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HomeMy WebLinkAboutReg 2005-03-21 Item 6F - Resolution - Golf Carts Lease from Thermo King Northwest (Foster Golf Course) CJUNCILAGENL SiwosIs r ITEM No Izzitials Q `t t, Meeting Date 1 Prepared by Mayor's review Council review io; 03/14/05 1 BF 1 .s 'fedi 1 N 1 ITEM: INFORMATION CAS NUMBER: 05-039 ORIGINAL AGENDA DA'I'S;: 03/14/05 AGENDA ITEM TITLE Sole Source Golf Cart Lease with Option to Purchase CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date Mtg Date Mtg Date 03/14/05 Mtg Date Mtg Date Mtg Date 111tg Date SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P&R Police PIF SPONSOR'S The current golf cart lease will expire, May 1, 2005. The new lease /purchase vendor will SUMMARY be Thermo King Northwest in Kent. The cart selected is the only cart that meets the golf divisions' specifications. Since there is only one vendor who can provide this cart, meeting the criteria, this will be a sole source lease with option to purchase. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: CA &P 03/01/05 RECOMMENDATIONS: SPONSOR /ADMIN. Approve sole source lease with option to purchase. COMM]TI E Approve sole source lease with option to purchase. k COST IMPACT FUND: SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $141,380.16 $141,380.16 $N /A Fund Source: BUDGET NUMBER 411.00.576.681,45.01 Comments: Cart rental fee produces net profit, MTV. _DATE_ RECORD F COUNCIL ACTION 3/14/05 1, j -f CC( i? r'k f �J t)! 7 (/1) l ATACHMNTS MT G. DATE 03/14/05 Memo from B. Fletcher, dated 02/28/05 Lease- Purchase Agreement -Draft Resolution CA &P Minutes date 03/01/05 J/2 /t5 I 411i2")(. /C. ,v (LC Lr t(.-k` MEMORANDUM FROM: Mayor Mullet Community Affairs and Parks Committee Bruce Fletcher, Director of Parks & Recreation'15F TO: DATE: . February 28, 2005 SUBJECT: Golf Cart Sole Source Procedure The Foster Golf Links provides golf carts to many of our customers for a fee. On average over 22 % of our golfers choose to rent a cart. In 2004, the cart rental fee produced more that $95,000 gross profit for the city. Our current golf cart lease will expire on May 1st, 2005 and we have selected Thermo King Northwest for our new lease/purchase agreement. Our process included extensive research on golf carts and we looked for carts that would meet the following criteria: . Unitized gear driven oil pump with external spin on oil filter. · Governor tamper resistant. . Brake and throttle pedals protected by the Debris Shield protection system. . Surlyn reflections molded in color body. · 360-degree bumper protection. . Ladder style aluminum box frame that's strong and lightweight. · 4-year warranty. . Monsoon canopy drainage system with built-in drain spouts. . Ergo composite seats with lumbar support. . Dash storage over 1700 cubic inches. . "A" plate independent front suspension with better turning radius. The Parks and Recreation Department received four quotes for a four-year leasing of 34 golf carts. Staff reviewed the four quotes from three vendors and compared the product specifications. The golf carts were: EZ Go, Yamaha, Club Car DS and the Club Car Precedent. The Club Car Precedent was the only golf cart that meets the criteria set by the city golf staff. Thenno King Northwest in Kent carries the Club Car Precedent. Because there is only one vendor that can meet our golf cart criteria, it is the recommendation of the Parks and Recreation Department to follow the procedures of a sole source bid. The procedures from the State Auditor includes: a. The city department has conducted a screening process whereby it can justify purchase of a specific product. b. It can draft legitimate specifications to which only one vendor can successfully respond. c. The product is available only through one manufacturer (or distributor and the manufacturer so certifies) and d. The vendor certifies that the city is getting the lowest price it offers anyone, it is probably a sole source purchase. The golf cart leasing expenditure and revenue is currently listed in the 2005 city budget book. The Parks and Recreation staff would like to place the lease/purchase order in March in order to receive the new carts prior to the current agreement that expires May 15\ 2005. The Parks and Recreation Department would like to request council approval to move forward with a sole source lease/purchase with Thermo King Northwest in the amount of $141,380.16 for a four-year term. The option to buy at the end of the lease is one dollar per cart. Cc: Rhonda Berry, City Administrator Kevin Fuhrer, Finance Director Shelley Kerlake, City Attorney Itlcapitar EQUIPlVlENT LEASE-PURCHASE AGREEMENT Lessee: (Name and Address) CITY OF TUKWILA 13500 INTERURBAN AVE S TUKILA, WA 98188 Lessor: (Name and Address) CitiCapital Commercial Corporation 8001 Ridgepoint Dlive Irving, TX 75063 Lessor agrees to lease to Lessee and Lessee agrees to lease from Lessor the Equipment described m Schedule A, now or hereafter attached hereto, and all replacements, repaIrs, restorations, modIfications and improvements thereof or hereof ("EqUIpment") m accordance wIth the following terms and conditions of this Equipment Lease-Purchase Agreement ("Lease") 1. TERM. This Lease will become effective upon the execution hereof by Lessor. The term of thIS Lease will commence on the Commencement Date set forth in Schedule B attached hereto and, unless earlier terminated as expressly provIded for m this Lease, will terminate on the Termination Date set forth m Schedule B attached hereto (the "Lease Term"). 2. RENT. Lessee agrees to pay to Lessor or its assignee the Lease Payments, including the interest portion, in lawful money of the Umted States of America, equal to the amounts specified in Schedule B. The Lease Payments will be payable wIthout notIce or demand at the office of Lessor (or such other place as Lessor or its assignee may from tIme to tIme desIgnate in writmg), and WIll commence on the first Lease Payment Date as set forth in Schedule B and thereafter on the subsequent dates set forth m Schedule B. Any payments received later than ten (10) days from the due date will bear interest at the highest lawful rate from the due date. As set forth on Schedule B, a portion of each Lease Payment is paid as, and represents payment of, interest. Except as specifically provided in Section 6 hereof, the obligation of Lessee to make the Lease Payments hereunder and perform all of ItS other oblIgatIons hereunder will be absolute and unconditional in all events and will not be subject to any setoff, defense, counterclaim, abatement, deduction or recoupment for any reason whatsoever including, without limitatIOn, any failure of the Equipment to be delivered or mstalled, any defects, malfunctions, breakdowns or infirmitIes in the Equipment or any accident, condemnation or unforeseen CIrcumstances. Lessee reasonably believes that funds can be obtained sufficient to make all Lease Payments durmg the Lease Term and hereby covenants that it will do all things lawfully within its powers to obtain, maintam and properly request and pursue funds from which the Lease Payments may be made, includmg making provisIOns for such payments to the extent necessary m each budget submitted for the purpose of obtaining funding, usmg ItS bona fide best efforts to have such portion of the budget approved and exhausting all available administrative reVIews and appeals in the event such portion of the budget is not approved. It IS Lessee's intent to make Lease Payments for the full Lease Term if funds are legally available therefor and in that regard Lessee represents that the use of the Equipment is essential to its proper, efficient and economic operation. Lessor and Lessee understand and intend that the oblIgation of Lessee to pay Lease Payments hereunder shall constItute a current expense of Lessee and shall not m any way be construed to be a debt of Lessee in contravention of any applicable constitutIOnal or statutory limItatIon or requirement concerning the creation of indebtedness of Lessee, nor shall anything contained herein constitute a pledge of the general tax revenues, funds or monies of Lessee. It is the intention of the parties hereto to comply with any applicable usury laws, accordingly, it is agreed that, notwithstanding any provisions to the contrary in this Agreement, in no event shall this Agreement require the payment or permit the collection of interest or any amount in the nature of interest or fees m excess of the maximum permItted by applIcable law. 3. DELIVERY AND ACCEPTANCE. Lessee shall order the Equipment, cause the Equipment to be delivered and mstalled at the location specified on Schedule A ("Equipment LocatIOn") and pay any and all delivery and installation costs in connectIOn therewith. Lessee will accept the Equipment as soon as It has been delivered and inspected. Lessee wIll eVIdence its acceptance of the Equipment by executing and delivering to Lessor a Delivery and Acceptance CertIficate (in the form provided by Lessor) upon delivery of the Equipment. W ALease Rev. July 1,2001 03/10/05 12:11 PM Page 1 of 7 ,A. member of CltlqroUpj' CITICAPIT AL IS a service mark of Clticorp. 4. DISCLAIMER OF \V ARRANTIES. Lessee acknowledges and agrees that the Equipment IS of a SIze, design and capacIty selected by Lessee, that Lessor is neither a manufacturer nor a vendor of such eqUIpment, that LESSOR LEASES AND LESSEE TAKES THE EQUIPMENT AND EACH PART THEREOF "AS-IS" AND THAT LESSOR MAIZES NO REPRESENTATION, WARRANTY, OR COVENANT, EXPRESS OR IMPLIED, WITH RESPECT TO THE CONDITION, QUALITY, DURABILITY, VALUE, DESIGN, OPERATION, SUITABILITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OF THE EQUIPMENT IN ANY RESPECT WHATSOEVER OR AS TO THE ABSENCE OF LATENT OR OTHER DEFECTS, WHETHER OR NOT DISCOVERABLE, OR AS TO THE ABSENCE OF ANY INFRINGEMENT OF ANY PATENT, TRADEMARK OR COPYRIGHT, OR AS TO ANY OBLIGATION BASED ON STRICT LIABILITY IN TORT OR ANY OTHER REPRESENTATION, WARRANTY, OR COVENANT OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, WITH RESPECT THERETO. RISKS INCIDENT THERETO ARE TO BE BORNE BY LESSEE AND, IN NO EVENT SHALL LESSOR BE OBLIGATED OR LIABLE FOR ACTUAL, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR OTHER DAMAGES OF OR TO LESSEE OR ANY OTHER PERSON OR ENTITY ARISING OUT OF OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THE EQUIPMENT, THE MAINTENANCE THEREOF OR OF ANY SERVICES PROVIDED HEREIN. Lessee may have rights under the contract eVIdencmg the purchase of the EqUIpment. Lessee IS advIsed to contact the manufacturer of the Equipment for a descnption of any such rights. Lessor hereby assigns to Lessee during the Lease Term, so long as no Event of Default has occurred hereunder and is continuing, all warranties, if any, expressed or ImplIed wIth respect to the Equipment, running from the manufacturer to Lessor and Lessor authorizes Lessee to obtam the customary servIces furnished in connection with such warranties at Lessee's expense Lessee's sole remedy for the breach of any such manufacturer's warranty shall be against the manufacturer of the Equipment, and not against Lessor or its assigns. Lessee expressly acknowledges that Lessor makes, and has made, no representations or warranties whatsoever as to the eXIstence or the aVaIlabIlity of such warranties of the manufacturer of the Equipment. 5. RETURN OF EQUIPMENT. Unless Lessee shall have paId all Lease Payments and other amounts due hereunder or exercised its option to purchase as provided in Section 20 hereof, upon the expiration or earlIer termmation of thIS Lease pursuant to the terms hereof, Lessee shall, at its sole expense but at Lessor's option, return the Equipment to Lessor m the condItIOn reqUlred by Section 9 hereof at any locatIon in the contmental United States designated by Lessor. 6. NON-APPROPRIATION OF FUNDS; NON-SUBSTITUTION. Lessee currently intends to continue the Lease Term through its Termination Date and to pay all Lease Payments hereunder. Lessee further currently intends to do all things lawfully wIthm its power to obtain and maintain funds from which the Lease Payments may be made, including making provision for such payments to the extent necessary in each annual budget submitted and adopted in accordance with applIcable provIsIOns of state law, to have such portion of the budget approved and to exhaust all available reviews and appeals in the event such portion of the budget IS not approved. NotwIthstanding the foregoing, the decision whether or not to budget or appropriate funds is reserved to Lessee's governing body. Ifthe Lessee shall not budget and appropriate sufficient funds for payment of Lease Payments required hereunder, then the Lessee may terminate this Lease on the next ensuing Lease Payment Date and the Lessee shall not thereafter be oblIgated to pay Lease Payments or other payments required by this Lease. Lessee will immediately notify Lessor or its assignee in writmg of such termination and thIS Lease shall terminate on the last day of the fiscal period for which appropriations have been received or made without penalty or expense to Lessee, except as to (i) the portions of Lease Payments herein agreed upon for which funds shall have been appropnated and budgeted or are otherwise available and (ii) Lessee's other obligations and liabilities under thIS Lease relatmg to, or accruing or arising prior to, such termination. Upon such termination, Lessee agrees to peaceably surrender possession of the Equipment to Lessor or its assignee on the date of such termination in the manner set forth in Section 5 hereof and Lessor wIll have all legal and equitable nghts and remedies to take possession of the Equipment. Upon such terminatIOn, Lessee shall not be responsible for the payment of any additional Lease Payments relating thereto coming due in succeedmg fiscal periods, but if Lessee has not delivered possession of the Equipment to Lessor in accordance wIth Section 5 and conveyed to Lessor or released its mterest in the EqUlpment wIthin thirty (30) days after such termination, the termination shall nevertheless be effective, but Lessee shall be responsIble for the payment of damages in an amount equal to the amount of the Lease Payments thereafter coming due which are attributable to the number of days after such thirty (30) day penod during which Lessee fails to take such actIOns and for any other loss suffered by Lessor as a result of Lessee's failure to take such actions as reqUlred. Notwithstanding the foregoing, Lessee agrees (i) that it will not cancel this Lease and this Lease shall not terminate under the provisions of this Section if any funds are appropriated to It, or by it, for the acqUIsition, retention or operatIOn of the Equipment or other eqUIpment or serVIces performing functions similar to the functions of the Equipment for the fiscal penod in which such terminatIOn would have otherwise occurred or for the next succeeding fiscal period, and (ii) that it will not during the Lease Term give priority in the application of funds to any other functionally simIlar equipment or to services performing functions simIlar to the W ALease Rev. July 1,2001 03/10/05 12:11 PM Page 2 of 7 functions of the Equipment. This section wIll not be construed so as to permit Lessee to terminate thIS Lease m order to purchase, lease, rent or otherwise acquire the use of any other equipment or services performmg functions simIlar to the functIOns of the Equipment, and, if thIS Lease terminates pursuant to thIS Section, Lessee agrees that during the fiscal period ImmedIately folloWIng the fiscal penod in which such termmation occurs it will not so purchase, lease, rent or otherwise acqUIre the use of any such other equipment or services. 7. REPRESENTATIONS, COVENANTS AND WARRANTIES. Lessee hereby represents, covenants and warrants to Lessor as of the date hereof and at all times durmg the Lease Term that (i) Lessee IS a state or a fully constituted politIcal subdIvIsion thereof withm the meanmg of Section 103(a) of the Internal Revenue Code of 1986, as amended (the "Code"), or Its obligations hereunder constitute oblIgations Issued on behalf of a state or a polItIcal subdivIsion thereof, and Lessee shall do or cause to be done all things necessary to preserve and keep in full force and effect Its existence and this Lease; (11) Lessee has full power and authority under the constitution and laws of the state in which it IS located to enter into thIS Lease and the transactions contemplated hereby, and to perform all of its obligations hereunder; (iii) each officer of Lessee executmg this Lease has been duly authorized to execute and deliver this Lease by proper actIOn and approval of its governmg body at a meetmg duly called, regularly convened and attended by a requisite majonty of the members thereof, or by other appropriate official approval; (iv) the executIOn, delivery and performance of this Lease and all documents executed m connection herewIth, including, without limItation, Schedules A and B hereto and the Delivery and Acceptance Certificate referred to m Section 3 hereof (thIS Lease together wIth all such documents shall be colIectlvely referred to herein as the "Lease Documentsll) have been duly authorized by all persons, governmental bodies and agencies necessary to authorize and approve this Lease; (v) the Lease Documents constitute legal, vahd and binding obligations of Lessee, enforceable against Lessee m accordance with their respectIve terms; (vi) the executIOn, delIvery and performance of this Lease by Lessee shall not (a) violate any federal, state or local law or ordinance, or any judgment, order, writ, injunction, decree, rule or regulation of any court or other governmental agency or body applicable to Lessee, or (b) conflict wIth or result m the breach or violation of any term or provision of, or constitute a default under, or result in the creatIOn of any lien, charge, security interest or other encumbrance on any assets of the Lessee or the Equipment pursuant to any note, bond, mortgage, indenture, agreement, deed of trust, bank loan or credit agreement, lease or other obligation to which Lessee IS a party or by which it or its assets may be bound, except as herein provided; (vii) in authonzing and executing this Lease, Lessee has comphed with all open meeting laws, publIc bidding requirements and other laws applicable to this Lease and the acqUIsition by Lessee of the Equipment; (viii) Lessee has, in accordance with the requirements of law, fully budgeted and appropriated sufficient funds for the current fiscal year of the Lessee to make the Lease Payments scheduled to come due during such fiscal year, and such funds have not been expended for other purposes; (ix) the EqUIpment is essential to the function of the Lessee or to the serVIce Lessee provIdes to Its citizens and the Lessee has an Immediate need for, and expects to make immediate use of, substantIally all of the Equipment, which need is not temporary or expected to diminish in the foreseeable future; (x) no lease, rental agreement or contract for purchase to which Lessee has been a party at any time during the last five years, has been terminated by Lessee as a result of msufficient funds being appropriated in any fiscal year; (xi) the Equipment wIll be used by Lessee only for the purpose of performing one or more of Lessee's governmental or proprietary functIOns conSIstent with the permissible scope of Lessee's authority; (xii) there is no action, suit, proceedmg, inquiry or investIgation, at law or in eqUIty, before or by any court, public board or body, pending or threatened against or affecting the Lessee, nor to the best knowledge of the Lessee is there any basis therefor, wherem an unfavorable decision, ruling or finding would materially adversely affect the transactions contemplated by this Lease or any other document, agreement or certificate which is used or contemplated for use in the consummation of the transactions contemplated by thIS Lease; and (xiii) no event or condition that constitutes, or wIth the giving of notIce or the lapse of time or both would constitute, an Event of DefauIt, exists at the Commencement Date. Lessee shall deliver to Lessor an opinion of Lessee's counsel in fonn and substance attached hereto or as otherwise acceptable to Lessor. 8. TITLE TO EQUIPMENT; SECURITY INTEREST. Upon acceptance of the Equipment by Lessee hereunder, t1tle to the Equipment will vest in Lessee subject to Lessor's rights under this Lease; provided, however, that (i) III the event of terminatIOn of th1s Lease pursuant to Section 6 hereof, or (ii) upon the occurrence of an Event of Default hereunder, and as long as such Event of Default 1S continuing, title will immediately vest in Lessor or its assignee without any action by Lessee and Lessee shall immediately surrender possession of the Equipment to Lessor or its assignee in the manner set forth m Section 5 hereof. Lessee grants to Lessor a contmuing, first priority security interest under the Umfonn CommercIal Code in the EqUIpment, the proceeds thereof and all additions, attachments, repairs, replacements, substitutIOns and modifications thereto and proceeds thereof made pursuant to Section 9, m order to secure Lessee's payment of all Lease Payments due during the Lease Tenn and the performance of all other obligations herein to be perfonned by Lessee. Lessee wi1I jom with Lessor in executing such financmg statements or other W ALease Rev July 1,2001 03/10/05 12:11 PM Page 3 of 7 documents and will perfonTI such acts as Lessor may request to establish and maintain a valId first hen and perfected secunty interest m the Equipment. Lessee authonzes Lessor to file a financmg statement describing the EqUIpment and covering assets of Lessee other than the Equipment described herem. Lessee authonzes Lessor to complete the descriptIOn of the EqUIpment on Schedule A when additIOnal mformatIOn, such as models and serial numbers, becomes available 9. USE; REPAIRS. Lessee wIll use the Equipment in a careful manner for the use contemplated by the manufacturer of the Equipment. Lessee shan comply wIth all laws, ordmances, msurance policies and regulations relatmg to the possession, use, operation or maintenance of the Equipment. Lessee, at Its expense, will keep the Equipment m good working order and repaIr and furnIsh all parts, mechamsms and devIces required therefor. 10. ALTERATIONS. Lessee will not make any alterations, additions or Improvements to the EqUipment without Lessor's pnor written consent unless such alterations, additions or improvements may be readily removed without damage to the Equipment. 11. LOCATION; INSPECTION. The Equipment will not be removed from or, if the EqUIpment consists of rolling stock, its penTIanent base will not be changed from the Equipment Location without Lessor's prior written consent, WhICh will not be unreasonably withheld. Lessor will be entitled to enter upon the Equipment Location or elsewhere during reasonable busmess hours to inspect the Equipment or observe its use and operation. 12. LIENS AND TAXES. Lessee shall keep the Equipment free and clear of all levIes, liens and encumbrances except those created under this Lease. Lessee shall pay, when due, all charges and taxes (local, state and federal) which may now or hereafter be Imposed upon the ownership, leasing, rental, sale, purchase, possessIOn or use of the Equipment, excludmg however, all taxes on or measured by Lessor's income. If Lessee falls to pay said charges, or taxes when due, or to provide the Insurance required by SectlOn J 5 hereof, Lessor may, but need not, pay said charges or taxes or purchase such insurance and, in such event, Lessee shall reImburse Lessor therefor on demand, wIth interest at the maximum rate penTIitted by law from the date of such payment by Lessor to the date of reimbursement by Lessee. 13. RISK OF LOSS; DAMAGE; DESTRUCTION. Lessee assumes all risk of loss of or damage to the Equipment from any cause whatsoever, and no such loss of or damage to the Equipment nor defect therein nor unfitness or obsolescence thereof shall relieve Lessee of the obligation to make Lease Payments or to perfonTI any other obligation under this Lease. In the event of damage to any item of Equipment, Lessee will immedIately place the same in good repair with the proceeds of any Insurance recovery applied to the cost of such repair. If Lessor determines that any Item of Equipment IS lost, stolen, destroyed or damaged beyond repair, Lessee, at the option of Lessor, will either (a) replace the same with like equipment in good repaIr, or (b) on the next Lease Payment Date, pay Lessor: (i) all amounts then owed by Lessee to Lessor under thIS Lease, includmg the Lease Payment due on such date, and (ii) an amount equal to the applicable Concluding Payment set forth m Schedule B OpposIte such Lease Payment Date. In the event that Lessee is obligated to make such payment pursuant to subparagraph (b) above with respect to less than all of the Equipment, Lessor will provide Lessee with the pro rata amount of the Lease Payment and the Concludmg Payment to be made by Lessee with respect to the EqUIpment which has suffered the event of loss. 14. PERSONAL PROPERTY. The Equipment is and wIll remain personal property and will not be deemed to be affixed or attached to real estate or any building thereon. If requested by Lessor, Lessee will, at Lessee's expense, furnIsh a WaIver of any interest in the EqUipment from any party having an mterest in any such real estate or buIlding. 15. INSURANCE. At its own expense, Lessee shall maintain (a) casualty insurance msunng the Equipment agamst loss or damage by fire and any other risks reasonably reqUIred by Lessor in an amount at least equal to the then applIcable Concludmg Payment of the Equipment, (b) liability insurance that protects Lessor rrom liability m all events in fOnTI and amount satisfactory to Lessor, and ( c) workers' compensation coverage as required by the laws of the state; provided that, wIth Lessor's prior written consent, Lessee may self-insure against the risks described in clauses (a) and (b). All insurance proceeds from casualty losses shall be payable as heremafter provided. Upon acceptance of the Equipment and upon each insurance renewal date, Lessee will deliver to Lessor a certificate evidencing such insurance. In the event of any loss, damage, injury or accIdent mvolving the Equipment, Lessee wIll promptly provide Lessor wIth written notice thereof and make available to Lessor all infonTIation and documentatIon relatmg thereto and shall permIt Lessor to participate and cooperate with Lessee in making any claim for msurance in respect thereof All such casualty and liability msurance shall be with insurers that are acceptable to Lessor, shall name Lessee as named insured and Lessor or Its assigns as an additional named insured and shall contain a provision to the effect that such insurance shall not be cancelled or modified matenally without first giving written notice thereof to Lessor at least thirty days m advance of such W ALease Rev. July 1,2001 03/10/05 12:11 PM Page 4 of 7 cance11atIOn or modificatIOn. All such casualty msurance sha11 contain a provisIOn making any losses payable to Lessee and Lessor, as their respectIve interests may appear. The Lessee may provIde reqUIred msurance as part of "blanket" coverage mamtamed on Its other assets ReqUIred msurance coverage may also be provIded m whole or in part by self-msurance, wIth written consent of the Lessor, which shall not be unreasonably withheld. If such consent IS given, Lessee wi1l furnIsh Lessor wIth a letter or certificate of self-insurance specifying the type and extent coverage. The proceeds of any such polIcIes will be payable to Lessee and Lessor or its assIgns as their interests may appear. In the event that Lessee has been permitted to self-msure, Lessee wIll fUl111sh Lessor wIth a letter or certificate to such effect. 16. RELEASE AND INDElVINIFICATION. To the extent permItted by law, Lessee shall indemnify, protect and hold harmless Lessor from and against any and all liability, oblIgations, losses, claIms and damages whatsoever, regardless of cause thereof, and expenses in connectIOn therewith (including, without limitation, counsel fees and expenses and any federal mcome tax and mterest and penalties connected therewith imposed on mterest receIved) arismg out of or as the result of (a) the entering mto thIS Lease, (b) the ownership of any item of the Equipment, (c) the ordenng, acquisItion, use, operation, condition, purchase, delivery, rejection, storage or return of any item of the Equipment, (d) any accident in connection with the operation, use, condItIon, possession, storage or return of any item of the Equipment resultmg in damage to property or injury or death to any person or (e) the breach of any covenant herein or any material misrepresentatIOn contained herein. The indemnification ansing under this paragraph shall continue in full force and effect notwithstanding the full payment of all obligatIOns under thIS Lease or the termination of the Lease Term for any reason. 17. ASSIGNMENT Without Lessor's prior written consent, Lessee will not either (i) assign, transfer, pledge, hypothecate, grant any secunty interest in or otherwise dispose of this Lease or the Equipment or any interest in this Lease or the EqUIpment or (iI) sublet or lend the EqUIpment or permit it to be used by anyone other than Lessee or Lessee's employees. Lessor may assIgn ItS rights, title and interest in and to the Lease Documents, the Equipment and/or grant or assign a security mterest in this Lease and the Equipment, in whole or in part, and Lessee's rights will be subordmated thereto. Any such assignees shall have all of the rights of Lessor under this Lease. Subject to the foregoing, this Lease inures to the benefit of and IS binding upon the successors and assigns of the parties hereto. Lessee covenants and agrees not to assert against the assignee any claims or defenses by way of abatement, setoff, counterclaim, recoupment or the like which Lessee may have against Lessor. Upon assignment of Lessor's mterests herem, Lessor will cause written notIce of such assignment to be sent to Lessee whIch will be sufficient if it dIscloses the name of the assignee and address to which further payments hereunder should be made. No further action wIll be required by Lessor or by Lessee to evidence the assignment, but Lessee will acknowledge such assignments in writing if so requested. Lessee shall retain all notices of assignment and maintain a book-entry record which identifies each owner of Lessor's interest m the Lease Upon Lessee's receipt of wntten notice of Lessor's assignment of all or any part of its interest in the Lease, Lessee agrees to attorn to and recognize any such assignee as the owner of Lessor's interest in this Lease, and Lessee shall thereafter make such payments, including without limitatIOn such Lease Payments, as are indicated in the notIce of assIgnment, to such assignee Lessee waives and will not assert against any assignee of Lessor any claims, counterclaims, claims in recoupment, abatement, reductIon, defenses, or set-offs for breach of warranty or for any other reason which Lessee could assert agamst Lessor, except defenses which cannot be waIved under the Umform Commercial Code. 18. EVENT OF DEFAULT. The term "Event of Default," as used herem, means the occurrence of anyone or more of the following events: (i) Lessee fails to make any Lease Payment (or any other payment) as It becomes due m accordance wIth the terms of this Lease, and any such failure contmues for ten (10) days after the due date thereof; (ii) Lessee fails to perform or observe any other covenant, condition, or agreement to be performed or observed by it hereunder and such failure is not cured within twenty (20) days after written notice thereof by Lessor; (iii) the discovery by Lessor that any statement, representation, or warranty made by Lessee in this Lease or in any writing ever delivered by Lessee pursuant hereto or in connection herewith was false, misleadmg, or erroneous in any material respect; (iv) Lessee becomes insolvent, or is unable to pay its debts as they become due, or makes an assignment for the benefit of creditors, applies or consents to the appointment of a receiver, tmstee, conservator or liqUIdator of Lessee or of any of its assets, or a petItion for relIef is filed by Lessee under any bankmptcy, msolvency, reorganization or similar laws, or a petition in, or a proceeding under, any bankruptcy, insolvency, reorganization or sImIlar laws IS filed or instituted against Lessee and is not dismIssed or fully stayed within twenty (20) days after the filmg or mstltution thereof; (v) Lessee faIls to make any payment when due or fails to perform or observe any covenant, condition, or agreement to be performed by it under any other agreement or obligation with Lessor or an affiliate of Lessor and any applicable grace period or notice with respect thereto shall have elapsed or been given; or (vi) an attachment, levy or execution is threatened or levied upon or agamst the Equipment. W ALease Rev. July 1,2001 03/10/05 12:11 PM Page 5 of 7 19. RE.MEDIES. Upon the occurrence of any Event of Default, and as long as such Event of Default IS continumg, Lessor may, at its optIOn, exercise anyone or more of the followmg remedIes: (i) by wntten notIce to Lessee, declare an amount equal to all amounts then due under the Lease, and all remaining Lease payments due durmg the fiscal penod of Lessee in whIch the default occurs to be Immediately due and payable, whereupon the same shall become ImmedIately due and payable; (11) by wntten notIce to Lessee, request Lessee to (and Lessee agrees that it wIll), at Lessee's expense, promptly return the EqUIpment to Lessor m the manner set forth in Section 5 hereof, or Lessor, at its optIon, may enter upon the premises where the EqUIpment is located and take nnmediate possession of and remove the same, without lIability for such entry or for damage to property or otherwise, (ill) sell or lease the Equipment or sublease It for the account of Lessee, holdmg Lessee liable for all Lease Payments and other payments due to the effective date of such sellmg, leasing or subleasing and for the difference between the purchase price, rental and other amounts paid by the purchaser, lessee or sublessee pursuant to such sale, lease or sublease and the amounts otherWIse payable by Lessee hereunder; and (IV) exercise any other right, remedy or pnvIlege which may be available to it under applIcable laws of the state where the Equipment IS then located or any other applicable law or proceed by appropriate court actIOn to enforce the terms of this Lease or to recover damages for the breach of this Lease or to rescind thIS Lease as to any or all of the EqUIpment. In addItIon, Lessee will remain liable for all covenants and indemnities under thIS Lease and for all legal fees and other costs and expenses, mcluding court costs, incurred by Lessor with respect to the enforcement of any of the remedies listed above or any other remedy available to Lessor. Lessor may sell the Equipment without giving any warrantIes as to the EqUIpment and may dIsclaIm any warranties of title, possession, quiet enjoyment, or the like. This procedure wIll not be consIdered to adversely affect the commercial reasonableness of any sale of the Equipment. 20. PREPAYMENT OPTION. Upon thirty (30) days prior wntten notice from Lessee, and provIded that there IS no Event of Default, or an event which with notice or lapse of time, or both, could become an Event of Default, then eXlstmg, Lessee will have the right to purchase the Equipment prior to the Termination Date on any Lease Payment Date set forth in Schedule B by paying to Lessor, on such date, the Concludmg Payment as set forth in Schedule B. Upon satisfactIOn by Lessee of such purchase condItions, Lessor will transfer any and all of its right, title and interest m the Equipment to Lessee AS IS, WITHOUT \" ARRANTY, EXPRESS OR IMPLIED. 21. TAX ASSUMPTION; COVENANTS. Lessee hereby covenants with respect to this Lease that (1) neIther the payment of the Lease Payments hereunder nor any portIOn thereof is secured by any interest m property used or to be used in a trade or busmess of a non-exempt person (within the meaning of Section 103 of the Code) or in payments with respect to such property or IS derived from payments with respect to property, or borrowed money, used or to be used in a trade or business of a non-exempt person (wIthm the meaning of Section 103 of the Code); (ii) no portion of the Equipment will be used directly or mdirectly m any trade or busmess camed on by any non-exempt person (within the meaning of Section 103 of the Code); (Iii) it wIll not take any action or permit or suffer any action to be taken or condition to eXIst if the result of such actIOn or condition would be to cause ItS oblIgatIon to make Lease Payments to be guaranteed, directly or indirectly, in whole or in part, by the Umted States or by any agency or instrumentalIty thereof; (iv) it will neither take any action (including, without lImitatIOn, entering into any lease, sublease, output contract, management contract, take-or-pay contract or other arrangement) nor omit to take any action if the result of such actIOn or omissIOn would be to cause the interest portIon of each Lease Payment to become mcludable in the Income of Lessor for purposes of federal, state or local income tax; (v) it will provide (or cause to be provIded) to Lessor such other information as Lessor may reasonably request from Lessee to enable Lessor to fulfill tax filing, audIt and lItigatIOn oblIgations, including, but not limIted to, federal and state income tax filing oblIgations; (vi) it will timely file a statement with respect to this Lease In the form reqUIred by Section 149(e) of the Internal Revenue Code of 1986, as amended (the "Code"); and (vii) neither take any actIon or omIt to take any actIOn If the result of such action or omission would be to cause this Lease to be an "arbitrage bond" within the meamng of Section 148 of the Code. If this Lease is accompanied by an Escrow Agreement, Lessee will execute and delIver to Lessor an ArbItrage CertIficate (in the form provided by Lessor). If Lessor receives notice, in any form, from the Internal Revenue Service or It is determined based on an opmIOn of mdependent tax counsel selected by Lessor and approved by Lessee, WhICh approval shall not be unreasonably wIthheld, that the Interest portIon of any Lease Payment is includable in the income of Lessor for purposes of federal, state or local Income tax, Lessee, at ItS optIOn, shall eIther (i) pay the Concludmg Payment as provided In Section 20 hereof and terminate the Lease or (iI) within 30 days after notIce from Lessor, pay Lessor an amount which will restore to Lessor ItS after-tax yield as contemplated by thIS transactIon from the date that the Interest portion became taxable through the date of such additional rental payment and wIll further pay addItIonal rent to Lessor on each succeeding Lease Payment Date in such amount as wIll maintain Lessor's after-tax yield as contemplated by this transaction. W ALease Rev. July 1,2001 03/10/05 12:11 PM Page 6 of 7 22. NOTICES. All notIces to be given under this Lease shall be made m writmg and maIled by certIfied mall, return receIpt requested, to the other party at its address set forth herem or at such address as the party may provide m writmg from tIme to tIme Any such notIce shall be deemed to have been received five days subsequent to mailing. 23. SECTION HEADINGS. All sectIon headings contamed herein are for the convemence of reference only and are not mtended to define or hmi t the scope of any provision of this Lease 24. GOVERNING LAW. This Lease shall be constmed m accordance with, and governed by, the laws of the state of the Equipment Location. 25. DELIVERY OF RELATED DOCUMENTS. Lessee will execute or provIde, as requested by Lessor, such other documents and information as are reasonably necessary with respect to the transaction contemplated by this Lease. 26. ENTIRE AGREEMENT; WAIVER. The Lease Documents constitute the entIre agreement between the partIes WIth respect to the lease of the Equipment and shall not be contradIcted by any oral representations made prior to, contemporaneously with or subsequent to the date hereof nor do any oral agreements presently exist between the parties whIch have not been reduced to writing. This Lease shall not be modified, amended, altered, or changed except with the wntten consent of Lessee and Lessor. Any provIsion of thIS Lease found to be prohibIted by law shall be ineffective to the extent of such prohibition wIthout mvahdating the remainder of this Lease. The waiver by Lessor of any breach by Lessee of any term, covenant or condItion hereof shall not operate as a waiver of any subsequent breach thereof. IN WITNESS WHEREOF, the parties have executed this Lease. Lease Date: LESSEE: CITY OF TUKWILA LESSOR: CitiCapltal Commercial CorporatIon By By: Title: TItle: Date. Date: W ALease Rev July I, 2001 03/10/05 12:11 PM Page 7 of 7 CITY OF TUKWILA Purchaser: 13500 INERURBAN AVE S TUKWILA, WA 98188 Address: State of Sales Tax Registration: BLANKET CERTIFICATE OF RESALE This is to certify that all material, merchandise, or goods purchased by the undersigned from: CUMMINS NORTHWEST, INC. 913 SOUTH CENTRAL AVENUE KENT, WA 98032 after is purchased for the following purpose: (Date) Resale as tangible personal property Rental as tangible personal property To be incorporated as a material part of other tangible personal property to be produced for sale by manufacturing, assembling, processing or refining. To be exported for sale, use or consumption outside the continental limits of the United States. Exemption under Federal, State, or Local Governmental Laws. Other: This certificate shall be considered a part of each order which we shall give unless otherwise stated. This certificate is to continue in force until revoked. CERTIFICATE NUMBER: BY: ./ AS ITS: INSTRUCTIONS: (Please print or Type) 1. PURCHASER - Fill in Company's Legal Name including "dba" 2. ADDRESS - Complete mailing address 3 STATE OF REG. - The State with which your certificate number is filed Please complete one form for each state of registration 4. DATE - Fill in approximate date of first purchase with Club Car, Inc. 5 Check the most appropriate intended purpose of the purchase 6 CERTIFICATE NUMBER -Indicate your certificate number issued by the state in which you are registered. 7. BY - Signature of person authorized by your Company 8. AS ITS - Title of authorized person signing. NOTE: PLEASE RETURN THIS CERTIFICATE ALONG WITH YOUR CONTRACT DOCUMENTS TO: CITICAPITAL COMMERCIAL CORPORATION Golf & Turf Documentation 8001 Ridgepoint Dr. Irving, TX 75063-3117 ---------- Form 8038-G Information Return for Tax-Exempt Governmental Obligations · .Under Internal Revenue Code section 149(e) · .See separate instructions. Caution: Use Form 8038-GC if the issue price is under $100,000) If Amended Return, check here. · D 2 Issuer's employer identification number OMS No 1545-0720 CITY OF TUKWILA 3 Number and street (or PObox if mail is not delivered to street address) 13500 INTERURBAN AVE S 5 City, town, or post office, state, and ZIP code TUKWILA, WA 98188 7 Name of Issue Equipment Lease-Purchase Agreement Dated 9 Name and title of officer or legal representative whom the IRS may call for more information Room/suite 4 Report number G 2002- 6 Date of issue 8 CUSIP number N/A and enter the issue See instructions and attach schedule 11 12 13 14 15 16 17 18 10 Telephone number of officer or legal representative 11 D 12 D 13 D 14 D 15 D 16 D 17 D 18 [8] 19 20 · -0 -- --- (a) Final Maturity date (b) Issue price (c) Stated redemption price at maturity (d) Weighted average maturity (e) Yield N/A $ 128,605.00 $N/A 4 years Uses of Proceeds of Bond Issue (including underwriters' discount) Proceeds used for accrued interest. . Issue price of entire issue (enter amount from line 21, column (b)) Proceeds used for bond issuance costs (including underwriters' discount) . Proceeds used for credit enhancement Proceeds allocated to reasonably required reserve or replacement fund Proceeds used to currently refund prior issues Proceeds used to advance refund prior issues Total (add lines 24 through 28) . Nonrefunding proceeds of the issue (subtract line 29 from line 23 and enter amount here) Description of Refunded Bonds Com Jete this art ani for refundin bonds. 31 Enter the remaining weighted average maturity of the bonds to be currently refunded 32 Enter the remaining weighted average maturity of the bonds to be advance refunded 33 Enter the last date on which the refunded bonds will be called 34 Enter the date(s) the refunded bonds were issued - - .:F.Ti.'~. Miscellaneous 35 Enter the amount of the state volume cap allocated to the issue under section 141 (b)(5) I 35 36a Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract (see instructions) I 36a b Enter the final maturity date of the guaranteed investment contract _ . ~C<, 37 Pooled financings: a Proceeds of this issue that are to be used to make loans to other governmental units r3i~' b If this issue is a loan made from the proceeds of another tax-exempt issue, check box · - 0 and enter the name of the issuer. - and the date of the issue - - If the issuer has designated the issue under section 265(b)(3)(B)(i)(III) (small issuer exception), check box · - 0 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box D If the issuer has identified a hedge, check box D Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete 4.72% 22 23 24 25 26 27 28 29 30 22 23 N/A N/A 24 25 26 27 ! 28 N/A N/A N/A N/A N/A 29 N/A 30 N/A years N/A years N/A N/A 38 39 40 Please Sign . ... Here Si nature of issuer's authorized re resentative For Paperwork Reduction Act Notice, see page 2 of the instructions. . . Date Tear rint name and title Cat. No. 63773S Form 8038-G (Rev 5-99) CITICAPITAL COMMERCIAL LEASING CORPORATION VENDOR EQUIPMENT DIVISION March 10, 2005 CITY OF TUI(WILA 13500 INTERURBAN AVE S TUKWILA, WA 98188 SUBJECT: Equipment Lease/purchase fmancing Dear Office Administrator: The Lease documentation for the equipment being acquired is enclosed. Please review for accuracy, execute where indicated by each Red "X", and then return along with payment (If required) to the address following the documentation list: Lease/Purchase Agreement - Please execute. Opinion of Counsel - Please have your attorney execute. Schedule A, Equipment Description - Please execute. Schedule B, Payment Schedule - Please review. Schedule C, Delivery and Acceptance Certificate - The document should be returned only upon final delivery and acceptance of the equipment. CitiCapital will pay the vendor/supplier upon receipt. Please execute and indicate the date equipment was accepted. Incumbency Certificate - Please have completed by the Governing Body members authorized to enter into the Lease on behalf of your organization. Then have "I(eeper of the Record", Such as the Secretary, execute. 8038GC- Please con1plete/verify item #2, your Federal ill number, review for accuracy and execute. Insurance Information - Please obtain a Certificate of Coverage naming CitiCapital Commercial Leasing Corporation as Loss Payee and Additional Insured from your local insurance agent and return with the executed documents Fact Sheet - Please complete and return with documents for proper account/payment processing. Please include fmancial records and combined balance sheets for the past two years. Essential Use Letter - Please copy this letter onto your letterhead and properly execute. Tax Exemption/Resale Certificate - Please execute or enclose if not provided. 8001 Ridgepoint Drive, Irving, TX 75063-3117 Please return all of the documents with original signatures to: CitiCapital Commercial Leasing Corporation G & T Documentation 8001 Ridgepoint Drive Irving, TX 75063 Thank you for doing business with CitICaptial Commercial Leasing Corporation. Sincerely, CitiCapital Commercial Leasing Corporation Enclosures 8001 Ridgepoint Drive, Irving, TX 75063-3117 LESSEE: CITY OF TUK\VILA OPINION OF COUNSEL WIth respect to that certain Equipment Lease-Purchase Agreement ("Lease") dated by and between Lessor and Lessee, I am of the opmion that: (1) Lessee is a tax-exempt entIty under SectIOn 103 of the Internal revenue Code of 1986, as amended, (II) the execution, delivery and perforn1ance by Lessee of the Lease have been duly authorIzed by all necessary action on the part of Lessee; (III) the Lease constitutes a legal, valId and binding obligation of Lessee enforceable in accordance with tenns and all statements contained in the Lease and all related instruments are true;(IV) there are no Slllts, proceedings or investigations pending or, to my knowledge, threatened against or affecting Lessee, at law or in eqll1ty , or before or by any governmental or administrative agency or instrumentality which, If adversely detennmed, would have a material adverse effect on the transaction contemplated In the Lease or the ability of Lessee to perfonn its oblIgations under the Lease and Lessee is not in default under any material oblIgation for the payment of borrowed money, for the deferred purchase price of property or for the payment of any rent under any lease agreement whIch eIther individuaIly or in the aggregate would have the same such effect; and (V) all required public biddmg procedures regarding the award of the Lease have been foIlowed by Lessee and no governmental orders, pennIssions, consents, approvals or authorizatIOns are reqlllred to be obtained and no registrations or declarations are required to be filed in connection with the executIOn and delIvery of the Lease. Counsel for Lessee: By: Date: SCHEDULE A EQUIPMENT DESCRIPTION Lessor hereby leases to Lessee under and pursuant to the Lease and Lessee hereby leases from Lessor under and pursuant to the Lease the following items of Equipment: DESCRIPTION (MANUFACTURER, MODEL AND SERIAL NO.*) SUPPLIER . - Lessor shall have the rIght to insert Serial Nos. at tune of DelIvery & Acceptance. (34) CLUB CAR GOLF CAR- GAS PRECEDENT GAS ALL COMPLETE WITH ATTACHMENTS AND ACCESSORIES CUMMINS NORTH\VEST, INC 913 SOUTH CENTRAL AVENUE KENT, W A 98032 LESSEE: CITY OF TUKWILA Equipment Location: 13500 INTERURBAN AVE S TUKWILA, WA 98188 BY: TITLE: DATE: SCHEDULE C DELIVERY AND ACCEPTANCE CERTIFICATE Pursuant to that certain Equipment Lease-Purchase Agreement dated as of ("Lease"), the undersigned Lessee hereby acknowledges receipt of the equipment, as more fully described in Schedule A to the Lease ("Equipment") is installed and in good working condition and Lessee hereby accepts the Equipment after full inspection thereof as satisfactory for all purposes under the Lease executed by Lessee and Lessor as of the date set forth below: (34) CLUB CAR GOLF CAR - GAS PRECEDENT GAS ALL COMPLETE WITH ATTACHMENTS AND ACCESSORIES (Please note Serial Number next to unit) LESSEE: CITY OF TUKWILA By: TITLE: DATE ACCEPTED: INCUMBENCY CERTIFICATE I do hereby ceIiify that I am the duly elected or appointed and acting Secretary/Clerk of W A ("Lessee"), a body corporate and politic duly organIzed and existing under the laws of the State of W A that I have custody of the records of Lessee, and that, as of the date hereof, the individuals named below are the duly elected or appointed officers of Lessee holding the offices set f01ih opposite their respective names. I further certify that (i) the signatures set forth opposite their respective naIlleS and titles are their true and authentic signatures, and (ii) such officers have the authority on behalf of Lessee to enter into that certain Equipment Lease Agreement dated or to be dated between Lessee and CitiCapital Commercial Leasing Corporation. NAME TITLE SIGNATURE I, the undersigned, duly qualified and acting (Secretary, Board Chairman or other authorized Governing Body Member of Lessee) do hereby certify the above: LESSEE: CITY OF TUKWILA WITNESSED BY: TITLE: (Authorized Governing Body Member or Lessee other than thc mdlvidual(s) whosc signaturc IS IIstcd above) INSURANCE FACT SHEET VALUE PRICE: ------- MUNICIPALITY: CONTACT: EQUIPMENT DESCRIPTION: PHONE: Pursuant to Section 13 of; the Equipment Lease-Purchase Agreement dated as of , Lessee is obligated to provide insurance coverage naming CitiCapital Commercial Leasing Corporation as Loss Payee and Additional Insured. Please complete this form and return it with your documentation package and contact your insurance agent to forward a Certificate of Insurance showing coverage. If you are self insured, please note as such below. PARENT INSURANCE COMPANY: ADDRESS: CITY: STATE: ZIP: --- PHONE: UNDERWRITER/AGENT COMPANY: ADDRESS: CITY: STATE: ZIP: PHONE: EXPIRATION DATE: --------- CONTACT: POLICY NO: PUBLIC LIABILITY AMOUNT: PHYSICAL DAMAGE AMOUNTS: DEDUCTIBLE: COMPREHENSIVE: DEDUCTIBLE: PHYSICAL DAMAGE AMOUNTS: OTHER COVERAGE: OTHER COVERAGE: COLLISION: AMOUNTS: DEDUCTIBLE: DEDUCTIBLE: ---- AMOUNTS: DEDUCTIBLE: ---- INDICATE IF SELF-INSURED. OR IF POLICY IS CONTINUOUS: SELF-INSURED: ___YES NO LIABILITY: ______ PHYSICAL DAMAGE: OTHER: ALL: ---- ---- CONTINUOUS UNTIL END OF LEASE/PURCHASE AGREEMENT: YES: NO: ----- -- FACT SHEET PLEASE RETURN THIS SHEET WITH THE FINANCIAL STATEMENTS LEGAL NAME OF ENTITY: -- DEPARTMENT USING EQUIPMENT: ------------------- FEDERAL 10 NUMBER: --------------------- NAME OF COUNTY: STREET ADDRESS: Please give complete physical street address. Do not give address with P.O. Box as express delivery will not deliver to it. BILLING ADDRESS: Please indicate any special billing instructions that are required to avoid late payments and subsequent late charges. ACCOUNT PAYABLE: CONTACT TELEPHONE #: ---------- SIGNATURES: Please print or type names exactly as the person will be signing the Document. Signatures are not required here. AUTHORIZED OFFICIAL: Name: Title: ATTORNEY SIGNING OPINION OF COUNSEL: Name: TELEPHONE #: MAJOR REVENUE SOURCE:___________________________ BANK REFERENCE: CONTACT NAME: __________ TELEPHONE #: _________ ESSENTIAL USE LETTER (Please complete on your letterhead) CitiCapital Commercial Leasing Corporation 8001 Ridgepoint Drive Irving, TX 75063-3117 Gentlemen: RE: Equipment Lease-Purchase Proposal I am furnishing the following information to facilitate the credit review process for the proposed Equipment Lease-Purchase transaction. A detailed explanation of the use and application of the equipment is as follows: The equipment is essential to the organization for the following reasons: This equipment replaces previous equipment: No Yes If yes, the previous equipment was originally purchased in 19___. ---- Other equipment being used for the same purpose consists of: The useful life of the equipment in the operation of the department is: The future plans for the equipment are: The program/department has been in operation for ___ years. The source of funds for the payments due under the Equipment Lease-Purchase Agreement for the current fiscal year is the ____________ fund(s). The fund(s) generates its revenue from: Sincerely, Lessee: CITY OF TUKWILA By: Title: --------------- Date: ----------------- 03/09/2005 3:34:21 PM Page 1 CITY OF TUKWILA - SCHEDULE B Compound Period: Monthly Nominal Annual Rate: 4.720 % CASH FLOW DATA 1 2 3 Event Loan Payment Payment Date 05/01/2005 06/01/2005 06/01/2009 Amount 3,782.50 86.63 0.00 Number 1 48 1 Period End Date Monthly 05/01/2009 AMORTIZATION SCHEDULE - Normal Amortization Lease Date Lease Interest Principal Concluding Payment Payment Loan 05/01/2005 3,782.50 1 06/01/2005 86.63 14.88 71.75 3,710.75 2 07/01/2005 86.63 14.60 72.03 3,638.72 3 08/01/2005 86.63 14.31 72.32 3,566.40 4 09/01/2005 86.63 14.03 72.60 3,493.80 5 10/01/2005 86.63 13.74 72.89 3,420.91 6 11/01/2005 86.63 13.46 73.17 3,347.74 7 12/01/2005 86.63 13.17 73.46 3,274.28 2005 Totals 606.41 98.19 508.22 8 01/01/2006 86.63 12.88 73.75 3,200.53 9 02/01/2006 86.63 12.59 74.04 3,126.49 10 03/01/2006 86.63 12.30 74.33 3,052.16 11 04/01/2006 86.63 12.01 74.62 2,977.54 12 05/01/2006 86.63 11.71 74.92 2,902.62 13 06/01/2006 86.63 11.42 75.21 2,827.41 14 07/01/2006 86.63 11.12 75.51 2,751.90 15 08/01/2006 86.63 10.82 75.81 2,676.09 16 09/01/2006 86.63 10.53 76.10 2,599.99 17 1 % 1/2006 86.63 10.23 76.40 2,523.59 18 11/01/2006 86.63 9.93 76.70 2,446.89 19 12/01/2006 86.63 9.63 77.00 2,369.89 2006 Totals 1,039.56 135.17 904.39 20 01/01/2007 86.63 9.32 77.31 2,292.58 21 02/01/2007 86.63 9.02 77.61 2,214.97 22 03/01/2007 86.63 8.71 77.92 2,137.05 23 04/01/2007 86.63 8.41 78.22 2,058.83 24 05/01/2007 86.63 8.10 78.53 1,980.30 25 06/01/2007 86.63 7.79 78.84 1,901.46 03/09/2005 3:34:21 PM Page 2 26 07/01/2007 86.63 7.48 79.15 1,822.31 27 08/01/2007 86.63 7.17 79.46 1,742.85 28 09/01/2007 86.63 6.86 79.77 1,663.08 29 1 % 1/2007 86.63 6.54 80.09 1,582.99 30 11/01/2007 86.63 6.23 80.40 1,502.59 31 12/01/2007 86.63 5.91 80.72 1,421.87 2007 Totals 1,039.56 91.54 948.02 32 01/01/2008 86.63 5.59 81.04 1,340.83 33 02/01/2008 86.63 5.27 81.36 1,259.47 34 03/01/2008 86.63 4.95 81.68 1,177.79 35 04/01/2008 86.63 4.63 82.00 1,095.79 36 05/01/2008 86.63 4.31 82.32 1,013.47 37 06/01/2008 86.63 3.99 82.64 930.83 38 07/01/2008 86.63 3.66 82.97 847.86 39 08/01/2008 86.63 3.34 83.29 764.57 40 09/01/2008 86.63 3.01 83.62 680.95 41 1 % 1/2008 86.63 2.68 83.95 597.00 42 11/01/2008 86.63 2.35 84.28 512.72 43 12/01/2008 86.63 2.02 84.61 428.11 2008 Totals 1,039.56 45.80 993.76 44 01/01/2009 86.63 1.68 84.95 343.16 45 02/01/2009 86.63 1.35 85.28 257.88 46 03/01/2009 86.63 1.01 85.62 172.26 47 04/01/2009 86.63 0.68 85.95 86.31 48 05/01/2009 86.63 0.34 86.29 0.02 49 06/01/2009 0.00 0.02- 0.02 0.00 2009 Totals 433.15 5.04 428.11 Grand Totals 4,158.24 375.74 3,782.50 ~~ .;:: A.: . .,"'J.~. .15'-<, .1-, ;p~... ~"'X '~'.j, .~ 0 /~\.~ \"1- ~ ~-J:~""~\Sq :0~ \~:~)~.. ,:ij ~:. ":;an~( ~5 ~-5" City of Tukwila Washington Resolution No. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AUTHORIZING SOLE-SOURCE LEASE AND OPTION TO PURCHASE OF CLUB CAR PRECEDENT GOLF CARTS FROM THERMO KING NORTHWEST OF KENT. WHEREAS, the City of Tukwila's Foster Golf Links provides the use of golf carts to patrons for a fee; and .. WHEREAS, the current golf cart lease will expire on May 1, 2005; and WHEREAS, the City of Tukwila conducted extensive research on golf carts fuat would meet 11 specific criteria; and WHEREAS, four price quotes were received,from three vendors; and ... WHEREAS, upon comparison of product specifications, only one golf cart met the criteria set by City golf staff, fuat one cart being Club Car Precedent; and WHEREAS, the manufacturer of said cart certifies that this cart is only available through one distributor in the State of Vvashington; and WHEREAS, the City of Tukwila followed the sole-soun;e bid procedure established by fue Washington State Auditor; NOW, THEREFORE, THE OTY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The Parks and Recreation Department is authorized to lease with an option to purchase Gub Car Precedent golf carts from Thermo King Northwest for fue lump sum of $141,380.16. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2005. ATTEST/AUTHENTICATED: Pamela Linder, Council President Jane E. Cantu, CMC, City Gerk APPROVED AS TO FORM BY: -. Filed wifu fue City Clerk: Passed by fue City Council: Resolution Number: Office of the City Attorney Golf Cart Sole Source 3/18/05 Page 1 of 1 Community and Parks Committee March 1, 2005 Present: Joe Duffie, Chair; Joan Hernandez, Dennis Robertson Evie Boykan, Stacy Hansen, Bruce Fletcher, Rick Still, Marty O'Brien, Dave Johnson, Rhonda Berry, Derek Speck, Lucy Lauterbach 1. Potential Chant!es to Community Development Block Grant (CDBG ) Fundin2 Evie explained declining federal funding for CDBG as well as the high administrative cost of administering the funds have resulted in consideration of a new way of distributing funds. An interjurisdictional committee is considering some options now, and they will recommend a program to the County Executive. Eyie explained some of the possibilities that are being discussed now. One would be to retain the status quo where those funds are allocated to cities, which then use contracts with human services agencies to provide services. Another option would have both governmental units, such as cities, and human service agencies apply to the County for funds directly A third option would be to divide the region into two sub areas: NorthlEast King County and South King County. Allocations would be made based on a combination of population and income levels. Evie encouraged committee members to let her know of their preferred option. Information. 2. Proposed Rate Increase in Golf Fees The most recent golf course fee increase was three years ago. When asked about Foster prices compared to others around us, Marty said we're lower priced than Seattle, Kent and Auburn, but equal to (with some higher and some lower prices) than what he considers our main competitor, Maplewood. Tukwila residents get a small price discount, but they account for only 5% of the golfers. Marty noted that the national average golf rounds played is about 35,000 rounds, while Foster averages approximately 60,000 rounds. Though that number isn't as high as we experienced several years ago, it's sufficient to meet the needs of the enterprise fund. In discussing moving this item fOlWard to COW, Dennis requested that the fees on the rate chart be clarified. Recommend rate increase to COW. 3. Golf Cart Lease Buv Pr02ram Carts currently used at the golf course are reaching the end of their useful life. Extensive research has been done to determine the best replacement cart. The Club Car Precedent is the selected cart, and staff is recommending a lease/purchase option for acquisition of those carts. Recommend lease/purchase contract to COW. 4. Alcohol at the Community Center Because of repeated problems over the years, Community Center staff is recommending limiting alcoholic beverage consumption at the center be limited to beer, wine and champagne. Events where hard liquor has been allowed have, more often than not, resulted in the most damage to the rooms and the largest clean-up requirements. Though this policy is under the purview of the Parks and Recreation Director, staff wanted to make sure Council is aware of the policy. Committee members expressed agreement with the policy. Information.