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