HomeMy WebLinkAbout7/28/1999 - STAFF REPORTS (7) DATE: July 28, 1999
TO: City Council
FROM: Director of Office of Management and Budget
APPROVE SUPPLEMENT NUMBER 4 TO CALEASE MASTER LEASE/PURCHASE
AGREEMENT FOR PURCHASE OF TWO (2) FIRE ENGINES AND ONE (1)
PARAMEDIC SQUAD UNIT.
RECOMMENDATION:
It is recommended that the City Council approve Supplement (Takedown) Number 4 in an amount
not to exceed $710,000 under the Master Lease Agreement with CaLease to finance the purchase of
two (2) Fire Engines and one (1) Paramedic Squad unit.
BACKGROUND:
The Office of Management and Budget recommends that the purchase of two (2) Fire Engines and
one (1) Paramedic squad unit (Cost not to exceed $710,000) be financed on a lease/purchase basis
over 10 years under the Mater Lease Agreement with CaLease approved by the City Council on
October 21, 1998.
Vehicles were described in reports to Council, which City Council has just reviewed and hopefully
approved at this meeting.
The Fire Engines will have useful life of at least ten (10) years and the Paramedic squad unit an
estimated life of 5 to 7 years. Paying cash for these vehicles would place a substantial burden on
the cash reserves of the City's MVR fund.
The CaLease program will provide the required funding with a ten-year payback term at an interest
rate in the mid 5% range. CaLease will finalize the interest rate through placement in the
competitive market within ten (10) days after notification of approval by City Council. The
payments will be semi-annual, due on December 30 and June 30.
The CaLease program is a League of California Cities and California State Association of Counties
sponsored program to provide California cities and Counties access to the best possible financing
for large. capital acquisitions leveraging tax exempt interest rates. The fire engines become the
property of the City outright at the end of the ten-year payment term.
go B A
APPROVED
Dl_.CLT tFD
A,�Ron Everett
Director of Office of Management and Budget �etzJ
Approved: P9
/,/- Rob W. Parkins
City Manager
Attachments 1) Minute Order
JUL 22 '99 09:32FM CRL1F CUMMUM111L5 r.viir
MASTER LEASE AGREEMENT SUPPLEMENT NO.4
DATED AS OF:
LESSOR: CaLease Public Funding Corporation
1100 K Street,Suite 101
Sacramento,CA 95814
LESSEE: City of Palm Springs,California
3200 Tahquitz Canyon Way
Palm Springs,CA 92262
MASTER LEASE
AGREEMENT: Master Lease Agreement dated as of November 15,1998,between Lessor and Lessee
FINAL ACQUISITION
DATE: No later than
WITNESSETH:
WHEREAS,Lessor desires to lease the Equipment,as hereinafter defined,to Lessee,and Lessee desires to
lease the Equipment from Lessor,in accordance with the Master Lease Agreement and this Master Lease Agreement
Supplement;
NOW, THEREFORE, in consideration of the above premises and of the mutual covenants hereinafter
contained and for other good and valuable consideration,the parties hereto agree as follows:
A, Incorporation of the Standard Terms and Provisions. The terms and provisions of the Master
Lease Agreement,which is attached to this Supplement,are incorporated herein by this reference as though hilly set
forth in this Supplement. The Master Lease Agreement,together with this Supplement,and the documents and other
items referred to therein and herein related to this Supplement or the Equipment, attached thereto or hereto or
required thereby or hereby are collectively referred ro herein as the "Lease Agreement" Capitalized terms used in
this Supplement and not otherwise defined shall have the meanings ascribed thereto in the Master Lease Agreement.
W Lease of Equipment. There is hereby subject to the terms of this Lease Agreement the following
described property, together with (i) all substitutions for, products and proceeds of any of the following described
property, (ii) all accessions thereto, and (iii) all accessories, attachments, parts, equipment and repairs nor or
hereafter attached or affixed to or used in connection with any of The following described property (the
"Equipment"):
DESCRIPTION OF EOUWMENT:
Eauiument: Cost:
(2)Fire Trucks
(See Attachment A for a detailed list) $
Useful Life of Equipment:
Lessee certifies that the Equipment being acquired will, immediately after its acquisition by Lessee at agent
for Lessor,be owned by Lessee frce and clear of all liens or claims of others, except for the rights of Lessor under
the Lease Agreement. Lessee further certifies that the Equipment is not currently owned or leased by Lessee and that
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Lessee is prepared to accept the Equipment from the Vendor thereof upon delivery and satisfaction of performance
criteria,if any.
C. Acquisition Date and Lease '.term. The Equipment shall be acquired by the Final Acquisition
Date,and the Lease Term shall commence on the Commencement Date-
D. Base Rental Payments. Base Rental Payments shall be comprised of principal components and
interest components and shall be payable at the times and in the amounts as set forth in Schedule 1.
E. Fair Rental Value. Lessee hereby certifies that the foregoing Base Rental Payments plus
Additional Rental Payments payable pursuant to Section 6.02 of the Master Lease Agreement represents, on an
annual basis,the fair rental value of the Equipment specified herein. in making this determination,consideration has
been given to the cost of the acquisition and installation of the Equipment,other obligations of the parties under the
Lease Agreement, the uses and purposes which may be served by the Equipment, and the benefits therefrom which
will accrue to Lessee and the general public-
F. Prepayment Terms. The Base Rental Payments are subject to prepayment as provided in Section
6.06 of the Master Lease Agreement. An optional prepayment pursuant to Section 6,06(c) of the Master Lease
Agreement may be made on any Payment Date beglnning at the prepayment price indicated above.
G. Entire Agreement This Lease Agreement, together with Schedule 1 and all Exhibits and
Attachments, constitutes the entire agreement between Lessee and Lessor and supersedes all prior and
contemporaneous writings, understandings, agreements, solicitations documents apd representations, express or
implied. No waiver,consent,modification or change of terms of this Lease Agreement shall bind either party unless
In writing signed by bath parties,and then such waiver,consent,modification or change shall be effective only in the
specific instance and for the specific purpose given. There are no understandings, agreements, representations or
warranties, express or implied, not specified herein regarding this Lease Agreement or the Equipment acquired
hereunder. Any terms and conditions of any purchase order or other document submitted by Lessee In connection
with this Lease Agreement which are in addition to or inconsistent with the terms and conditions of this Lease
Agreement will not be binding on Lessor and will not apply to this Lease Agreement. Lessee by the signature below
of its authorized representative acknowledges that it has read this Lease Agreement,understands it;and agrees to be
bound by its terms and conditions.
N. Assignment by Lessor. Lessee acknowledges and consents to Lessor's assignment of its right to
receive Base Rental Payments Additional Rental Payments and certain of its rights to enforce payment hereunder to
various assignees and hereby agrees to make Base Rental Payments and Additional Rental Payments to such address
in the United States as shall be designated by Lessor;provided that any assignment shall not be effective until Lessee
has received written notice, signed by the assignor, of the name and address of the assignee. Lessee shall retain all
such notices as a register of all assignees and shall make all payments to the assignee or assignees designated in such
register.
J. Certification as to Arbitrage and Tax Covenants, Lessee hereby represents as follows:
(a) The estimated total costs of the Equipment will riot be less than the total principal portion
of the Base Rental Payments listed in this Supplement.
(b) The Equipment has been ordered or is expected to be ordered within six months of the
commencement of this Lease Agreement and the Equipment is expected to be delivered and installed, and
the Vendor fully paid within 18 months from the commencement of this Lease Agreement.
(c) Lessee has not created or established, and does not expect to create or establish any
sinking tbnd or other similar fund (i) that is reasonably expected to be used to pay the Base Rental
Payments,or(ii)that may be used solely to prevent a default in the payment of the Base Rental Payments.
.2_ y is3
Y
(d) The. Equipment has not been and is not expected to be sold or otherwise disposed of by
Lessee,either in whole or in major part,prior to the last maturity of the Base Rental Payments.
(e) To the best of Lessee's knowledge, information and belief, the above expectations are
reasonable.
(f) Lessee has not been notified of any listing or proposed listing of it by the Internal
Revenue Service as an issuer whose arbitrage certif Cates may not be relied upon.
IN WITNESS WUEREOF,Lessor has executed this Lease Agreement in its corporate name and attested
by its duly authorized officers, and Lessee has caused rids Lease Agreement to be executed in its name by its duly
authorized officers. All of the above occurred as of the date first written above.
LESSOR; CALEASE PUBLIC FUNDING CORPORATION
By
Name: Tracy A.McWilliams
Title: CaLease.Program Manager
LFSSFEt CITY OF PALM SPRINGS,CALIFORNIA
By
Name: Rob W.Parkins
Title: City Manager
ATTEST:
Name;
Title:
Counterpart No, of 3
-3-
MINUTE ORDER NO.
APPROVING SUPPLEMENT(TAKEDOWN)NUMBER 4
UNDER THE MASTER LEASE/PURCHASE AGREEMENT
WITH CALEASE IN AN AMOUNT NOT TO EXCEED
$710,000 TO FINANCE THE PURCHASE OF FIRE
VEHICLES.
I HEREBY CERTIFY that this Minute Order, approving Supplement (takedown)Number
4 to the Master Lease/Purchase Agreement with CaLease in an amount not to exceed
$710,000 to finance the purchase of Fire Vehicles, was adopted by the City Council of the
City of Palm Springs, California, in a meeting thereof held on the 28th day of July 1999.
Patricia A. Sanders
g City Clerk
f 43
JUL 22 199 99:S4Ahl CALIF COMMUNITIES p,7i17
SCHEDULE1
DATED AS OF:
LESSOR: CaLease Public Funding Corporation
1100 K Street,Suite 101
Sacramento,CA 9M14
LESSEE; City of Palm Springs,California
3200 Tahquitz Canyon Way
Palm Springs,CA 92262
MASTER LEASE
AGREEMENT: Master Lease Agreement dated as of November 15,1993,between Lessor and Lessee
MASTER LEASE
AGREEMENT
SUPPLEMENT: Master Lease Agreement Supplement No. 4 dated as of
between Lessor and Lessen
INTEREST AND PRINCIPAL COMPONENT PAYMENT SCHEDVLE
Prepayment
Base Rental Total Ease Principal Interest Purchase
Due Date Rental Payment Component Component Option*
*Per Section 6.06(c),this column represents principal component plus premium,if any.
y
JUL 22 '99 03:35AN CALIF COMMUNITIES P.8/17
ATTACIIMENT A
EQUIPMENT LIST
LESSOR: CaLease Public Funding Corporation
1100 K Street,Suite 101
Sacramento,CA 99814
LESSEE: City of Palm Springs,California
3200 Tahquitz Canyon Way
Palm Springs,CA 92262
MASTER LEASE
AGREEMENT: Master Lease Agreement dated as of November 15,1995,between Lessor and Lessee
MASTER LEASE
AGREEMENT
SUPPLEMENT; Master Lease Agreement Supplement No,d dated as of
between Lessor and Lessee
[Attach detailed listing]
JUL 22 '99 09:35nN C-1LIF COMMUNITIES P.9/17
EXHIBIT A
CERTIFICATE OF ACCEPTANCE
LESSOR: CaLease Public Funding Corporation
1100 K Street,Suite 101
Sacramento,CA 95514
LESSEE: City of Palm Springs,California
3200 Tahquitz Canyon Way
Palm Springs,CA 92262
MASTER LEASE
AGREEMENT: Master Lease Agreement dated as of November 15,1998,between Lessor and Lessee
MASTER LEASE
AGREEMENT
SUPPLEMENT: Master Lease Agreement Supplement No. 4 dated as of
between Lessor and Lessee
The undersigned, as Lessee under the Master Lease Agreement Supplement and the Master Lease
Agreement as it relates thereto, acknowledges Receipt in good condition of the portion of the Equipment described
below, and further certifies that Lessor has fully and satisfactorily performed all of its covenants and obligations
required under the Lease Agreement of which the Supplement is a part and such Equipment has been delivered and
installed in accordance with Lessee's specification, is in good working order and is filly operational and has been
fully accepted by Lessee on or before the date indicated below.
Purchase Order Description of Useful Life of
No. Eeaiument quakiri!j Total Cost Eguipnent
Dated:
CITY OF PALM SPRINGS,CALIFORNIA
By _
Name: Rob W.Parkins
Title; City Manager
JUL 22 199 09:35AM CALIF COMMUNITIES P. 10/17
ERIIIBIT B
OPINION OF COUNSEL
Lessee: City of Palm Springs,California
3200 Tahquirz Canyon Way
Palm Springs, CA 92262
Lessor: CaLease Public Funding Corporation
I100 K Street,Suite 101
Sacramento,CA 95914
Re: Master Lease Agreement and Master Lease Supplement No. 4, by and between CaLease Public
Funding Corporation("Lessor")and City of Palm Springs,California("Lessee")
Ladies and Gentlemen:
I have acted as counsel to Lessee with respect to Master Lease Agreement dated as of November 15, 1998,and
Master Lease Supplement No.4 dated as of (together the"Lease")and various related
matters, and in this capacity have reviewed a duplicate original or certified copy thereof among Lessor and Lessee.
Based upon the examination of these and such other documents as I deem relevant,it is my opinion that:
(I) Lessee is a political subdivision of the state of California (the "State"), duly organized, existing and
operating trader the Constitution and laws of the State.
(2) Lessee is authorized and has power under applicable law to enter into the Lease, and to carry out its
obligations thereunder and the transactions contemplated thereby.
(3) The Lease has been duly authorized, approved,executed and delivered by and on behalf of Lessee,and is
a legal, valid, binding contract of Lessee enforceable in accordance with its terms, except to the extent limited by
State and Federal laws affecting remedies and bankruptcy, reorganization or other laws of general application
relating to or affecting the creditors'rights.
(4) The authorization,approval and execution of the Lease and all other proceedings of Lessee relating to the
transaction contemplated thereby have been performed in accordance with all applicable open meeting, public
records,public bidding and all other laws,Lutes and regulations of the State-
(5) The execution of the Lease and the appropriation of moneys to pay the Rental Payments coming due
thereunder do not and will not result in the violation of any constitutional, statutory or other limitation relating to the
manner,form or amount of indebtedness which may be incurred by Lessee.
(6) There is no litigation, action, suit or proceeding pending or, to my knowledge, threatened before any
court, adminisrrative agency, arbitrator or governmental body, that challenges the organization or existence of
Lessee; the authority of its officers or its employees to enter into the Lease and other documents contemplated
thereby;the appropriation of moneys to make Rental Payments under the Lease for the current fiscal year of Lessee;
or the ability of Lessee to otherwise perform its obligations under the Lease, and the transactions contemplated
thereby-
(7) The governing body of Lessee has duly and validly adopted a resolution authorizing the Lease, and such
resolution has not been amended,modified,supplemented or repealed and remains in full force and effect.
This opinion is rendered solely for the benefit of Lessee, Lessor and any assignee of Lessor's rights under the
Lease,all of whom may rely on this opinion.
Very truly yours,
JUL 22 '99 09:36Ahl CALIF CQ11I UHITTES P.11/17
EXHIBIT C
OFFICER'S CERTIFICATE
LESSOR: CaLease Public Funding Corporation
1100 K Street,Suite 101
Sacramento,CA 95814
LESSEE: City of Palm Springs,California
3200 Tahquitz Canyon Way
Palm Springs,CA 92262
MASTER LEASE
AGREEMENT; Master Lease Agreement dated as of November 15,1998,between Lessor and Lessee
MASTER LEASE
AGREEMENT
SUPPLEMENT: Master Lease Agreement Supplement No.4 dated as of
between Lessor and Lessee
The undersigned hereby states and certifies on behalf of Lessee:
(i) that I am the duly appointed, qualified and acting officer of Lessee specified under my
signature, and as such, I am familiar with the facts herein certified and am authorized and qualified to
certify the same;
(f) that the Lessee has duly entered in the Master Lease Agreement and the Master Lease
Agreement Supplement(together the"Lease Agreement'),and that the Lease Agreement is in full force and
effect as of the date hereof and has not been rescinded;and
(iii) that there is no action, suit, proceeding or investigation pending or, to my knowledge,
threatened in any court or other tribunal or competent jurisdiction, state or federal or before any public
board or body, wbicb in any way would(a)restrain or enjoin the delivery of the Lease Agreement or the
ability of the Lessee to make its Base Rental Payments(as these terns are defined in the Lease Agreement);
(b) contest or affect the authority for the execution or delivery of,or the validity of,the Lease Agreement;
or (c) contest the existence and powers of the Lessee; nor is there any basis for any such action, suit,
proceeding or investigation;and
(iv) that the persons duly authorized to act on behalf of the Lessee for purposes of the Lease
Agreement are as follows:
Name Title Si n�._ature
Rob W.Parkins City Manager
Dated:
CITY OF PALM SPRINGS,CALIFORNIA
Lessee
By—
Title;
JUL 22 199 09:27AN CALIF COMMU11ITIES P.12i17
EXHIBIT D
CERTIFICATE OF ESSENTIAL USE
LESSOR: CaLease Public Funding Corporation
1100 K Street,Suite 101
Sacramento,CA 95814
LESSEE: City of Palm Springs,California
3200 Tnbquitz Canyon Way
Palm Springs,CA 92262
MASTER LEASE
AGREEMENT: Master Lease Agreement dated as of November 15,1998,between Lessor and Lessee
MASTER LEASE
AGREEMENT
SUPPLEMENT: Master Lease Agreement Supplement No. 4 dated as of ,
between Lessor and Lessee
The undersigned,a duly authorized officer of Lessee,hereby certifies and declares, for and on behalf of the
Lessee,that the equipment that will be leased by the Lessee pursuant to the Master Lease Agreement Supplement
will be,operated and controlled by the Lessee and will be used by the Lessee for essential governmental purposes of
the Lessee.
Dated:
CITY OF PALM SPRINGS,CALIFORNIA
By:
Name: Rob W.Parkins
Title: City Manager
JUL 22 '99 09:37AM CALIF CGMMUI,IITIES P.13i17
EXHIBIT E
INSURANCE COVERAGE REQUIREMENTS
To: CaLease Public Funding Corporation From: City of Palm Springs,California
1100 K Street,Suite 101 3200 Tahquitz Canyon Way
San Francisco,CA 94105 Palm Springs,CA 92262
Subject: Insurance Coverage Requirements
In accordance with Section 8.03 of the Master Lease Agreement, we have instructed the insurance agent
named below(please fill in name,address and telephone number)
to issue(check applicable boxes):
❑ (a) Rental Interruption Insurance naming Lessor and/or its assigns as insured and loss payee
to insure against abatement of Base Rental Payments for 24 months resulting from loss of use of leased
equipment Proof of insurance tvill be provided to Lessor and(or its assigns prior rofrmding.
❑ (b) All Risk Physical Damage Insurance on the leased equipment evidenced by a Certificate
of Insurance and Long Fount Loss Payable Clause naming Lessor and/or its assigns,as additional insured and
loss payee. Coverage Required: Full replacement value. Proof of insurance will be provided to Lessor
and/or its assigns prior tofunding.If self-insured,see(d)below_
❑ (c) Public Liability Insurance evidenced by a Certificate of Insurance naming Lessor and/or
its assigns as additional insured. Proof of Insurance will be provided IQ Lessor and/or its assigns prior to
fording. Ifselfrinsured,see(e) below.
Minimum Coverage Required:
$500,000.00 per person
$500,000.00 aggregate bodily injury liability
$100,000.00 property damage liability
All insurance shall not be subject to cancellation or material changes without at least 30 days prior written
notice to Lessor and/or its assigns.
1f Self-Insured:
❑ (it) Pursuant to Section 8.03 of the Master Lease Agreement, we, are self-insured for all
physical damage insurance. Proof'of insurance tv Il be provided to Lessor and/or its assigns prior rofatding
In addition, we have completed the Questionnaire far Self-Insurance attached hereto as Schedule 1.
❑ (e) Pursuant to Section 8.03 of the Master Lease Agreement, we are self insured for all
public liability insurance. Proof of insurance will be provided to Lessor and/or its assigns prior ro fording.
In addition, we have completed the Questionnaire for Self-Insurance attached hereto as Schedule 1.
CITY OF PALM SPRINGS,CALIFORNIA
By: --
Name:
Title.
JUL 22 199 09:39RM CALIF COMMUNITIES P. 14/17
SCHEDULE 1 TO EXHIBIT E
QUESTIONNAHIE FOR SELF-,INSURANCE
RELATING TO MASTER LEASE AGREEMENT
(To be completed jyou checked Bases(d)and(e)of Exhibit E)
In connection with the Master Lease Agreement Supplement No.4 dated as of ,by and
between,CaLease Public Funding Corporation,as Lessor, and City of Pahn Springs,California,as Lessee,Lessee warrants
and ropresents to Lessor as follows:
1. Physical Damage Insurance.
a. Lessee is self-insured for damage or destruction to the equipment YES NO(circle one)
if yes, the dollar amount limit for property damage to the Equipment under Lessee's self-
insurance program is S
b. Lessee maintains an umbrella insurance policy for claims in excess of Lessee's self-insurance
limits for property damage to the Equipment as indicated above_YES NO(circle one)
Ifyes, the umbrella policy provides coverage far all risk property damage. YES NO(circle one)
Ifyes, the dollar llmitfot property damage to the Equipment under such umbrella policy is
g
2. Public Liability Insurance
a. Lessee is self-insured for liability for injury or death of any person or damage or loss of property
arising out of or relating to the condition or operation of the Equipment. YES NO(circle one)
Ifyes, the dollar limir for such liability,claims under Lessee's self-insurance program is
S
b. Lessee maintains an umbrella insurance policy for claims in excess of Lessee's self-insurance
limits for liability including injury or death of persons or damage to property as indicated above.
YES NO(circle one)
Ifyes, the umbrella policyprovides coverage for fiabilitiesfor injury and death to persons as well
as damage or loss of properop arising out of or relating to the condition or operation of the
Equipment. YES NO(circle one).
Ifyes,the dollar amount of the umbrella policy's limits for sueh habilitl,coverage is
3A. Lessee maintains a self-insurance fund. YES NO(circle one)
Ifyes,please complete the following:
Moneys in the self-insurance fund are.subjcct to annual appropriation. YES NO(circle one)
The total amount maintained in the self-insurance fond to cover Lessee's self-insurance liabilities is
Amounts paid from Lessee's self-insurance fund are subject to limitations for each claim. YES NO(circle
one)
JUL 22 '99 09:3enll CALIF COMMUNITIES P.15i17
Ifyes, the dollar amount oflimitlter claim is F
3B. If Lessee does not maintain a self-insurance fund,please complete the following:
Lessee obtains fonds to pay claims for which it has self-insured from the following sources:
The limitations on die amounts payable from the above sources for claims are as follows--
4. The following entity or officer has the authority to authorize payment for a claim:
In the event the entity and officer named in the prior response denies payment of a,claim,does the claimant
have recourse to another administrative officer.agency or the courts? YI;S NO(circle one)
Ifyes, to whom does the claimant have recourse?
CITY OF PALM SPRINGS,CALIFORNIA
By:
Name:
Title:
JUL 22 199 09:39RM CRLIF CGIVIUMITIES P.16i17
[-USE THIS EXHIBIT ONLY IF THE LEASE WILL Bli BANK QUALIFIED'*]
EXHIBIT F
IIANK QUALIFICATION STATEMENT
LESSOR: CALease Public Funding Corporation
1100 K Street,Suite 101
Sacramento,CA 95814
LESSEE: City of Palm Springs,California
3200 Tahquitz Canyon Way
Palm Springs,CA 92262
MASTER LEASE
AGREEMENT: Master Lease Agreement dated as of November 15,1998, between Lessor and Lessee
MASTER LEASE
AGREEMENT
SUPPLEMENT: Master Lease Agreement Supplement No. 4 dated as of
between Lessor and Lessee
ISSUANCE VAR: Calendar Year 1999
WITNESSETH
WREREAS, the Lessor and the Lessee have entered into the Master Lease Agreement and the Master
Lease Agreement Supplement (the Master Lease Agreement Supplement and the Master Lease Agreement as it
relates thereto being referred to herein as the"Lease Agreement"),
NOW THEREFORE,in consideration of the premises hereinafter contained,the parties hereto agree to the
following:
I The covenants and designations hereinafter set forth are intended to be, and hereby are,
incorporated into the Lease Agrreement, and except as otherwise defined herein, all terms defined in the Lease
Agreement shall have the same meaning herein as in the Lease Agreement.
2. Lessee hereby designates the Lease Agreement as a"qualified tax-exempt obligation"as defined in
Section 265(b)(3)(B) of the Internal Revenue Code. The aggregate face amount of all tax-exempt obligations
(excluding private activity bonds other than qualified 501(c)(3) bonds) issued or to be issued by Lessee and all
subordinate entities thereof during the Issuance Year is not reasonably expected to exceed$10,000,000,
3. Lessee hereby covenants that Lessee and all subordinate entities thereof will not issue in excess of
$10,000,000 of qualified tax-exempt obligations (including the Lease Agreement but excluding private activity
bonds other than qualified 501(c)(3)bonds)during the Issuance Year without first obtaining an opinion of nationally
recognized counsel in the area of tax-exempt municipal obligations acceptable to Lessor that the designation of the
Lease Agreement as a"qualified tax-exempt obligation"will not be adversely affected.
JUL 22 199 09:39RPI CRLIF CCIMMUNITIES P.17i17
IN WITNESS WHEREOF, the parties have caused this supplement to the Lease Agreement to be
executed by their respective office"thereuuto duly authorized.
CALEASE PUBLIC FUNDING CORPORATION
By
Name: Tracy A.McWilliams
Title: CaLease Program Manager
CITY OF PALM SPRINGS,CALIFORNIA
By
Name; Rob W.parkins
Title: City Manager