Loading...
HomeMy WebLinkAboutMi Oracion _ Fresno Police Dept Equipment LeaseEQUIPMENT LEASE This Equipment Lease (this "Lease") is made effective as of Septe mber 7 , 2015 , between Mi Oracion, LLC, a Califomia limited liability company (the "Lessor"), 1811 E. Hedges, Fresno, California 93703, and City of Fresno/Fresno Police Dept. (the "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 four pieces of equipment listed on the attached Exhibit "A," Section 1, commencing September 7, 2015 through November 30, 2016. Lessee shall make monthly payments of $387.33 for each of the six pieces of equipment listed on the attached Exhibit "A," Section 2, commencing November 17,2015 through November 30,2016. The total lease value is $51,900.22. The lease payments shall be due whether or not the Lessee has received notice of a payment due. The payments are due as follows: Vehicles Equipment on Ex. A Section 1 Equipment on Ex. A Section 1 Equipment on Ex. A Section 2 Period of Coverage Sept 7-Oct 6,2015 OctT- Nov 30,2015 Nov 17- Nov 30,2015 Payment Amount s 1,549.32 $ 2,801.70 $ 1,069.60 $ 3,873.30 $ 3,873.30 $ 3,873.30 $ 3,873.30 $ 3,873.30 $ 3,873.30 $ 3,873.30 $ 3,873.30 $ 3,873.30 $ 3,873.30 $ 3,873.30 $ 3.873.30 s51.900.22 Payment Due Date Sept 7, 2015 Dec 1,2015 Dec 1,2015 Dec 1,2015 Janl,2016 Feb 1, 2016 lÙl4ar 1,2016 Apr 1,2016 }l4ay 1,2016 June 1,2016 Jul 1,2016 Aug 1,2016 Sept 1,2016 Oct 1,2016 Nov 1,2016 Equipment on Ex. A Sections I and 2 Month of Dec 2015 Equipment on Ex. A Sections I and 2 Month of Jan 2016 Equipment on Ex. A Sections I and 2 Month of Feb 2016 Equipment on Ex. A Sections 1 and 2 Month of Mar 2016 Equipment on Ex. A Sections I and 2 Month of Apr 2016 Equipment on Ex. A Sections I and 2 Month of May 2016 Equipment on Ex. A Sections I and 2 Month of Jun 2016 Equipment on Ex. A Sections I and 2 Month of Jul 2016 Equipment on Ex. A Sections 1 and 2 Month of Aug 2016 Equipment on Ex. A Sections I and 2 Month of Sept 2016 Equipment on Ex. A Sections I and 2 Month of Oct 2016 Equipment on Ex. A Sections I and 2 Month of Nov 2016 Total Lease Payments 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 31,2015, March 3I,2016, June 30, 2016, September 30,2016, and November 30, 2016. 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 l0 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 17,2016, 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. All alterations shall be the property of the Lessor and subject to the terms of this Lease. REPAIR AND SERVICE. Lessor 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 reãsonable 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 upon 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 immediatèly notify the Lessor óf utry 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 from the Lessor, with the exception of normal wear and tear, unless otherwise provided in this Lease. INDEMNITY OF LESSOR FOR LOSS OR DAMAGES. Unless otherwise provided in this Lease, if the equipment is damaged or lost, the Lessor shall have the option of requiring the Lessee to repair the equipment to a state of good working order, or, in the event of a total loss, demand Lessee pay Lessor the fair market value of the equipment and replacing 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 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: l. Contact Lessee insurance agent to verify coverage or to have Lessor added as a loss payee; 2. Make any claim under Lessee insurance policy for physical damage or loss to the equipment, and/or 3. 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 pu{poses, 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. Unless Lessee provide to Lessor with evidence of the insurance coverage required by this Lease, Lessor may purchase insurance at Lessee expense to protect Lessor interest in the equipment. If Lessor purchase insurance for the equipment, Lessee will be responsible for the costs of that insurance, including interest and any other charges Lessor may impose in connection with the placement of the insurance, until the effective date of the cancellation or expiration of the insurance. The costs of the insurance may be added to Lessee total outstanding balance or obligation. 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 of 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 DEX'AULT. In addition to any other rights afforded the Lessor by law, 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. GOVERNING LA\ry 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 F'OLLO\ryING PAGE IN WITNESS WHEREOF, the parties have executed this Agreement at Fresno, California, the day and year first above written. Lessee: CITY OF FRESNO Lessor: MI ORACION, LLC, Dated: ATTEST: YVONNE SPENCE, CMC City Clerk Deputy Mæro .y1r'r+tocå -V¿lta5{"¿e tLl2'll1ç APPROVED AS TO FORM: DOUGLAS T. SLOAN City A B manda B. Freeman Dated: l^-T/l Title: V. P By: Name: Title: (Type or print written signature.) Dated: Deputy City Attomey //n/tr ADDRESSES: City of Fresno Police Department Attention: fNamel, [Title] 2323 Mariposa Fresno, CA 93721 Mi Oracion,LLC fAttention Name] 1811 E. Hedges Fresno, Califomia 937 03 a Califgni+.+unicipal corporation ITitle] EXHIBIT ''A'' Equipment Schedule Section l: Equipment Description: 1. Equipment Description: 2. Equipment Description: 3. Equipment Description: 4. 2014 Chevrolet 200 ID 2014 Chrysler 200 ID 2014 Chevrolet 200 ID 2014 Chrysler 200 ID 1C3CCBAB5EN21301O 1C3CCBAB5EN24662 1C3CCBAB1EN213329 1C3CCBABXEN213231 2G1WG5E31D1146836 2G1WGsE35Dr220596 2G1V/G5835D1227872 IC3CCBAB3DN671854 1C3CCBBBXDN73555O IC3CCBBB4DN7352I9 Section 2: Equipment Description: 5. Equipment Description: 6. Equipment Description: 7. Equipment Description: 8. Equipment Description: 9. Equipment Description: I 0. 2013 Chevrolet Impala 2013 Chevrolet Impala 2013 Chevrolet Impala 2013 Chrysler 200 2013 Chrysler 200 2013 Chrysler 200