HomeMy WebLinkAboutCommunity First National Bank - First amendment dated 12/10/2015 to fire equipment lease-purchase agreement dated as of 4/1/2015/5--to1-¡ û-n)
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FIRST AMENDMENT DATED DECEMBER 10.2015
TO F'IRE EQUIPMENT LEASE.PURCHASE ÄGREEMENT
DATED AS OF APRIL 1,2015
This First Amendment to Fire Equipment Lease-Purchase Agreement ("Amendment")
between Community First National Bank, a Kansas corporation ("Lessor"), and the City of
Fresno, a California municipal corporation ("Lessee"), dated December 10, 2015, will be
utilized for the financing of additional fire and police vehicles ("Equipment").
V/HEREAS, Lessee and Lessor desire to use the terms and conditions of the Fire
Equipment Lease-Purchase Agreement dated April 1, 2015 to form the contractual basis for
the amended financing of additional Equipment.
NOV/, THEREFORE, the undersigned hereby mutually agree, for consideration the
receipt of which is hereby acknowledged, as follows:
1. "Acquisition Period" shall be revised to mean the period commencing on the
execution of this Agreement and, unless mutually extended as provided herein, ending on the
earlier of (a) August 28, 2016, or (b) the aggregate leasing of $22,150,000 (Twenty Two
Million One Hundred Fifty Thousand Dollars) in Purchase Price of Equipment, or (c) the
occurrence of a Material Adverse Change (as defined below). Lessor and Lessee by mutual
consent may extend this Agreement for two successive one-year acquisition periods. Any
extension shall be memorialized in a written amendment duly executed by Lessor and Lessee.
2. "Spread Bid" shall be revised to mean: the spread in basis points ("bps") bid
by the Lessor which is to be applied to the Index in the calculation of the Rental Payments in
a Lease. The Spread Bid for leases of a five-year term is +55 bps and the Spread Bid for
leases of a ten-year term is +55 bps.
3. Lessee and Lessor desire to incorporate all the terms and conditions of Fire
Equipment Lease-Purchase Agreement dated ApriI I, 2015 into Amendment #1 unless
otherwise changed by this Amendment.
4. The commencement date for Amendment shall be December 10,2015.
IN V/ITNESS V/HEREOF, Lessee's undersigned representatives warrant and
represent that their Governing Body, either through direct board action or indirectly through
established policies and procedures, has determined that a real need exists for the acquisition
of the Equipment, and it is in Lessee's best interest to enter into this Amendment. The Lessee
and Lessor have caused this Amendment to be duly executed by their respective off,rcers who
have signed below,
lSignatures on þllowing pageJ
Lessee:
Clrv or FnesNo, a California municipal
ATTEST
YVONNE SPENCE
City Clerk
By:
Deputy
APPROVED AS TO FORM:
DOUGLAS T. SLOAN
By:
B M. Col
Lessor:
COMMUNITY FIRST NATIONAL BANK
J. Kaus
Title: Vice PresidentTitle : City Controller/Finance Director
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Deputy
RESOLUTION NO. 201 5-228
A RESOLUTION OF THE COUNCIL OF THE CITY OF
FRESNO, CALIFORNIA, AUTHORIZING THE FIRST
AMENDMENT TO THE EQUIPMENT LEASE.PURCHASE
AGREEMENT WITH COMMUNIry FIRST NATIONAL
BANK, AS LESSOR, FOR THE ACQUISITION,
PURCHASE, FINANCING AND LEASING OF CERTAIN
EQUIPMENT FOR THE FRESNO FIRE DEPARTMENT
FOR FISCAL YEARS 2016 AND Z01T; AUTHORTZTNG THE
EXECUTION AND DELIVERY OF DOCUMENTS
REQUIRED lN CONNECTTON THEREWTTH; AND
AUTHORIZING ALL OTHER ACTIONS NECESSARY TOTHE CONSUMMATION OF THE TRANSACTIONS
CONTEMPI.ATED BY THIS RESOLUTION
WHEREAS, City of Fresno, a Charter City and municipal corporation (the "City"),
is authorized by its Charter and the laws of the State of California to purchase, acquire,
and lease personal property for the benefit of the City and its inhabitants and to enter
into contracts with respect thereto; and
WHEREAS, the City has determined that a true and very real need exists for the
acquisition, purchase and financing of certain property consisting of two ladder trucks,
three engines, staff and police vehicles, and 320 radios for field personnel (collectively,
the "Equipment"), on the terms herein provided; and
WHEREAS, the Cíty entered into a Master Equipment Lease-Purchase
Agreement on April 1, 2015 (the "Lease'), to acquire, purchase, and finance certain
property; and
WHEREAS, in order to acquire such Equipment, the City proposes to enter into a
first amendment to the Equipment Lease-Purchase Agreement (the 'Amendment") with
Community First National Bank, as lessor, substantially in the proposed form presented
Date Adopted: 12l1ot2ois
Date Approvet'l2t 1 0t201 5
Effective Datè: 1A1012015
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Resolution No. 2015-228
at this meeting, and schedules thereto substantially in the form attached
and
WHEREAS, the City deems it for the benefit of the City and the efficient and
effective administration thereof to enter into the Amendment and attendant schedules
relating thereto for the purchase, acquisition, financing, and leasing of the Equipment to
be therein more speciñcally described on the terms and conditions provided therein and
herein.
NOW, THEREFORE, BE lT RESOLVED by the City Council of the City of Fresno
as follows:
1. Findinq. Council finds and determines that the terms of the Amendment
(including the form of Lease Schedule and Payment Schedule attached thereto), is in
the best interests of the City for the acquisition, purchase, financing, and leasing of the
Equipment.
2. Aporoval of Documents. Council approves the Amendment and attendant
schedules substantially in the forms presenting at this meeting, with such insertions,
omissions and changes as shall be approved by the City Manager, City Controller, or
Assistant Ci$ Controller, and approved as to form by the City Attomey's Office.
3. Authoritv to Execute Documents. Council authorizes and directs the Cig
Manager, Gity Controller, or Assistant City Controller to execute the Amendment, and
attendant schedules, and any related exhibits attached thereto and to deliver the Le¿se
and schedules (including exhibits) to the respective parties thereto, provided, however,
that, without further authorization from the governing body of the Lessee, (a) the
aggregate principal component of Rent Payments under the Lease shall not exceed
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$22,150,00; (b) the maximum term under any Lease entered into pursuant to the Lease
shall not exceed ten (10); and (c) the maximum interest rate used to determine the
interest component of Rent Payments under this Lease shall not exceed the lesser of
the maximum rate permitted by law or ten percent (1oo/ol per annum. The foregoing
authorization shall remain in effect for the term of the Lease.
4. Other Actions Authorized. Council authorizes the above named City
officers and employees to take all action reasonably required to effectively ærry out the
transactions contemplated in the Lease and schedules, including, but not limited to, the
execution and delivery of the certificates contemplated therein and to take all action
necessary in conformity therewith, including, without limitation, the execution and
delivery of any closing and other documents required to be delivered in connection with
the Lease.
5. Authorizino Citv Reoresentatives. Council designates and authorizes the
City Manager, City Controller, or Assistant C¡ty Controller, each acting alone, to
represent the City in carrying out the Lease until such time as the Council shall
designate any other or different authorized representative for such purposes.
6. Severabilitv. lf any section, paragraph, clause, or provision of this
Resolution shall for any reason be held invalid or unenforceable, the invalidity or
unenforceability shall not affect any other section, paragraph, clausê, or provision of this
Resolution.
7. Effective Date. This Resolution shall be effective immediately upon its
approvaland adoption.
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STATE OF CALTFORNIA )
COUNTYOFFRESNO ) ss.
crTY oF FRESNO )
l, WONNE SPENCE, City Clerk of the City of Fresno, certify that the foregoing
resolution was adopted by the Council of the City of Fresno, at a regular meeting heÈ
on the 10th day of December , 2015.
AYES
NOES
ABSENT
ABSTAIN
APPROVED AS TO FORM:
DOUGLAS T. SLOAN
City Attorney
By:
Deputy
Brand, Brandau, Caprioglio, Olivier, Quintero, Soria, Baines
None
None
None
WONNE SPENCE, CMC
City Clerk
By:
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