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Home My WebLink About11/1/2017 - STAFF REPORTS - 5.D. �QALMSA4 iy A c u u+ ORATED cq`'F°Ra�P City Council Staff Report Date: November 1, 2017 NEW BUSINESS Subject: AUTHORIZE THE PURCHASE OF 25 NEW REPLACEMENT VEHICLES AND EQUIPMENT IN AN AMOUNT NOT TO EXCEED $1,600,000 From: David H. Ready, City Manager Prepared by: Marcus L. Fuller, Assistant City Manager/City Engineer SUMMARY This action will authorize replacement of existing vehicles and equipment, in an amount not to exceed $1,600,000 as follows: (i) the lease-to-own purchase of 19 new Police Department patrol cruisers through Lease Servicing Center, Inc., dba National Cooperative Leasing through the National Joint Powers Alliance Cooperative Contract 032615-NCL, with five (5) annual lease payments of $168,291.67 for a lease-to-own purchase cost of $841,458.35; (H) authorize issuance of Purchase Orders for purchase and installation of vehicle outfitting and equipment for the 19 new Police Department patrol cruisers at an estimated cost of $325,000; and (iii) the direct purchase of 4 new vehicles for the Police Department and 2 new vehicles for the Maintenance and Facilities Department including necessary outfitting at an estimated cost of$395,000. RECOMMENDATION: 1. In accordance with Palm Springs Municipal Code Section 7.09.010, "Cooperative Purchasing Programs," approve the purchase of 19 new Ford Utility Interceptors, or equivalent patrol vehicle model, for the Police Department to replace Units 203909, 207603, 203208, 201107, 202606, 204608, 202803, 205607, 207208, 202509, 208608, 2D5307, 200809, 2D1111, 2D3508, 201306, 201608, 2D3106, and 2D4106 through the Lease Servicing Center, Inc., dba National Cooperative Leasing through the National Joint Powers Alliance Cooperative Contract 032615-NCL; 2. Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING THE NEGOTIATION, EXECUTION, AND DELIVERY OF A PURCHASE ORDER IN THE PRINCIPAL AMOUNT OF $766,430.55 BETWEEN LEASE SERVICING CENTER, INC., DBA NATIONAL COOPERATIVE LEASING AND THE CITY OF PALM SPRINGS, CALIFORNIA; PROVIDING 60 LEASE PAYMENTS OF $14,024.31 EACH FROM ITEM NO..6�- I>...... City Council Staff Report November 1, 2017—Page 2 Authorization to Purchase Vehicles LEGALLY AVAILABLE FUNDS; AND PRESCRIBING OTHER DETAILS IN CONNECTION THEREWITH;" 3. After receipt of replacement vehicles, declare the existing Police Department patrol vehicles, Units 203909, 207603, 203208, 201107, 202606, 204608, 202803, 205607, 207208, 202509, 208608, 2D5307, 200809, 2D1111, 2D3508, 201306, 201608, 2D3106, and 2D4106 as surplus vehicles and authorize the City Manager, or designee, to sell at public auction in accordance with Chapter 7.07 of the Palm Springs Municipal Code; 4. Authorize the purchase of 4 new Ford F-150 trucks, or equivalent sport utility vehicle model, including required outfitting, for the Police Department and Maintenance/Facilities Department to replace Units 2D7506, 203002, 209302, and 505298; 5. Authorize the purchase of 1 new Ford E-150 15 passenger van, or equivalent vehicle model, including required outfitting, for the Police Department to replace Unit 209098; 6. Authorize the purchase of 1 new Ford F-350 truck, or equivalent vehicle model, including required outfitting, for the Maintenance/Facilities Department to replace Unit 990999 7. Authorize staff to conduct the appropriate bid processes, or utilize cooperative purchase contracts if available, in accordance with Procurement procedures and authorize the City Manager to execute all necessary documents, including Purchase Orders for the new replacement vehicles and equipment, in a total cumulative amount not to exceed $1,600,000. STAFF ANALYSIS: On June 5, 1996, the City Council adopted Resolution No. 18834, establishing a new Equipment Replacement Policy. Section II "Replacement Schedule" outlined a requirement to replace vehicles within a certain number of years or mileage varying on the type of vehicle (safety vehicles replaced more frequently vs. general staff vehicles). A copy of Resolution No. 18834 is included as Attachment 1. However, over the last several years during the economic recession, as part of its adoption of the City's budgets the City Council has suspended Section II of Resolution No. 18834 deferring mandatory vehicle replacement solely on vehicle age or mileage; vehicle replacement has occurred on an emergency basis focused on replacing vehicles damaged in accidents, or replacement of public safety vehicles. Currently, we are working to reduce the backlog on vehicle replacement and recommend the City Council authorize purchase of 25 replacement vehicles and equipment for various City Departments, as identified in the following list. 02 City Council Staff Report November 1, 2017—Page 3 Authorization to Purchase Vehicles Unit# Year Make/Model Mileage 203909 2009 Ford/Crown Victoria 50,100 207603 2003 Ford/Crown Victoria 83,251 203208 2008 Ford/Crown Victoria 108,942 201107 2007 Ford/Crown Victoria 143,382 202606 2006 Ford/Crown Victoria 140,170 204608 2008 Ford/Crown Victoria 135,766 202803 2003 Ford/Crown Victoria 128,478 205607 2007 Ford/Crown Victoria 205,607 207208 2008 Ford/Crown Victoria 128,637 202509 2009 Ford/Crown Victoria 118,774 208608 2008 Ford/Crown Victoria 111,507 2135307 2007 Ford/500 106,081 200809 2009 Ford/Crown Victoria 110,994 2131111 2011 Ford/Crown Victoria 109,147 21D3508 2008 Ford/Crown Victoria 108,031 201306 2006 Ford/Crown Victoria 100,032 201608 2008 Ford/Crown Victoria 96,478 2D3106 2006 Ford/Taurus 106,901 2D4106 2006 Chevrolet/Silverado HD 109,769 21D7506 2006 Ford/Taurus 106,763 209098 1998 Ford/F-350 112,122 203002 2002 Ford/F-150 63,400 209302 2002 Ford/F-150 67,108 505298 1998 Ford/F-250 86,292 990999 1999 Ford/F-350 flat bed 130,928 All of the vehicles identified for replacement meet the requirements for replacement pursuant to the City Council's adopted policy; these vehicles represent the oldest vehicles in the City's fleet with either the most mileage or the most accumulated vehicle repair costs warranting their replacement. 03 City Council Staff Report November 1, 2017— Page 4 Authorization to Purchase Vehicles Alternate Fuel(CNG) Vehicle Policy Section VI of Resolution No. 18834 states: The Fleet Manager shall make every effort to incorporate alternate fuel vehicles within the fleet via purchase or conversion. Whenever a vehicle is replaced, that is operationally suited for alternate fuel usage, there is a proven track record for the specific type of vehicle being replaced, and the specific "engine family" is approved for use in California by the California Air Resources Board, the bid shall include a comparison of gasoline/diesel equipment vs alternate fuel equipment. Generally, the City has not purchased new public safety vehicles with alternate fuel, or CNG fuel systems. The list of vehicles identified in this report includes replacement of 19 Police Department patrol vehicles, 2 Police Department trucks, and 1 Police Department jail transport van. It is recommended that these vehicles be replaced with vehicles operating with conventional gasoline (non-CNG) fuel systems given the particular requirements for high-speed, high performance, response vehicles for use by the Police Department. Additionally, it is requested that the replacement vehicles for the Maintenance/Facilities Department, which includes a Ford F150 utility truck and Ford F350 flatbed truck, be replaced with vehicles operating with conventional gasoline (non-CNG) fuel systems given recent experiences with an inability to effectively maintain CNG fuel systems on vehicles. Staff has a large inventory of older vehicles with CNG fuel systems, which have caused operational inefficiencies. Exacerbating the issue, major vehicle manufacturers no longer provide factory-produced CNG fueled vehicles, requiring the City to purchase after- market conversion of gasoline-fueled vehicles at $10,000 or more per vehicle. Given that the major vehicle manufacturers no longer offer most standard vehicles with a CNG fueled system, the dealerships no longer offer maintenance support for CNG fueled vehicles. The City's Fleet Maintenance Division staff is not trained for, nor equipped to maintain CNG fueled systems, and has historically relied on the dealerships to provide the maintenance support and annual recertification of CNG tanks. The lack of dealership support of the City's CNG fueled vehicle inventory has caused the City to find individual CNG fuel vehicle mechanics, of which there are none available in the Coachella Valley. Staff pursued cooperative efforts for CNG vehicle maintenance with other agencies, including Sunline Transit Agency, but no other agency was willing to provide CNG vehicle support to the City of Palm Springs. ENVIRONMENTAL IMPACT: The requested City Council action is not a "Project" as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a "Project" means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) 04 City Council Staff Report November 1, 2017—Page 5 Authorization to Purchase Vehicles Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. FISCAL IMPACT: Staff is recommending the use of the Municipal Finance option available through National Cooperative Leasing under the National Joint Powers Alliance Cooperative Contract: 032615-NCL for the 19 new Ford Utility Interceptors. The direct purchase price of these 19 vehicles (excluding outfitting and equipment) is $766,430.55 inclusive of sales tax of 8.75%. Staff is recommending an alternative to direct purchase by entering into a 5 year lease-to-own financing agreement with a finance rate of 4.43%. This reduces the upfront capital cost from $766,430.55 to a first year annual lease payment of $168,291.67, preserving vehicle replacement funding in the amount of almost $600,000. The total purchase cost through the lease-purchase option is $841,458.35 as compared to the direct purchase cost of$766,430.55; the financing cost is $75,027.80. The City's Financial Advisor, Suzanne Harrell, has reviewed the lease-purchase option, and has confirmed that the 4.43% financing rate is reasonable given the type of acquisition (police vehicles). An alternative for the City is to pursue equipment lease financing from other lenders for the equipment replacement, which is available at lower interest rates (about % to 1% lower) but requires upfront bank legal costs (usually $10,000), thus the financing costs are generally equivalent. The recommendation is to preserve our available capital for unforeseen emergencies, with the understanding that the required payments will be budgeted from the Motor Vehicle Replacement Fund over the next 5 years. It is important to note that the National Joint Powers Alliance Cooperative Contract 032615-NCL is essentially a lease to buy option. The contract includes a non- appropriation clause and for any reason the City does not have funds appropriated for the annual lease payments, the City can terminate the lease without penalty. The ownership of assets takes place up front with no residual or buyout at the end. The City is responsible for the operation and maintenance of the leased assets like any other fleet vehicles. A copy of the lease documents is included as Attachment 2. The total estimated cost to purchase the replacement vehicles, including equipment and outfitting is identified in the following Table: 05 City Council Staff Report November 1, 2017—Page 6 Authorization to Purchase Vehicles Replacing Make/Model Estimated Price Unit# 203909 Ford Utility Interceptor $60,5001 207603 Ford Utility Interceptor $60,500 203208 Ford Utility Interceptor $60,500 201107 Ford Utility Interceptor $60,500 202606 Ford Utility Interceptor $60,500 204608 Ford Utility Interceptor $60,500 202803 Ford Utility Interceptor $60,500 205607 Ford Utility Interceptor $60,500 207208 Ford Utility Interceptor $60,500 202509 Ford Utility Interceptor $60,500 208608 Ford Utility Interceptor $60,500 21D5307 Ford Utility Interceptor $60,500 200809 Ford Utility Interceptor $60,500 2D1111 Ford Utility Interceptor $60,500 21D3508 Ford Utility Interceptor $60,500 201306 Ford Utility Interceptor $60,500 201608 Ford Utility Interceptor $60,500 21D3106 Ford Utility Interceptor $60,500 21D4106 Ford Utility Interceptor $60,500 21D7506 Ford F150 $60'0002 209098 Ford E350 15 Passenger Van $75'0002 203002 Ford F150 $60'0002 209302 Ford F150 $60'0002 505298 Ford F150 $60'0002 990999 Ford F350 Flatbed Truck $80'0002 Total Estimated Cost: $1,544,500 The estimated cost of $60,500 includes the total lease-purchase finance cost plus equipment and outfitting; the estimated cost for direct purchase plus equipment and outfitting would be$56,500. 2 The estimated cost is for direct purchase plus equipment and outfitting; this vehicle will not be leased. 06 City Council Staff Report November 1, 2017—Page 7 Authorization to Purchase Vehicles The total estimated cost of the vehicle and equipment replacements is $1,544,500 and staff recommends that the City Council authorize a total expenditure of up to $1,600,000 to be funded from the Motor Vehicle / Fleet Fund, Account No. 510-5475-50020. SUBMITTED: Marcus L. Fuller, MPA, P.E., P.L.S. David H. Ready, Es Assistant City Manager/City Engineer City Manager Attachments: 1. Resolution No. 18834 2. Lease Documents 3. Resolution 07 ATTACHMENT 1 . 9 ;jxL,Gr?�7 by RESOLUTION NO. 18834 OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ESTABLISHING A NEW REPLACEMENT POLICY FOR CITY EQUIPMENT. WHEREAS Resolution No. 14138, adopted on February 3, 1982, modified the City Equipment Replacement Policy established by Resolution No. 8521, adopted November 8, 1965; and WHEREAS equipment reliability and longevity has increased as technology has been perfected subsequent to the last update of the Equipment Replacement Policy; and WHEREAS staff, utilizing best management practices during the City's continuing efforts to balance its budget, has endeavored to extend the service of City equipment beyond the established policy life of the equipment; and WHEREAS it is now desirable to establish a new Equipment Replacement Policy to formally increase the length of time or mileage the vehicles will be operated by the City before replacement; and WHEREAS it is also desirable to incorporate language related to the introduction of alternate fuel vehicles in the City fleet, NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs that: Section I: Resolution #1413B and any and all other previous Resolutions related to the City Equipment Replacement are hereby rescinded. Section II. Replacement Schedule: City vehicles shall be replaced in accordance with the ' following schedule, provided that the Assistant Director of Transportation, Surface Transportation & Energy (Fleet Manager) shall have the responsibility of determining whether exceptionally good or exceptionally poor vehicles shall be replaced in accordance with the Replacement Schedule or possibly retained for a greater or lessor period, and upon such determination, departure from the schedule is allowed, subject to the approval of the Director, Department of Transportation: REPLACEMENT SCHEDULE Vehicle Type Replacement 1. Motorcycles 4 years* 2. Staff cars 6 years or 70,000 miles (Bought U ed) 3. Police Patrol nits 3 years or 90,000 miles 4. Police Detective Units 6 years or 70,000 miles (Bought Used) ' 5. Truck & Pickups A. Light Dut�' 8 years or 80,000 miles (Up To 3141 Ton) B. 1 Ton & Over 10 years *Note: Age is based on model year. 09 R18834 Page 2 6, Specialized Equipment To be determined by the Fleet (Such as Fire Trucks Manager in consultation with the Sweepers, etc.) user Department, subject to the approval of the Director, Department of Transportation based on physical inspection and analysis of current operating cost data and ' mandated Regulations. 7. Equipment Loss Due To Accident Immediately. Section lll. Vehicle Assignment/Rotation: Authorized vehicles are assigned to the various user departments via the budget process. User departments shall determine whom within their department utilizes which vehicle, except that the City Manager shall authorize and assign take-home vehicles. The Fleet Manager, after consulting with user departments, and with the consent of the Director, Department of Transportation, may rotate vehicles between user departments for operational efficiency or to extend the useful life of said vehicle. Section IV. Methods of Acquisition: The Fleet Manager shall acquire City equipment in accordance with the City's Procurement Ordinance. Section V. Methods of Disposal: The Fleet Manager shall dispose of surplus equipment in accordance with the City's Procurement Ordinance. Surplus equipment may be traded in on new or used equipment provided that the value of the trade shall be included as part of the total expenditure for the purpose of determining Procurement Ordinance limits compliance. Section VI. Alternate Fuel Vehicles: The Fleet Manager shall make every effort to incorporate alternate fuel vehicles within the fleet via purchase or conversion. ' Whenever a vehicle is replaced, that operationally is suited for alternate fuel usage, there is a proven track record for the specific type of vehicle being replaced, and the specific "engine family" is approved for use in California by the California Air Resources Board, the bid shall include a comparison of gasoline/diesel equipment vs alternate fuel equipment. Section VII. Accessories: After market accessories that are purchased to properly equip a piece of equipment to carry out its designated function, shall be included in the overall capital cost component of the City's Motor Vehicle Replacement account for the particular vehicle to ensure the vehicle user department bears the full cost of its equipment. Section VIII. Reporting Format: When a vehicle is being replaced requiring City Council approval, the Staff Report shall include the following information: Vehicle type, Identification Number of the vehicle (except for undercover vehicles), vehicle use characteristics, description of why it is being replaced, special needs or equipment, alternate fuel options/discussion. ADOPTED this 5th day of June , 1996. AYES: Members Barnes, Hodges, Oden, Spurgin and Mayor Kleindfenst NOES: None ABSENT: None ATTEST: CITY O PALM SPRIN LIFORNIA ey. : -=City Clerk 1 Ciaity Man ge REVIEWED & APPROVED AS TO FORM 1 x ATTACHMENT 2 National .Auto Fleet Group A Division of Chevrolet of Watsonville 490 Auto Center Drive, Watsonville, CA 95076 (855) BUY-NJPA - (626) 457-5590 (855) 289-6572 - (831 ) 480-8497 Fax 10/3/2017 QuotelD: 11438 Order Cut Off Date:TBA Craig Grabow City of Palm Springs Fleet Division 425 North Civic Drive Palm Springs,California,92262 Dear Craig Grabow, National Auto Fleet Group is pleased to quote the following vehicle(s)for your consideration. Nineteen(19)New/Unused (2018 Ford Police Interceptor Utility(K8A)AWD, )and delivered to your specified location,each for One Unit Extended Unit's(19) Contract Price $37,084.78 $704,610.82 Tax(8.7500%) $3,244.92 $61,653.48 Tire fee $8.75 $166.25 Total $40,338.45 $766,430.55 -per the attached specifications. Price includes 2 additional key(s). This vehicle(s)is available under the National Joint Powers Alliance Contract 120716-NAF to purchase or NJPA contract 032615-NCL to lease to own. Please reference this Bid number on all purchase orders to National Auto Fleet Group. Payment terms are Net 30 days after receipt of vehicle. Thank you in advance for your consideration.Should you have any questions, please do not hesitate to call. Sincerely, Jesse Cooper Account Manager Email: Fleet@NationalAutoFleetGroup.com Office:.(855)289-6572 Fax:.(831)4 0-8497 2 In order to Finalize your Quote,_please submit this purchase packet to your governing body for Purchase Order Approval. Once you issue a Purchase Order please send by_ Fax: ($3) 480-8497 Mail: National Auto Fleet Group 490 Auto Center Drive Watsonville, CA 95076 Email: Fleet @ nationalautofleetgroup.com We will then send a W-9 if you need one Please contact our main office with any questions: 1_-855-289-6572 For information regarding the leasing options, please contact: Chris Canavati National Cooperative Leasing chris@lscfinancial.com 320-763-7600 NJPA contract number 032615-NCL '3 Vehicle Configuration Options ENGINE Code Description 99R ENGINE: 3.71-V6 TI-VCT TRANSMISSION Code Description 44C TRANSMISSION: 6-SPEED AUTOMATIC, (STD) PRIMARY PAINT Code Description G1 ISHADOW BLACK PAINT SCHEME Code Description STANDARD PAINT SEAT TYPE Code Description CHARCOAL BLACK, UNIQUE HD CLOTH FRONT BUCKET SEATS W/VINYL REAR, -inc: driver 6-way power 9W track(fore/aft.up/down, tilt w/manual recline, 2-way manual lumbar, passenger 2-way manual track(fore/aft, w/manual recline)and built-in steel intrusion plates in both front seatbacks ADDITIONAL EQUIPMENT Code Description CALIFORNIA EMISSIONS SYSTEM, -inc: Required code for California Emissions States-California, Connecticut, Delaware, Massachusetts, Maryland, Maine, New Jersey, New York, Oregon, Pennsylvania, 422 Rhode Island, Vermont and Washington registration unless codes 936 or 423 are applicable, Optional for Cross Border state dealers-Arizona, District of Columbia, Idaho, New Hampshire, Nevada, Ohio, Virginia and West Virginia POLICE ENGINE IDLE FEATURE, -inc: This feature allows you to leave the engine running and prevents your 47A vehicle from unauthorized use when outside of your vehicle, Allows the key to be removed from ignition while vehicle remains idling 91A 2-TONE VINYL PACKAGE#1, -inc: roof vinyl, right hand/left hand front-doors vinyl, right hand/left hand rear- doors vinyl, White (YZ)only 51V DUAL(DRIVER& PASSENGER) LED SPOT LAMPS (WHELEN) 59E KEYED ALIKE- 1435X 90E BALLISTIC DOOR-PANELS (LEVEL III), -inc: Driver and passenger front-doors 52P HIDDEN DOOR-LOCK PLUNGER/RR-DOOR HANDLES INOPERABLE 17A AUX AIR CONDITIONING REAR VIEW CAMERA, -inc: Note: This option would replace the camera that comes standard in the 4" center 87R stack area, Camera can only be displayed in the 4" center stack(standard)OR the rear view mirror(87R), Electr�chromic Rear View Mirror Video is displayed in rear view mirror 53M SYNC BASIC (VOICE-ACTIVATED COMMUNICATIONS SYSTEM), -inc: single USB port and single auxiliary audio input jack OPTION PACKAGE Code Description 500A ORDER CODE 500A i 2018 Fleet/Non-Retail Ford Police Interceptor Utility AWD WINDOW STICKER 2018 Ford Police Interceptor Utility AWD CODE MODEL MSRP K8A 2018 Ford Police Interceptor Utility AWD $32,320.00 OPTIONS 99R ENGINE:3.7L V6 TI-VCT $0.00 44C TRANSMISSION:6-SPEED AUTOMATIC,(STD) $0.00 G1 SHADOW BLACK $0.00 STANDARD PAINT $0.00 9W CHARCOAL BLACK,UNIQUE HD CLOTH FRONT BUCKET SEATS W/VINYL REAR,-inc:driver 6-way power $0.00 track(fore/aft.up/down,tilt w/manual recline,2-way manual lumbar, passenger 2-way manual track(fore/aft, w/manual recline)and built-in steel intrusion plates in both front seatbacks 422 CALIFORNIA EMISSIONS SYSTEM,-inc: Required code for California Emissions States-California, $0.00 Connecticut, Delaware, Massachusetts,Maryland,Maine,New Jersey, New York,Oregon, Pennsylvania,Rhode Island,Vermont and Washington registration unless codes 936 or 423 are applicable,Optional for Cross Border state dealers-Arizona, District of Columbia, Idaho, New Hampshire,Nevada,Ohio,Virginia and West Virginia 47A POLICE ENGINE IDLE FEATURE,-inc:This feature allows you to leave the engine running and prevents your $260.00 vehicle from unauthorized use when outside of your vehicle,Allows the key to be removed from ignition while vehicle remains idling 91A 2-TONE VINYL PACKAGE#1,-inc:roof vinyl, right hand/left hand front-doors vinyl, right hand/left hand rear- $840.00 doors vinyl,White(YZ)only 51 V DUAL(DRIVER&PASSENGER)LED SPOT LAMPS(WHELEN) $665.00 59E KEYED ALIKE-1435X $50.00 90E BALLISTIC DOOR-PANELS(LEVEL III),-inc:Driver and passenger front-doors $3,170.00 52P HIDDEN DOOR-LOCK PLUNGER/RR-DOOR HANDLES INOPERABLE $160.00 17A AUX AIR CONDITIONING $610.00 87R REAR VIEW CAMERA,-inc: Note:This option would replace the camera that comes standard in the 4"center $0.00 stack area,Camera can only be displayed in the 4"center stack(standard)OR the rear view mirror(87R), Electrochromic Rear View Mirror Video is displayed in rear view mirror 53M SYNC BASIC(VOICE-ACTIVATED COMMUNICATIONS SYSTEM),-inc:single USB port and single auxiliary $295.00 audio input jack 500A ORDER CODE 500A $0.00 � C 1 C� SUBTOTAL $38,370.00 Advert/Adjustments $0.00 Manufacturer Destination Charge $945.00 TOTAL PRICE $39,315.00 Est City: 16(Est)MPG Est Highway:21 (Est)MPG Est Highway Cruising Range:390.60 mi Any performance-related calculations are offered solely as guidelines.Actual unit performance will depend on your operating conditions. y Standard Equipment MECHANICAL Engine: 3.7L V6 Ti-VCT FFV Transmission: 6-Speed Automatic 3.65 Axle Ratio GVWR: 6,300 Ibs Transmission w/Oil Cooler Automatic Full-Time All-Wheel Drive Engine Oil Cooler 78-Amp/Hr 750CCA Maintenance-Free Battery HD 220 Amp Alternator Police/Fire Gas-Pressurized Shock Absorbers Front And Rear Anti-Roll Bars Electric Power-Assist Steering 18.6 Gal. Fuel Tank Dual Stainless Steel Exhaust Permanent Locking Hubs Strut Front Suspension w/Coil Springs Multi-Link Rear Suspension w/Coil Springs 4-Wheel Disc Brakes w/4-Wheel ABS, Front Vented Discs, Brake Assist and Hill Hold Control EXTERIOR Wheels: 18"x 8"5-Spoke Painted Black Steel-inc: center caps and full size spare Tires: P245/55R18 AS BSW Steel Spare Wheel Spare Tire Mounted Inside Under Cargo Clearcoat Paint Body-Colored Front Bumper w/Black Rub Strip/Fascia Accent Body-Colored Rear Step Bumper w/Black Rub Strip/Fascia Accent Black Bodyside Cladding and Black Wheel Well Trim Black Side Windows Trim and Black Front Windshield Trim Black Door Handles Black Power Side Mirror w/Convex Spotter and Manual Folding Fixed Rear Window w/Fixed Interval Wiper, Heated Wiper Park and Defroster Deep Tinted Glass Speed Sensitive Variable Intermittent Wipers Front Windshield-inc: Sun Visor Strip Galvanized Steel/Aluminum Panels Lip Spoiler w8 Black Grille Liftgate Rear Cargo Access Tailgate/Rear Door Lock Included w/Power Door Locks Aero-Composite Led Low Beam Headlamps LED Brakelights ENTERTAINMENT Radio: MyFord AM/FM/CD/MP3 Capable-inc: clock, 6 speakers and 4.2"color LCD screen center-stack Smart Display Radio w/Speed Compensated Volume Control and Steering Wheel Controls Integrated Roof Antenna INTERIOR 60-40 Folding Split-Bench Front Facing Fold Forward Seatback Rear Seat Manual Tilt Steering Column Gauges-inc: Speedometer, Odometer, Engine Coolant Temp, Tachometer, Engine Hour Meter, Trip Odometer and Trip Computer Power Rear Windows and Fixed 3rd Row Windows Remote Releases-Inc: Power Cargo Access Cruise Control w/Steering Wheel Controls Manual Air Conditioning HVAC-inc: Underseat Ducts Locking Glove Box Driver Foot Rest Unique HD Cloth Front Bucket Seats w/Vinyl Rear-inc: driver 6-way power track(fore/aft.up/down, tilt w/manual recline, 2- way manual lumbar, passenger 2-way manual track(fore/aft, w/manual recline)and built-in steel intrusion plates in both front seatbacks Interior Trim-inc: Metal-Look Instrument Panel Insert, Metal-Look Door Panel Insert and Metal-Look Interior Accents Full Cloth Headliner Urethane Gear Shift Knob Day-Night Rearview Mirror Driver And Passenger Visor Vanity Mirrors Mini Overhead Console w/Storage and 2 12V DC Power Outlets Front And Rear Map Lights Fade-To- ff Interior Lighting Full Vinyl/Rubber Floor Covering Carpet Floor Trim Cargo Features-inc: Cargo Tray/Organizer Cargo Space Lights Dashboard Storage, Driver And Passenger Door Bins Power Ad ustable Pedals Power 1st Row Windows w/Driver And Passenger 1-Touch Up/Down J. Delayed Accessory Power Power Door Locks Systems Monitor Redundant Digital Speedometer Trip Computer Analog Display Seats w/Vinyl Back Material Manual Adjustable Front Head Restraints 2 12V DC Power Outlets Air Filtration SAFETY Advancetrac w/Roll Stability Control Electronic Stability Control (ESC)And Roll Stability Control (RSC) ABS And Driveline Traction Control Side Impact Beams Dual Stage Driver And Passenger Seat-Mounted Side Airbags Tire Specific Low Tire Pressure Warning Dual Stage Driver And Passenger Front Airbags Safety Canopy System Curtain 1st And 2nd Row Airbags Airbag Occupancy Sensor Rear Child Safety Locks Outboard Front Lap And Shoulder Safety Belts-inc: Rear Center 3 Point, Height Adjusters and Pretensioners Back-Up Camera w/Washer )NJA I I C0 I'<A L- 220 22nA Avenue Fist,Suitr 106..Alrxan4iria..%0*' 56308 • Phone: 320-763-7600 • Fax:320.763-x}fiOO C OC)PERJVr1VE L_I-;AS I 11%J Cy October 23,2017 City of Palm Springs-Fleet Division 425 North Civic Drive Palm Springs,CA 92262 Re:Municipal Lease/Purchase Financing Proposal Dear Sir or Madam: Lease Servicing Center, Inc.dba National Cooperative Leasing("NCL")is pleased to propose to the City of Palm Springs- Fleet Division the following tax-exempt Lease/purchase transaction as outlined below. Under this transaction,the City of Palm Springs-Fleet Division would enter into a municipal Lease/purchase agreement with NCL for the purpose of acquiring a 19-2018 Ford Interceptor Utility(K8A)AWD.This transaction is subject to formal review and approval by both the Lessor and Lessee. LESSEE: City of Palm Springs-Fleet Division LESSOR: Lease Servicing Center,Inc.dba National Cooperative Leasing&it's assigns EQUIPMENT: 19-2018 Ford Interceptor Utility(K8A)AWD EQUIPMENT COST: $766,430.55 DOWN-PAYMENT: $0 AMOUNT FINANCED: $766,430.55 TERM: 5 Years ANNUAL LEASE PAYMENTS: $ 168,291.67 FIRST PAYMENT DUE: 1/1/2018 PURCHASE OPTION: $1.00 PRICING: The Rates and Payments outlined above are locked, provided this proposal is accepted by the Lessee by October 31,2017 and the transaction closes/funds prior to December 01,2017.After these days,the final Rate and Payments shall be adjusted commensurately with market rates in effect at the time of funding and shall be fixed for t e entire lease term. DOCUMENTATION FEE: $250 paid to Lessor at closing 220 22nd Ave.E Suite 106*Alexandria,MN 56308*Telephone 320 763 7600*Fax 706 591 9057 ri i www.nationalcooperativeleasing.com �+ DOCUMENTATION: Lessor shall provide all of the documentation necessary to close this transaction. This documentation shall be governed by the laws of the State of lessee. TITLE/INSURANCE: Lessee shall retain title to the equipment during the lease term. Lessor shall be granted a perfected security interest in the equipment and the Lessee shall keep the equipment free from any/all liens or encumbrances during the term. Lessee shall provide adequate loss and liability insurance coverage, naming Lessor as additional insured and loss-payee. TAX STATUS: Interest under the Financing will be tax-exempt. NJPA CONTRACT: NCL has been competitively bid and awarded a contract through the National Joint #032615-NCL Powers Alliance(NJPA). NCL's NJPA Contract#is 032615-NCL. We appreciate this opportunity to offer an NCL Financing Solution. Please do not hesitate to contact me if you have any questions at(866)763-7600.Acceptance of this proposal is required prior to credit underwriting by NCL. Upon acceptance of this proposal,please scan and e-mail to my attention. Thank you again. Sincerely, Jake Ost-(866)763-7600 Jost@lscfinancial.com ACCEPTANCE As a duly authorized agent of the City of Palm Springs-Fleet Division, I hereby accept the terms of this proposal as outlined above and intend to close this financing with NCL,subject to final approval. ACCEPTED: DATE: NAME: TITLE: PHONE: WE ARE PROVIDING THE INFORMATION CONTAINED HEREIN FOR INFORMATIONAL PURPOSES ONLY IN CONNECTION WITH POTENTIAL ARMS-LENGTH COMMERCIAL BANKING TRANSACTIONS.IN PROVIDING THIS ICI INFORMATION,WE ARE ACTING FOR OUR OWN INTEREST AND HAVE tINANCIAL AND OTHER INTERESTS THAT DIFFER FROM YOURS.WE ARE NOT ACTING ASA MUNICIPAL ADVISOR OR FINANCIA ADVISOR TO YOU,AND HAVE NO FIDUCIARY DUTY TO YOUR OR ANY OTHER PERSON PURSUANT TO SECTION 1SB OF THE SECURITIES EXCHANGE ACT OF 1934.THE INFORMATION CONTAINED IN THIS DOCUM NT IS NOT INTENDED TO BE AND SHOULD NOT BE CONSTRUED AS"ADVICE"WITHIN THE MEANING OF SECTION 15B OF THE SECURITIES EXCHANGE ACT OF 1934 AND THE MUNICIPAL ADVISOR RULES OF TH SEC.WE ARE NOT RECOMMENDING THAT YOU TAKE AN ACTION WITH RESPECT TO THE INFORMATION CONTAINED HEREIN.BEFORE ACTING ON THIS INFORMATION,YOU SHOULD DISCUSS IT WITH YOUR OWN FINANCIAL AND/OR MUNICIPAL,LEGAL,ACCOUNTING,TAX AND OTHER ADVISORS AS YOU DEEM APPROPRIATE.IF YOU WOULD LIKE A MUNICIPAL ADVISOR THAT HAS LEGAL FIDUCIARY DUTIES TO YOU,THEN YOU ARE FREE TO ENGAGE A MUNICIPAL ADVISOR TO SERVE IN THAT CAPACITY. ^ I 220 22nd Ave.E Suite 106*Alexandria,MN 56308*Telephone 320 763 7600*Fax 706 591 9057 2 www.nationalcooperativeleasing.com Appendix A National Joint Powers Alliance Leasing and Financing Solutions with Related Services Contract #032615 Purchase Order Only Terms and Conditions I. Terms and Conditions for Tax Exempt Governmental Lease The terms, conditions and obligations of this Purchase Order Only Terms and Conditions (the "Additional Terms and Conditions") attached to Leasing and Financing Solutions with Related Services Contract #032615, by and between National Joint Powers Alliance and Lease Servicing Center,Inc.dba National Cooperative Leasing,including all attachments hereto,any Purchase Order incorporating these Additional Terms and Conditions by reference(the"Purchase Order")and any related escrow agreement, collectively constitute the Tax Exempt Governmental Lease referred to in such Purchase Order(the "Lease"). Words "YOU" and "YOUR" refer to the "Lessee," and the words "WE," "US" and "OUR" refer to the "Lessor," its successors and assigns. Attachments to the Lease include the following unless specifically designated as inapplicable: Attachment 1: Lease Payment Schedule Attachment 2: Equipment Description Schedule Attachment 3: Acceptance Certificate Attachment 4: Bank Qualification Designation Attachment 5: Opinion of Counsel Attachment 6: Resolution Attachment 7: Certificate of Incumbency Attachment 8: Insurance Coverage Disclosure An addendum required for the Lease to be in compliance with the applicable laws of the state where the Lessee resides may be required. 1. LEASE: WE agree to lease to YOU and YOU agree to lease from US,the equipment listed on the Purchase Order and Attachment 2 hereto, including all replacement parts, repairs, additions and accessories("Equipment")on the terms and conditions of this Lease. 2. TERM:This Lease is effective on the earlier of the date on which WE disburse funds to the vendor of the Equipment or the date on which WE deposit funds for the purchase of the Equipment with an escrow agent(the "Commencement Date"),which date YOU hereby authorize US to fill in on the executed Attachment 1, Lease Payment Schedule following OUR receipt from YOU of the executed Acceptance Certificate in the form set forth as Attachment 3 hereto, and continues thereafter for an Initial Term ("Initial Term") ending at the end of YOUR budget year in effect on the Commencement Date and may be continued by YOU for additional one-year renewal terms("Renewal Terms"), coinciding with YOUR budget year, up to the total number of months indicated pn Attachment 1, Lease Payment Schedule ("Leased Term"); provided, however,that at the end of the Initial Term and at the end of each Renewal Term until the Lease Term has been completed,YOU will be deemed to have continued this Lease for the next Renewal Term unless YOU have terminated this Lease pursuant to Section 5 or Section 17. Lease Payments as set forth on Attachment 1 and any amounts chargeable to YOU under this Lease shall be paid by YOU to US during the Initial Term and each Renewal Term during which this Lease remains in effect. As set forth in the Lease Payment Schedule,a portion of each Lease Payment i paid as, and represents payment of, interest. YOUR obligation to pay Lease Payments and YOUR other Lease obligation are absolute and unconditional and are not subject to cancellation, reduction, setoff or counterclaim except as provided in Section 5. THIS LEASE IS NON-CANCELABLE, EXCEPT AS PROVIDED IN SECTION S. 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 10% per annum or the maximum amount permitted by law,whichever is less,from the due date. 4. CONTINUATION OF LEASE TERM. YOU currently intend,subject to Section 5,to continue this Lease, and to pay Lease Payments hereunder,through the Lease Term. YOU reasonably believe that legally available funds in an amount sufficient to make all Lease Payments during the Lease Term can be obtained. YOUR responsible financial officer will do all things lawfully within his or her power to obtain and maintain funds from which Lease Payments may be made, including making provision for Lease Payments to the extent necessary in each proposed annual budget submitted for approval in accordance with YOUR applicable procedures and to exhaust all available reviews and appeals if that portion of the budget is not approved. 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. S. NONAPPROPRIATION. YOU are obligated only to pay such Lease Payments and other amounts under this Lease as may lawfully be made from funds 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 and other amounts required to be paid in the next occurring Renewal Term,this Lease will be deemed terminated at the end of the then current Initial Term or Renewal Term. YOU agree to deliver written notice to US of such termination at least 90 days prior to the end of the then current Initial Term or Renewal Term, but failure to give such notice will not extend the term of this Lease beyond the then current Initial Term or Renewal Term. 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, by the end of the Initial Term or Renewal Term then in effect. If the Equipment is not so returned by the end of the Initial Term or Renewal Term then in effect,WE may charge YOU additional rental at the Lease rate until the date of Equipment return. 6. WARRANTIES. WE are leasing the Equipment to YOU "AS-IS" and WE MAKE NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE. To the extent such warranties are transferrable, WE transfer to YOU, without recourse, for the term of this Lease all warranties, if any, made by the manufacturer. YOU ALSO ACKNOWLEDGE THAT NO ONE IS AUTHORIZED TO WAIVE OR CHANGE ANY TERM, PROVISION OR CONDITION OF THIS LEASE EXCEPT IN WRITING AND SIGNED BY THE PARTIES HERETO,AND, EXCEPT FOR THE MANUFACTURER WARRANTIES, MAKE ANY REPRESENTATION OR WARRANTY ABOUT THIS LEASE OR THE EQUIPMENT. WE WILL NOT BE LIABLE FOR SPECIAL, RESULTING OR CONSEQUENTIAL DAMAGES OR LOSS OF PROFIT OCCASIONED BY ANY BREACH OF WARRANTY OR REPRESENTATION OR RESULTING FROM THE USE OR PERFORMANCE 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 OR OTHER RIGHT WHICH YOU MAY HAVE OR ASSERT AGAINST THE EQUIPMENT SUPPLIER OR THE EQUIPMENT MANUFACTURER. 7. DELIVERY AND ACCEPTANCE. YOU are responsible, at YOUR own cost(unless financed by this Lease),to arrange for the delivery and installation of the Equipment. When the Equipment has been delivered and installed,YOU will immediately sign and deliver to US a separate acceptance certificate in the form set forth as Attachment 3 hereto. 8. TITLE, PERSONAL PROPERTY,LOCATION, INSPECTION, NO MODIFICATONS OR ALTERATIONS. YOU have title to the Equipment; provided that title to the Equipment will immediately and without any action by YOU vest in US,and YOU will immediately surrender possession of the Equipment to US, (a) upon any termination of this Lease other than upon payment of all Lease Payments due hereunder termination pursuant to Section 17 (including but not limited to any termination pursuant to Section 5) or(b) if YOU are in default of this Lease. It is the intent of the parties hereto that any transfer of title to US pursuant to this Section will occur automatically without the necessity of any bill of sale, certificate of title or other instrument of conveyance. YOU will, nevertheless, execute and deliver any such instruments as WE may request to evidence such transfer. As security for YOUR obligations hereunder,to the extent permitted by law,YOU grant to US a first and prior security interest in the Equipment,all cash and negotiable instruments comprising the escrow fund held under any related escrow agreement, and all proceeds:f the foregoing. YOU agree that WE may record such instruments as WE deem necessary to perfect such security inter st. YOU have the right to use the Equipment during the term of this Lease, except as otherwise expressly set forth in this Lease. Although the Equipment may become attached to real estate, it remains personal property.YOU agree not to alter or modify the Equipment or permit a lien to be placed upon the Equipment or to remove the Equipment without OUR prior written consent. YOU agree to provide US with 24 c., waivers of interest or liens from anyone claiming any interest in the real estate on which any items of Equipment is located. WE also have the right, at reasonable times,to inspect the Equipment. 9. MAINTENANCE. YOU are required, at YOUR own cost and expense,to keep the Equipment in good repair, condition and working order, except for ordinary wear and tear,and to supply all parts and servicing required. All replacement parts used or installed and repairs made to the Equipment will become part of the Equipment.YOU acknowledge that WE are not responsible for providing any required maintenance and/or service for the Equipment. YOU will make all claims for service and/or maintenance solely to the supplier and/or manufacturer and such claims will not affect YOUR obligation to make Lease Payments. 10.ASSIGNMENT. YOU agree not to transfer, sell, sublease, assign, pledge or encumber either the Equipment or any rights or obligations under this Lease without OUR prior written consent. YOU agree that WE may sell, assign or transfer our rights and benefits under this Lease and, if WE do,the new owner will have the same rights and benefits, but not the obligations,that WE now have. The rights of the new owner will not be subject to any claims, counterclaims, defenses or set-offs that YOU may have against US, if any. No assignment will be effective until YOU have received written notice from the assignor of the name and address of the assignee. YOU or YOUR agent will maintain a written record of each assignment in form necessary to comply with Section 149(a)of the Internal Revenue Code of 1986, as amended. 11. LOSS OR DAMAGE. YOU are responsible for the risk of loss or destruction of, or damage to,the Equipment. No such loss or damage relieves YOU from any obligation under this Lease. If any of the Equipment is damaged by fire or other casualty or if title to, or the temporary use of, any of the Equipment is taken under the exercise of the power of eminent domain,the net proceeds("Net Proceeds") of any insurance claim or condemnation award will be applied to the prompt replacement, repair, restoration, modification or improvement of that Equipment, unless YOU have exercised YOUR option to purchase the Equipment pursuant to Section 17. Any balance of the Net Proceeds remaining after such work has been completed will be paid to YOU. 12. YOUR NEGLIGENCE. WE are not responsible for any losses or injuries caused by the manufacture, acquisition, delivery, installation, ownership, use, lease, possession, maintenance, operation or rejection of the Equipment or defects in the Equipment. To the extent permitted by law, YOU agree to reimburse US for and to defend US against any claim for losses or injuries (including attorneys'fees and other expenses for the defense of such claim), relating to the Equipment, including,without limitation, its manufacture, acquisition, delivery, installation, ownership, use, lease, possession, maintenance or operation,to the extent such claim proximately results from the negligent conduct of YOU or YOUR agents. YOUR obligations under this Section 12 will continue even after the termination of this Lease. 13. TAXES. YOU agree to pay any applicable license and registration fees, sale and use taxes, personal property taxes and all other taxes and charges, relating to the ownership, leasing, rental, sale, purchase, possession or use of the Equipment(except those based on OUR net income). YOU agree that if WE pay any taxes or charges,YOU will reimburse US for all such payments and will pay US interest and a late charge (as calculated in Section 3) on such payments with the next Lease Payment, plus a fee for OUR collecting and administering any taxes,assessments or fees and remitting them to the appropriate authorities. 14. INSURANCE. During the term of this Lease,YOU will keep the Equipment insured against all risks of loss or damage in an amount not less than the replacement cost of the Equipment. YOU will also obtain and maintain for the term of this Lease, liability insurance insuring against liability for bodily injury and property damage in an amount satisfactory to US or such greater amount as may be prescribed by any applicable state law. WE will be the sole named loss payee on the property insurance and named as an additional insured on the liability insurance, and such insurance shall provide US at least thirty days written notice of cancellation. YOU will pay all premiums for such insurance and must deliver proof of insurance coverage satisfactory to US. If YOU do ncbt provide such insurance,YOU agree that WE have the right, b t not the obligation,to obtain such insurance and add an insurance fee to the amount due from YOU. 15. DEFAULT. Subject to Section 5,YOU are in default of this Lease if any of the following occurs: (a)YOU fail to pay any Lease Payment or other sum when due; (b)YOU breach any warranty or other obligation under this Lease, or any " 5 other agreement with US, (c)YOU become insolvent or unable to pay YOUR debts when due or YOU make an assignment for the benefit of creditors,or(d)YOU file or have filed against YOU a petition for liquidation, reorganization, adjustment of debt or similar relief under the Federal Bankruptcy Code or any other present or future federal or state bankruptcy or insolvency law, or a trustee, receiver or liquidator is appointed for YOU or a substantial part of YOUR assets. 16. REMEDIES. WE have the following remedies if YOU are in default of this Lease: WE may declare the entire balance of the unpaid Lease Payments for the then current Initial Term or Renewal Term immediately due and payable; sue for and receive all Lease Payments and any other payments then accrued or accelerated under this Lease;take whatever action at law or in equity may appear necessary or desirable to enforce OUR rights as owner of the Equipment; charge YOU interest on all monies due US at the rate of eighteen percent (18%) per year from the date of default until paid, but in no event more than the maximum rate permitted by law;charge YOU a return-check or non-sufficient funds charge ("NSF Charge") of$25.00 for a check that is returned for any reason; and require that YOU return the Equipment to US and, if YOU fail to return the Equipment, enter upon the premises peaceably with or without legal process where the Equipment is located and repossess the Equipment. Such return or repossession of the Equipment will not constitute a termination of this Lease unless WE expressly notify YOU in writing. If the Equipment is returned or repossessed by US and unless WE have terminated this Lease, WE will sell or re-rent the Equipment to any persons with any terms WE determine, at one or more public or private sales,with or without notice to YOU, and apply the net proceeds after deducting the costs and expenses of such sale or re-rent,to YOUR obligations with YOU remaining liable for any deficiency and with any excess over the amounts described in this Section plus the then applicable Purchase Price to be paid to YOU. YOU are also required to pay(i)all expenses incurred by US in connection with the enforcement of any remedies, including all expenses of repossessing, storing, shipping, repairing and selling the Equipment,and (ii) reasonable attorneys'fees. 17. PURCHASE OPTION. Provided YOU are not in default,YOU will have the option to purchase all, but not less than all, of the Equipment(a) on the date the last Lease Payment is due, if this Lease is still in effect on that day, upon payment in full of Lease Payments and all other amounts then due and the payment of One Dollar to US; (b)on the last day of the Initial Term or any Renewal Term then in effect, upon at least 30 days' prior written notice to US and payment in full to US of the Lease Payments and all other amounts then due plus the then applicable Purchase Price set forth on the Lease Payment Schedule;or(c) if substantial damage to or destruction or condemnation of substantially all of the Equipment has occurred,on the day specified in YOUR written notice to US of YOUR exercise of the purchase option upon at least 30 days' prior notice to US and payment in full to US of the Lease Payments and all other amounts then due plus the then applicable Purchase Price set forth on the Lease Payment Schedule. 18. REPRESENTATIONS AND WARRANTIES. YOU warrant and represent as follows: (a)YOU are a public body corporate and politic duly organized and existing under the constitution and laws of YOUR State with full power and authority to enter into this Lease and to perform all of YOUR obligations hereunder; (b)YOU have duly authorized the execution and delivery of this Lease by proper action by YOUR governing body,and all requirements have been met and procedures have occurred in order to ensure the validity and enforceability of this Lease; (c)YOU have complied with such public bidding requirements and other provisions of law as are applicable to this Lease and the acquisition by YOU of the Equipment; (d) all authorizations,)consents and approvals of governmental bodies or agencies required in connection with the execution and delivery by Y U of this Lease or in connection with the carrying out of YOUR obligations hereunder have been obtained; (e)this Lease constitutes the legal,valid and binding obligation of YOU enforceable in accordance with its terms,except to the extent limited by applicable bankruptcy, insolvency, reorganization or other laws affecting creditors' rights generally; (f)YOU have, in accordance with the requirements of law,fully budgeted and appropriated sufficient funds for the current budget year to make the Lease Payments scheduled to come due during the current budget year and to meet YOUR other obligations under this Lease during the current budget year,and those funds have not been expended for ot�er purposes; (g)there is no proceeding pending or threateneca in any court or before any governmental authority or arbitration board or tribunal that, if adversely determined,would adversely affect the transactions contemplated by this Lease or our interest in the Equipment; (h)the Equipment is essential to YOUR functions or to the services YOU provide to YOUR citizens,YOU have an immediate need for the Equipment and expect to make immediate use of the Equipment,YOUR need for the Equipment is not temporary and YOU do not expect the need for any item of the Equipment to diminish in the foreseeable future, including the Lease Term, and the Equipment will be used by YOU only for the purpose of performing one or more of YOUR governmental or proprietary functions consistent with the permissible scope of YOUR authority and will not be used in the trade or business of any other entity or person; and (i)YOU have never failed to appropriate or otherwise make available funds sufficient to pay rental or other payments coming due under any lease purchase, installment sale or other similar agreement. 19. FINANCIAL STATEMENTS. YOU agree to submit financial statements(audited if available) on an annual basis. 20.TAX EXEMPTION. YOU will comply with all applicable provisions of the Internal Revenue Code of 1986, as amended, including without limitation Sections 103 and 148 thereof, and the applicable regulations thereunder to maintain the exclusion of the interest portion of the Lease Payments from gross income for purposes of federal income taxation. In furtherance of the foregoing,YOU will file all necessary informational returns with the IRS,on a timely basis, and provide US with copies of such filed returns relating to this Lease contemporaneous with their filing. If YOU fail to file the necessary informational returns with the IRS on a timely basis,YOU authorize US, in OUR sole discretion,to engage a tax professional to complete the required returns on YOUR behalf and expense, which YOU will promptly execute and file. 21. BANK QUALIFICATION. If this Lease has been designated a "qualified tax-exempt obligation" on Attachment 4 "Bank Qualified Designation",YOU and all YOUR subordinate entities will not issue in excess of$10,000,000 of"qualified tax-exempt obligations" (including this Lease, but excluding private activity bonds other than qualified 501(c)(3) bonds) during the calendar year in which WE fund this Lease without first obtaining an opinion of nationally recognized counsel in the area of tax-exempt municipal obligations acceptable to US that the designation of this Lease as a "qualified tax- exempt obligation" will not be adversely affected. 22. CHOICE OF LAW;JURY TRIAL WAIVER. This Lease will be governed and construed in accordance with the laws of the state where YOU are located. To the extent permitted by law,YOU agree to waive YOUR rights to a trial by jury. 23. ENTIRE AGREEMENT;SEVERABILITY;WAIVERS. This Lease contains the entire agreement and understanding between YOU and US. No agreements or understandings are binding on the parties unless set forth in writing and signed by the parties. Any provision of this Lease which for any reason may be held unenforceable in any jurisdiction will, as to such jurisdiction, be ineffective without invaliding the remaining provisions of this Lease. 24. NOTICES; ELECTRONIC TRANSACTION. Notices hereunder shall be deemed given when delivered personally, sent via overnight courier,facsimile or e-mail (with confirmation of transmission),or certified U.S. Mail, addressed as set forth above. Copies,facsimiles, electronic files and other reproductions of original documents shall be deemed to be authentic counterparts for all purposes, including the filing of any claim, action or suit in the appropriate court of law. To the extent that this Lease constitutes chattel paper(as that term is defined by the UCC), a security or ownership interest intended to be created through the transfer and possession of this Lease can be done only by the transfer of such original bearing OUR original signature on the related Purchase Order. 25. ROLE OF LESSOR. WE have not acted and will not act as a fiduciary for YOU or as YOUR agent or municipal advisor. WE have not and will not provide financial, legal,tax, accounting or other advice to Yt U or to any financial advisor or placement agent engaged by YOU with respect to this Lease. YOU,YOUR financial advisor, placement agent or municipal advisor, if any, shall each seek and obtain YOUR own financial, legal,tax,accounting and other advice with respect to this Lease from YOUR own advisors(including as it relates to structure,timing,terms and similar matters). Il. Supplemental Terms and Conditions for Lease with Option to Purchase WE and YOU agree tha in the event of the execution and delivery of a Purchase Orde for a Lease With Option to Purchase the following�changes and additions shall be made to the Purchase Order Orly Terms and Conditions set forth above: 1. Section 2 of the Lease is hereby amended by deleting the following sentence: 27 As set forth in the Lease Payment Schedule, a portion of each lease payment is paid as, and represents payment of, interest. 2. Section 8 of the Lease is hereby deleted in its entirety and the following Section 8 is inserted in lieu thereof: 8. TITLE, PERSONAL PROPERTY, LOCATION, INSPECTION, NO MODIFICATIONS OR ALTERATIONS. During the term of this Lease,title to the Equipment shall be retained by US,except for those modifications that YOU add to the Equipment that can be removed without damaging the Equipment. YOU will not have any right, title or interest in the Equipment except as expressly set forth in this Lease. If YOU are in default of this Lease, or this Lease is terminated for any reason other than pursuant to Sections 17 or 26(including but not limited to any termination pursuant to Section 5),YOU will,at your cost and expense, peaceably deliver the Equipment to US at the location or locations specified by US. Upon YOUR exercise of the purchase option pursuant to Section 17 or Section 26,title to the Equipment will immediately and without further action by US vest in YOU, AS IS,WHERE IS,without warranty,express or implied,free and clear of any claim by or through US. It is the intent of both parties that any transfer of title to YOU pursuant to this Section will occur automatically without the necessity of any bill of sale,certificate of title or other instrument of conveyance. WE will, nevertheless, execute and deliver any such instruments as YOU may request to evidence such transfer.YOU will, nevertheless, execute and deliver any such instruments as WE may request to evidence such transfer. YOU have the right to use the Equipment during the term of this Lease, except as otherwise expressly set forth in this Lease. Although the Equipment may become attached to real estate, it remains personal property.YOU agree not to alter or modify the Equipment or permit a lien to be placed upon the Equipment or to remove the Equipment without OUR prior written consent. If WE feel it is necessary,YOU agree to provide US with waivers of interest or liens from anyone claiming any interest in the real estate on which any items of Equipment is located. WE also have the right,at reasonable times,to inspect the Equipment. 3. Section 17 of the Lease is hereby deleted in its entirety and the following Section 17 is inserted in lieu thereof: Section 17. PURCHASE OPTION. Provided YOU are not in default,YOU will have the option to purchase all, but not less than all, of the Equipment (a) on the last day of the Initial Term or any Renewal Term then in effect, upon at least 30 days' prior written notice to US and payment in full to US of the Lease Payments and all other amounts then due plus the then applicable Fair Market Value of the Equipment as defined in Section 26 of the Lease plus all sales and use taxes, if any, arising on the sale of the Equipment; or(b) if substantial damage to or destruction or condemnation of substantially all of the Equipment has occurred, on the day specified in YOUR written notice to US of YOUR exercise of the purchase option upon at least 30 days' prior notice to US and payment in full to US of the Lease Payments and all other amounts then due, plus the then applicable Fair Market Value of the Equipment as defined in Section 26 of the Lease, plus all sales and use taxes, if any,arising on the sale of the Equipment. 4. $ection 20 is hereby deleted. S. (Section 21 is hereby deleted. 6. The following section is hereby inserted: Section 26. PURCHASE OPTION AT END OF TERM. So long as this Lease has not been canceled or terminated (arly and no Event of Default exists, upon expiration of the final Renewal Term set forth on Attachment 1 'Lease End"),YOU may purchase all, but not less than all, of the Equipment for the Fair Market Value of the Equipment, plus all sales and use taxes arising on the sale of the Equipment. For purposes of this Lease, "Fair Market Value" of the Equipment means the estimated amount that a willing buyer and a willing seller would pay for the Equipment on an installed basis,as mutually determined by YOU and US. If WE and YOU are unable to mutually determine the Fair Market Value, at YOUR request and expense,WE shall select and hire a third-party certified appraiser to determine the Fair Market Value, and such appraiser's determination shall be binding on the US and YOU.To exercise the foregoing purchase option,YOU must give written notice thereof to US at least 90 days and no more than 120 days prior to Lease End. If YOU fail to give such notice, or if the parties cannot agree on the Fair Market Value of the Equipment by 45 days before Lease End,then this purchase option shall lapse. If this purchase option lapses,then at least 30 days before Lease End,YOU must give US notice of YOUR intent to return the Equipment and request return location instructions. If YOU fail to give such notice,or give notice but fail to return the Equipment in accordance with Section 27 below,this Lease will automatically renew, at the same rental and other terms set forth in this Lease,for additional successive non-cancelable one-month terms after the Initial Term until timely written notice of return and proper return of the Equipment is made. If YOU give timely notice of election to purchase the Equipment as provided in this Section 26 and fail to timely pay the purchase price,then WE may, in its sole discretion, by written notice to YOU (a)treat the Equipment as purchased and enforce payment of the purchase price, (b) declare a failure to meet those purchase conditions whereupon YOUR interest in the Lease and Equipment shall be canceled automatically and YOU shall return the Equipment in accordance with Section 27 below, or(c)treat the Lease as automatically renewed, at the same rental and other terms set forth in this Lease,for additional successive non-cancelable one-month terms until timely written notice of return and proper return of the Equipment is made. Upon YOUR exercise of the purchase option and OUR receipt of the purchase price plus any other amount owing under this Lease,the Equipment will be deemed transferred to YOU at its then location and, on YOUR request at such time,WE will deliver to YOU a bill of sale for the Equipment, "WHERE IS,AS IS" WITHOUT ANY WARRANTY AS TO TITLE OR WITH RESPECT TO THE EQUIPMENT, EXPRESS OR IMPLIED. 7. The following Section is hereby inserted: Section 27. RETURN OF THE EQUIPMENT. Unless YOU purchase the Equipment or the term of this Lease has been extended in accordance with the terms and conditions set forth in this Lease, upon the expiration or earlier termination of this Lease,YOU shall, at YOUR sole expense and risk,de-install,disassemble, pack, crate, insure and return the Equipment to US(all in accordance with applicable industry standards) at any location in the continental United States selected by US.The Equipment shall be in the same condition as when received by YOU, reasonable wear and tear resulting from normal and proper use excepted, shall be free and clear of any liens, shall comply with all applicable laws and regulations and shall include all manuals, specifications, repair and maintenance records and similar documents. Until any Equipment is returned as required above, all terms of this Lease shall remain in full force and effect with respect thereto including,without limitation, obligations to pay rent and to insure and repair such Equipment. n n t+.a77 ATTACHMENT 1 TO TAX EXEMPT GOVERNMENTAL LEASE NO. DATED AS OF PAYMENT SCHEDULE LESSOR: LESSEE: COMMENCEMENT DATE*: INTEREST RATE: PAYMENT FREQUENCY: The first_Lease Payment shall be due fin arrears]on the date that is one month after the Conunencement Date,and subsequent Lease Payments shall be due monthly on the same day of each month thereafter until paid in full. Payment Lease Interest Principal Purchase Number Payment Portion Portion Price NAME OF LESSEE: SIGNATURE: NAME AND TITLE OF SIGNER: 30 *YOU hereby authorize US to fill in the Commencement Date based on the earlier of the date that WE disburse funds to the Vendor of the Equipment following receipt of YOUR executed Acceptance Certificate,or the date on which WE deposit funds for the purchase of the Equipment with an escrow agent. 1 31 ATTACHMENT 2 TO TAX EXEMPT GOVERNMENTAL LEASE NO. DATED AS OF EQUIPMENT DESCRIPTION The Equipment consists of the equipment described below,together with any and all replacement parts,additions,repairs,modifications,attachments and accessories thereto,any and all substitutions,replacements or exchanges therefor,and any and all insurance and/or proceeds thereof Description/Serial No./Model No. Location Total Cost I NAME OF LESSEE: SIGNATURE: NAME AND TITLE OF SIGNER: Muni—Lease v.08.19.15 LR 1/26/2017 3:33 PM i J 10 VV //�� ATTACHMENT 3 TO TAX EXEMPT GOVERNMENTAL LEASE NO. DATED AS OF ACCEPTANCE CERTIFICATE Lessor Re: Tax Exempt Governmental Lease No. between Lease Servicing Center, Inc.dba National Cooperative Leasing,as Lessor(the "Lessor"),and as Lessee(the"Lessee") Ladies and Gentlemen: In accordance with the above-referenced Tax Exempt Governmental Lease No. (the "Lease"), 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 Lease)listed in the Lease has been delivered,installed and accepted on the date hereof. 2. Lessee has conducted such inspection and/or testing of the Equipment listed in the Lease 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 Lease. 4. No event or condition that constitutes,or with the giving of notice or the lapse of time or both would constitute,a default as set forth in Section 15 of the Lease exists at the date hereof. 5. We acknowledge that Lessor is neither the vendor nor manufacturer or distributor of the Equipment and has no control,knowledge or familiarity with the condition,capacity,functioning or other characteristics of the Equipment. 6. The serial number for each item of Equipment that is set forth in the Lease is correct. 7. Lessee hereby acknowledges and agrees to the Lease Payment Schedule attached to the Lease as Attachment 1. Date: 20 NAME OF LESSEE: SIGNATURE: NAME AND TITLE OF SIGNER: Muni—Lease v.08.19.15 LR 1/26/2017 3:33 PM 33 11 ATTACHMENT 4 TO TAX EXEMPT GOVERNMENTAL LEASE NO DATED AS OF CERTIFICATE AS TO BANK QUALIFICATION I, do hereby certify that I am the duly elected or appointed and acting of (Lessee),and that with respect to the Tax Exempt Governmental Lease No. dated as of (the Lease)by and between Lessee and Lease Servicing Center, Inc.dba National Cooperative Leasing: 1. Lessee hereby designates the Lease as a"qualified tax-exempt obligation"for purposes and within the meaning of Section 265(b)of the Internal Revenue Code of 1986,as amended(the Code),and treasury regulations promulgated thereunder. 2. The reasonably anticipated amount of tax-exempt obligations(other than obligations listed in Section 265(b)(3)(C)(ii)of the Code)which will be issued by Lessee during the current calendar year does not exceed $10,000,000. 3. In no event will Lessee designate more than$10,000,000 of obligations as"qualified tax-exempt obligations"during the current calendar year. Dated: NAME OF LESSEE: SIGNATURE: NAME AND TITLE OF SIGNER: (Certificate to be used only for bank qualified transactions where the resolution does not make a bank qualified designation) Muni Lease v.08.19.15 LR 1/26/2017 3:33 PM 34 12 ATTACHMENT 5 OPINION OF COUNSEL (To be on Attorney's Letterhead) Date: Lessee: Lessor: Re: Tax Exempt Governmental Lease No. dated as of by and between Lease Servicing Center, Inc. dba National Cooperative Leasing and Ladies and Gentlemen: I have acted as counsel to Lesse�with respect to the Tax Exempt Governmental Lease No. described above and various related matters, and in this capacity have reviewed a duplicate original or certified copy of(i) Purchase Order No. dated , (ii)the Purchase Order Only Terms and Conditions attached to the Leasing and Financing Solutions with Related Services Contract No. 032615 by and between National Joint Powers Alliance and Lease Servicing Center, Inc.dba National Cooperative Leasing and (iii) all exhibits and attachments thereto (collectively, "Tax Exempt Governmental Lease No. "or the 'lease"). Based upon the examination of these and such �ther documents as I deem relevant, it is my opinion that: 1. Lessee is a public corporation and political subdivision of the State of (the"State"), is duly organized, existing and operating under the Constitution and laws of the State, and has a substantial amount of 35 Muni_Le—v.08.19.15 LR 1/26/20173:33 PM 13 one or more of the following sovereign powers: (a)the power to tax, (b)the power of eminent domain,or(c) the police power. The full,true and correct legal name of Lessee is 2. Lessee is authorized and has power under State law to enter into the Lease and lease the equipment described therein with an option to purchase, and to carry out its obligations thereunder and the transactions contemplated thereby. 3. The Lease and the other documents described above (including, without limitation any related Escrow Agreement) have been duly authorized,approved,executed and delivered by and on behalf of Lessee,and the Lease and such documents are valid and binding contracts of Lessee enforceable in accordance with their terms, except to the extent limited by State and Federal laws affecting remedies and by bankruptcy, reorganization or other laws of general application relating to or affecting the enforcement of creditors' rights. No further approval,consent or withholding of objection is required from any federal, state or local governmental authority with respect to the entering into or performance by the Lessee of the Lease and the transaction contemplated thereby. 4. Lessee has no authority(statutory or otherwise)to terminate the Lease prior to the end of its term for any reason other than pursuant to the terms of Section 5 of the Lease. 5. The authorization, approval and execution of the Lease and all other proceedings of Lessee relating to the transactions contemplated thereby have been performed in accordance with all open meeting laws, public bidding laws and all other applicable State and Federal laws. 6. The execution of the Lease and the appropriation of moneys to pay the payments coming due under the Lease do 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. 7. There is no litigation,action, suit, or proceeding pending or before any court,administrative agency, arbitrator or governmental body that challenges the organization or existence of Lessee;the authority of the Lessee or its officers;the proper authorization, approval and execution of the Lease and the other documents described above;the appropriation of monies to make Lease Payments under the Lease for the current fiscal year,or the ability of Lessee otherwise to perform its obligations under the Leas and the transactions contemplated thereby. 8. The equipment leased pursuant to the Lease constitutes personal property and when subject to use by Lessee will not be or become fixtures under applicable law. 9. The leasing of the equipment pursuant to the Lease is exempt from all sales, use and documentary stamp taxes against either Lessor or Lessee during the term of the Lease, and such equipment will be exempt from all state and local personal property or other ad valorem taxes. Muni—Lease v.08.19.15 LR 1/26/2017 3:33 PM 3 G 14 This opinion of counsel may be relied upon by and its successors and assigns. Very truly yours, Muni—Lease v.08.19.15 LR 1/26/2017 3:33 PM 37 15 ATTACHMENT 6 TO TAX EXEMPT GOVERNMENTAL LEASE NO DATED AS OF RESOLUTION A resolution authorizing the negotiation,execution,and delivery of Purchase Order No. dated (with the documents incorporated therein,the"Lease"),in the principal amount of between Lease Servicing Center,Inc.dba National Cooperative Leasing and providing lease payments of each from legally available funds;and prescribing other details in connection therewith. WHEREAS, ,(the"Lessee")is a political subdivision duly organized and existing pursuant to the Constitution and laws of the State of ;and WHEREAS,Lessee is duly authorized by applicable law to acquire such items of personal property as are needed to carry out its governmental functions and to acquire such personal property by entering into lease-purchase agreements;and WHEREAS,Lessee hereby finds and determines that the execution of a lease for the purpose of leasing with the option to purchase the property designated and set forth in Attachment 2 to the Lease is appropriate and necessary to the function and operations of the Lessee;and WHEREAS,Lease Servicing Center,Inc.dba National Cooperative Leasing(the"Lessor")shall act as Lessor under said Lease;and WHEREAS,the Lease shall not constitute a general obligation indebtedness of the Lessee within the meaning of the Constitution and laws of the State; NOW,THEREFORE,BE IT RESOLVED BY THE OF LESSEE: Section 1. The or acting on behalf of Lessee,are hereby authorized to negotiate,enter into,execute,and deliver the Lease and related documents in substantially the form as presently before ,which Lease is available for public inspection at the offices of Lessee. Section 2. The Lease shall be in the principal amount of bearing interest as set forth in Attachment 1 of the Lease; said Lease to contain an option to purchase by the Lessee as therein set forth. Section 3. The Lessee's obligations under the Lease shall be expressly subject to annual appropriation by Lessee;and such obligations under the Lease shall not constitute a general obligation of Lessee or indebtedness of Lessee within the meaning of the Constitution and laws of the State of Section 4. All other related contracts and agreements necessary and incidental to the Lease are hereby authorized. [Section 5. Lessee reasonably anticipates to issue not more than $10,000,000 of tax-exempt obligations(other than "private activity bonds" which are not"qualified 501(c)(3)bonds")during the current calendar year and hereby designates the Lease as a"qualified tax-exempt obligation"for purposes of Section 265(b)of the Internal Revenue Code of 1986,as amended.] Section 6. This resolution shall take effect immediately ul�on its adoption and approval. ADOPTED AND APPROVED this day of 20 NAME OF LESSEE: Muni_Leasev.08.19.15 LR 1/26/20173.33 PM '1 Q 16 •• 11 SIGNATURE: NAME AND TITLE OF SIGNER: Muni_Lease v.08.19.15 LR 1/26/20173:33 PM 17 ? 9 ATTACHMENT 7 TO TAX EXEMPT GOVERNMENTAL LEASE NO. DATED AS OF CERTIFICATE OF INCUMBENCY I, do hereby certify that I am the duly elected or appointed and acting Clerk/Secretary of (the "Lessee"), a political subdivision duly organized and existing under the laws of the State of , and that, as of the date hereof, the individuals named below are the duly elected or appointed officers of the Lessee holding the offices set forth opposite their respective names. NAME TITLE SIGNATURE IN WITNESS WHEREOF I have dulyexecuted this certificate this day of 20 Y i Signed: Title: NOTE: The Clerk or Secretary to the Board should sign unless that person is also the signor of the documents in which case the Board President or some other Officer of the District should execute this document. Muni—Lease v.08.19.15 LR 1/26/2017 3:33 PM 40 18 ATTACHMENT 8 TO TAX EXEMPT GOVERNMENTAL LEASE NO. DATED AS OF INSURANCE COVERAGE DISCLOSURE RE: INSURANCE COVERAGE REQUIREMENTS In accordance with the Tax Exempt Governmental Lease No. dated by and between Lease Servicing Center,Inc.dba National Cooperative Leasing and (Lessee),Lessee certifies that it has instructed the insurance agent named below(please fill in name,address,and telephone number): Insurance Agent Name: Business Phone# Company Fax Phone# Liability: Insurance Agent Name: Business Phone# Company Fax Phone# Property: to issue: (check to indicate coverage) _Xa. All Risk Physical Damage Insurance on the leased Property evidenced by a Certificate of Insurance and Long Form Loss Payable Clause naming Lease Servicing Center,Inc.dba National Cooperative Leasing and/or its assigns as Loss Payee. Coverage Required: Termination Value Specified. _X_b. Public Liability Insurance evidenced by a Certificate of Insurance naming Lease Servicing Center,Inc.dba National Cooperative Leasing and/or its assigns as an Additional Insured. Minimum Coverage Required: $1,000,000 per person $1,000,000 aggregate bodily injury liability $1,000,000 property damage liability. Proof of insurance coverage will be provided to Lease Servicing Center,Inc.dba National Cooperative Leasing,prior to the time that th property is delivered to Lessee. Please fax a copy of the Certificate bf Insurance or binder to Lease Servicing Center,Inc.dba National Cooperative Leasing at 320-763-9600. NAME OF LESSEE: SIGNATURE1 NAME AND TITLE OF SIGNER: Muni—Lease v.08.19.15 LR 1/26/2017 3:33 PM A 1 19 �2 ATTACHMENT 3 S2 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING THE NEGOTIATION, EXECUTION, AND DELIVERY OF A PURCHASE ORDER IN THE PRINCIPAL AMOUNT OF $766,430.55 BETWEEN LEASE SERVICING CENTER, INC., DBA NATIONAL COOPERATIVE LEASING AND THE CITY OF PALM SPRINGS, CALIFORNIA; PROVIDING 60 LEASE PAYMENTS OF $14,024.31 EACH FROM LEGALLY AVAILABLE FUNDS; AND PRESCRIBING OTHER DETAILS IN CONNECTION THEREWITH. WHEREAS, the City of Palm Springs, a California charter city and municipal corporation, (the "Lessee") is a political subdivision duly organized and existing pursuant to the Constitution and laws of the State of California; and WHEREAS, Lessee is duly authorized by applicable law to acquire such items of personal property as are needed to carry out its governmental functions and to acquire such personal property by entering into lease-purchase agreements; and WHEREAS, Lessee hereby finds and determines that the execution of a lease for the purpose of leasing with the option to purchase the property designated and set forth in Attachment 2 to the Lease is appropriate and necessary to the function and operations of the Lessee; and WHEREAS, Lease Servicing Center, Inc. dba National Cooperative Leasing (the "Lessor") shall act as Lessor under said Lease; and WHEREAS, the Lease shall not constitute a general obligation indebtedness of the Lessee within the meaning of the Constitution and laws of the State; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Palm Springs hereby declares the following: Section 1. The City Manager, the City Clerk, and the Director of Finance, (each an "Authorized Representative") acting on behalf of Lessee, are hereby authorized to negotiate, enter into, execute, and deliver the Lease and related documents in substantially the form as presently before the City Council, which Lease is available for public inspection at the offices of Lessee. Section 2. The Lease shall be in the principal amount of $766,430.55 bearing interest as set forth in Attachment 1 of the Lease; said Lease to contain an option to purchase by the Lessee as therein set forth. Section 3. The Lessee's obligations under the Lease shall be expressly subject to annual appropriation by Lessee; and such obligations under the Lease shall not constitute a general obligation of Lessee or indebtedness of Lessee within the meaning of the Constitution and laws of the State of California. 4- 3 Resolution No. Page 2 Section 4. All other related contracts and agreements necessary and incidental to the Lease are hereby authorized. Section 5. This resolution shall take effect immediately upon its adoption and approval. ADOPTED THIS 1ST DAY OF NOVEMBER, 2017. David H. Ready, City Manager ATTEST: Kathleen D. Hart, Interim City Clerk Resolution No. Page 3 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on November 1, 2017, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Kathleen D. Hart, Interim City Clerk City of Palm Springs, California