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HomeMy WebLinkAboutReso 40-1981RESOLUTION NO. 40-81 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AUTHORIZING THE EXECUTION OF A MASTER PERSONAL PROPERTY LEASE AND OPTION AGREEMENT BETWEEN THE CITY OF SOUTH SAN FRANCISCO, A MUNICIPAL CORPORATION, AND LLYODS BANK CALIFORNIA WHEREAS, the City Council on or about July 16, 1980 determined that it would be in the best interest of the City of South San Francisco to finance the acquisition of furnishings and equipment for the newly remodeled Municipal Services Building; and WHEREAS, such financing may be properly accomplished by means of a Lease/Purchase Agreement; and WHEREAS, proposals for such Lease/Purchase financing have been solicited from the seven banks located within the City of South San Francisco; and WHEREAS, the Lloyds Bank California submitted a proposal representing the lowest effective annual interest cost; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that: 1. Execution of Agreement. Execution of a Master Personal Property Lease and Option Agreement, a copy of which is attached hereto as Exhibit "A", and any lease schedules necessary to effectuate the purposes of that Master Lease, for the acquisition of furnishings and equipment for the newly remodeled Municipal Services Building, between the City of South San Francisco, a municipal corporation, and Lloyds Bank California, a corporation, is hereby authorized. 2. Signatures. The City Manager is authorized to execute said Lease and Option Agreement on behalf of the City, and the City Clerk attest his signature thereto. I hereby certify that the foregoing Resolution was regularly intro- duced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the 1st day of April , 1981, by the following vote: AYES' Councilmen Rona!d G, Acosta, Mark N. Addiego, Emanuele N. Damonte, Gus Nicolopulos; and Councilwoman Roberta Cerri Teglia NOES' None ABSENT' None ATTEST- 2, MASTER PERSONAL PROPERTY LEASE AND OPTION AGREEMENT EXHIBIT "A" TO RESO. No. 40-81 adopted 4/1/81 This Agreement, made and entered into this day of 19 , by and between Lloyds Bank of California, hereinafter cal l ed. "Lessor, " and City of South San Francisco, a Municipal Corporation, hereinafter called "Lessee." Wi tnesseth That, in consideration of the mutual covenants hereinafter set forth, Lessor hereby leases to Lessee, and Lessee 'hereby leases and hires from Lessor, all property, (hereinafter referred to as "Equipment") described in the Lease SchedUle or Schedules (.collectively "Schedule") executed by them concurrently herewith or hereafter and made a part hereof. The term of this lease respecting each item of equipment commences and terminates as of the dates designated in the respective [ease Schedule° The rent for each and every item of Equipment described in the Schedule shall be the amount designated therein. Lessee shall pay Lessor said rental for the use of the property during the term of each- lease in installments and at the times specified. Lessee is hereby given the option (p?ovided Lessee is not in default in the performance Jf any of its obligations hereunder) to purchase said property at the times and for amounts set forth in the Schedule. To exercise such option Lessee shall notify Lessor in writing thirty (30) days prior to the expiration of the current year of the lease' of its intention to do so. Such notice may be delivered to Lessor's office or may be mailed to Lessor, Lloyds Bank California at 612 South Flower Street, P. O. Box 5445, Los Angeles, California 90054. Page 1 of 4 (a) In the event the Lessee defaults in the payment of any amount due or to become due under the terms of the l eas'e or default~ i~n the performance of ~n.y of the terms and conditions hereof, all the Lessee's rights hereunder shall, at the option of Lessor, terminate and the Lessor shall become, entitled to possession of the property and to retain all rental~s-~ In the event-any installment is not paid within fifteen (15) days of the due date, interest will be due on said installment as provided by law at the legal rate of ten percent (10%) per annum. (b) Lessee. shall pay and discharge all license fees, assessments and sales, use property and other tax or taxes which either Lessee or the Lessor is lawfully obligated to pay which are now or hereafter lawfully imposed by any State, Federal, or local government upon any property hereby leased based upon the .owner. ship, leasing, renting, sale, possession, or use of said property whether the same be assessed to Lessor, Lessee or their assigns, together with any penalties or interest in connection therewith, excepting Federal, State, or local government taxes, or payments in lieu thereof, imposed upon or measured by income of the Lessor. Any sales or use tax paid by Lessee to Lessor under the provisions hereof will be remitted by Lessor to the appropriate taxing agency in timely manner and the payment of such sales or use tax by Lessee to Lessor shall fully discharge Lessee from its obligation to pay such sales or use tax as provided in this paragraph. (c) Lessee agrees that the said property will be used by Lessee for the ordinary and sole purpose for which it is designed. It is further stipulated and agreed that during the term of this lease, Lessee shall be responsible for and shall pay all charges for upkeep and/or storage of said property and shall make, at its own expense, any and all repairs and supply and pay for any and all materials needed to maintain said property in proper condition. Any Page 2 of 4 and all damage or depreciation caused by accident, negligence, fire, the elements or casualty, or by failure or neglect to make repairs as needed, is not. excepted. (d) Lessee agrees to obtain and keep in force fire and extended coverage 'insurance covering the leased property during the term of the lease or any renewal thereof, with a loss payable clause protecting Lessor as its interest may appear. Said insurance to be acceptable to Lessor. Lessee covenants and agrees that it will carry'and maintain public liability and property damage insurance in insuring against any and all public liability. and property damage liability of Lessor and/or Lessee with respect to said property or arising out of maintenance, use or occupancy thereof, and to furnish Lessor a certificate of such insurance with a Lessor's loss payable endorsement and a statement that said insurance is primary to any similar insurance maintained by Lessor. -Said insurance to acceptable to Lessor. (e) Lessor covenants that it is the sole owner of said property, and that no other person, party, firm or corporation has any right, title or i~terest in or to same and that during the term of this lease said Lessor will not sell 'or encumber said property, or any interest therein, except subject to the rights given the Lessee by virtue of this lease. (f) In the event that Lessee shall comply with all the provisions of this lease on its part to be kept and performed then and in that event upon the termination of said lease all the right, title and interest of said Lessor in and to said property shall vest in and become the property of said Lessee, and said Lessor covenants that it will thereupon execute to Lessee, a bill of sale of all its r~ght, title and interest in and to said property as evidence of said transfer of title, anything in this lease to the contrary notwithstanding. (g) In event of self-insurance, for property and liability risks, a letter from Lessee indicating said fact may be substituted for consideration by Lessor for substitution of the above pargraph. Page 3 of 4 (h) Upon written notice to Lessor, given not later than ninety (90) days prior to the end of any fiscal year of Lessee, Lessee may terminate this lease based solely upon the Lessee's unwillingness to appropriate funds for the subsequent year's lease payments. Upon termination before the full term of the lease, Lessee, at its expense, shall re-deliver the property to th'6-Lessor at a location designated by Lessor within the same county as the premises where the equipment may be located in as good a condition as when received, normal wear and tear excepted,' If Lessee terminates the lease under this paragraph, Lessor may retain all amounts previously paid by Lessee 'and may collect and retain any amounts due and unpaid on due date of such termination as delineated in the Schedule. (i) THIS AGREEMENT, shall, in every respect, be binding on the parties hereto, and their respective successors and assigns. (j) '~Lessee acknowledges receipt of an exact copy of this agreement. IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the day and year first hereinabove written. Witness: Lessor Title Attest: By Title City Clerk City of South San Francisco Lessee By Title Page 4 of 4