being leased?
N/A
5. From which fund will lease payments be made? General Fund and Streets Fund
6. Will any loan or grant monies be used to make lease payments No loan or grant monies will be used to
make lease payments.
Lessee expects and anticipates adequate funds to be available for all future payments or rent due after the current
budgetary period.
Signature:
Name: Whitney McDonald
Title: City Manager
Phone:
Date:
Item 8.g. - Page 16
cityo1590-02.032
INSURANCE COVERAGE REQUIREMENTS
LESSOR: CALIFORNIA FIRST LEASING CORPORATION
LESSEE: City of Arroyo Grande
1. In accordance with Section 17 of the Master Equipment Lease/Purchase Agreement No. BL01590 (the “Agreement”),
Schedule of Property No. 02 dated August 2, 2021, we have instructed the insurance agent named below:
(Please fill in insurance agent name, address and telephone number).
California Joint Powers Insurance Authority (CJPIA) Telephone: ( 949 ) 756-0271
C/O Alliant Insurance Services, Inc. Email:
P.O. Box 6450 Fax: ( 949 ) 756-2713
Newport Beach, CA 92658-6450 To issue:
a. All Risk Physical Damage Insurance on the leased equipment evidenced by a Certificate of Insurance and Long Form Loss
Payable Clause naming California First Leasing Corporation and/or its assigns, as loss payee.
Coverage Required: Full Replacement Value
b. Public Liability Insurance evidenced by a Certificate of Insurance naming California First Leasing Corporation and/or its
assigns as Additional Insured.
Minimum Coverage Required:
$1,000,000.00 per person; $1,000,000.00 aggregate bodily injury liability; $500,000.00 property damage liability
OR
2. Pursuant to Section 17 of the Agreement, we are self-insured for all risk, physical damage, and public liability and will provide
proof of such self-insurance in letter form together with a copy of the statute authorizing this form of insurance.
3. Proof of insurance coverage will be provided prior to the time the Equipment is delivered to us.
LEASE PAYMENT INSTRUCTIONS
Pursuant to the Master Equipment Lease/Purchase Agreement No. BL01590 dated May 1, 2017 (the “Agreement”), Schedule of
Property No. 02, dated August 2, 2021, between California First Leasing Corporation (the “Lessor”) and City of Arroyo Grande, as
Lessee (the “Lessee”), Lessee hereby acknowledges the obligations to make Rental Payments promptly when due, in accordance wi th
Exhibit A-1 to the Agreement.
LESSEE NAME: City of Arroyo Grande TAX ID# 95-6000668
INVOICE MAILING ADDRESS: 300 East Branch Street, Arroyo Grande, CA 93420
Mail invoices to the attention of: .Accounts Payable Phone (805) 473-5436 Fax ( )
Approval of Invoices required by: Accounts Payable Phone (805) 473-5436 Fax ( )
Accounts Payable Contact: Maggie Conway-Pearson Phone (805) 473-5436 Fax ( )
Processing time for invoices: Approval: Checks:
Do you have a Purchase Order Number that you would like included on the invoice? No_____ Yes_____ PO#
Do your Purchase order numbers change annually? No______ Yes_____ Processing time for new purchase orders:
LESSEE: City of Arroyo Grande
By:
Name: Whitney McDonald
Title: City Manager
Date:
Item 8.g. - Page 17
cityo1590-02.032
MUNICIPAL CERTIFICATE
City of Arroyo Grande (Lessee)
300 East Branch Street
Arroyo Grande, CA 93420
Re: Master Equipment Lease/Purchase Agreement No. BL01590, dated as of May 1, 2017,(the “Agreement”),
Schedule of Property No. 02 dated August 2, 2021 (collectively, the “Lease”)
I, the undersigned, the duly appointed, qualified and acting (Clerk or Secretary) of the
City of Arroyo Grande (Lessee) do hereby certify this ______ day of _____________________, 2021 as
follows:
(1) Lessee did, at a (regular or special) meeting of the governing body of the Lessee held
, 20 , by motion duly made, seconded and carried, in accordance with all requirements of
law, approve and authorize and delivery of the above-referenced Schedule of Property No. 02 (the “Schedule”) to the
Agreement on its behalf by the following named representative of the Lessee, to wit:
Whitney McDonald City Manager
Printed Name Title Signature
(2) The above-named representative of the Lessee held at the time of such authorization and holds at the present time
the office set forth above.
(3) The meeting of the governing body of the Lessee at which the Schedule was approved to be executed was duly
called, regularly convened and attended throughout by the requisite majority of the members thereof or by other
appropriate official approval and that the action approving the Schedule and authorizing the execution thereof has not
been altered or rescinded.
(4) No event or condition that constitutes, or with the giving of notice or the lapse of time or both would constitute, an
Event of Default (as such term is defined in the Agreement) exists at the date hereof.
(5) All insurance required in accordance with the Agreement is currently maintained by the Lessee.
(6) Lessee has, in accordance with the requirements of law, fully budgeted and appropriated sufficient funds for the
current budget year to make the Rental Payments scheduled to come due during the initial Term and to meet its other
obligations for the initial Term (as such terms are defined in the Lease) and such funds have not been expended for
other purposes.
(7) The fiscal year of Lessee is from July____________________ to June____________________.
IN WITNESS WHEREOF, I hereunto set my hand and the seal of the governing body of the Lessee the day and
year first above written.
Signature
(SEAL) Printed or typewritten name
Subscribed to and sworn before me this __________ day of ___________________________, 20____.
Notary Public
My commission expires
Item 8.g. - Page 18
cityo1590-02.032
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189
A notary public or other officer completing this certificate verifies only the identity of the individual who
signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of
that document.
State of California
County of __ _____________
On before me, ,
Here insert Name and Title of the Officer
personally appeared
Name(s) of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of
which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the
State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
Place Notary Seal Above Signature of Notary Public.
OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or fraudulent
reattachment of this form to an unintended document.
Description of Attached Document
Title or Type of Document: Document Date:
Number of Pages: Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer’s Name: Signer’s Name:
Corporate Officer – Title(s): Corporate Officer – Title(s):
Partner - Limited General Partner - Limited General
Individual Attorney In Fact Individual Attorney In Fact
Trustee Guardian or Conservator Trustee Guardian or Conservator
Other: Other:
Signer is Representing: Signer is Representing:
Item 8.g. - Page 19
cityo1590-02.032
INCUMBENCY CERTIFICATE
RE: Master Equipment Lease/Purchase Agreement No. BL01590 dated May 1, 2017, (the “Agreement”), by and
between City of Arroyo Grande (“Lessee”) and California First Leasing Corporation (“Lessor”)
I, , do hereby certify that I am the authorized
(Officer Title) of City of Arroyo Grande (“Lessee”). The person(s) whose name(s) and title(s) appear below is/are
authorized officer(s) of Lessee and hold on the date of this certificate and on the date of execution of the Lease
Documents (hereinafter defined) the position(s) set opposite his/her respective name(s). Each officer is authorized to
execute and deliver the Agreement between Lessee and Lessor, as well as all other documents and instruments (all
agreements, documents, and instruments shall collectively be referred to as “Lease Documents”) in connection therewith.
Printed Name Tittle Signature
Whitney McDonald City Manager
IN WITNESS WHEREOF, I set my hand and the seal of Lessee this day of , 2021 .
Signature:
(SEAL)
Printed Name:
THIS CERTIFICATE MUST BE EXECUTED BY AN AUTHORIZED INDIVIDUAL CONFIRMING THAT THE
EXECUTIONER OF THE AGREEMENT AND LEASE DOCUMENTS IS AUTHORIZED TO DO SO ON BEHALF OF
LESSEE. THIS CERTIFICATE CANNOT BE SIGNED BY THE PERSON SIGNING THE AGREEMENT AND
LEASE DOCUMENTS.
Item 8.g. - Page 20
cityo1590-02.032
Item 8.g. - Page 21
cityo1590-02.032
Item 8.g. - Page 22
cityo1590-02.032
INVOICE
No. 301207/02____
Date: July 22, 2021
To Mr. Michael Martinez
Chief of Police
City of Arroyo Grande
300 East Branch Street
Arroyo Grande, CA 93420
MASTER EQUIPMENT
LEASE/PURCHASE
AGREEMENT NO. BL01590
AND SCHEDULE OF
PROPERTY NO. 02
Due 8/2/2021
Description Amount
Rental Payment Due August 2, 2021 inclusive of $96,539.16
Applicable CA sales/use tax
Subtotal $96,539.16
Sales Tax Included in above rent
Total $96,539.16
Make all checks payable to: California First Leasing Corporation
5000 Birch Street, Suite 500, Newport Beach, California 92660
949-255-0500 – 800-496-4640 www.CalFirstLease.com
Item 8.g. - Page 23
cityo1590-02.032
Titling Instructions
(Please provide to Dealers at time of order,
as soon as possible, for any Titled vehicle purchases)
Registered Owner/Name of Purchaser:
City of Arroyo Grande
300 East Branch Street
Arroyo Grande, CA 93420
First Lienholder:
California First Leasing Corporation
5000 Birch Street, Suite 500
Newport Beach, CA 92660
Please also provide the following documents:
•Copy of vendor invoice;
•Current IRS Form W-9 for vendor;
•Copy of Certificate of Origin (front and back) with Name of Purchaser and
First Lienholder completed; and
•Copy of completed Application for Registration and Title Certificate.
Item 8.g. - Page 24
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE DECLARING VEHICLES AS SURPLUS
PROPERTY AND AUTHORIZING THEIR SALE
WHEREAS, the City of Arroyo Grande has certain vehicles which are no longer used or
needed as part of the police and public works departments; and
WHEREAS, the items can be classified as surplus property and made available for sale.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Arroyo Grande
does hereby declare as surplus the vehicles in Exhibit A, attached hereto and
incorporated herein by this reference, and authorizes their sale.
On motion of Council Member _________, seconded by Council Member _________,
and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 27th day of July, 2021.
Item 8.g. - Page 25
Attachment 2
RESOLUTION NO.
PAGE 2
___________________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
___________________________________
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
___________________________________
WHITNEY MCDONALD, CITY MANAGER
APPROVED AS TO FORM:
___________________________________
TIMOTHY CARMEL, CITY ATTORNEY
Item 8.g. - Page 26
SURPLUS VEHICLES AVAILABLE FOR SALE AND/OR AUCTION
VEHICLES:
1.2016 Dodge Charger
(Unit 4614)
VIN # 2C3CDXAG7GH126727
2. 2016 Dodge Charger
(Unit 4615)
VIN 2C3CDXAG1GH118560
3.2016 Dodge Charger
(Unit 4617)
VIN 2C3CDXAG9GH126728
4.2016 Dodge Charger
(Unit 4618)
VIN # 2C3CDXAG5GH118559
5.2003 Ford F150
(PW -61)
VIN # 1FTRX17W43NA88299
Item 8.g. - Page 27
Exhibit A
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Item 8.g. - Page 28