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.
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Lessee
Pueblo, a Municl al Corporation
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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