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HomeMy WebLinkAbout07803ORDINANCE NO. 7803 AN ORDINANCE APPROVING A TAX EXEMPT LEASE /PURCHASE AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND DE LAGE LANDEN PUBLIC FINANCE, LLC, RELATING TO THE ACQUISITION OF GOLF CART EQUIPMENT AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME WHEREAS, the existing golf cart equipment at the municipal courses is scheduled to be replaced due to age and condition; and WHEREAS, the Golf Course Advisory Committee supports the acquisition of new cart equipment; and WHEREAS, the City Council has determined that a true and real need exists for the acquisition of the golf cart equipment described in the Tax Exempt Lease /Purchase Agreement, and WHEREAS, the City has taken the steps under applicable law and Charter provisions equipment, NOW THEREFORE, necessary, including legal bidding requirements, :) arrange for the acquisition of the golf cart BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Tax Exempt Lease /Purchase Agreement between Pueblo, a Municipal Corporation and De Lage Landen Public Finance, LLC, dated as of May 15, 2008 (the "Agreement "), a copy of which is attached hereto, has been approved as to form by the City Attorney. The Agreement and all terms and provisions thereof are deemed to be in the best interest of the City for the acquisition of the golf cart equipment and are hereby approved. The President of the City Council is authorized to execute and deliver the Agreement in the name of the City and any related documents necessary to the consummation of the transactions contemplated by the Agreement, and the City Clerk is directed to affix the seal of the City to the Agreement and attest same. SECTION 2. The obligation of the City to make Rental Payments under the Agreement is subject to annual renewal and annual appropriation by the City Council. No provision of this Ordinance or the Agreement or the acquisition of the Golf Cart Equipment shall be construed or interpreted as creating or constituting or giving rise to a multiple - fiscal year direct or indirect City debt or other financial obligation whatsoever nor a general obligation of the City within the meaning of any constitutional, charter or statutory debt limitation, nor a mandatory charge or payment obligation against the City beyond a fiscal year for which City has appropriated funds to make any such payment obligation. SECTION 3. The City Council hereby determines that the Rental Payments due under the Agreement do not exceed a reasonable amount so as to place the City under an economic compulsion not to terminate the Agreement or to exercise its option to purchase the Golf Cart Equipment pursuant to the Agreement. SECTION 4. This Ordinance shall become effective upon final approval and passage. INTRODUCED May 12, 2008 BY Vera Ortegon Councilperson AP PROVI� Q—%4L, PI`81f I T' i %oftw rund, ATTEST ED 8Y CLE_, . PASSED AND APPROVED: May 27, 2008 0-d. 7 033 o �o L .. ED 4 Background Paper for Proposed ORDINANCE AGENDA ITEM #!' DATE: MAY 12, 2008 DEPARTMENT: GOLF COURSE ADVISORY PLANNING COMMITTEE PARKS & RECREATION, RICH ZAJAC, DIRECTOR TITLE AN ORDINANCE APPROVING A TAX EXEMPT LEASE/PURCHASE AGREEMENT BETWEEN PUEBLO, MUNICIPAL CORPORATION AND DE LAGE LANDEN PUBLIC FINANCE, LLC. RELATING TO THE ACQUISITION OF GOLF CART EQUIPMENT AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE THE SAME ISSUE Should City Council approve a four -year Lease /Purchase Agreement with De Lage Landen Public Finance, LLC, for the acquisition of 142 new golf carts and two (2) ball - picker carts for the two municipal golf courses? RECOMMENDATION Approval of this Ordinance. BACKGROUND The existing 142 golf carts and two ball - picker carts at the municipal golf courses were acquired through a four -year tax exempt lease /purchase agreement in 2004 and are now scheduled to be replaced due to age and condition. The Golf Course Advisory Committee supports the acquisition of the new cart equipment without the optional cart odometers. The City will be trading in the existing cart equipment and entering into a four - year tax exempt lease /purchase agreement with De Lage Landen Public Finance, LLC, from Kansas City, Missouri, for the acquisition of 142 new carts and two ball - picker carts. Bids were received on March 18, 2008, and Masek Golf Car Company of Gering, Nebraska, the dealer for Yamaha Golf Carts, was the low bidder. The new cart equipment will be delivered in approximately 60 days. A bid summary is attached. FINANCIAL IMPACT The City will be entering into a tax - exempt purchase agreement with a $1.00 buyout at the end of the four -year term to acquire the golf cart equipment. The lease/purchase agreement allows for the early buyout of the contract with no penalty to the City. The City will pay $66,020.90 per year lease payment to be paid out of the golf courses' annual operating budgets beginning in June of 2009. These funds are contingent on the availability of annual appropriation by the City Council. In the event of non - appropriation of funds in any given year, the City will not be held liable to complete the lease /purchase contract and the golf cart equipment will be surrendered. Per the low bid of $241,218 from Masek Golf Car Company, the total cost of the leasetpurchase agreement is 264,083.60 based on an annual percentage rate of 3.54 %. The trade -in of the old golf cart equipment is the down payment in 2008 for the new cart equipment. City of Pueblo Bid Summary Page 1 of 1 BID NO.: 08 -017, Golf Carts & Utility Vehicles Colorado Golf & Turf, Inc. (3 -gang ball picker) Colorado Golf & Turf, Inc. (5 -gang ball picker) Masek Golf Car Co EZGO DATE: 03/18/08 TIME: 10:00 AM Meets Minimum Specification for Gasoline Powered Golf Carts yes yes yes yes Meets Minimum Specification for Gasoline Powered Golf Course Utility Vehicles w/ Ball Pickers yes yes yes yes Equipment Delivery: Delivery will be made no later than 45 days ARO 45 days ARO 60 days ARO April 25, 2008 Cost of Golf Carts Unit Price $3,843.82 $3,843.82 $3,709.00 $3,688.00 Total for 142 golf carts $545,822.44 $545,822.44 $526,678.00 $523,696.00 Trade -In Value for 142 used carts $287,550.00 $287,550.00 $312,400.00 $275,196.00 Total Cost of 142 golf carts less trade -in $258,272.44 $258,272.44 $214,278.00 $248,500.00 Cost of Utility Vehicle w/ Ball Picker Unit Unit Price $9,814.06 $10,638.06 $6,750.00 $7,745.00 Total 2 utility vehicles w/ ball picker $19,628.12 $21,276.12 $13,500.00 $15,490.00 Trade -In Value for 2 used ball picker units $5,000.00 $5,000.00 $4,000.00 $2,800.00 Total Cost of 2 Ball Picker Units less trade -in $14,628.12 $16,276.12 $9,500.00 $12,690.00 Optional Add - Alternate Equipment Unit Price for goff cart odometer - installed $110.00 $110.00 $100.00 $40.00 Total for 142 golf carts $15,620.00 $15,620.00 $14,200.00 $5,680.00 Unit Price for utility vehicle odometer - installed included included $100.00 $40.00 Total for 2 utility vehicles $0.00 $0.00 $200.00 $80.00 Optional Equipment Service (Service Schedule - 4 Year Cost) Cost per cart, per year $120.00 $120.00 $30.00 $35.00 Cost per cart, per year x 142 carts x 4 years $68,160.00 $68,160.00 $17,040.00 $19,880.00 Cost per utility vehicle, per year $120.00 $120.00 $50.00 $35.00 Cost per utility vehicle, per year x 2 units x 4 years $960.00 $960.00 $400.00 $280.00 Total Cost of four years service $69,120.00 $69,120.00 $17,440.00 $20,160.00 Grand Total Proposal Cost Not Including Odometers $342,020.56 $343,668.56 $241,218.00 $274,420.00 Lease/Financing Options: Annual Percentage Rate 4.4% 4.4% 3.54% n/a Annual Payment Factor - -- -- 0.2735488 0.27312 Closing or Other Costs - -- $ 50.00 Total Cost of Lease /Purchase $381,253.48 $383,090.52 $264,083.60 $282,345.44 Annual Lease Paymentj Payment $95,313.371 $95,772.63 $66,020.90 $70,586.36 All prices as submitted -- Evaluation Committee will determine if bidder has met bid requirements. De Lage Landen Public Finance LLC 2600 Grand Boulevard, Suite 380 Kansas City, Missouri 64108 State and Local Government Lease - Purchase Agreement PHONE: (866) 472 -9100 FACSIMILE: (816) 448 -5194 a Co or Eeupreal Bak MOH No. Semn Nmdtp Unscrew (Nigh s!enale rKMdule a Moaned See attached Equipmen Description fau¢maaLMauon tit ad tame as mnvN City $IaN Zip Ee nUttking the0ox aebw, YOU Irerebydniy or and Inds Lease 119 W Infusing obligation' as de tneEO a Sdicn 765teH3)IB)ot be Nlemal eut ur rtprtseN Ital Iheag it l an lax+xee moo YO Rapul4e pinta t h i n g am o UhnlhmmnHi hkoh wEpetn morn isvae OIbarittuta by and YOUR aomdhak midies during me wanEV year in alien VtEnxd tMt Lease is npl Ir¢onfpy Mixed b who 110.000.00. ❑ Bmkeualimlimehooin Please read YOt the 'lessee' and the 1. LEASE. WE ( "Equipment") on th 2. TERM. This at Coal in effect W tl ad above as the FOR ued this Lease for 0 Payments and any a amts payment of, In as movided in SKO a. LATE ,,, CHAR is lass, from such 118 TERMS AND CONDITIONS I of this State and Loral Government Lease - Purchase Agreement ( "Lease') carefully and feel free M ask US any questions YOU may bare about iL Wads "YOU" and 'YOUR" refer to `WE," US" and 'OUR" refer to De Loge Landen Public Finance LC, he successors and assigns, as the "Lessor' at the Equipment. to lease to YOU and YOU agree to lean from US, the equipment listed above (and on any attached schedule) Including all replacement merle. repairs, atltldions and accessories I and conditions of Me Lease and on any attached schedule. s emoctme on the date that It is accepted and signed by US (the "Commerical Date ") and continues thereafter for an Urine term i" Original Term" j ending at he and of YOUR butlg- unerroement Date and may be continued by YOU for additional one -year parasol terms ("Renewal Terms') coinciding with YOUR budget year up to the total number of months h ica4 Term; provided, however, that at the end of the Original Tenn and at the end of each Renewal Term umll the Full Lease Term has been completed, YOU shall he deemed to room oll Renewal Term unless YOU said have terminal this Lease operant to Section 5 or Section 17. Lease Payments will be due as set Ponh m Attaehmem 1 umd the balm of the Lease at Lease Payments or expenses chargeable to YOU under this Lease are pad in fug, As set f n h In the Lease Payment Schedule, a portion of each Lease Payment is paid as, and mpre- I...._., o,",.....e�it vni m mhee t caez Mhnxennn am absolute and Unconditional and are not subset to cancellation, reduction. same or counterclaim except on 5. THIS LEASE IS NUN- AW,tL/Yalt tnecn how rnevmucv m eeo i ­ a. DES. It a Lease Payment is net made on the date when due, YOU will pay US a late charge at the rate of 18% per annum or the maximum amount mM lted by law, wMC ever date. 'ION OF LEASE TERM. YOU currently intend, subject to Section 5, to continue this Lease through the Full Lease Term Lid to pay the Lease Payments hereunder. YOU personal behave that Is in an amount sufficient to make all Lease Payments during the FUI Lease Term can be obtained. YOUR responsible financial officer shot do all things lmahu y whhin his or her powerlo gMafn from which me Lease Payments may be made, including making provision for the Leas¢ Payments to the extent necessary in each proposed annual budget submitted lot approval in accm- tplicaMe procedures slid to effiausl all available reviews and appeals A that potion of the budget is not approved. Notwithstanding the foregoing, the decision whether to budget or appropriate this Lease lot any Renewal Term is solely within the discretion of YOUR governing body. FRUITION. YOU are obligated any to pay such Lease Payments under this Lease as may lawfully be made Irom funds budgeted and appropriated for that purpose during YOUR then current fail to appropriate orouH awise make awinble funds to pay the Lease Payments a"torad to be paid in the next occurring Renewai Term, this Lease shall be deemed temknmetl at the and of the 0 Term or Renewal Term. YOU agree to deliver wdhen color to US of such termination at least 9D days prior to the end of the then current Original Team or Rerawal Term, but failure to give of extend the term of this Lane beyond To tan current Original Term or Renewal Term It His Lease is terminated in accordance with this Section, YOU agree, at YOUR cost and expense, to e Equipment to US at the location or locations specified py US. E& WE sm fearing the Equipment to YOU 'AS-IS" and WE MAKE NO WARRANTIES EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTIC- LE transfer to YOU, without roo ursa, for the term of this Lease ail warranties, 0 any, made by the manufacturer. YOU ALSO ACKNOWLEDGE THAT NO ONE IS AUTHORIZED TO WAIVE OR A, PROVISION OR CONDITION OF THIS LEASE AND, EXCEPT FOR THE MANUFACTURER WARRANTIES, MAKE ANY REPRESENTATION OR WARRANTY ABOUT THIS LEASE OR THE EQUIP- ACT BE LIABLE FOR SPECIAL, RESULTING OR CONSEOUENTIAL DAMAGES OR LOSS OF PROFIT OCCASIONED BY ANY BREACH OF WARRANTY OR REPRESENTATION OR RESULTING FROM )RMANCE OF THE EQUIPMENT. YOUR OBLIGATION TO PAY IN FULL ANY AMOUNT DUE UNDER THE LEASE WILL NOT BE AFFECTED BY ANY DISPUTE, CLAIM, COUNTERCLAIM, DEFENSE AfUCH YOU MAY HAVE OR ASSERT AGAINST THE SUPPLIER OR THE EQUIPMENT MANUFACTURER. ;NO ACCEPTANCE. YOU ARE RESPONSIBLE, ATYOUR OWN COST, TO ARRANGE FOR THE DELIVERY AND INSTALLATION Of THE EQUIPMENT (UNLESS THOSE COSTS ARE INCLUDED THE EQUIPMENT HAVE ACCEPTED THE EQUIPMENT REQU YOU THAT TELEPHONE E QUIPMENT DELIVERY AND YOUR ACCEPTANCE OFF THE EOURPMENT S THE SAME EFFECT C ECT AS A SIGNED DELIVERY AND TIFICATE. (Terms and Conditions continued on 7h0 reverse ride of this Lease. YOU aalinam imnwm my iedi a lim) and c pad a too mail b YOU this to he m nom and n od Io rn Ire To= am CEINNem. You agree that this is a non- rxnoetabfe lent. The Equipment ls: CKNan ❑ USED sNml Oae ran P nf r' i rOUTlf ll Fi l tame vane 1 d 2 PUB 7105 boom CamnenceaeN Us May 15, 2008 veMw LO. ounbe Ia1ffl See attached Equipment Uescstpbon Ee nUttking the0ox aebw, YOU Irerebydniy or and Inds Lease 119 W Infusing obligation' as de tneEO a Sdicn 765teH3)IB)ot be Nlemal eut ur rtprtseN Ital Iheag it l an lax+xee moo YO Rapul4e pinta t h i n g am o UhnlhmmnHi hkoh wEpetn morn isvae OIbarittuta by and YOUR aomdhak midies during me wanEV year in alien VtEnxd tMt Lease is npl Ir¢onfpy Mixed b who 110.000.00. ❑ Bmkeualimlimehooin Please read YOt the 'lessee' and the 1. LEASE. WE ( "Equipment") on th 2. TERM. This at Coal in effect W tl ad above as the FOR ued this Lease for 0 Payments and any a amts payment of, In as movided in SKO a. LATE ,,, CHAR is lass, from such 118 TERMS AND CONDITIONS I of this State and Loral Government Lease - Purchase Agreement ( "Lease') carefully and feel free M ask US any questions YOU may bare about iL Wads "YOU" and 'YOUR" refer to `WE," US" and 'OUR" refer to De Loge Landen Public Finance LC, he successors and assigns, as the "Lessor' at the Equipment. to lease to YOU and YOU agree to lean from US, the equipment listed above (and on any attached schedule) Including all replacement merle. repairs, atltldions and accessories I and conditions of Me Lease and on any attached schedule. s emoctme on the date that It is accepted and signed by US (the "Commerical Date ") and continues thereafter for an Urine term i" Original Term" j ending at he and of YOUR butlg- unerroement Date and may be continued by YOU for additional one -year parasol terms ("Renewal Terms') coinciding with YOUR budget year up to the total number of months h ica4 Term; provided, however, that at the end of the Original Tenn and at the end of each Renewal Term umll the Full Lease Term has been completed, YOU shall he deemed to room oll Renewal Term unless YOU said have terminal this Lease operant to Section 5 or Section 17. Lease Payments will be due as set Ponh m Attaehmem 1 umd the balm of the Lease at Lease Payments or expenses chargeable to YOU under this Lease are pad in fug, As set f n h In the Lease Payment Schedule, a portion of each Lease Payment is paid as, and mpre- I...._., o,",.....e�it vni m mhee t caez Mhnxennn am absolute and Unconditional and are not subset to cancellation, reduction. same or counterclaim except on 5. THIS LEASE IS NUN- AW,tL/Yalt tnecn how rnevmucv m eeo i ­ a. DES. It a Lease Payment is net made on the date when due, YOU will pay US a late charge at the rate of 18% per annum or the maximum amount mM lted by law, wMC ever date. 'ION OF LEASE TERM. YOU currently intend, subject to Section 5, to continue this Lease through the Full Lease Term Lid to pay the Lease Payments hereunder. YOU personal behave that Is in an amount sufficient to make all Lease Payments during the FUI Lease Term can be obtained. YOUR responsible financial officer shot do all things lmahu y whhin his or her powerlo gMafn from which me Lease Payments may be made, including making provision for the Leas¢ Payments to the extent necessary in each proposed annual budget submitted lot approval in accm- tplicaMe procedures slid to effiausl all available reviews and appeals A that potion of the budget is not approved. Notwithstanding the foregoing, the decision whether to budget or appropriate this Lease lot any Renewal Term is solely within the discretion of YOUR governing body. FRUITION. YOU are obligated any to pay such Lease Payments under this Lease as may lawfully be made Irom funds budgeted and appropriated for that purpose during YOUR then current fail to appropriate orouH awise make awinble funds to pay the Lease Payments a"torad to be paid in the next occurring Renewai Term, this Lease shall be deemed temknmetl at the and of the 0 Term or Renewal Term. YOU agree to deliver wdhen color to US of such termination at least 9D days prior to the end of the then current Original Team or Rerawal Term, but failure to give of extend the term of this Lane beyond To tan current Original Term or Renewal Term It His Lease is terminated in accordance with this Section, YOU agree, at YOUR cost and expense, to e Equipment to US at the location or locations specified py US. E& WE sm fearing the Equipment to YOU 'AS-IS" and WE MAKE NO WARRANTIES EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTIC- LE transfer to YOU, without roo ursa, for the term of this Lease ail warranties, 0 any, made by the manufacturer. YOU ALSO ACKNOWLEDGE THAT NO ONE IS AUTHORIZED TO WAIVE OR A, PROVISION OR CONDITION OF THIS LEASE AND, EXCEPT FOR THE MANUFACTURER WARRANTIES, MAKE ANY REPRESENTATION OR WARRANTY ABOUT THIS LEASE OR THE EQUIP- ACT BE LIABLE FOR SPECIAL, RESULTING OR CONSEOUENTIAL DAMAGES OR LOSS OF PROFIT OCCASIONED BY ANY BREACH OF WARRANTY OR REPRESENTATION OR RESULTING FROM )RMANCE OF THE EQUIPMENT. YOUR OBLIGATION TO PAY IN FULL ANY AMOUNT DUE UNDER THE LEASE WILL NOT BE AFFECTED BY ANY DISPUTE, CLAIM, COUNTERCLAIM, DEFENSE AfUCH YOU MAY HAVE OR ASSERT AGAINST THE SUPPLIER OR THE EQUIPMENT MANUFACTURER. ;NO ACCEPTANCE. YOU ARE RESPONSIBLE, ATYOUR OWN COST, TO ARRANGE FOR THE DELIVERY AND INSTALLATION Of THE EQUIPMENT (UNLESS THOSE COSTS ARE INCLUDED THE EQUIPMENT HAVE ACCEPTED THE EQUIPMENT REQU YOU THAT TELEPHONE E QUIPMENT DELIVERY AND YOUR ACCEPTANCE OFF THE EOURPMENT S THE SAME EFFECT C ECT AS A SIGNED DELIVERY AND TIFICATE. (Terms and Conditions continued on 7h0 reverse ride of this Lease. YOU aalinam imnwm my iedi a lim) and c pad a too mail b YOU this to he m nom and n od Io rn Ire To= am CEINNem. You agree that this is a non- rxnoetabfe lent. The Equipment ls: CKNan ❑ USED sNml Oae ran P nf r' i rOUTlf ll Fi l tame vane 1 d 2 PUB 7105 boom CamnenceaeN Us May 15, 2008 veMw LO. ounbe Ia1ffl See attached Equipment Uescstpbon 8. TITLE, PERSONAL PROPERTY, LOCATION, INSPECT=, NO MODIEICATONS OR ALTER- Schedule; or (C) If substantial damage to or destruction or condemmiku, of substanGaly all OI the ATIONS. WE have title to the Equipment; Provided that title to the Equipment will immediately and Equipment has Occurmd, on the day Combed in YOUR written notice to US of YOUR exercise of the wfttwul any Scion by US vest in YOU upon teerinxtion of this Lane pursuant to Secimn 17, It Is the purchase option upon at least 60 days prior Police td US and Payment in lull 10 US of the Lease indent of ma partles hereto that any transfer of title 10 YOU pursuant 10 this Sedbn shall occur auto. Payments and all other amounts then due ptus the then mplicebte Purchase Price set torch on the meNalywiltoutthe necessity or my bill of sale. certillcate of title or other Instrument of conveyance Lease Payment Schedule. WE stall, nwarrimless, execute and deliver any such insbumems as YOU may mqueel to evidence 18. REPRESENTATIONS AND WARRANTIES. YOU warrant and represent as follows: (a) You suchtansfer.As Security tar YOUR obligmanshancunda, WE retain asearitymmrae UYOURinter- are a public body corporate and poldc duly organized and existing under the cons6Wion and lam at esl in the Equipment and OR proceeds thereof YOU have the fight to on the Equipment during the YOUR State with lull power and authority to enter into this Lease and the Varrsachions contemplated term of this Lease, except as ommwise expassly calorih in this Lease. Although the Equipment may hereby and to perform air of YOUR obligations hereunder: (b) YOU have duty authorizedlneexact- became attached to real estate, it remade personal property. YOU agree nor to after or mndtty the tin and delivery of this Lease by proper action by YOUR governing body at a meeting duly called, Equipment a perndt a lien to be placed upon YOUR interest in the Equipment or to remove the regularly convened and alleNed Ihrughout by the requisite majority of the mercers thereof or by EmUmnianl without OUR prior w6Hm wn t. If WE feel N is necessary, YOU agree to provide US other appropriate official approval, and all requirements have been met and procedures have Occurred With waivers at interest or liens from anyone claiming any interest in the real estate an which any Ln order t0 ensure ffe vzkdffy and enforceability of this Lease; (c) YOU have complied with such pub. items of Egiupment is located. WE Dead have t rig ht at reasonable times, to inspect the Equipment. a biddthg'"'mmetlts as may be appticahfe to this Lease and gas mcquisbiOP by YOU of the 9. MAINTENANCE. YOU am required, at YOUR own con and expense, to Neap the Equipment EWlpmem; (d) a6 authodeabons, Consents and approvals of governmental oodles or agencies in good repay condlllon and working order, except for Ordinary wear and last, and YOU will supply required mccnrlxtla"wdh theel(ecutlonand delivery by YDU e11NS Leant or in connei With the all parts and serviang required. An replacement parts used or Installed and repairs made to the gnyfrlg out by YOU 01 YOUR Obiiga6ons hemuMer base been obtained; (e) this Lease CasNluk9 Equipment wit become OUR property. YOU ACKNOWLEDGE THAT WE ARE NOT RESPONSIBLE FOR PROVIDING ANY REQUIRED the legal, valid Snot OfMitg oblonifti m my OU enforceable in accordance with a terms, except to the exent limbed M applicable bankruptcy, insdvenry, Parg"umbon or other laws alfecirg Creditors' MAINTENANCE PNDIORSERVI�FOR THE EQUIPMENT, YOU WILL MANE ALL CLAIMS FOR SER- r ights generalty:(1)YOU have, in accortlance withthO requirements of law, ally budgeted and appro VICE AND/OR MAINTENANCE SOLELY TO THE SUPPLIER AND/OR MANUFACTURER AND SUCH prated sun,Uent funds for the cgrrer budget yea m make the Lease Payments scheduler) to come CLAIMS WALL NOT AFFECT YOUR OBLIGATION TO MANE ALL REQUIRED LEASE PAYMENTS. due durbg the curtent budget yearend to meet YOUR aha oafpetI'. under this Lease fa the cur. 10. ASSIGNMENT. YOU AGREE NOT TO TRANSFER, SELL, SUBLEASE, ASSIGN, PLEDGE OR rent budget year, amd those funds have not been expended for other purposes: 0) the Equipment is ENCUMBER ANY RIGHTS UNDER THIS LEASE OR INTEREST IN THE EQUIPMENT WITHOUT OUR essad'21 to YOUR laugons or to me serrices YOU prOVitle IO YOUR Cazens,Y hayeanlmmedi- PRIOR WRITTEN CONSENT. YOU agree that WE maysd6 assign or transfer this Lease and, if WE do, ate need forlhe Equipment and expect to make immediate use of the Equipment, YOUR need lot the thenew Ownerw0l have Cne same rghtsandbenelbsthal WEnaw havaand will not have to perfarm Equipment is not temporary and YOU do not expect the mad foramy, Item of the EQUlpmcralo dimin. any of OUR obligations and the rights of the new owner will not be subject to any claims, counter- ish in the foreseeable future, including the Full Lease Term, and the Equipment will be used by YOU claims, defonses or Rai that YOU may have against US. YOU hereby appcnt Municipal Registrar only for the purpose of performing one or more cd YOUR governmental or propriemy functions ca. Services One 'Register') as YOUR agent for IN purpose of maintaining a wfinen record of each sfaed with the permissible scope of YOUR authority and will not be used in the trade or business at assignment in form necessary m Comply with Section 149(x) of the lnlerne Revenue Code of 1986, any other entity a person; and (h) YOU have tkver failed to appropriate a otherwise make available as amended. No such assignment shall be binding on YOU OR the Registrar has received written funds sufficient to pay rental at offer payments Coming due under any lease purchase. Inmalmeni notice tram the assignwolthe nerve and address of the assigrka 11. LOSS OR DAMAGE. YOU am responsible for the risk of lass or destruction of or damage sale or other s rnilar agreement. 19. UCC FILINGS AND FINANCIAL STATEMENTS. YOU amlhodx US to life a financing State - t0 the Equipment. No such loss or damage relieves YOU lmm any obligation under this Lease. If any mend wish respect to the Equipment If WE feel it is necessary, YOU agree to submit financial state- at the Equipment Is damaged by fire Or other Casualty or title to, or the temporary use of any of the ments (audited it available) an a quarterly basis. Equipment is taken under the exerOae of the poor of eminent domain, the net proceeds ( "Nel 20, UCC - ARTICLE 2A PROVISIONS. YOU agree that this Lease is a finance Lease as that term Proceeds)of Dry bmuance claim or condemnmtionaward will be applied to the prompt replacement, 0 defined le Article 2A of The Uniform Commercial Code CUCC") YOU aclmdwledge that WE have repair, reslor06on, motlificali0n aimpr0vemenl Equipment, unless YOU have exacted YOUR given YOU the name of the Supplier Of the Equipment. WE hereby rarely YOU that YOU May lam Option to purchase the Equipment pursuant to Sectim 17. Any beWxe M the Not Proceeds remain- rights underme CDntraG with the Supplier and YOU may contact the Supplier fore descripuon of arc/ irg alter such work has been comdated shall be paid to YOU, rights or warranties mat YOU may have Oder this Supply contract. YOU also waive any and all rights 12, INDEMNITY. WE ore not responsible for any losses w inquiries Caused by the manufacture, and remedies granted YOU under Sections 2A -506 through 2A -522 of the UCC. acquisition, delivery, MsOation, ownership, use, lease. possession, mafnterence, operation or mina Non of the Equipment or defects in the Equipment Torre extent perrittet by law, YOU agree toreim. 21. TAX EXEMPTION. YOU will Comply with, all applicable provisions U the Internal Revenue Code of 1986, SO amended, imbliing without limitalim Sectors 103 and 1411 thereol, and the appb. bursa US for" to defend US against any claim lot losses or injudes reta8ng tolhe Equipment. This core regulations thereunder to maintain the exclusion of the interest Donlan of [Ile Lease Payments indemnity wdi continue am after the termination of this Lease, 13. TAXES. YOU agree to pay all applicable 8cerrmand reglsbatim fees, sate and use taxes, per- from gross income for purposes of lderal income taxation. 22. BANK QUALIFICATION. It YOU checked the 'Bank Qualification Elected' box an me front Baal property tares and all other taxes and charges, relating 10 me ownership, leasing, rahWl, sale, page of this Lease YOU antl all YOUR subordinate entities wits not issue in excess of $10,000,000 Of purchase, possession or Use of the Equipment (except those based an OUR not im:on e), YOU agree qualified Tax - exempt Obligations (including this Lease but exJudirg private activity bonds order than that If WE pay any taxes a charges. YOU WE tdMDUrSe US lot all such payments and will pay US Qualified 561(c)(3) Cords) during the sari year in which WE fund this Lease without gm Obtain. interestand a late charge(as calculated in Section3) an such payments0110he Pad lease Pgmonl, Pius a fee for OUR cola ng and administering arty axes, assessments or lees and ten Wmg them Ing an opinion of Milan* recognized counsel in the area Of lax-exmdt munfcpzl obligations aeceptabio to US that the Clesignation of this Lease as a'qualified tax- exanpl obligation' tall not be to the appropriate auth0mhs. 14. INSURANCE. During Via Ism) of mis Lease, YOU will keep the Equipment insured against adversely affected. 23. CHOICE OF LAW; JURY TRIAL WAIVER. This Lease shall be governed and Construed in YOU located, TO the extent by law,, YOU Ali risks 01 loss Or damage In an amount not less than Me replacement cost of the Equipment, with. accordance with the laws of the state whore are permitted out deductible and withoutcominsurace. YOU will also obtain antl malntam tar the term of mis Lane. agree to wave YOUR rights to a trial by Cry, 24. ENTIREAGREEMENP, SEVERAIl WAIVERS. Tuts Lease contains the entire agreement compreheraive public liablety insurance coveting both perscral injury and property damage of at last $100ADD pa person and $300,000 per oaarrerfce or b0i Injury and $SOLOD0 for properly and understanding. No agreeme re w Onderelading5 are binding on the Parties unless set forth in damage. WE will be the sole named loss payee on the Property insurance and named as star addition. writing and signed by the lowest.Amyprovision olthat Leasewhichforartyaesalmaybeheldumn alihsured onthepublicifabiuty ltsurence. YOU will pay all premium for such insurance and must deliver proof of instance Coverage satisfactory to US. If YOU do not provide such insurance, YOU forceable in any jurisdicion shall, as to such jurisdiction, be Ineffective withoutmvaffdirg the mmae- Ing provisions of this Lease. THIS LEASE IS NOT INTENDED FOR TRANSACTIONS WITH AN EQUIP - agree the) WE have the fight, but not the oblfgatury to obtain such insurance and add an insurance fee to the amount due from you, on Which we mdro a profit. MENT FAST OF LESS THAN $1,000. 25. FACSIMILE DOCUMENTATION. YOU agree the a facsimile cvnpy of true Lease with recent 15. DEFAULT. Subject to SeCNon 5, YOU are In d tauN of this Lease it any of the Iollovan9 In signatures may be treated as an original mM will be admissible as evidence of this Lease. Occurs: (a) YOU fail to pay any Lease Payment of other sum when due; (b) YOU breach my warran. ty Or other obligation under this Lease, or any other agreement mxilh US, (c) YOU Demme insolvent or Unable to pay YOUR debts when due, YOU make an assignment for the cannot of creditors a YOU undergo a substantial delaiorallon in YOUR financial condition, a (d) YOU file or have filed agmarst YOU a pateon tar liquidation, reorganization, adjustment of debt or similar rel under the Federal Bankruptcy Code or arty other present or future federal or stale bankruptcy a insolvency law, or a truslee, recover or llquida0r Is appointed for YOU or a substantial pan of YOUR assets 16. REMEDIES. WE have the following remedies ![YOU are in default of this Leaser WE may declare the erdire balallCeofthe unpaid LJase Payments far the then W vent Original TOM Of Renewal Term immediately due and payable: sue fa and receive all Lease Payments and any other payments Iran accrued Or accelerated under this Lease; carge YOU (merest on all males due US at the ram of eightecn percent (18 %) per year from the date of default until paid, but in no event more t the maximum rate pardft ld by law: charge YOU a nommcheck or non etuf dent M1mds Charge ( "NSF Charge) of $25.00 for a check that is returned fa any reason; and Cause the YOU return the Equipment to US and, If YOU fall to return the Equipment, enter upon the premises peaeably with or welded legal proems where the Equipment Is bated antl recent the Equipment Such return or repossession M the Equipment will not comNlute a lemunation of this Lease unless WE expremlY Polly YOU is wrtmg. II the Equipment Is returned or recommend by US and unless WE have term rafted this Lase. WE will see or re -renl the Equipment to ary persons with arty terms WE determine. at one or more pret a private safes, with or without Pages to YOU, and apply the net proceeds after deduCOrg the costs and expenses of such sets Or re -rent, to YOUR Obligations with YOU renaming liable fa any deficiency and with Dry excess over the amounts described In this Section plus Nis men applicable Purchase Price 10 be paid to YOU. YOU are also required to pay (1) ad expenses incurred by US in connection with the eadmement of arty remedies, including all expenses of repossessing. StOhi shiltift mealring and Calling the Equipment, and (if) reasonable attorneys' fees 17. PURCHASE OPTION. Provided YOU are not In detauff, YOU shall have he Opliontd Pumhasd m eo of but ml less than aft of the Equipment (a) On ROD date the last Lease Payment Isdue (assuming this ca lease is renewed a the end utiheOriginal Term and each Renewal Term), t mis Lease s sill m Offer an that day, upon payment In fW at Lease Payments and as Other amounts then due and the Payme of One Dollar to US; (b) on the list day of the Original Term Of any Renewal Term then in effect, upon Cl. at least W days prior written rani to US and payment in full to US of the Lease Payments and all c other amounts then duo plus the then applicable Purchase Price set fonh on rho Lease Payment Page 2 q 2 9eo D7 MI Rigid onxived . finite n evUS A. UPFOOCnd3 rut] AMENDMENT TO STATE AND LOCAL GOVERNMENT EQUIPMENT LEASE - PURCHASE AGREEMENT This Amendment to that certain State and Local Government Lease - Purchase Agreement (together with all Exhibits and this Amendment, the "Agreement") dated as of May 15, 2008, between De Lage Landen Public Finance LLC (together with its successors and assigns, "Lessor "), and Pueblo, a Municipal Corporation (together with its successors and assigns, "Lessee"), is incorporated in and is hereby made a pan of the Agreement. Lessor and Lessee hereby agree that capitalized terms used herein and not otherwise defined herein shall have the terms assigned to such terms in the Agreement and that the following changes and additions are hereby made to the Agreement: 1. Section 3 of the Agreement is replaced with the following: 3. LATE CHARGES. If a Lease Payment is not made on the date when due, YOU will pay US a late charge at the rate of 12% per annum or the maximum amount permitted by law, whichever is less, from such date. 2. Section 4 of the Agreement is replaced with the following: 4. CONTINUATION OF LEASE TERM. YOU currently Intend, subject to Section 5, to continue this Lease through the Full Lease Term and to pay the Lease Payments hereunder. YOU reasonably believe that legally available funds in an amount sufficient to make all Lease Payments during the Full Lease Term can be obtained. YOUR responsible financial officer shall do all things lawfully within his or her power to obtain and maintain funds from which the Lease Payments may be made, including making a recommendation for provision for the Lease Payments to the extent necessary In each proposed annual budget submitted for approval in accordance with YOUR applicable procedures. Notwithstanding the foregoing, the decision whether to budget or appropriate funds and to extend this Lease for any Renewal Term is solely within the discretion of YOUR governing body. 3. Section 5 of the Agreement is replaced with the following: 5. NONAPPROPRIATION. YOU are obligated only to pay such Lease Payments under this Lease as may lawfully be made from funds lawfully budgeted and appropriated for that purpose during YOUR then current budget year. if YOU fail to appropriate or otherwise make available funds to pay the Lease Payments required to be paid in the next occurring Renewal Term, this Lease shall be deemed terminated at the and of the then current Original Term or Renewal Term. YOU agree to deliver written notice to US of such termination at least 20 days prior to the end of the then current Original Term or Renewal Term, but failure to give such notice shall not extend the term of this Lease beyond the then current Original Term or Renewal Tenn. If this Lease is terminated in accordance with this Section, YOU agree, at YOUR cost and expense, to peaceably deliver the Equipment to US at the location or locations specified by US. 4. The following is added to the and of Section 10: Nothing in this Section is intended to prohibit YOU from allowing control and management of the Equipment to be exercised by persons performing services for YOU under management agreements for the facilities at which the Equipment may be used. S. The following is added to the end of Section 14: In lieu of obtaining such insurance, YOU may self- insure the Equipment by means of participation In the Colorado Intergovernmental Risk Sharing Agency ( "CIRSA ") with coverage through CIRSA on the Equipment for direct physical loss or damage caused by or resulting from a covered cause of loss, in an amount not less than the full replacement cost of the Equipment, and which must be described in a letter delivered to US. 6. Section 16 is modified as follows: Any reference to the number eighteen (18) is changed to the number twelve (12). Except as specifically set forth in this Amendment, all terms and conditions contained in the Agreement remain in full force and effect and are hereby ratified and confirmed. LESSOR: DE LAGE LANDEN PUBLIC FINANCE LLC LESSEE: PUEBLO, A MUNICIPAL ORATION r7Y _"�2y BY: X _ �- ni HrIRVFrS!lCNGirI rlr�. —` AUTHORIZED SIGNATURE BY: ADDRESS: 1 City wall Place Pueblo, On 81 003 DATE: 5 DATE: PUEBLO, A MUNICIPAL CORPORATION ATTACHMENT/ LEASE PAYMENT SCHEDULE Date Loan 05/15/2008 1 06/15/2009 2 06/15/2010 3 06/15/2011 4 06115/2012 Grand Totals Payment 66,020.90 66,020.90 66,020.90 66,020.90 264,083.60 Interest Principal 9,416.23 56,604.67 6,642.39 59,378.51 4,505.95 61,514.95 2,301.03 63,719.87 22,865.60 241,218.00 Balance 241,218.00 184,613.33 125,234.82 63,719.87 0.00 Purchase Price APPROVED: PUEBLO, A MUNICIPAL CORPORATION 188,305.60 127,739.52 64,994.27 0.00 Barbara Vidmar President of City Council PUEBLO, A MUNICIPAL CORPORATION EQUIPMENT DESCRIPTION Equipment Located at: Walking Stick Golf Course, 4301 Walking Stick Boulevard Elmwood Golf Course, 3900 Thatcher Avenue EQUIPMENT DESCRIPTION SERIAL It One Hundred Forty (140) 2008 Yamaha YDRA -W Drive Gas Golf Cars Two (2) 2008 Yamaha YDRA -H Drive Gas Golf Cars Two (2) 2008 Yamaha G23A Transport Vehicle De Lage Landen Public Finance LLC 2600 Grand Boulevard, Suite 380 Kansas City, Missouri 64108 Ladies and Gentlemen: ACCEPTANCE CERTIFICATE Re: State and Local Government Lease Purchase Agreement dated as of May 15 i , 200—L— _, between Do Logo Landon Public Finance LLC, as Lessor, and Pueblo, a Mun icipal Co ryoraaon �__ �. — -- .._ ............ . , as Lessee. In accordance with the State and Local Government Lease Purchase Agreement (the "Agreement'), the undersigned Lessee hereby certifies and represents to, and agrees with Lessor as follows: 1. All of the Equipment (as such term Is defined in the Agreement) has been delivered, Installed and accepted on the date hereof. 2. Lessee has conducted such Inspection and /or testing of the Equipment as it deems necessary and appropriate and hereby acknowledges that it accepts the Equipment for all purposes. 3. Lessee is currently maintaining the Insurance coverage required by Section 14 of the Agreement. 4. No event or condition that constitutes, or with notice or lapse of time, or both, would constitute, an Event of Default (as defined in the Agreement) exists at the date hereof. MO N O e a 0 S.l2aW ul eipMSapdvM. P�InIM In eN USA e)PfDUtWe 4tl7 Lessee Pueblo, a Municl al Corporation _ / Data d Si Y\ Prfnl Nerve Barbar=a ViAmnr Tills N O e a 0 S.l2aW ul eipMSapdvM. P�InIM In eN USA e)PfDUtWe 4tl7 COLORADO INTERGOVERNMENTAL RISK SHARING AGENCY ( CIRSA) CERTIFICATE OF PARTICIPA'T'ION FOR PROPERTY /CASUALTY COVERAGES issued to the City of Pueblo CIRSA hereby certifies that the above -named entity is a participating member of CIRSA for property /casualty coverages for the coverage period of January 1, 2008 through January 1, 2009. CIRSA liability coverages for the coverage period will be as described in a CIRSA liability policy and Discover Property and Casualty Insurance Company reinsurance policy which will provide the liability and errors and omissions coverages summarized below. CIRSA property and crime coverages for the coverage period will be as described in a CIRSA property policy and a RSUI Indemnity Insurance Company excess policy. The coverages, conditions of membership, and other provisions applicable to CIRSA property /casualty members are described in CIRSA's Bylaws, coverage and /or excess/reinsurance coverage policies, and general policies adopted by the members, as from time to time amended. The types and monetary limits of the coverages to be provided to CIRSA property/casualty members shall be as described below. The scope, terms, conditions, and limitations of the coverages shall be governed by the applicable policies and /or excess/re policies, the CIRSA Bylaws and Intergovernmental Agreement, and other applicable documents. I. TYPES OF COVERAGES (subject to CIRSA's liability limit as described in Section lI below): A. Property coverage (including auto physical damage) B. Liability coverage: 1. General liability 2. Auto liability 3. Law enforcement liability 4. Public officials errors and omissions liability C. Crime coverage (including employee dishonesty and money and securities) IL CIRSA RETENTIONS, LOSS FUNDS, EXCESS INSURERS, AGGREGATE LIMITS, AND MEMBER DEDUCTIBLES: For the coverage described in Section I, CMSA shall be liable only for payment of the applicable self - insured retentions and only to a total annual aggregate amount for CIRSA members as a whole of the amount of the applicable CIRSA loss fund for the coverage period. There shall be no aggregate excess coverage over any loss fund. Coverages in excess of CIRSA's self - insured retentions shall be provided only by the applicable excess insurers and/or reinsurers in applicable excess and reinsurance policies, and shall be payable only by those excess insurers and/or reinsurers. The limits of coverage provided by the excess insurers and/or reinsurers for the coverage period shall be described in the coverage documents issued to the members. Sublimits, aggregate limits and other limits shall apply as provided in said documents. 2008 Certificate of Participationfor Property /Casualty Coverages City of Pueblo Page 2 CIRSA SELF - INSURED RETENTIONS FOR THE COVERAGE PERIOD: A. $500,000 each and every loss and/or occurrence property B. $600,000 each and every loss and/or occurrence liability C. $600,000 each and every claim Public Officials Liability D. $150,000 each and every loss and/or occurrence crime CIRSA LOSS FUND AMOUNTS FOR THE COVERAGE PERIOD: Loss fund amounts shall be as adopted or amended from time to time by the Board of Directors based on the members in the property /casualty pool for the year. Information on current loss fund amounts shall be available from the CIRSA Chief Financial Officer. EXCESS INSURERS/REINSURERS FOR THE COVERAGE PERIOD: A. Property: RSUI Indemnity Insurance Company (excess) B. Liability: Discover Property and Casualty Insurance Company (reinsurance) C. Excess Crime: AIG LIMrTS/EXCESS LIMITS: A. Excess property: to $500.5 million per claim/occurrence. B. Excess liability: to $5 million each and every loss and/or occurrence (except excess auto liability: to $1.5 million each occurrence and Public Officials Errors and Omissions and class- action suits arising out of dis criminati on to $5 million each and every claim/$10 million annual aggregate per member) C. Excess crime (optional): up to $2 million per claim/occurrence. III. ME MBERDEDUCTIBLES: A member - selected deductible shall apply to each of the member's claims/occurrences. The deductible amounts selected by the City of Pueblo are $150,000* (Liability), $10,000 (Auto Liability), $25,000 (Property), and $25,000 (Auto Physical Damage). Payment of the deductible shall reduce the amount otherwise payable under the applicable CIRSA retention. In the event of a loss or occurrence involving more than one CIRSA member, each member shall pay its full applicable deductible(s). *Police Professional and Errors and Omissions deductible cannot go below $1, 000. IV. POLICIES GOVERN PAYMENTS: Payments within the member's deductible(s) and/or CIRSA's self - insured retention(s), or in excess of the member's deductible(s) and/or CIRSA's self - insured retention(s), in connection with any claims /occurrences shall be governed by the excess and/or reinsurance policies. Countersigned on behalf of the Colorado Intergovernmental Risk Sharing Agency. Tlmot . Gre `— e+�� rive Director