HomeMy WebLinkAboutMi Oracion, LLC - Equipment Lease - 12-1-2022EQUIPMENT LEASE
This Equipment Lease (Lease) is made effective as of December 1, 2022, between Mi
Oracion, LLC., a California limited liability company (Lessor), 1811 E. Hedges, Fresno,
California 93703, and City of Fresno, a California municipal corporation (Lessee), 2323
Mariposa, Fresno, California 93721, and states the agreement of the parties as follows:
EQUIPMENT SUBJECT TO LEASE. The Lessor shall lease the equipment listed on
the attached Exhibit A.
PAYMENT TERMS. The Lessee shall make monthly payments of $387.33 for each of
the six vehicles/equipment leased. The vehicles leased are listed on the attached
Exhibit A. The total lease value is $27,887.76. The Lessor shall send a monthly invoice
of payment due to the Lessee. The lease payments shall be due whether or not the
Lessee has received notice of a payment due. Lessee may at any time during the term
of this Lease, replace any or all of the vehicles with other similar vehicles.
The payments are due as follows:
Payment
Payment
Vehicles
Period of Coverage
Amount
Due Date
Equipment on Ex. A
Sections 1
Month of Dec 2022
$
2,323.98
Dec 1, 2022
Equipment on Ex. A
Sections 1
Month of Jan 2023
$
2,323.98
Jan 1, 2023
Equipment on Ex. A
Sections 1
Month of Feb 2023
$
2,323.98
Feb 1, 2023
Equipment on Ex. A
Sections 1
Month of Mar 2023
$
2,323.98
Mar 1, 2023
Equipment on Ex. A
Sections 1
Month of Apr 2023
$
2,323.98
Apr 1, 2023
Equipment on Ex. A
Sections 1
Month of May 2023
$
2,323.98
May 1, 2023
Equipment on Ex. A
Sections 1
Month of Jun 2023
$
2,323.98
June 1, 2023
Equipment on Ex. A
Sections 1
Month of Jul 2023
$
2,323.98
Jul 1, 2023
Equipment on Ex. A
Sections 1
Month of Aug 2023
$
2,323.98
Aug 1, 2023
Equipment on Ex. A
Sections 1
Month of Sept 2023
$
2,323.98
Sept 1, 2023
Equipment on Ex. A
Sections 1
Month of Oct 2023
$
2,323.98
Oct 1, 2023
Equipment on Ex. A
Sections 1
Month of Nov 2023
$
2,323.98
Nov 1, 2023
Total Lease Payments
$27.887.76
SALES TAXES. The Lessee shall be liable for all sales taxes resulting from the Lease
of the equipment. The taxes shall be advanced to Lessor and shall be due and payable
to Lessor on December 31, 2022, March 31, 2023, June 30, 2023, September 30, 2023,
and November 30, 2023. Lessor shall send an invoice to the Lessee for the amount due.
SERVICE CHARGE. If any Lease installment or Sales Taxes payment is not paid within
10 day(s) after the due date, the Lessee shall pay to the Lessor a service charge of
$25.00.
NON -SUFFICIENT FUNDS. The Lessee shall be charged $25.00 for each check that is
returned to the Lessor for lack of sufficient funds.
LEASE TERM. This Lease shall begin on the above effective date and shall terminate
on November 30, 2023, unless otherwise terminated in a manner consistent with the
terms of this Lease.
CARE AND OPERATION OF EQUIPMENT. The equipment may only be used and
operated in a manner consistent with its intended use as a police vehicle. Its use must
comply with all laws, ordinances, and regulations relating to the possession, use, or
maintenance of the equipment, including registration and/or licensing requirements, if
any.
ALTERATIONS. Lessee shall make no alterations to the equipment without the prior
written consent of the Lessor, save and except for the right to replace the vehicles as set
forth in this Lease. All alterations shall be the property of the Lessor and subject to the
terms of this Lease.
REPAIR AND SERVICE. Lessee shall perform regular service and maintenance of the
equipment, including oil changes and replacing tires (excluding tires damages from other
than ordinary wear). Lessee will pay for all tire repairs and replacement caused by
blowout, bruises, cuts, punctures and other causes inherent in the type of use to which
the equipment is used. Lessee shall not use the equipment if it appears to be in an
unsafe state of repair. Conditions that prevent satisfactory use of the equipment do not
relieve Lessee of its obligations to Lessor.
LESSOR'S RIGHT OF INSPECTION. The Lessor shall have the right, but not the
obligation, to inspect the equipment during Lessee's normal business hours with
reasonable notice.
RETURN OF EQUIPMENT. At the end of the Lease term, the Lessee shall be obligated
to return the equipment to the Lessor at the Lessee's expense.
OPTION TO RENEW. If the Lessee is not in default prior to the expiration of this Lease,
the Lessee shall have the option to renew this Lease for a similar term on such terms as
the parties may agree at the time of such renewal.
ACCEPTANCE OF EQUIPMENT. The Lessee shall inspect each item of equipment
delivered pursuant to this Lease. The Lessee shall immediately notify the Lessor of any
discrepancies between such item of equipment and the description of the equipment in
the Equipment Schedule. If the Lessee fails to provide such notice before accepting
delivery of the equipment, the Lessee will be conclusively presumed to have accepted
the equipment as specified in the Equipment Schedule.
OWNERSHIP AND STATUS OF EQUIPMENT. The equipment will be deemed to be
personal property, regardless of the manner in which it may be attached to any other
property.
The Lessor shall be deemed to have retained title to the equipment at all times, unless
the Lessor transfers the title by sale. The Lessee shall immediately advise the Lessor
regarding any notice of any claim, levy, lien, or legal process issued against the
equipment.
RISK OF LOSS OR DAMAGE. The Lessee assumes all risks of loss or damage to the
equipment, and agrees to return the equipment to the Lessor in the condition received
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from the Lessor, with the exception of normal wear and tear, unless otherwise provided
in this Lease.
LIABILITY FOR LOSS OR DAMAGES. Unless otherwise provided in this Lease, if the
equipment is damaged, the Lessor shall have the option of requiring the Lessee to repair
the equipment to a state of good working order. In the event of a total loss, Lessor may
demand Lessee pay Lessor the fair market value of the equipment or replace the
equipment within 15 days.
LIABILITY AND INDEMNITY.
A. Lessee shall defend, indemnify, and hold harmless Lessor, its officers,
officials, employees and volunteers from and against any and all claims, suits, actions, or
liabilities for injury or death of any person, or for loss or damage to property, which arises
out of Lessee's use of the equipment from any activity, work or thing done, permitted, or
suffered by Lessor conjunction with or about the equipment.
B. Liability for injury, disability, and death of workers and other persons caused
by operating, handling, or transporting the equipment during the term of this Lease is the
obligation of the Lessee, and the Lessee shall indemnify and hold the Lessor harmless
from and against all such liability.
INSURANCE.
A. Lessee shall maintain liability insurance, or self insurance, of at least
$5,000,000.00. Lessee agrees to insure the equipment in favor of Lessor with
comprehensive, fire, theft, and collision coverage, insuring the equipment in an amount
sufficient to cover the fair market value of the equipment in good condition and without a
deductible. Lessee agrees to obtain and deliver to Lessor a loss payable endorsement
on such insurance. This insurance shall name Lessor as an additional insured. Lessee
agrees that Lessor may:
1. Make any claim under Lessee insurance policy, or self insurance, for
physical damage or loss to the equipment, and/or
2. Receive any payment for loss or damage, or return premium, and
apply amounts Lessor received, at Lessor option, to replacement of the equipment or to
what Lessee owe under this Lease, including indebtedness not yet due.
B. All such insurance shall be primary for all purposes, regardless of other
insurance that may be available to Lessor, and shall contain a severability of interest
clause. In the event that Lessee fails to comply with this provision, damages in any
action by Lessor against Lessee for breach of this provision shall include, but not limited
to, the dollar amount of insurance benefits that Lessor would have received had Lessee
complied with this provision.
C. Lessee shall provide to Lessor with evidence of the insurance coverage
required by this Lease.
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DAMAGES. In an event not covered by Lessee's insurance as required by this Lease,
Lessee agrees to be responsible for all theft, damage and loss resulting, except for
ordinary wear and tear, from Lessee's use and possession of the equipment. Lessee
assumes the sole responsibility for proper and safe storage and protection of the
equipment during the term of this Lease. Notwithstanding the foregoing, Lessee shall
be liable for all damages to the equipment and for all other claims during the terms of this
Lease.
TAXES AND FEES. During the term of this Lease, the Lessee shall pay all applicable
taxes, assessments, and license and registration fees on the equipment.
DEFAULT. The occurrence of any of the following shall constitute a default under this
Lease:
A. The failure to make a required payment under this Lease when due.
B. The violation of any other provision or requirement that is not corrected
within 30 day(s) after written notice of the violation is given.
C. The insolvency or bankruptcy of the Lessee.
D. The subjection of any of Lessee's property to any levy, seizure, assignment,
application or sale for or by any creditor or government agency.
RIGHTS ON DEFAULT. In addition to any other rights afforded the Lessor bylaw, if the
Lessee is in default under this Lease, upon notice to or demand on the Lessee, the Lessor
may take possession of the equipment as provided by law, deduct the costs of recovery
(including attorney fees and legal costs), repair, and related costs, and hold the Lessee
responsible for any deficiency. The rights and remedies of the Lessor provided by law
and this Lease shall be cumulative in nature. The Lessor shall be obligated to re -lease
the equipment, or otherwise mitigate the damages from the default, only as required by
law.
NOTICE. All notices required or permitted under this Lease shall be deemed delivered
when delivered in person or by mail, postage prepaid, addressed to the appropriate party
at the address shown for that party at the beginning of this Lease.
ASSIGNMENT. The Lessee shall not assign or sublet any interest in this Lease or the
equipment or permit the equipment to be used by anyone other than the Lessee or
Lessee's employees, without Lessor's prior written consent.
ENTIRE AGREEMENT AND MODIFICATION. This Lease constitutes the entire
agreement between the parties. No modification or amendment of this Lease shall be
effective unless in writing and signed by both parties. This Lease replaces any and all
prior agreements between the parties.
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GOVERNING LAW AND VENUE. This Lease shall be governed by, and construed and
enforced in accordance with, the laws of the State of California, excluding, however, any
conflict of laws rule which would apply the law of another jurisdiction. Venue for
purposes of the filing of any action regarding the enforcement or interpretation of this
Lease and any rights and duties hereunder shall be Fresno County, California.
SEVERABILITY. If any portion of this Lease shall be held to be invalid or unenforceable
for any reason, the remaining provisions shall continue to be valid and enforceable. If a
court finds that any provision of this Lease is invalid or unenforceable, but that by limiting
such provision, it would become valid and enforceable, then such provision shall be
deemed to be written, construed, and enforced as so limited.
WAIVER. The failure of either party to enforce any provision of this Lease shall not be
construed as a waiver or limitation of that party's right to subsequently enforce and compel
strict compliance with every provision of this Lease.
CERTIFICATION. Lessee certifies that the application, statements, trade references,
and financial reports submitted to Lessor are true and correct and any material
misrepresentation will constitute a default under this Lease.
SIGNATURES ON THE FOLLOWING PAGE.
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Section 1:
Equipment Description: 1.
Equipment Description: 2.
Equipment Description: 3.
Equipment Description: 4.
Equipment Description: 5.
Equipment Description: 6.
EXHIBIT A
Equipment/Vehicle Schedule
2019 Nissan Altima
2019 Nissan Altima
2019 Nissan Altima
2017 Hyundai Santa Fe
2020 Nissan Altima
2020 Nissan Altima
1 N4BL4BV3KC127235
1 N4BL4BV1 KC234512
1 N4BL4BVOKC221010
5XYZT3LBXHG408878
1 N4BL4BV4LC201604
1 N4BL4BV6LC210207
IN WITNESS WHEREOF, the parties have executed this Agreement at Fresno,
California, the day and year first above written.
Lessee:
CITY OF ESNO,
4all' nia nic al c ation
O ALDERRAMA, Police Chief
Frdsno Police Department
APPROVED AS TO FORM:
City Attorney
By: "'
r� �2—
Name- T f P. ►�
Deputy City Attorney
Dated Z ` 7,�
ATTEST:
TODD STERMER
City Cler
By:� I I
Name.
Dated: ;2- 0
ADDRESSES:
Lessor:
MI O;TAU
, LLC,
a Ca7��
ny
By:
REYNA, CEO
Dated: r ��
By:
MICHAEL REWA, Manager
Dated: 11 'Z z Z Z—
City of Fresno Police Department Mi Oracion, LLC
Attention: Paco Balderrama, Police Chief Raul Reyna
2323 Mariposa 1811 E. Hedges
Fresno, CA 93721 Fresno, CA 93703