HomeMy WebLinkAboutC2005-534 - 10/25/2005 - ApprovedMASTER i,EASE PURCHASE AGREEMENT
BETWEEN
Tile City. of Corpua ChrbtL as Leaaee
and
_Bane ()1' America I.easing & C'apiml. [.lc_, -, Le~eor
THIS MASTER LEASE PURC.~A.~,A~P~EMENT (the Agreement), is by and between _Bano
C)( Xmenca I.ea.,an~t & ('upilaL l.k' , a ~b"~'ra't'[~' ~lh]y o~nnized 8nd exintin~ under the lttwa of the State
ol _ Delnware. _, pos~.-ssing a Certificate of Authority under Charter No. _ _ fr~xn the So:retnry of
S~atc of the Slat~ of 'l'exn~ as lessor {Lessor) whose nddress ia __555 Calif-crn~ 8tn:x"t, 4* Floor, San
Francisco. CAge, lO4 . 'and the Cits.' of Corpus Chrish, a political subdivision of the Stnte of Texaa n~
lessee (Cityl, whose address ia 1201 Leopard. Corpus Christi, Nuecea County, Texas 78401.
WITNESSETH:
WHERlr-AS, the City ~s authorized by law to acquire such items of penonal property aa are
nccded to cato.: out its governmental functions, and to aCClUim such personal pxoperty by e~ering into
lease with the option to purchase; and
WHEREAS. the City hm dctcrmined that it is ncc. c~ary for it to acquire under thia Als~__~em
ccrtmn items of personal property described hewn as thc Prop~y; and
WHEREAS, £.,__'~o_ r is willing to lease certain Property to the City pttrausm to thin Agreement;
NOW. THEREFORE, in consideration of the muttml covenants contained herein City and Leasor
h~.xeto recite and ngree as follow~:
ARTICLE 1. DEFINITIONS AND EXHIBITS
Section !.! Definitions. The terms defined in this Section. for all put~sea of this Agre~nent,
havc khe Ibllow]ng menni~Eu:
Additional T~xn~: Consecutive terms, each of a one-year fiscal period, for which 8. ~ with
~'spect to a Property Group remaina in effect tm. leas terminated by Levee. Eac~ Additional T~m
commenc~:s m the end of the Original Term or the preceding Additional Tm'm ~ conl~uaa fat a period
· ithm which all of the Leas~ Payments specified in Exhibit B will be paid aa provided in Section 4.1.
The Maat~ Leasc Agreement and ali Exhibits hereto.
B~inc's$ Day: Each day on which the City is open for business.
L'onmu:tor: E~h manufacturer or vendor from whom the City has orderod or comraO~__ for the
manufacture, delivery, and:or installation of the Property
2005-534 The City's designated representative for ad.,ini~m'in~ tM,~ Agreement is
! 0/2.q/05
.%121105-362 :e~ or designee.
IlaB¢ ol .%olericn I ea.,lng 1 1
Fi~", ~.'e~lF: [he [wel~c (1"! month fiscal period of thc C~[y which commences annually on
and ~Ms on thc follo~'mg Jul) :~ I.
Independent Counsel: An attorney dui)' admitted to the practice of law before the highest court of
Tcxa.~.
~tercst The portion of;my I. easc Payment design,ted as and comprising flxl~-rem as shown in any
Exhihi! "B" hereto.
I.~-~e: With rcspect to each l~y Crmup, this Agmornmt and the Schedule relating theme,
whtch shall constitute a separate conlraet relating to such Property Group.
L~--. paym~t: The payment of Principal and [m~r~t due from the City te I.~maor on ~ach
Payment Da~e aa ~hown on each Exhibit "B."
L,'-~ 'l'~ul: With respect to any Property Group, the Original T~,~, and all Addifiomd Terms
during which the related ~ is in effect as specified in Section 4.1.
Neg Procogls: Any insurance proceeds or condemnation award, paid with msp~ to any Property,
remmning after pliym~.~l Lh~-i~ from of all expenses incurred in thc collection tla~r~of.
No~-~i~pro~riittion: The failure of thc City Council of the City to approlafia~ mo~y for any
Fiscal Year sul'ficiml for the continued performance of a Lease by tho City with respect t~ the related
PTopc. rty Group, which may be evidenced by a bm:lg~"t ordinance or resolution which ptx~'bit~ th~ City
frra'n using an.,,, monies to pay the l.{m.se Pa.vmeats duc under such ~ with r~ m ~uch Pro~
Group for a designated Fi~7.al Ymr.
Ori~qn, l T~'m: The period from the date of execution of an Exhibit A with rmpect to a Pmpeaty
Group until lhe end of'the Fiscal Year which inclu_ch,~ the amc of execution.
P~rment Dat~: The date upon which any Lease Paym~mt ia due and payable aa provided in any
Exhibit "B".
Permitted Encumbrances: As of any particular time: (i) liem for taxm az~d =r- ,,,,da m~t then
delinquent, or which the City may. pursuant to the provisions of 8~-tlea '].3 hereof, permit t~ remain
tmpmd, iii) this AIveem~t and ameatdm~ts hereto. {iii) Lesaor's intermt in the Property, and (iv) any
mechanic's, laborer's, materialmen's, sttpplier's or vendor's lien or right not filed or perfected in the
manncr prescribed by law. other than an)' lien arising through a Contractor or which the City may,
pursuant Io Artlele 8. hercof, Ixamit to ~,ain unpaid.
prim.'ix~J: The portion ~fanv Lease Paym~t designated as principal in any Rxklbit "B" h~'~to.
Pr~crt¥: Individually or coll~'tiv¢l) as the context ngluir~ the personal property cl~gnatod by
the ('ity. which ia deao'ibot in one or more Exldbit "A% aa now or ~ ~on~titm,-~ Tho City may
lea~e-purclum: all equipmem it det~,,,,ines necessm3' to pmvicle essential aervice~, which ir~clu~m
c~mp~ han:lware and sofh~u-e.
P,og~y Grouo: Thc Property listed on any Exhibit "~," comprising a ~ pray. base or a
group of items, equipment, or associated produ~is.
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Pun~l~s~ Option Pric~: With respect to a Property Group listed on any single Exhibit 'Al the
amoum dcsign~ed and se~ forth oppositc ~ach Payment Date in thc Exhibit 'B" mlatiug to 8ueh Property
~ct~dulc: A schedule cormisting ol'sepanttc but like-number~l pages of Exhibits A nnd B which
havc ~,~n completed wilh rcspec! to a Property Group and cxecuted by Lessor trod City.
Spcc,ficazions: The bid specifications and/or purchase order pur~mnt to which the City has
ordered any Property from a Contractor.
Section 1.2. Exlalb~. The following Exhibits are attached to and by reference made a part of
this Agrecment.
~zhihit 'A': Property Group DeserlptiOL Erich Lease will have cona~utlvely numbered
Exhibit "A"s Each Exhibit 'A" b-ill describe the Propert~ Group for its Lease, includin~ serial
numbers when available, on consecutively numbered page~ A ssmple Exhibit 'A" is gttached and
incorporated.
F. zkihlt 'B': Le~ae Paymeat Schedule. F~ch Lease will have consecutively ~ Exhibit
'B% Esch Exhibit "B' will contain thc d~te and nmoum of e~ch Lense Paytm:m due for the
corresponding Exhibit 'A" Prolm'ty Group, the nmotmt of each Lea~e Payment allocating Principal mad
Imeresk the p, icc at which City may exercise its Article X option to p~ Lessors ~ in each
Property Group. and the due datc of each Lease Payment.
Lessor shall prepare Ihe Lease Payment schedule as set out in Section 3.2, and Contract
Adm,mstrmor shall verify it.
A ~q,uple F_,xhlbit 'B~ is aUac~ and ~ncorporated.
Ir. ghibit 'C": C~rtlfleate of A___,~am~ee. A Certificate of Acceptance signed by the Coutr~
Admmimrmor indicating that thc Prop~y Group described therein him been delivered ami ~ in
accordance with the Specificationa, and has been accepted by the City, the d~te on which Le~e Paymenta
shown in the page of Exhibit "B" relating ther~___o conuneno~ and that c~tain other requiremm~ have
been rn~ by the City. A sample Exhibit "C" ia attached and incorpo~__ed
Exiflblt "D": Opinion of Commd. A form of opinion of counael to the City aa to the
organization, v~-~, and powers of the CitT, the validity, execution, nnd deliwry of thin ~mt and
various rela~ed documents; the absence of liti~o~ion; and related matters. A sample Exhibit "D" is
F-xitlbit 'E': Requisition R~port City shall furnish Lessor an Kxhlbit "E" prior to ~ bids
for any Property Group unl,'.~ the item is on Exhibit "F". Approved Property List. The pm'tim agree that
no g,hlhit "E" ~mll be required for prop~my listed on Exlflbit -lin. Each Exlflblt "E" will in~lud~ the
propo~l Property Group, an estimated price for e~ch pi~e of Property, the ~ su~unt for ~h
p~ece of Property, the desired number of' l.x~ze Payments. and any olfie~ inform~ion ttmI City's Conlxact
Adminiztrator and an authorized agent of Lessor mutnally agrees to re:Id to Exhibit "E
Exhibit "E" is attached and incorporated.
I~hmit"F": Approved Property List. City will furnish Lesaor an Kxttiblt "F" listing all
P,operty 1~4g_et__,,,d for purchase during FY054}6. Lessor approves the lease pun:base of all Property listed
on Exhibit "!r., by bidding on and signing this contract. City will furniah I.~a~or'n Age~ n new ]~ldbit
"F" hy S~pteml:~r 30th annually, which lists all Property budgeted for p~ ,-hMng subsequent fiscal
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· .e. ar~. i.~r'a ~gent mast notify Contracl Adminimyator within 10 working d~y~ ~mau~lly ~ r~'ipt
.f Exhibil "'F"' ,f it refuses to provide financing for the lease purchnse of any Property list~! on Exhibit
"F". ottte~wise Lessor is deemed to approve the l*~.e purchase financing for all Property listed on
Exhibit "F' annually. Exhibit "F" is ~tnched and/ncorporated.
4s.RTICLE 2. REPRESENTATION, COVENANTS, AND WARRANTIES
Section 2.1. ~Oo',~-tsltlnn~ Coveinnnl~ ,,nd Warrasltles of the CRV. The City r~.p,,.ae~,
~xenants. ~ w~urants as follows:
la) The City is a municipal corporation and political mflxlivision of Texas, duly
organized ~ existing under the Constitution and laws of the Stme.
lb! The City is authorized under the Constitution and laws of Texas to enter ir~to tttis
Agreement and the transactions contemplated hereby, and to perform all of its obligations hn~tmder.
~c) The City Manager has be~ duly authorized to execut~ and deriver ~ Agrmmem
by tl'~ official action of the CiCa governing body, the City Council.
rd) In authorizing a~l executing this At~e~nent. the City hns con~. lied and/or will
comply with all public bidding laws gpplicnble to this Agl'~ement and the ncquim'fion of the Property by
the City.
~e) The City will not pledge, mortgage, or assign this Agrmmeng or its duties smd
obliE~tions hereunder to any other person, firm, or corporation ~xcept a~ provided under th~ t~-ms of this
Agreement.
If) The City will use the Property dttring lhe ~ Term only to p~form essential
gove~ t'unctions devoted exclusively to public uses.
'8) Upon thc request and dir~x~tion of Lessor. the City will take all afl'u,iu~JVe nc'tions
le_~all.x ~,thin its power necessary to ensure that the Interest portion of the ~ Pnyments cl~es not
I~.com¢ included in thc gross income of the recipient for t'edentl income tnx pttrposes under the Internal
Revenae Code of 19~6 (the Code) and Treasury. Regntntions promulgated thn~umin' (the
(h) Within five (5} Business Days of final nccept~ce of erich Pmpe~y Grm~ by the
Contrac~ Adminisuator. after delivery mid installation of thnt Property Group, the City will pm,~ide to
Lessor a corrrpleted and exec. ated copy of thc ~,hFnlt "C", Certiflcn~ of Acceptance, eot~,.~g to
that P,~,~ty group, together with compl~ed and executed copies of the ml~,'~ Kxlnibits 'A" and
(il Upon the ex~ution of this Agreement, ut~on any m'negglmen~ tl~mof, and on the
annual anniversary of the ex~ution htn'eof, the City will ~,,ovide the Lessor an opinio~ of its legal ~otms~l
in substamially the fo,,,; of Exhibit 'D."
(j) Upon the req,_,~t_ and direction of Lessor, the City will submit to tl~ Sect'~axy of
the lr~sary an information re'porting statement at thc time nnd in the fu, m ~qttired by the Code and
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(k) Thc City shall takc uppmpriatc official ~'tion by its gowrni~ body to iq~mve thc
:tcqu,smon and financing of any Property Group under thc terms and condition~ ofthi~ ~mt.
Section Z.2. Reor~e=t~lo=, Covemmt~ ud W~rnmtk~ of l.,~of I_¢~sor rqare~m,
covenants, and ~arrants us follow, s:
(a) l.,x, sor is u corporation duly organized, ~isting and in good =bugling under and by
· 'inue ofth¢ la~.s of the State of Texa~ or is duly qualified and in good standing a~ a fortfign corpongion
.mthonzed to trarm~ct business in the State of Toms; has power to earn' iuio thi,~ A~,:,:~m~ is po~as$~
lull poxx. er to own and hold pevzonai property, and to I~ thc sarn~ cngagm in tho lo~ing of personal
,~,Ola~nv such as the Property in the ordinary course of business; and has duly authoriz~ the ~xecufion
.md &livery of this Agreement and all addenda thereto.
(b) Ncithrr the exccution and delivery of this Agre~n~nt, nor the fulfillmmt of or
,:omphance with the ts~'ms and conditions thereof, nor the cormimw:*tion oftl~ h,,,~m:tion~ conI~latod
~her~b). conflicts with or results in a broach of' the terms, conditions, or provi~ona of `my r~triCdon,
agreemem, or mslxument to which I.essor is now a puny or by which ~ is bound, congitmm a
clelauh under any of Ihe foregoing, or results in the creation or impo~tion of ,my lira, ctmrg~ or
~'m'umbrance wh~:~'ver upon any of' the prt'q~rty or as~z of Lessor, or upon tho Pmpea'ty eatc_-¢~.~
Perm,ued Encumbrances.
~ c) Lessor must not issue Certificates of Participstion taxi ~ ag~-,,,~ thst City ~hall
no~ bc reqmr~t to provide any disclosure inlbnrmtion under Securities &Exc. Jum~ Commi~udon Rule
15, c) 2-1:
ARTICLE 3. LEASE OF PROPERTY
8eetloa 3.1. Aeo~l~m of Proom'W. During this Agr~ment when City dmires to less~ s
P~h~'rty Group fi~rn Leuor, Contract Administrator shall couqAete ~n ExMhit "E", Requisition Re~g~rt,
which includes the Property Group, ,m estimated price for ~ pieco of Prol~ty, I~ b~lges~___ amount
for the Prolx'~. · Group. and the cleared number of Le~e Paym~m for the Property Group.
For any property not on thc annually gpproved Extfibit "F". Leaga' must advi~ the ~
Admmi~rgtor in writing w~ i..c~or will lease the Property Group to City within ~ (3) buaim~s
days after rec~pt of a completed Exhibit "E".
C'~ty will inifiale the bid process to purchase thc Prcq~a'ty Group. Upon ~ of bid~ `md ~nu'd
by Cny ('ouncsl of'a conm~ to purehule City ~mll notify Lessor in writing of the Property Group cost
and estim~Ied delivery, period, m's:l Le~or shall execute an Exhibit "A", nnml~md ~ the
Lease Numt~r. ami forward i~ to the Contruct Administrator.
II City so desin.'s, or il' Les_mr chooses not to lea~ a Property Group to City or daoosm not to
lea,sc Ibr ~he number ot' Lr~sc Payments City requested. City may le~se the Property Group from any one
else ii chooses.
Section 3.2. Prm~rtv l)dlv~'w. I~m~t~tio=. Upon Lessor'~ writtm sppmv~ of`m ~it
"E" L~ ~1 ~de Ci~ ~ ~ ~i~ ~ Nm~ ~ C~ ~ ~ ~
wo~in$ file ~ of ~hibi~ 'A" ~ "B', ~ fo~ a ~y of ~ ~ ~'s ~~
~~. ~ d~iv~ ofa ~y Gm~ to Ci~, Ci~ ~1 ~ ~ ~ ~ ~
~mpli~ wJ~ ~fi~o~. Wi~n ~ (3) ~ ~ ~ ~ C~ ~~ ~
~s ~ ~ of~e ~ ~up, Ci~ ~11 ~1~ ~ ~o~ ~ ~ 'A'
~d "B~ ~ will pm~de ~r a co~l~ ~ ex~ ~M~t "C~ (C~fifi~ of A~).
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· .essor mu~ pay a Contractor, or reimburse City tbr any payment it made to a Contractor, for a
ISropert.~ Group on the same day that the Amortization Schedule Exhibit "B" begin~ which muat be
within three business days of receipt of all documents from the City. Contract Administrator muat
provide I_~,'~r, vna lO.l, satisfactory Io Lessor. the following:
va) an Exhibit "A' and Exhibit "B" executed by City and Lossor,
ibi mi Exhibit ~C''' execuled by City;
,c) a motion, or other evidence, showin8 official action taken by tbe City Cotm~ to authorize
acquisition of the Property Group on the terms provided in E,rhlblt
,d~ ('onu'aetor invoice(s) and/or bill(s) of sale r~lafin~ to tho Property Otoup, and ff tho
,nvoices have been paid by City ~widence of payment thereof, and if applicable, evideace of official inteet
;o reimburse such payment as required by the Regulations;
te~ as applicable, financing staternen~ executed by City aa debtor ~d/o~ the original
.x-rtificate of title or manufacturees certificate of ori~,[u and title application if any of the Propa'ty C_:axmp
~s subj~'t to certificate of rifle laws;
tf) u co,,,pieted and executed Fora, 8038-G or -GC or evidcn,~_= of filing timreof with the
Secretary or Treasury; and
any other ckx:uments or iici'ns reasonably required by l.~mor.
Simultaneously with the delivery of thc Property Group, Leaaor aball cooperate with the City and
thc Caty shall take all actio~ neceaaary to vest legal title to the Property Group in the City, and to perfect
a sa:unt3 interest therein in favor of Lessor or a person, fi.a, or corpor~ion delfignated by Lmaor.
9,'sthan three (3) business days of Lessor's receipt of the documeots listed above in (a)-(g) in form
and substance satisfactory to Lessor, Lessor shall make full payment to Contmolxn(s) of all futvl~
applicable to the ar. cept~ tSmpcrty Groups by either wire transfer or overnight delivery of a check .t tl~
direction of the Contract Adminiahator. If the escrow agreement deacribed in Section 3.6 ia mill _~td
Lessor wall consent to a diabursement from the ea.ow ac. eom for payment of ail funde applicable to the
accc~t~ Property Group within three (3) business day~ of Leasor's receipt oft~e documo~ ~ in (a)-
(ga above ~n form and subetance ~mtisfactory to Lessor.
Seetiom 3.3. Le~e. Lessor h~,~by leases all Property nmci~ subject to this Agrcom~t to the City,
and the Cit')., hereby lc~cs such Property fi'om Lessor, upon thc terms and conditions ~et forth in thi~
Lxa~:
Section 3.4. Polltvliolt and Enknrlp*~t Leasor hereby covenants to provido fl~o City during the
T~.~-m of this Agreement with thc quiet usc and cajoymcnt of thc Property, and tho City will during the
Tcm~ of this Agreement peaceably and quietly have and hold and enjoy thc Property, without suit,
t~oabic, or hiTtclranee from Lessor. except as cxpreaaly set forth in this Agroemeotl- Lesaor will, at ~
rcqueat oftbe City and al the City's cost. join in nny lesal ~don in which thc City aaaerts its ri~rt to such
f~,ession and enjoyment to the extent Leasor lawfully may do so.
Section 3.S.l.~s~or'~ ,4~cg~m to Pronertv. The City agrt~s that I.cnor m~, at all nmsotmble
ames examine arid inspect the Property. The City further agr-~,,~ th~ Lcasor will have sach fights of
acccss to the Property as may he reasonably necmsary to cause the proper mainmnm~ of the Property in
the excnt of fmhLre by thc City to perform its obli?tions hereunder.
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.e~t~lou 3.6 Alt~'~lv~ pr-e~l,,r~. I~-~'o~ ,~,~m~m,~t- N~,.~i~ ~ ~~ of
~tion 3.2, if, u~ .~t by ~r ~ Ci~ M to ~y ~ Gm~ m ~ ~ ~ I~ by
.=~hhshmg ~ ~t t~m which the P~y
;~[ ~d Ci~ will imm~imely c~l~
~m~v GmS. (b) ~ amour ~i~ by L~r into the Egmw A~ ~1 ~ a 1~ ~ ~r
'o ~ ltv wh~h will ~ ~d by ~ ~ Pa~ d~
~no~ ~l~ng ~ ~c ~y ~ ~11 have
ff L~'s ~R into ~e ~mw Account
Exhibit B co~ing u~n ~e ~it of fun~ by ~r
m an E~ro~ Ac~t will ~ ~id to City. L~r must not
~f ~ ht~ fads m ~ all ~) pm~d~ tbr by
mfi~c~ [,~ ~r ~d m~ ~ ~ to ~y
L~ Pa?nen~ m~ k' ~ju~ to provide for
~ ~,n by ~he Con~t Administ~or ~ an authofiz~ ~t of L~r.
ARTICLE 4. TERM OF MUNICIPAL LEASE
S~tio= 4.1. Lell~ Term. This Agree~nmt will b~ in ~
~uli~
for a T~ c~mm~8
thc L~r may
~ ~11
in ~tt~ ~ ;t ~=h~ ~t to ~c.~' ~e A~ or ~s~ ~ m~i~
~quis~tio~.
Seetioa 4.2. Termi,,~oa by ~e C~. ~e ~ ~ ~ m a ~t~ ~ ~
will ~ in e~ ~r t~ ~ T~ ~ for ~h of~ ~fio~ T~, ~ ~ E~R "B",
~1~ ~mm~ ~or ~ by Ci~ ~ pmvid~ in ~is ~ Not I~ ~ ~ h~ ~
( 120} ~).s ~fo~ ~e ~d of~ ~1 T~ or ~y A~ifi~ T~ Ci~ ~y ~ve ~ ~ m
Le~r m ~in~ s~h ~ ~ in ~ch ~C ~ Le~ ~ ~ m ~ ~ ~ ~
will te~e and expi~ ~ the ~ of such ~ T~ ~ ~ifio~l T~au~ ~ ~ ~ ~ ~ d~ of
~ ('it,s ~ notice of t~i~ion. ~e City may eff~t ~ t~aii~ by ~ ~ ~
which ~x e ~l ~ ~id m or ~fom the ~d of t~ ~ ~t ~ T~ ~ ~fi~ T~ ~
~e ev~ of te~ion of a !.~. the City ~11 comply wi~ Ihe i~~ of ~ p~ ~
Sect/on 4.~. l~ff_,~_, of Te, r~l-~. Upon t~i~on of a ~ ~& ~ m ~ m~
~y ~up. &c City ~11 ~ ~ ~iblc for ~ ~ of ~y ~fi~ ~ ~
~ming d~ wi~ ~ to s~in8 Fi~ Y~ ~l if~ Ci~ ~ ~ ~ ~ ~
~nve~ m L~ m ml~ i~ in~ in ~ ~y Gm~ ~ ~ (10) ~ ~ ~ ~ of
t~i~ ~e ~~ will ~el~ ~ ~tiv~ but ~ Ci~ ~R ~ ~~ ~ ~
~ of ~ ~ to t~ ~o~t of the ~ Pa~ ~ ~min~ ~ ~ ~ p~ of
ExklbR "B" at~b~hle m ~ ~ of~ a~ ~h ~ (10) ~y ~ d,,~ ~ ~ ~ ~
to ~c ~ ~tio~ ~d f~ ~y o~ Io~ su~ by ~r ~ a ~ult of~ C~a ~ m ~e ~
~l]ons es ~ui~.
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~J~c'tiom 4.4, Term~lo~ of ~ Term. The Term of each Lea~ will tetminat,~ upon the
,~ccurrencc of t~c first of the following events:
(al tht, tenninadon thereof hy thc City with respect to the rela~d Property Group in
.iccordancc with Section 4.2:
(h) thc exc~:xse by the (.'it)' of its option to purchase l.~m~s ~ in tl~ mlamd
I~ropcny (iroup pursuant to Article 104
(c! a default by the City with respect to the mimed Pmpe~ ~ ~d Le~or'B
election to t~-~rninate the Le~se with re~ec~ to such Property Gronp pu~u~nt t~ Artl~ 10.; or
(d) the payment by the City of all Lease Payment~ and ~11 oth~ ~mom~ ~uthoriz~d or
required to be paid by the City hereunder with respect to the related Property Group.
Section 4.~ Ttrn~nntl~n Of Aaq'~m,~t Either Le'yJor or City may tm'minale flfi,~ Agretment aa
to any fia'ther financing~ hereunder at any time after the expiration of the Origimd Tet'm by giving 90 daya
vo']tten notice to the other a~ set out in 8ectlou 13.1 herein. Notwi~g tl~ h~rn~on, the
Agreement will remain in full force and effect with resp~ to Leaa~ outstanding aa of tho da~ of nuch
tel'minltlioll, alltJ 8t~3h L. ea~.qe~ may tca'filinate only aa provided in StOlon 4.4 hereim
ARTICLE 5. I,EASE PAYMENTS
See~ol~ 5.1. ~ P~v~t~. City agrees to pay Lease Payments during ~ ~t ~ ~
~o~ s~fi~ in ~h E~ "B". L~r ~1 in~i~ Ci~ money wi~ ~h ~ ~ng ~
invoic~ U~8 a f~ ~ m by ~ Con~ ~~, ~ ~'a ~
City ~1 ~c m~y ~ on ~e f~ ~min~ ~y of ~ ~; ~, ~ ~
Adm,ni~or ~m ~ fi~ W ch~ ~ parrot ~e ~ ~m ~ on ~ ~ ~ ~ ~.
All L~ Pa~ m~ ~ ~d ~ ~ ~ im offi~ m ~ ~ ~fi~ ~ ~ ~ ~h of
~is L~. or U~ ~h o~ ~(s) ~ ~fi~im) to which ~r ~ ~i~ ~ ~ ~ ~
~sfi~ ,n ~ I I.. ~ s~h place ~ ~h ~i~ ~y ~ by ~ ~fi~ m the ~
~mimS~. ~ Ci~ ~11 ~y ~ ~ ~ ~clusively ~ ~ l~lly a~le
t~lb~ in ~w~i mon~ of~e Uni~ S~ of ~c~ l~ ~ ~ m ~ ~
fo~ ~v ~y ~up ~ ~ ~ ~e of ~fs ~t m ~ ~, if~ ~
~r~mm~ d~fi~ in S~ ~6 is u~liz~. ~ the ~e ofL~ ~t of~ ~&~ ~
Seetlo~ 5.1. Current E~m~e. The obligmions of the City under ~ Agreement, including its
obligation to pay the Lease Payments due with respect to the Property, in any Fiw~l Year for which this
Agreement m m effect, constitutes a currenl expense of the City for such Fiscal Ye~ and doe~ not
cor~mute ~n indebtedness of the City within the meaning of the constitution ~ ~ of Text. Nothing
herein corunitutes a pledge by the City of any taxes or other monies, other tlum monim currently
appropriated from lime to lime by or for the benefit of the City in the annual Imdgot of' the City ~ the
proceeds or Net Proceeds ofthe Property, to the payment of any ~ Paymem or ottmr mnount cowing
duc hereunder.
18
Seetlon .n.J. Interest Comnonent. A portion of each Le~e Payment is paid ns and represenm the
~a~mcnt ol'lntere~. Exhibit "B" se~s forth the Interest component of each Lea~ Paymm~L
L~sor agnes that the int~'~st component for ~ach Property Group be estabtiahed as follows:
Amor~zalion Period
12 months
24 month~
months
months
~2 monks
48 months
~ monks
"2 months
144 months
120 months
Applicable Imemst Rate
~ tax.*ex~.,~t in~u:r~d"t,eOenue ~ as report~! on
Bloomberg.com
rnXe~L mx-exempt insuredX4~dmue as report~ on
Bloomberg.com
~ tax-exempt tome'es revenue as repot't~d on
Bloomber~.com
ratect, tn.x-exempt mr~u~ ~ as ~ on
Bloomberlgcom
3.30~basis ~ m~~ ~ ~ ~
Bloomber~.com
g.00~basis point~~ the 5-y~ar triple-A
rate(t, tax-eX~ppt ]rl]Sm'~d revenue ~ as relx) _r)~rl_- on
Bloomberg. com
rated, tax-exempt ~nlZ~ecl revenue bonds as ~ on
Bloomberg.com
22.70__basis poin .~v .'~ad~ the ~ 5-year triple-A
rated, tnx-excrn,nt irt~nf~l revenue as ~ on
Bloomberg.com
Curr~nt National Bo~d Yields - the current 5-y~ar Ixiple-A rated, tax exempt
revenue bonds as reported on Bloomberg. com.
FI~ lnt~=st Rate will be calculated on the basis of a 360 day year.
19
tgam.s~ ~ls obligation to make such Lease Payments required under this Agn::~eat. Thc City'., obligation
· o 'nagc [ ease Payments during an? Lease Term shall not be abated through ac.~idm~ or unfores~l
,:irc~m~smnces. However. nothing herein may be construed to release Lessor fi'om the perfonnm~ of it~
· ~bhgal~ons hcxe~tnder;, and il' Lessor lidls to pcrtbrm any such obligation, the City may institute mw.,h l~al
tcl.m against Lcss~r as the City m. aL deem necessary to compel the performanc~ of ~w.,h obli~m~tion~ or to
· ec,~vcr damages therefor.
$t'etlo, ~ No Prt'ml~t pmaitv.
Group without paying ~ny prepayment penalty.
The City reserves the fight to prepay any Property
S~etloa 5.6 No O~
Principal as set out herein.
The City will pay ~r no oth~ f~m ttmn tl~ Inmrmt and
ARTICLE 6. INSURANCE AND NEGLIGENCE
St,,etlon 6.1. Ina,ral~. In lieu of providing comm~,,.ial, third pm'ty inmn'ane~ for liabih'ty
,md property damage, the City's obligation~ under $tn:tlon 6.4 hereof m~ getmal ma~'ured obligafiona of
the Cit.,, that will be paid from the City's operating funds, subjec~ to agorogfiation~
Sectloa 6.2. Worn' Commtio~ Ilasnme~. If required by Stare law, ~ unl,'~ self-
tnsurance ts provided by I~e City, as evideaced by a written certificate apeeifyin8 tl~ tams and
thereof deliw-'red to Lessor, thc City shall carry, worker's compensation irmurane~ covering all
on. m. near, or 'about each Property. and upon request, ahall furnish to Le~aor e~tific..a~ mfid~;ia8 ~.~h
coverage throughout the period ~vhen thc City is required to make Lease Paymenl:~ ~ respect
$tn:tlo~ 63. CitY'S N~llsmne~. The City aa~urnes all riaka ~ liabilities gu~ l_,~s__ or dama~ to
any Property and for injury to or desth of ~ny per~m or dmnage to any In'open'y, in any rammer ~
otn of or incident to any po~emon, uae, operation, condition, or stm'a~ of any Pmlm'ty by ttm City,
whether such injury or death be with respect to ag~nt~ or employ~:s oftl~ City or of thircl partita, and
whether such property damaga be to the City's property or the property of ottm~ Th~ City tmreby
aasamc's respons~ility for and agrees to indemnify, i:,rote~ aave, and ke~ tuamlesa ~ fixnn and
~g~,nst any and all liabilities, obligations, losses__, damages, penalties, claima, amiona, co~t~ mad ~pegu~a
(includmff rcaaonable attorney's feesl of whatsoever kind or natul~ imposed on, inmm'ed by, or ~
agains~ Leazor that in any way relate to or arise out of the poase~ion, use, opan~tion, condition, or stmat~
of any Property by the City. unlma caused by Lessor or it~ agents, to the maximum m~em l~'mitt,,,~ by
iax~. Thc City ~mll not be required to pay any federal, shsi. e. or local income, inheriiaac.~ ~,
succession, tmsfer, gift, franchise, gros~ receipts, profit, ex _c~s__ profit, capital stoc~ corpom~ or otl~r
simila~ tax payable by L,-~or, its auccessors or assigns.
The assumption of nsk provided by this Section is only for thc benefit of Leeaor, or its a~igrsee
pursuant ~o thc terms of this Agreement, and mum not be construed or d__,'~'m_ ed to confer on any third
party, any right or claim ~,2~insa the City for damages. Iossea, or other payment sri~ing ou~ of or indd~t
to any possesaiort, use, operation, condition, or storage of the Pr~x'~.
Seetioa 6.4. [l~a~,,~ to or l~ractl~ ef Preml~l~. If sfter delivm7 of azry ~ to the
City, such Pml~rty is Io~, ~tolen, destmy L or a maged beyond repair, City
i:mlcticable alter ~m:h event either.
(i) replace the same at the City's sole cost and expense with Property of equal or grm~ value to
the Property immedistely prior to the time of the ios~ me~, ~u~ repli~em~ ~~ to
bc subject to Lessor's rcasonable ~pproval, whereupon the replacemer~t will be substihrted in this
L¢~ bv appmpriale endorsement; or
20
l ii~ pay the applicable Purchase Option Price of thc Property as set forth on Exhibit
Fha. ('~ty shall notify Lessor of which course of action it will lake within fifteen (15) days after the lorn
~ccurrencc and shall complete the action within six (6l months of the loss occurren~, provided if City is
]o~ :r. ,lelaull hereunder and has not temfinated an.,.' t.ease under Set, rio,, 4-~, Lessor may agree to
~'xicrts~on of Iht lime for perfom~ancc under clause (il il' the City provides evidence th~ the ~placement
,'roneny ha~ been ordered.
If ~he City rails or rcl'u.s~s to noti .fy Lessor within the required period, Lessor may dechtm the
t'urcha.,,e Option Price applicable to the Property immediately due and pay~le by the City. The Net
P~x'eeds of all insurance payable with respect to the Property shall be available to the City and will be
· ~sed lo discharge thc City's obligation under this Section. On payment of the Purctmse Ol~ion Price., this
Lear, e will no Iongn' apply to thc Property and the City thereupon becomes entitled to tl~ Property AS IS,
WI FHOU I' WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTI~-~ OF
VIFRCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR F~ FOP, THE
LISt/ CONTEMPLATED BY THE CITY, except thai the Property must not be subjec~ to any lien or
~mcumbrm~ce created by or arising through Lessor.
ARTICI.lr. 7. OTHER OBLIGATIONS Olr TH]~ CITY
Section 7.1. Use; Permits. The City shall obtain all permits ami licenses necesnnry for the
installation, operation, poss,"~ion, and use of the Property. The City shall comply with all stat~
federal laws applicable to the installation, ~ posse~on, and operation of the Property, md if
compliance with any such stair mdnd federal la,,,, r~luir~s changes or ndditionn to be mnde to tho prol~rty,
st~'h changes or additions shall be made by the City at ils expenso. City afx~es thnt if C-'ity is r~o, ttimd to
cleli~r any item of Property to Lessor or Less,__ ,r's agent, the Property shall be free of all substnnc~,__ which
are rcg,,!~,'.ed b? or form a basis for liability under any Environmental Law. City shrill comply with all
license and cop.wight require-meres of any software used in connection with the Property.
~ 7.2. Maht~am{~ of Proo~r~ In, me CRv. Thc City skmll txmin~n, pt'em:aw~ md keep
the Property in good repair, working order, md conditiorL, md ~all mmire all ~ and r~lacemeras
nec~ry to keep the Property in ~ch condition.
Seetlo= 7.3. Tast~ Other C,~ve, r~ar~"ml Chtrm~ =~ U~;i~ ~. ~ ~ ~y
linfi~ by ~is ~ t~ Ci~ ~1 ~y ~1 c~ of~y ~ ~ ~ ~ ~y i;,,,o ~ly ~
or i~'i~ a~i~ ~ City ~ ~ to the ~, ~ L~ ~ ~ ~ ~ ~ ~
~ome due ~fi~ ~ T~ of ~h L~. ~e ~ w~ ~ ~e ~b~ ~ ~ ~~t ~
~n~ ~d ~ ~ for ~ pu~ ~d ~ ~~ ~ ~e ~ ~ ~ of ~e ~
n~ H au~ h ~ ~m ~ v~m p~ ~ if ~r ~ Hy n~ d ~ he
~ ~ ~ ~e ~, R sh~ n~ ~ such ~u but ~ p~ fo~ n~ n~ ~ ~e
Cont~ A~~r. ~e City will ~ ~y w~ due ~1 ga% ~, ~ ~, ~ ~,
tel~. ~ o~ c~fl lawfully ~ or I~i~ ~i~ ~ Ci~ i~ ~ ~ ~
]a~x ~l]y ~e ~y ~y ~v~l ~y for public im~v~ ~ ~y ~ ~ by a ~ ~ ~
The City may. at its own CXlX'nse and in its own name, in good faith come~ any such l~xes,
ass~ssmeml~, utility, and other charges and, in the event of any such conte~ may pea:mit the t~x~,
ass~,smen~ utility, or other charges so contested to remain unpaid during lt~ per/od of ~uc, h cont~ md
an~ ~laeal then: from unless Le~or shall notify the City that, in thc opinion of~ Counsel, rite
basis for which intuit be expressly detailed in the opinion, by nonpayment of any Imch items the into'mt of
21
.~'s~or m the Prol~rty will be m~ally endange~l or the Proporty or any pm't th~'~of will be subject to
'os~ o, i'orfoitur~, in which evont thc City ~hall promptly pay such taxes, ~,--m~t~, utility or other
,:h~-s or pro~id~ l.~asor with full security ~g-~rm any loss which may r~ult fzom nonpayment, in a
~brm ~lisl'~to~.' to Lessor.
Thc Property ar4mred pursuant to this Agreement is under the sole poas~fion and exclusive use
ffthe ('it3.' as pan of the Citys gove~,unental services in furtbenmce of im public pmpo~. Th~ City does
.~ot muk¢ any representation, implied or otherwise, regarding the exemption or taxability oftbe Prop~ty
for purposcs of ad valorem and personal property tax, ion. All UCC ~tat~t~, financial stat~n~mt~
or instrmne~t~ ~ of record to reflect Lessor's l~terest In the Proper~ mm't m ~
AJl properD' made subject of this UCC filing ~re owned by and nnder the sole and
exclmive nsc of the City of Corpus Ciar4stL · polllJcal nbdlvlakm of the State of
Texas, and are used as part of the City's governmental servlce~___ In furtherance of Fm
public purpme. The City tuerts all exemptions provided for lmfltkal sub~ivlsions of
the State of Texas as authorized under the Constimflo~ and laws of the Stnte of Texas
s~alnst the asamame~t, levy, or ehar~es for ad valorem tnxntlon, perso~nl property
taxation, or any other charges.
Seetlo~ 7.4..~h~i_~__. If the City faih to perfu.u any of its oblig~ions under this A_.-ticle,
Lessor may, ~t is no1 obli~o_t_,yl to, take such s~tion as may be neceasary to cure m fifilu~ i~luding
the advancem~m of money, and the City is obligmed to repay all soeh sclvmm on clm~nd, with ~
al the rate ofthe existing loan or the mximm rate p~t,,fitted by [aw, whi~ is ~ fi'trna tl~ ch~ of
the advam-e Io the date of repayment.
ARTICLE 8. TITLE
Section &l. Title. During the Te~, of each Lease, and so long as the City ia not in default under
Article 12., legal title to the Property and any ~nd all repairs, repluea-m,-n~ s~stinaiona,
m~4ificaIions to the Property will be in the City. Upon termination ora Lease trader Section 4,2 or after
delimit of the City, full and unencumbered legal title to such Properly Grou~ passes to Lessor, if so
required m writing by Lessor, and the City shall have no further interest therein. In either ofsu~
thc C,tv shall execute and deliver to Lessor such doettments as Lessor may nmso~nhly requ~ to evidmce
t~, passage ot legal title to such Property Group to Lessor and the termination of the Ci~s interest
thereto, and upon request by t.e~sor. City will deliver posse~ion of the Property Caxmp to Lesaor in
accordance with Section 12.3. Upon termi~nfion ora Lease with respect to any ~ Gn:mp thm~
exercise ,~f the City's option to purchase pursuant to Artle~ 10. or through payrnnat by the City of all
Lease Pa.vm~mts and other amounts relaling thereto. Lessor% security and all otlx:r int~est in such
I~ty Group t~,,.inams, and Lessor shall execute and deliver to ttm City m di~ac~ as the
Comract .~tdminisirator may reasonably request to evidence the termination of Leasoffn security or other
in~crcs, t in such Property Group. In thc event of a default or termination of a Lease, legal title to the
Property pm Io the Leasor only il'the Lessor $o requests.
~ ~. ~ ~ Lessor has and m a security intezest una,,,- the Uniform
Commercial Code in the Property, the p,~ceeds ~f and ali repain, r~pla¢-~n,'nt~ sul~titulio~ and
modifications then.-to or thereof made pursuant to 8eetlou I~. in order to secure the City's payment of all
Le~c Piymems due during the Term ore,ch Le~e ~nd the paff'o~c~ of all other obti~on~ lm'ein to
be performed by the City. In the ex'mt such Property is a motor vehicle., ~ may l~:luiro the smo of
registration to note Lcssoes security interest on its records and the Certificate of Title for the vehiclo. Tbe
City. acung through its Contract Administrator, will join with Lessor in exeoxting such financing
saaternents or other d~cuments 'and will perfom~ such acts as Lessor may request to establish and malmain
a · ahd ~.cufit~ interest in the Prolx~, All UCC sLntements must indicate th~ rifle to a Property Caoup
s iq thc I~ ~t) and exempt from ad valorem taxation as public property used for a publk: ~ under the
:onstitution and laws of the State of Texas and contain thc bold languag~ of th~ indc-,nt~ paragraph in
Seelion '/.3. 1£ ruquemetl by Lessor. the City will conspicuously mark thc ~with Ic~t____erinlg labels,
ir lagx as ~tre reasonably approved by the Cily Manager. and maintain such rrlarking~ during tl~ T~rm of a
'.ease. ~ as clearly to disclose L__osso__r's security interest in the Property. If ~ requir~ ~ Certifie. a~
~f l'iflt, it, note Lessor's security interest in a Property. upon payment in full by City of all ~
?a.vm~,ts and othe~ related amounts. Lessor must give Cily a written rel~.s~ of ~ semuity ~
~o ~hal ~he Certificate of Title may be reissued ,n the name of City without any aemuity ~
Seetto~li.3. Ll,m. During the Te,. of a Lease, thc City shall not, din:ctlyoriadireedy, mamlsg
,ncur. assume, or suffer to exist any mortgage, pledge, lien, charge, enou. rntnan~ or ¢l~m on or with
n:spect W the Prop~-rty. other than the respective fighl~ of Lessor and the City as herein provided and
Permitted Encumbrances. All Property is cxempt from local l~l valorem tax.ion as Frvl~rty owned by a
nohticsl sul~iiwsion and used for public purposes. Lessor shall not pay or incu~ any ~ ~se~mne~,
~r ~ax on any ~ Group for which thc City can claim an exemption from ~:h chm'~ as pwpen~
~tsed by a i~olit~cal subdivision of thc State of Texaa for public purposes as pwvidod by the con~/t~fion
.tmi laws t,f Ihe State of Texas. Excepl as expressly provided in 8eetlOl 7.3 and this Azticle, the City
d~all promptly, at ils own expense, take such action aa may be necessary to ~ or raztove any such
mortffage~ pledge, lien. charge, encumbrance, or claim il'the stone arise ~t any tim~.
Seetiol 8.4. lag~il~t0a of lt~g City's Pr~i~rtv. The Ci~ may ~ ~y ~ ~ im ~le ~
~tl al ~m ~n ~, i~l ~ it~ of ~ui~ent in or ~n ~e ~, ~ i~ m~ ~
~d~fifi~ by rags or o~w s~ls a~x~ ~ ~ p~ of~ Ci~. ~1 ~ i~ ~ i~fi~
~n ~' role p~y of~e Ci~, in which ~r ~ no in~ ~ ~y ~ ~ or ~o~ ~
&e C~tv pmvid~ ~t ~e Ci~ m~ ~r ~ ~ my ~ to ~ F,o~ ~ng ~ ~
ins~latio., m~ifi~on, or ~val of my s~h i~s. No~ng in ~ ~ ~ ~ ~ ~
p~ing it.s m ~ i~l~ pum~t to this ~on ~ a ~fio~ ~e ~ ~ ~ ~ W
p~ c~t, or subj~ to a v~ffs li~ or ~ty ~ ~ ~ty ~ ~ ~d ~ of
~ pu~h~ price ~f. pmx~d~ th~ no s~h li~ or ~ in~ ~ m ~y ~ of ~
~y.
$eetio= ~ ~l~d~t~m of l~wr~. The Ci~ ~1, mim ~ ~ M~ ~ fi~t m
~kc ~,m ~~, ~mtio~ ~ ~fi~i~ m all or ~y of~ ~ of~ ~. ~1
sm-h ~o~ ~ ~y ~ ~ ~n~ ~ or i~l~ ~ ~e a ~r ~ ~ a ~~ ~~
or m~ficmion. ~11 ~ ~ p~ of ~e ~y ~ ~ s~j~ ~ ~e ~~ of ~=
A~r~t. Such wo~ must ~t ~ ~y way d~ ~c ~y ~ ~ it m ~ ~ f~- ~ ~
t~n ~ ~o~ un~ ~ ~vi~io~ of ~ ~d f~ law or m~p~ ~ ~a A~
~d thc ~y, u~ ~l~ion of~y such wo~ m~t ~ ofa v~ w~ is ~ 1~ ~ ~ ~ of
~e ~' i~ately prior to the comm~t of such w~. ~y ~ ~ w~ a
~l~nt or su~titution is m~e pu~u~t to ~is S~on ~y ~ di~ of by ~ C~ in ~
~c~ ~ on s~h t~s ~ ~ da~..in~ b~ the City.
Fhe City will not pr~u,~t any m~chanic's or other lien to be c~tabliabed or n:~ufin agaimt tim
Property for labor or materials furnished in connection with any repair, r~pla~mong ~ub~titufion, or
modifie.~on mad~ by the City pursuant to this Soction; provided that if any such lira i~ e~tabli~xl and
the City stall fir~ notify l_~saor of the City's imerttion to do ~o, the City amy in good faith c~mtem mxy
lien filed or ~stablished ,,?into the Property. and in such ev~ may lxtrmit tim itsm~ ~o coul~mtad to
remain undise, harg~ and unsatisfied during the txxiod of such contm~ ~ any ~ ~ nnlma
Lessor shall notify the City that, in the opinion of ~mt C~i, the ~ for which mu~ be
expressly clsttailed in the opiniort, by noupayment of any su~ it~n the inum~t of ~ in tlg PrtgeaW
will he matm'ially emtangex~ or the Propm'ty or any part thereof will be subject to lo~ or ~ in
which ~wenl the City will promptly pay and cause to be satisfied ami di~ltarged all su~h unpaid item~ or
:~ro,~oc Lessor w~th tull sa:urity ,~inst an)' such loss or forfeitLtre, in form satisfaca:a~ to Lessor. Lessor
~vil: cooperate fully with the Cit.~ in any such contel, upon the ri:quest and at the expense of the City.
Section 86. Penonal Prooerty. Thc Property is and at all times ~ paional property
~ot~-ithstanding that the Property. or any part thereof may b~ or he~'eafl~r become in any ma, ua' n.fl:ixod or
,tachol t~ or embedded in or permanently rested upon real property or any building.
ARTICLE 9. WARRANTIES
Set'ilo= 9.1. ~ of ProoerW. The Property and the Cormlctor have been selectcd by the
City'. ',md I.essor will have no responsibility in connection with the selection oftbe Property, its suitability
'hr Iht usc intended by the City. the acceptance by the Contractor of the order subrnitt~d, or any cl~lay or
~ilurc by the Contractor to manufacture, deliv~, or install the Property for use by tl~ City. Upon
Jcceptanc¢ ol'thc Property the City will add the serial numb~ of the Property to Exhibit "A".
Section 9,,2. lnstnHnti~st and Mnint,.nnnce Of PFoI~. L~saor ahall have no obli.mrllon to
,nslalL erect, test, inspe~, service, or mnintain the Property under any c/rcumstancea, but such actions nrc
,he obligat[on ol'the City or the Contractor.
Section 9.3. Contr~'tor's Warrastti~. Lessor her~y assigns to the City for tad cltuh,g the
Form o£ this Lease, all of its inta'est in all Conlractor's warranties and iputrnnte~, exlnms or hut, lied,
,ssuecl on t~r applicable to the Property. and I.e,_or hereby authorizes the City to obtain the cusmm~-y
-z~wices furnished in connection with such warranties and guaxintees at the City's expense.
Sectlo~ 9.4. F~'-~t Infrtntement Lessor hereby ,~u6gns to the City for and dm'in8 the T~ of
this L¢~sc all ot' ill integer in patent indemnity F~,tection provided by a Contractor with r~pec't to ttm
Prt,perty. Such an,igrtment of patent indemnity protection by Lessor to the City eonnti~ the r. uth=
liability ol' Lessor for any patent infring~nent by Property fia'niahed pursuant to
Section 9.5. Dbcla~lef of W$rrnntle~ THE PROPERTY IS DELIVERRD AS IS, AND
LESSOR MAKES NO WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPI.IRD, AS
FO 'I'HE VALUE, DESIGN. CONDITION, MERCHANTABILITY, OR FrI'NESg FOR ANY
PARTICL'LAR PURPOSE OR FITNESS FOR THE USE CO~LATg. I') BY TI-IE crI'Y OF TI-[E
PROPERTY. OR ANY OTI-~R REPRESENTATION OR WARRANTY WITH RE,.qPEL-~ TO TH2E
PROPERTY
ARTICLE 10. OPTION TO PURCHASE
~ction 10.1. Wheat Avnilnhle. The City has the option to pmchime /.,emoffs ~ in any
Propcrty Group on any Payment Date relating thm'eto for the l~n applicable Purchase Ol~on Price set
forth in ,he page of Exhibit "B" relating thereto, but only if the City is not in clef:n~ un~r mia
Agreement, and only in the manner provided in this Article.
Section 10.2. Exere~ og Ootion. The City will give notice to Lessor of its intention to exexcise
its option with respect to any Property Group not less than thirty (30) days prior to the Payment Da~ on
which the option is to be exercised and will deposit with Lesaor on the cls_~ ofexegcise an anxonnt equal to
all L~ase Payments and any other amounts relating to such Property C_nmip then a,m or past du~
(including, the Lease Payment relating thereto due on the Payment Date on which ttm option is to be
exercised) and the applicable Purchase Option Price set forth in the page of the re~peufi~ Kxhlblt nB"
relating thereto The closin8 will be on the Payment Date on which the option is to be exercised.
24
.~;ection 10.3. p,-' .... of I~ssor', lnt~r~t. Upon ~xecution oft. he purchase option wilh re~:~gt
· ',ny Property Group by the City, Lessor will convey or release to the City, all of its risht; title, and/or
interest in 'and to the Progerty Group by delivering to the Contract Admini~'s3t__or mm, h documeffm aa the
· ?itx' Attorn~. deems necessary for this purposc.
~kRTICI,E 1 !. ASSIGNMENT. SUBLEASING, MORTGAGING, AND SEI,I,ING
S~doa I1.1. A~'~,mm~t of l,~ga'. All o£ Le~or's fight, ~flg
I~y C;m~. the ~ Pa~g ~ oth~ ~unm gl~ng ~o
~e~i~ all fi~ts ~ this ~~t ~lming to ~h ~ ~
,n w~le or in p~ to one ~ ~m ~i~ or su~i~ by ~r
,.~u~ ~n~t of~e City M~r. ~1~ ~e L~r confin~ to bill
:~t will ~ eff~ve ~ a~ ~e City unl~ ~d until ~ a~i~
,ff x~.fi~l~ ~i~ ~f id~fi~ing ~ ~i~. ~ City will ~y all
~elaung to ~h ~y Gm~ to or ~ ~c diction of L~r or ~e .~i~
,~m~l or ~fice of ~i~m~l ~'ith ~t to such ~
~ini~amr. ~ng the A~mt '[~. ~ L~r ~ CiW ~ll
:~,~ ofull s~h ~i~m~. In ~e ~t ~ ~i~s ~ci~ in
~t~ ~ ~i~ A~mt m~ng th~. s~h ~ic~ ~11 ~
· ~t to ~r ~ci~ ~ t~f. t~r may ~ i~ d~
'~ithom ~tice ~ ~ Ci~ pm~d~ ~e L~r m~ to bill ~ ~i1~
,~ to k~ a ~ ofthe ~i~ for p~ ofS~ 14~a)
~k~-tiom 11.2 A*~lwmn~lt Smd Smbl~law b~ ~e Cit~. Neither this Atrovent nor thc Cites
· merest in t~ Pr~ may be assigned by the City without the written cotmem of I.,eaaor. However, the
s~-vty may be sableased by the City. in whole or in part. without the conm~ of Le~or, subject to tach
,ffthe followin8 conditions:
Each Le~,e and the obligation of the City to make Leaae Paymmm lmreumter,
remain obligations of the City.
Oi)
The suble~see assumes the obligations of the City hereunder to thc cxtmt of lt~
interest subleased.
The City slmll, within thirty (30) d~ys after the delivery thereof, fm'ni~ o~ cm~e to
be furnished to I.,e~or a true and complete copy of'such subl~.
Ov)
No sublease by the City causes the Prolm'ty to be umt for a purpo~ other than an
essential governmental function devmecl mmluaively to public tree m~orized undesr
thc provisions of the constitution and laws of T~xaa.
(v)
No sublease c.~.,,es the Interest comImomt of the ~ Paymmll due with respect
to the Property to become included in the gross ira:omc of th~ ~cipieat for ~
income tax purposes.
~ 11.3. R~tri~tlo~o~Mo~--~orS-~ofPro~m'lvbvmeCKv. Exce~uff~videdin
~ 11~, ~e Ci~ ~11 not ~, ~11, ~, ~ff~, or ~ ~ ~ ~ ~ ~
~f ~8 the T~ of~is ~m~ or ~ove ~ ~e ~m im ~~ ~ ~ ~
~ of ~r pmvi~ that ~e City ~y ~e ~e 1~ of ~ ~ o~& ~ ~
~nda~ in ~e C~fic~ of A~.
ARTICLE 12. EVENTS OF DEFAULT AND
Section 12.1. Event~ of l)ef~lslt [Nffl~ed. The following will be "events of ci6ffnnlt" und~ this
~gn.'eme~t with respecl to any Property Group and the terms 'events of defmtlt" mad "cl~mlt" n~n~;
.vhencxer they are used m this Agreemem. with respecl to any Property Group, nny one or more oftbe
'bllo~ mg cw:nts'
0} Fa,lure by the City to pay a ~ Payment or other payment requir~ to be paid
under any Lense with ~t to any Property Group at thc time spe~fifiod herein mad the
conti~-~ion of said failure for a period offive (5) days atter t~lex, facsimile, or t~-gt~hic notice
gi,.en b.~ Leasor that the payment referred to in such notice hns not be~m r~a~v~d, such t~lex.,
fne.4mile or telegraphic notice to be sub~eqtmatly confirmed in writing.
(iii Failure by thc City to observe ~cl perform any covenant, ~xiifion, or agrm~n~m
an ,ts part to be observed or performed with respect to any Property Group, otber than ns rff-en'red
lo m Claune (i) of this Section, for a period of thirty (30) dnys arm' written notice specifying such
t~lurc. Such notice to thc City by the Leanor munt request that the default be r~nedied, unle~
Lessor agrees in writing to an extension of such time prior to its expiration; provided, however, if
tM' fidlure stnt,-d in thc notice cannot be corrected within the applicable p~riod, Lessor will not
unreasonably withhold its consenl to ,,,~ extension of such time if corrective action is instituted by
thc City within the applicable ix'riod and diligently puraued until the &;l'~ttlt is con'~lzd.
~ni) The filing by the City of a voluntary petition in bankruptcy, or failure by the City
promptly to lift any execution, garnishment, or ,,ttaehrnent of such eons~lU~nce as would impair
the ability of the City to carry on its governmental function or adj,,,.li,-~ion of the City as a
bankrupt, or assignment by the Cily for the benefit of creditors, or the nt~attntnl by a com't of
co~rtpetent jurisdiction of a petition ~pplicable to the City in any proceedin~ inatitttt~d lmdm' t~
provisions of the United Stnte~ Banla'~ Code. ns amended, or trader nny similm' smtn which
may her,.'"afler be enseted.
The provisiorm ot'this Section 12.1 and Section 12-2 are subje~-'t to tim following limitation: if by
reason of force majeure the City is unable in whole or in part to e~uty (Kit i't8 oblJ~,diOl~ ~ nny L4~tal¢
wi~h respect to any Property Group. other than Its obligation to pay Lense IMymemts with respect
thereto whk"h must be paid whet due notwithshndtng the provisioas of this lmrngFup~ ~ City will
not be deemed in default during the comin,,~rtce of such inability. The ten~ 'fore~ ms~r~" as used
hen.4n meana, without limitmion, the following: acts of God, strikes, lockou~ or other labor
disturbances: acts of public enemies; orden or restraints of any kind of the govemmem of the Unitml
State, of America or the State or their respective depanment~ agenci~ or officials, or any civil or
mihtac,* authority; insurrections; riots; landslides; earthq,lakes; fin:a; stots~ droughts; floods; explo~iona;
breakage or accident to machinery, transmission pipes or canals; or any other causes or events not
reasonably within the control of the City and not resulting from its negligence. The City %orem, howowr,
to remedi' with all reasonable dispatch the cause or causes preveming the City fiuai carrying out its
obhgations under this Lease; provided that the settlement of strikes, lockouts, and otber labor rllslxn'oancea
an' entirely within the discretion of the ('it5' Manager and the City ~ is not ~ to make
settlement of strikes, lockouts, and other labor distur'oanees by acceding to the dmmads oftbe opposing
party or pames when such course is in the judgment of the City Manager tmfavozabl¢ to the City.
Section 12.1. p,~r~d~-s nn l)ef~nlt. Whenever any event of d~fl~,flt refcn'~l to in Section 12.1
hereof has l~,pened taxi is continuing with mapect to any Property G-~oup, ~ may, at its option mad
without any further demand or notice, take one or any combination of the following mmedinl
(~s I.c~sor may terminate thc Le~e with reaooct to ~uch l~,,.,l.~ty Group taxi declar~ ~1
l_ea~e Payments due theretmder with resp~ to such Pn:qx-rty Gnaup ~hsring the Fmc. al Year in
(,~ Lessor may terminate the ~ with n:spoct to such Property Group and roposseas
:he Property Group. Le~sor may enter upon the City's pr~nisea where the ~ Group i~ kept
and take possession et' ~hc Pmpo't) Group. Notwithatanding the fact ~ ~ h~ taken
~.~,session of the Prell-ny Group. the City must pay for the Lca~ Paymema due with r~poct
thcr~o during the Fiscal Y~ar then in
{iii) If L__es~or tr,,,,inates the Lease with respect to a Property Caoup and tak~
nossession of such Property contained Iher~irt. Lessor, within sixty (60) clay~ rrm'ca_em', must use
,ts best efforts Io sell such Property or any portion therenf in a co,m,ercially reamon~le mauuer at
public or private sale in accordance wilh applicable m laws. ~ muat ~pply tho proceed~ of
,~uch sale to pay the following itema m the following order:, la) all coat~ incmxed in ~-urin~
possession of the Property Group; lb) all exp~mses incun'~ in completing the mile; (¢) the lmlance
of any [.e~e Pa)~nenta with re~oect to such Property Group owed by the City during the Fhrad
Year then in effect; and (d) the applicable Purcbame Option Price with ~ to the Property
Group due at the end of the Fiscal Year. Any sale proceeda rc-maJning a.em- cli~a~'~maent pummnt
to ('lansca la), lb). (c), and (d) must be paid to tl~ City.
Seetio~ 12~. llet~m of lSrm~rt~. Upon the expiration or ~~ ~ ~ ~ of a ~
with ~ m my ~y G~p ~or to the ~t of MI ~ Palm M ~ ~ ~
~t~ Exk~H m~,, ~e Ciw m~ t~f~ title ~ ~ ~ ~ ~ ~r ~ ~ ~ ~
~tmg ~d ~m s~h ~y ~ m L~mr in ~e ~ifi~ ~ir, ~m~, ~ ~ ~
~u~ in ~ 7~, in ~e ~ll~ing m~er ~ ~y ~ ~ifi~ by ~
l0 by delivenng the Property Group at the City's cos~ azu:l expense to such place within
Fexas a~ Lessor speci ties: or
iii) by loading such portiere of the Property Group aa are cormid~mxl movable at the City~
cost and e~pense, on bo~d such cra'tier aa Lerner ~ecifim and ~hippin8 the ~mr., inm.u'mme
ffmght prepaid, to the place within Texas ~pecified by Leasor. If the City r~tme~ to r~ama the
Property Group in the rnanner deaign,t_erl. I.~-..aaor may r~,cn~eas the Property Cra:mO m:u:l ~ m
the City the costs ofsuch reposse~ion or pm any remedy de~:~'bed in ~ EL1.
Seetioo 12.4. N__o..l~r.i~g~ E~t~lnsiv~. No remedy conferred upon or rg~rv~ to ~ by th~
~trticle is intended to be exclusive and every such rmnedy is cumulative and in addition to every other
t'~medy given under this Agreernmt. No delay or omission to exercLse any right or power ucca-nin~ upon
an.',' defauh impair any such right or power or may be construed as a waiver thereof but any mw.,h fight ~
power may be exercised from time to time and as often as may be deemed expedient by Lea~or or its
Seeflo~ 12.5. ffs~,r~m,~t tO Pllv Attor~onl' Fe~ ,=d E~'m~l~ In the event either pm'ty to
this Agreement defaults under any of the provisions hereof and the non-de~flting pm'ty
att, ri'nc.va and/or incurs other ~penses for the coll__,~on of rnonie~ or for the enfomem~t or performam~
or observance of any obli~m~tion or agreement on the part of ~ defi~-Ifing pm'ty herein comained, the
delhultm8 part) agrees that. to the extent pcrmitted b) law. it will on clrmm~ theo~'for l~y to the non-
delhulting part~, the reasonable fee of such a~tomeys and/or such othea' rmmonable ~ ~o incam'ed by
tht herr-defaulting party.. In the cwcnt that legal p~gs r~lming to thi, Agr~me~ (but not
ewdencmg an action by a non-defaulting party a~inm a d~:faulting party) are commenced in any court or
27
I~l'or~ an.~ othe~ tribunal of competent jurisdiction, the legal fern and oth~ rmeorablo co~t~ and ~
,,f ~1~¢ pre~ailmg party mu~ bc paid. to the extent pen~itt_~ by law. by the no~ pazty on
dcm-and of the prevailing party..
.eet-lba I/.6. l.$le Cllnrlt Whenever any event of default referred to in ff, eetion 12.1, Cleave
II) hereof has h ~5~med and in continuing with respect to any Property Group, ~ ha= the right, at it.
optmn and without any furthcr dcmimd or notice, to r~luire a late payment cEa'Sc ,%, each thJrt7 (30) day
per,od or ~ thereof during which such event of default occum ~Xlual to exin~n8 ~ r.m of the
delinquent amount not to exceed the maximum authoriz~ed by law and the City wiU be obligated to pay the
~ame immediately upon recetpt of Les~3r's written invoice therefor;, provided, however, that this 8eetkm
~2.~ wdl not he applicable if or m the extent that the acpplication thereof would affect the validity ofl~s
ARTICLE 13. ADMINISTRATIVE PROVISIONS
Section 13.1. Notice. All notices, certificates, legal opinions, or other corrmmnjc-,~'on~
~ercunder will be nufficicntly given and will be deemed given when delivered or dq~o~it~:l in tbe Urdted
';tams mall in ~-.rtified form with postage fully prepaid to the addrm~es sp~ified in th~ ~ provided
,lm~ l.x's~or and the City, by notice given herctmder, may d~/gnatc di~t ~ddr~.~c, to which
,mbscquenl no6c~, __certi. 'ficat~s, legal opinions, or other communications will be ~ Unkm othe:rwi~
changed bv written notice, all notices required under this ~ must bo ~ to the following
CFI Y
Dir~or of Finanoial Servicea
City o f Corpus Christi
P.O. Box 9277
Corpus Chr~, Texas 78469-9277
Phone ~ 361 ) 826-3604
Fax (361) 826-3601
LESSOR:
Bane Of .~wrtca l..cuing & Capital, LIc__
,\t~m: I,.um Pntchett
_2059 .Norl~l~ke Pkwy. 0401 ._
_Tucker. tia 30084-5399.._
Pix)nc 770 27077~4.~. __
Fa~ 7'~0.270 8454
Dmly co,,-,mnicafiom between Contract Admimstmmr and Lmaor will be tn'imsrily dommm:[t~
by written noticm neat by facnimile. For daily, routlue co,m.tmications famimile notice ia Mequate. For
formal notice requim:i by any Panicle or Section of this Agr~mmt facsimile m6ce,, if any, must be
followed hy Umted St~,-a certified mail amice.
Se~loa 13.1. Flnndld lltform-tbm. During the Team of thin ~ the Commct
Admim~trator annually will provide Leuor with currant financial atatm2at~ ~ proof of
at~Jr~risl:lon Of thc cnsuin~ Fiscal Year and such other financial information raisinE tO t[Ic 8bility oft~
City to continue this Agmcmemt as may be reasonably requested by Le~or or its ~signoc within 30 clay,
of written roqumt therefor.
28
~'~don 13.3. Bl~dh~ F. IVm. This As~'ment mur~ to the benefit of and will bo bindin~ upon
_esso,' 'and the City and their r~pectivc succe~or~ and a~,igr~. This Agreemem mu~t n~t be tongued m
~onl~ an) rights, dutie~ or inter~ on any parly not a succe~or in inter~ or a~neo of L~:~or or the
City nor ma) any such p~r~y r~ly on this Agreement as evidence of any duty, right, or obli~tion of Lemor
.,r II~e ( ,t'~ unless both Ihe Lessor and the Cit.~. or their succe~__~rs and aui~*, acknowledge such duty,
~igla. ,,r obligatmn in wrifins~ din:ctl.x addr~sed to such third party.
Section 13.4. Usury. It is the intention of the parties hereto to comply with any applicable usury
~a,~s, accordingly, it is agreed that. notwithstanding any pmvisiom to the contrary [mrein or in any
Exhibit A. in no event doea this Agroement or any Lease henmnder require th~ tmymem or permit tbe
t-olleel[on of lnter~t or fees in exe.~,s of the m~ximum amount p~rrnitt_es4_ by ~laplie.,able lm~. Any mw, h
excess ~mcreat or fi:es must first be applied to reduce Principal, nad when no Principal r~maim, refuncl~
~o l.essee. In det~,,,ining whether the interem paid or payable exceeds the highest lawfixl rat~ the total
:tmount or interest must be sln'cad tlmaugh the applicable Lease Term so that the ~ is tmiform
~hruu~th such term.
.e~e~l 1 3.$. Aniglldm~'~l~ CIl~'=t,~, "~;I M~Ii{I,'~'~=. This ~em my be ~nondnd or
an) of ~t$ terms modified only by written agreement in a document exe~.~,~, and doliver~ by duly
,uthon;,ed represe~ative~ of both the Lea:mr and the City.
8,eetlon 13.6. Ce~'~-~. Thc captions or headinga in this Agre~m~mt as~: x%r eonvenieL~__- only
.md ,n ,ua way define, limit, or deacdbe the scope or intent of any pr~vi~ion~, Artiel~ Sectio~ or
t 71autos ol'this Agreemenl
Section 13.7. Fnrllaer Assurances and Co~ ln"~rUn~'~tS. Lessor tnd the City agree ttmt
~h~ will, lh}m lame to time, execute, acknowledlp:, and deliver, or cause to be executod, acknowledged,
.md delivered, such mtpplements hereto and such further insmmaems as may reasotmbly bo requit~ for
correcting any inadequate or incorrect ~,,~er'iption of the Pmpe~ hereby lemnd or imnadnd so to be, or
fbr otherw,se carrying out the expreased imention of this A~--,~di~mt. The Contract Administrator is
I~xeby amhorized by the City Man~o~'__ to execute such adcle~la as attached ~ a~ ~ I'o~ ~
r'mpert-v Group and such other inm'uments, including, but no~ limited to, UCC ~.rnerm~ Bill of ~
etc. that are necessary to carry out the responsibilities, duties, and obligations requirod of the City in
:sccordance with the terms and conditions of this Pq~'ment.
Section 13.8..F. XO~ltlO~ ~ Counterus~'~l. This Agr~'ment may be ~imulhus~ou~ly ~xeoLt~ in
~eveTai coumerpaxtr~ each of which constitute an original and all of which con~tut~ but oho ami the same
Section 13.9. A~na~hle [,aw. This Agreement must be governed by and construed in
~ccordance with the laws of Texas.
~ 13.10. Entir~ Agr~me~t. Th.is Agreement, and all addenda ~ ox/u'bits, as may
nereafter be executed, constitute the entire agreement between the pm'flea mad mxpo'aed~ all pr~rious
qegotiafion~, eommitment~ ~:l cont,'acts.
Set-tion 13.11. Sever~tl#v. In the evem any provision of this Agreeanent is held invalid or
unenforceable by any court of eo~aioetent jurisdiction, such holding does not ixtvalJ_dnt~ or re~d~
anenforeeable any othes' provision hereof. To the extent any term im'ein erems~ a peeunim~ obligstion
which constitutea a ~debt" not payable under cummt revenuea tmdm' Sectiona 5 ami 7 of Article H of the
Texas Constitution, sach provision will be applied only to the extent perfomaance or ~sumption of str3a
,~b~tion by the City is enforceable and valid under the eon~itufion and lawa of Texns.
IN WITNESS WHEREOF. I.~ssor has caused this A4peem~ to be exe~n~xl in its corpon~
name hy ns duly authorized officer, and the City has caused this Agr~ment to be e~. ~_~ in its name by
tts ('it) Manager ~qToctive tbr all p~ as ot'_Och, b~ ,~,5. ;LOOK.
A1 TI' ST
Armsm~ ~~o Clmp~ City
CITY O~//~S~__HRISTI
LEGAL FORM APPROVED ON
FISCHItR, CITY A~FORNEY
L~ .*4~ll~r, A~i~t~t CiW Attorney
LESSORs. ~ Of Anmic. a Leasing & Capital. LLC '
l~n__'_ Name: p. W~ley'Youm. Iii___ ~~.
¥itle: .y~ee Pnmide~__
APPROVED AS TO FORM THIS
__ DAY OF _
, L-~gSOR'S ATTORNEY
Printed name: __
Title: ......
31
IN WITNESS WHEREOF, Lessor has caused this Agreement to be executed in its corporate
name by its duly authorized officer; and the City has caused this Agreement to be executed in its name
by its City Manager effective for all purposes as of (t.fo W ~ I ~ .
.\TTEST:
~..
Armando Chapa. City Secretary
CORPUS CHRISTI
LEGAL FORM APPROVED ON --~3 ~,'~ , MARY KAY FISCHER, CITY
,\ TTORNEY
By: K~.{/h --'-~__~___ ___
Lila Aguilar, -~t~tCjty Attorney
(D 2OD<5~ 3 ~~. AU I \'IU&\h...
"~IL'T. 4-_.~t-~
_.......--~/.I ~
~ECUTA'.. V'-""""
LESSOR: Banc of America Leasing & Capital, LLC
B)': /f{;;~~~
"-'-""'-~--"-------_. -'-' --------..-.-
P~inted Name ----tatlfa-Pritchett
fItle: A' \ I P .
- - -- SSIst8nt v Ice 'esr'i(H---
,'\PPROVED AS TO FORM THIS
DA '( OF
. LESSOR'S ATTORNEY
By:_
Printed name'
ride:
, .' f'l^' ..;- (
i[ + -i--f*
\:~ I,_.:h (It t f l _ r'.J ':, ,"';f / ,-' c.t' s s~?dr~ " B ~1_~ C C
,~lti /! I\),~' tl_At c. (jfV''+~{"f''S (Ue a, F(e(e/\~ '
ft f\') f '" ,.-tr (l
22
IN WITNESS WHEREOF, L~ssor has caused this Agra:merit to 1~ ~xecuted in it~ cozlx~
name by ,ts duly ~athorizecl offi~e~, and ff~e City has caused t~is Agr~emmt to b~ ~x~_~ in its ~ by
its ~i~? Manaff~' effoctive for ail purposes as of _
A
CITY OF CORPUS CHRISTI
Armando Chal~ City Socret~
Geor~ IC Noe. City
LEGAL FORM APPROVED ON
I~ISCHKR, CITY A~FORNKY
B:~: ....
Li~ A~m', A~isUmt City. Attorney
LESSOR.
Pnntod N~me:
Title: ._
APPROVED AS.T~, ORM THIS
By: ~_~__'< I'" ~
Tifle~.~ -. · ~ .... "'
____ DAY OF ._: ' ' .~ LESSOR'S ATFORNEY
31
IN WITNESS WHEREOF, Lessor has caused this Agreement to be executed in its corporate
name by its duly authorized officer; and the City has caused this Agreement to be executed in its name
by its City Manager effective for all purposes as of CtAtJ ~ ~ I z.-ov; .
ATTEST:
CITY 0 CORPUS CHRISTI
Arm.do Chapa, City Secretary
~~~:~~~,RM APPROVED ON 'Yh~'~,)-iJd, MARY KAY FISCHER, CITY
By: f.~.
Lila Aguilar, A s' tant City Attorney
(D 'ZOD5~ 3 ~~. AU I l'lU&\I....
" ~L. ~t-il0
......._..~.1 ~
~EClrr At.. V"'-"'"'
LESSOR: Banc of America Leasing & Capital, LLC
By: ___~~~____________
Printed Name:_ ___ -_ Laura PritcActt
Title: ~---- ---- - Assistant \/ir,e r e511el'l -
APPROVED AS TO FORM THIS
DA Y OF
, LESSOR'S ATTORNEY
By:_~_____ __
Printed name:
Title:
~ -~ FL---
ft r-s (; 1\...) '-~ 1 c <--
e~, j,:l---11I'rc t L ~ r'iS ''';;-f'( <."?Ce ss---ed .[~( Bo-~ c r
i ,..; ff i) l\Jc H fl"-A-1' c.) 1',v ,q--N -e S" (t( e d (qe{ ,,/\} ,
/.---;l'{\ --€ ( '(, ic + --+-1-~.
22
----
Exlmi~ "A "
PROPERTY DESCRIPTION
~ followi,?. Property comprL~ a Property Oroup which is ~ ~o the i~rm,,
· ,.:om;litiou~ of ~ c~ hammer Lease Pur~ ^gruem=~ ,tatum-od ~ by mud ~
'ivy ,rf C,,rlx~ Chri~ ,,nd ............ (~) d~ th~
day of ...................... .20
LEgSOR
crrY OF CORPUS CHRIKI3
By: ._
Title:
LEGAL FORM APPROVED ON
ATTORNEY
City AUomey
Cindy O' Brim
Director of Fi
200 ; MARY KAY
Ma~ ~ Agr~mmt. d~ 2~
SCHFDUI.E OF LEASE PAYMENT~ RELATING TO PROPERTY
The t011owtn~ schedule of Lense Paymen~ cor_~itutm the applicnble payments for the Property
Cho',xp da~n'bed on Exhibit "A ~" attnct~xi to thnt c~-mln Mama' Less~ Purcimm
AL.n~mem enIe~d by nnd between lhe City of Corptm Christi and
(Lessc~) dat~l the .__ day of ............ 20
Paymmt Total Principal ~ Op6on
Number Payment Co,,,.~.ut Co,,,...om~ Prioo *
City amm'~ all ex~mpfiom ~ for ~ nbdtv4~m~ ~f ~ 8trim of T~aa --
I .E$SOR:
CITY OF CORPUS CHRISTI
By:
Name:
· Fi tie'
Cindy O'Brim
Director of Finnncial Services
LEGAL FORM APPROVED ON
MARY KAY FISCHER, CITY ATTORNEY
Li~a Ap~lar,
AssislanI City A~
' After l~ymauI of ~ P~ d~ on such da~
Exlffi~ll "C"
i'ER'Iq]"ICATE OF ACCEPTANCE
I. the unde~gned, ho'~by co'tify tluu I mu the duly qualified mad a~;..5
__ of the City of Corpus Christi. (the City), and, wflh m~ct to tho ~
I'~'w,,em Lcazor and the City. that:
I. Thc ~ list~l on ExMI~ "A "(th~ Prol~'ty Oto~) hm 10~m ~
and ~mmlled in accordam~ with the Ciq?s Sl~cifie~'iom (m th~ term is dofimd in tho
Agr~mem) m~d ~ bc~n fully tested and fi~lly accq~tod by the City. The ~ v~ic, to
idmtification numb~rfs) of the PrupoW Group is/~re I~ on ~ "A- "
2. The Lease Paymmts lx~vided for on the paS~ of ~ "B __
such Property Omup (the ~ Paym~tts) ~lmll oomm~x~ momhly besimi~
m~l be due sad l~y~ble on the first busings day of tach moth the~m~r.
3. The City hms ~ and/or tak~ oth~ lawful malions m~uu-y to provide
mom~ sult%i~t to pay all Lea~e Paymmts ~ to be paid ~ the ~ d~h~g tho
current fiscal y~r of Lessee,, and such monim will b~ appli~l in paym~R of all p.x:h Lea~
Paymmts du~ ~xl Imyable during such cu~r~t fiscal y~r.
4. During fl~e Leme Term (as defined in the Le~e) the Pmpegty Omup will be reed
by the City. to perform es~ntial govovanental functions d~vot~d exeJmivdy m public u~ Such
5. The City bas not termimled any Lease trader Section 4.2 offlae ~ md no
Ev~mt by Default has OO~Ted lhenmml~r.
ts. Time is no li6?tlon, agfioa, suit, or ~ lmmliag b~fu~ any court,
administrative aguncy, arbitrator, or 8~vmmmmd body, that chailmgus the org~i~m or
~l~{~l~l~ of the Cit3r, th~ auflx~ity of the City or it~ offices or im e~ploy~m to ~ ~ the
curm~ fiscal ~ or the ability of the City otherwise to perform its obli_?4om under tl~ Le~m
and the ~on c~nt~mpl~torl ~.
CITY OF CORPUS CHRISTI
LEGAL FORM APPROVED ON
Mama- L~as~ ~.doc
Cindy O'Brim, Diru~tor of Fimmial So-vi~s
ExMl~ nD"
()PINION OF COUNSEL
Re:
MaWr L~ Purdmso ~ a~t~ m
of the __ day of . by and
~ the City of ~ Chr~ C'Cay')
.Sir or
I have aca~d as counsel tottm City with rtspe~ tu the ~ I.,ema~ Pul'e, ham~ A~
described abov~ (the ~) mad vm-iou, r~d m~ -nd in thi. ~ haw n~vi~mn~,d
a dupli,:,.u- original or ctrtifietl copy of lt~ ~ and the Exhl'b/ts alIadmi tl~. ~
upon the examination of throe and such other documen~ as I d~n~n relevant, it is my opinion
t .hat:
I. The City is a municipal coqxgafion and political subdivb/on of the S~ of
Texa.,~ ~h,~y orsanized, exit/ri& and ol:er~Jn8 under the Con~oztion ~nd ~ of tl~ St~ of
I exns.
2. The City is mm'xn-ized mad has pow~ und~ nl~pl.i~ahle law to enid' ~ th~
Agn~:ilent. nnd to cra'3/oul ita obligation~ tlm'mnd~ and th~ Ix~,.,,':lio~ eot,"~rln!~~.
3. T~e Agreement has b~n duly ~ agl~axn~ e~__-o_ -~. and ~ by
and ,n behalf of the City'. and is a valid and bin~g conU~ of Ihe City ,~tac--bl~ in
a',xxndan~ with its term,, exc~ to the ~nt Imdt~l by ~ and ~ ~ ~
r~v, edies and by b~mtptcy, r~-~?izafioo, or otl~r laws of ~ tzpglic~ion p.a~ m or
affecting l~e enfu~mnmt of a-~ditoes rights.
4. The authorizagon, approval, and ~xe~ufion of the Asmmu~ a~l all oth~'
prt__~'~din~ of fl~e City r~,,tlng to lt~ ~ corm-n~l~xl thta~y ha~
nccordan~ with all a~)liceble open maS~nf~ public bidding, and all oth~ lawa, rolm,
r~ulation~ of the State of T~aa.
exiat~uc~ of the City;, th~ authority of the City or its officers o~ its emplo,y~m to mI~ ~ ti~
Alg~meam th~ ~ authorization, approval and/~r ~xacufion of the ~ ~
ther~ a~l other 6ocummts comemplat~ thereby;, tl~ agl~Oln~On of zmmim to maim Lm~
Paymems under oach Lmse for ~ currmt ftseal y~r of the City;, or the ability of the City
Mamer ~ Agreement. doc
o~ to ~ it~ obti_=~tinm under the ~ ~ad the ~ c~npl~d
thereby.
~. ~ A~ ~ ~y ~ ~y ~ by o~ ~ of ~ ~
~y of~ ~ ofC~ ~ ~ ~ ~~yof . ~ ~ ~
B~
CityofCoq~Chd~
EXHIBIT E
Standard Form LL£'
BI NO.
LLC NO.
I.EASE LINE OF CREDIT REQUISITION AND RRC~IVING RgPORT
¢'ity ,,f Corpus Chri~
P.O. Box 9277
('{n'pu~ Cln"i~i, T~,a.~ 78460-9277
CITY CONTACT:
¢ 'ONTACT TE!.~PHONE: (361) 880-3650 FAX (361) 880-3601
BUDGETED EQUIPMENT COST:
FINANCING TERM: 36 mo _., 42 mo
._, 4,8 mo..__
· 84mo ,120mo
TOTAL APPROXIMATE CO~T:
$
IS THE FIRST YEAR PAYMENT APPROPRJATEI)?.
NCk.
PHONE
Sismare
DATE:
ACTIVITY NAME:
ACCOUNT/FIJND/ORO:
DEPARTMENT CONTACT:
DEPARTMENT APPROVAL:
EQUIPMENT: CompA~ One Form l~r LI~ Item aid Attaek SI~ '-"
ESSENTIAL USE:
Chex:k if the propose~ equipmmt is ze~p~t. S~ th~ ~ of th~ equi]mg~ being
replaced, why. the proposed oquilxn~t is noefied, m~d ira ." =~1 uaoful ~
Check if~ ~ ~~ is ~. sram why tl~ eqUil~m~ i~ meded and
the ~m~ ~ ~
Mam,~r Lease Agro~n~doc
Exhibit F
MAinlefmnce Servic:~
.~lid W&,gte
Streets
Stn:ct~
S~
S~
Polk~
PoHc~
~t~
Dem-tpioe m P'ld--- - er~ ,~-]
(Mm mt lOfll~q~
.)
Va~
1-T~ T~ ~ ~~ 33~
B~ ~-~ ~ ~~ ~,475
T~ ~ ~~ ~1,~
~ T~ ~11~ ~ ~ 33,~0
12T~II~ ~ ~~ ~1~
S~ ~ ~ ~1~
~ ~ ~ 3~4~2
~ 42 N~ 514,~
M~e C~I~ 42 N~ 1~
~431~95
13
I
1
2
2
8
3
2
l
2
1
1
1
2
200
200
~ II-lMd Skeet I l~o~ose-'/"_~l~.l~! Kqnll., -:t Pllteitmee
Mamer Lease Agreemcut.doc ~.
I ('~ H~il
1
~Solid Wa~e - Disposal
.Solid
Solid Wnst~ - Collections
Solid Wast~ - Collections
.Solid Waste - Collections
Seetioa il - ~d Sheet I
Solid Waste - Coll__n~_'om
Solid Waste - Collectiona
-S~-~d Wast~ - Collectiom
Solid Wnst~ - Colle~tiom
Stn~ts - R__,monsmlction
Stln~tn
Mnintlmance
Stn~t~
Stl~e~
Stn~ta
Mninllmance
SlI~etlt
Mnintsmance
I
!
!
1
!
1
2
5
4
nt
}~ o~m,.-mqm~dp~md ~ Pm'dmmm~m (mat.)
2
13
25,00
0
1
2
2
A.~halt 2
60 R~lm
60 New
Bruah Tmi]~r 60 N~w
] r2 Ton Rdmt~ 60
Wa~' Trtmka 60
Trucks
Walk Betfind Roll~ 60
Dism'~_~ 6O
3 Cubic Ym'd Roll~ 60
I Ton Cab & Cha~s 60
Booster Tank & 60
Tractor
nt
lit
nt
nt
]6o,ooo
238,124
520,O00
175.000
325,000
1,gg5,000
1,125,000
100,000
14,000
170,000
10~,000
27,000
Traffic $ign~
Traffic
M~~
]
1
& I
& ]
2
4
Pai~ Maintemace
Subtotal
Cab & Clmssis fu~ 60
15~k~t
3/4 Ton Crew' Cab 60
Pinup
3/4 Ton Cr~w Cab 60
Pickup
I r2 Ton Piclatp 60
Bru~ T~ 60
3/4 To~ Pick"ups 60
bO' RidinE Mowo3 60
35,000
25,000
25,000
16,000
$6,6~0,124
$9,091,S19
Msster Lease
E~d~ib~ G
Item~ To Be ~
For Rernzm~ng
nt
Solid
W~,e
.Solid
W~st~
FMS
Str~
Solid
Waa~te
Financial
Sa'vicen
Golf
Courses
Total
ltem~ To Be Comidm~sd For p.d~ ' -
Eqnlpmmt T~. =.
DemOtion (Mo,).
Cotnpn~or (~49) 21
12~1D9
188~364
159_370
80,376
57,114
89,109
490,324
225.897
Bruzh Tub C_rrind~' 22
(6'52)
Rescue ~ (~6~) 2S
Wheel Rollers (~68) 30
Tmcl~-Brush Loaders 34
Ufil~ S~ 15
140 Golf Cars 25
$1 ~0 ~54
+\-
+\=
+\=
+\-
+\=
+\-
+\-
M~ter ~ Agre~me~doc 37