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06-02-1983 Dodge Police Car CNLCOLORADO NATIONAL LEASING, INC. June 2, 1983 n Bill James Town of Avon P.O. Box 975 Avon, CO 81620 Dear Mr. James: Enclosed please find your file copies of Lease #88205 for the Town of Avon. This lease is for the three 1983 Dodge patrol cars. Thank you for your continuing business. If we can be of further help, please give us a call. Sincerely, �-�L -&-t Ken Shuss Lease Representative KS /ay encl. Building 51, Suite 150 14142 Denver West Parkway Golden, Colorado 80401 (303) 278 -7750 11 ' PETER COSGRIFF JOHN W. DUNN ROBERT H. S. FRENCH STEPHEN C. WEST TIMOTHY H. BERRY DAVID H. MILLER ARTHUR A. ABPLANALP, JR. JOHN B. WOOD LAW OFFICES COSGRIFF, DUNN & FRENCH, P. C. P. O. BOX 340 VAIL, COLORADO 81 658 (303) 476 -7552 April 20, 1983 Colorado National Leasing, Inc. 14142 Denver West Parkway Building 41, Suite 150 Golden, Colorado 80401 Re: Equipment Lease Agreement Gentlemen: LEADVILLE OFFICE: P. O. BOX 11 LEADVILLE, COLORADO 80461 (303) 486.1885 BRECKENRIDGE OFFICE: P. O. BO% 588 BRECKENRIDGE, COLORADO 80424 (303) 453.2901 We have acted as counsel to the Town of Avon in connection with the execution and delivery of Equipment Lease Agreements, Lease Nos. 88205 and 88204, including the Equipment Lease Schedules, Exhibits and Certificates attached thereto, between Colorado National Leasing, Inc., a Colorado corporation, and Town of Avon, pursuant to which the Town of Avon has agreed to lease the equipment referred to in the Equipment Lease Agreement on the terms therein contained. In rendering this opinion, we have examined copies of the Equipment Lease Agreements, and the Equipment Lease Schedules as well as such other documents, records, certifi- cates and legal matters as we have deemed relevant and necessary as a basis for our opinion hereinafter set forth. Based on the foregoing, it is our opinion that: 1. The Town of Avon has all the requisite power and authority to lease the property which is the subject of the Equipment Lease Agreements and has all requisite power and authority to enter into such Equipment Lease Agreements, each Equipment Lease Schedule and the Certificate of Accep- tance attached thereto. 2. The Equipment Lease Agreements and each Equip- ment Lease schedule have been duly authorized, executed and delivered by the Town of Avon and constitute the legal, valid and binding obligations of the Town of Avon, enforceable against the Town of Avon in accordance with their respective terms. Colorada'�'ational Leasing, Inc. April 20, 1983 3. The execution, delivery and performance by the Town of Avon of the Equipment Lease Agreements, each Equipment Lease Schedule and the Certificate of Acceptance will not violate or contravene any provision of the existing Colorado or federal law or any order of any court or govern- mental agency having jurisdiction, the Town Charter, or any mortgage, indenture, security agreement or other instrument to which the Town of Avon is a party or by which it, or any of its property, is bound. Yours very truly, COSQIF�', DUNN & FRENCH, P. C. JWD:kem:M5 cc: Mr. James ADDENDUM I Lease No. 88205 EQUIPMENT LEASE AGREEMENT (Municipal Lease) The Lease is made this ,;7, day of 19;3 between Colorado National Leasing, Inc., a Colorado corporation ( "Lessor "), and the Town of Avon ( "Lessee "). In consideration of the mutual covenants and promises herein set forth, the parties agree as follows: 1. LEASE. Lessor hereby leases to Lessee, and Lessee hereby leases and hires from Lessor, the property, machinery and equipment ( "Equipment ") described in the Equipment Description (Exhibit A attached hereto and made a part hereof) . 2. TERM. This Lease shall commence on the date hereof and unless sooner terminated as provided herein, shall expire 4 year(s) from the date of first delivery of any item of the Equipment. 3. RENT. Rent for the Equipment shall be in the amount set forth in the Equipment Lease Schedule (Exhibit B attached hereto and made a part hereof). Lessee shall pay Lessor such rent in the amounts and at the times set forth on Exhibit B at the office of Lessor in Golden, Colorado, or to such other person and /or at such other place as Lessor may from time to time designate in writing. 4. USE. Lessee shall use the Equipment in a careful and proper manner and shall comply with all applicable governmental laws, ordinances and regulations in any way relating to the possession, use or maintenance of the Equipment. If at any time during the term hereof Lessor supplies Lessee with labels, plates or other markings, stating that the Equipment is owned by Lessor, Lessee shall affix the same to a prominent place on the Equipment. 5. LESSEE'S INSPECTION; WARRANTY DISCLAIMER. (a) Lessee shall inspect the Equipment within forty -eight (48) hours after receipt thereof. Unless Lessee within such period of time gives written notice to Lessor, specifying any defect in or other proper objection to the Equipment, Lessee agrees that it shall be conclusively pre- sumed, as between Lessor and Lessee, that Lessee has fully inspected and acknowledged that the Equipment is in good condition and repair, and that Lessee is satisfied with and has accepted the Equipment in such good condition and repair. At or prior to expiration of such inspection period, Lessee shall execute and deliver to Lessor the Certificate of Acceptance. Exhibit C attached hereto and made a part hereof). (b) Lessor hereby assigns to Lessee for and during the term of this Lease all manufacturer's warranties and guarantees, express or implied, with respect to the Equipment, to the extent such warranties and guarantees are assignable. Lessee acknowledges that it selected each item of Equipment based on its own analysis and investigation from vendors chosen by Lessee and further acknowledges that Lessor made no representations or warranties in connection with the Equipment or vendors. LESSOR MAKES NO WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO THE EQUIPMENT AND EXPRESSLY DISCLAIMS ANY WARRANTY REGARDING THE -1- MERCHANTABILITY OF THE EQUIPMENT, ITS FITNESS FOR A PARTICULAR PURPOSE, ITS DESIGN, CONDITION OR WORKMANSHIP AND THE ENFORCEABILITY OF ANY WARRANTY OR GUARANTEE OF THE MANUFACTURER OF THE EQUIPMENT. 6. LESSOR'S INSPECTION. Lessor shall at any and all times during business hours have the right to enter into and upon the premises where the Equipment may be located for the purpose of inspecting the same or observing its use. 7. ALTERATIONS. Without the prior written consent of Lessor, Lessee shall not make any alterations, additions or improvements to the Equipment. 8. REPAIRS. Lessee, at its own cost and expense, shall keep the Equipment in good repair and condition and shall bear all expenses of the maintenance and operation of the Equipment. 9. INSURANCE; LOSS AND DAMAGE; AGREED OPTION PRICE. Lessee shall keep the Equipment insured against all risks of loss or damage by fire and such other risks as are covered by endorsement commonly known as supplemental or extended coverage for the greater of the fair market value thereof or the "Agreed Option Price" set forth in Exhibit B attached hereto with respect to the Equipment. Lessee shall also carry public liability and property damage insurance covering the Equipment in amounts not less than $200,000 in respect of bodily injury or death to any person, not less than $500,000 in respect of any one accident, and not less than $100,000 in respect of property damage. All such liability insurance shall insure both Lessor and Lessee and all such property damage insurance shall name Lessor as loss payee as its interest may appear. Lessee may effect such coverages under its blanket policies. No loss or damage to the Equipment or any part thereof shall impair any obliga- tion of the Lessee under this Lease which shall continue in full force and effect. In the event of loss or damage of any kind whatever to any item of Equipment, the proceeds of such insurance shall be applied to any item of Equipment: (a) To place the same in good repair, condition and working order, or replace the same with like Equipment in good repair, condition and working order; or (b) If, in the reasonable judgment of Lessor, the Equipment is determined to be lost, stolen, destroyed or damaged beyond repair, Lessee shall pay Lessor therefor in cash, to the extent the insurance proceeds paid to Lessor may be insufficient, the Agreed Option Price set forth in Exhibit B determined as of the date of the last full rental payment made by Lessee, plus interest on such Agreed Option Price at the rate set forth in Exhibit B from the date of the last full rental payment until the date of payment for the Equipment. Upon such payment this Lease shall terminate with respect to the Equipment so paid for and Lessor will thereupon execute and deliver to Lessee a bill of sale transferring such Equipment to Lessee "AS -IS- WHERE -IS," WITHOUT WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO ANY MATTER WHATSOEVER. 10. SURRENDER. Except as provided in paragraph 20 hereof, upon the expiration or earlier termination of this Lease, Lessee shall (unless Lessee has purchased the Equipment pursuant to paragraphs 9 or 19 hereof) return the same to Lessor in good repair, condition and working order, ordinary wear and tear resulting from proper use thereof excepted, by delivering, at Lessee's sole cost and expense, possession of the Equipment to Lessor at such place as Lessor may designate. -2- 11. TAXES AND LIENS. (a) Lessee agrees to pay and to indemnify and hold Lessor harmless from all license, sales, use, personal pro- perty or other taxes together with any penalties, fines or interest thereon imposed or levied with respect to the Equipment or the ownership, delivery, lease, possession, use, operation, sale or the disposition thereof, or upon the rentals or earnings arising therefrom. (b) Lessee shall not directly or indirectly create, incur, assume or suffer to exist any security interest, lien or encumbrance on or with respect to any item of Equipment or any interest therein. Lessee shall promptly, at its expense, take such action as may be necessary to discharge any such security interest, lien or encumbrance as and when the same shall arise. 12. LESSOR'S PAYMENT. In case of the failure of the Lessee to procure or maintain insurance on the Equipment, pay taxes on or with respect to the Equipment or maintain the Equipment free and clear of any security interests, liens and encumbrances, as herein specified, Lessor shall have the right, but not be obligated, to effect such insurance, to pay such taxes and discharge such security interest, liens and encumbrances and the cost thereof shall be repayable to Lessor with the next installment of rent. 13. DEFAULT. If the Lessee shall fail to pay the rent due and payable under Exhibit B attched hereto within ten (10) days after the same is due and payable, or if the Lessee shall fail to observe, keep or perform any other pro- vision of this Lease for a period of ten (10) days after receipt of written notice thereof, Lessor shall have the right to exercise any one or more of the following remedies: (a) To terminate this Lease and to sue for and recover all rents and other payments then accrued and unpaid hereunder and all rents and other payments which will accrue during the then current fiscal year of Lessee. (b) To retain all rentals and to take possession of any or all items or Equipment, without further demand or notice and without any court order or other process of law, and either to remove the same or to lease the same to others. 14. TERMINATION FOR NON - APPROPRIATION. Notwithstanding anything herein to the contrary, if Lessee does not appropriate funds for any fiscal year of Lessee during the term hereof sufficient to pay the amounts due hereunder in such fiscal year and Lessee has exhausted all funds legally available for payments due under this Lease, Lessee may, by written notice given to Lessor no later than ten (10) days after adoption of the budget for such fiscal year, thereupon terminate this Lease. Upon such ter- mination, Lessee shall return the Equipment to Lessor in accordance with paragraph 10 hereof and pay all rents and other payments due to Lessor for periods prior to the date the Equipment is so returned to Lessor. If Lessee ter- minates this Lease under the provisions of this paragraph #14, Lessee may not, during the remaining term of this Lease, replace the Equipment subject to this Lease with like kind or similarly functional Equipment or acquire the use of replacement Equipment of any kind during the remaining term of this Lease. 15. ASSIGNMENT. Without the prior written consent of Lessor, Lessee shall neither assign, transfer, pledge or hypothecate this Lease, the Equipment or any part thereof, or any interest therein, nor sublet any item of Equipment. It is understood that Lessor contemplates assigning this Lease or interests in the Equipment and that Lessor's -3- assignee may also assign the same. All rights of Lessor hereunder may be assigned, transferred, or otherwise disposed of, either in whole or in part, without notice to Lessee; provided, however that no assignment of this Lease or any interest therein shall be made except subject to the rights granted to the Lessee by virtue of this Lease; and provided further that.no assignee of Lessor shall be obli- gated to perform any duty, covenant or condition required to be performed by Lessor under the terms of this Lease. 16. PERSONAL PROPERTY. The Equipment is, and shall at all times be and remain, personal property notwithstanding that the Equipment may be affixed or attached to, or imbedded in, or permanently resting upon, real property or any building thereon, or attached in any manner to what is permanent as by means of cement, plaster, nails, bolts, screws or otherwise. 17. INDEMNITY; LIMITS OF LIABILITY. Lessee hereby assumes liability for and agrees to indemnify and hold Lessor harmless from and against any and all debts, liabili- ties, obligations, claims and expenses, including court costs and attorney's fees, incurred by or asserted against Lessor in connection with, arising out of or incident to the ownership, delivery, lease, possession, use, operation, con- dition, sale or other disposition of any item of Equipment. Lessor is not responsible for any repairs or service to the Equipment or any defects therein. Lessor shall not be liable for any consequential, incidental or special damages of any character as a result of or arising out of the lease of the Equipment, or any item thereof, including loss of profits, property damage or lost production, whether suf- fered by Lessee or any other person. 18. INTEREST. Should Lessee fail to pay any part of the rent herein reserved or any other sum required by Lessee to be paid to Lessor, within 10 days after the due date thereof, Lessee shall pay to the Lessor interest on such delinquent payment from the due date until paid at the rate of 18% per annum. 19. OPTION. Provided Lessee is not in default in the performance of its obligations hereunder, Lessee shall have the option, at any time after one year from the commencement of this lease to purchase the Equipment for an amount equal to the Agreed Option Price thereof set forth in Exhibit B at the date of the last full rental payment, plus interest on such Agreed Option Price at the rate set forth in Exhibit B from the date of the last full rental payment until the date of payment for the Equipment. Such option to purchase the Equipment shall be exercised by the payment of the Agreed Option Price plus interest as herein provided to Lessor at Lessor's office in Golden, Colorado. If Lessee exercises the option to purchase the Equipment, title'thereto shall thereupon become vested in Lessee and Lessor will thereupon execute and deliver to Lessee a bill of sale transferring such Equipment to Lessee "AS -IS- WHERE -IS ", WITHOUT WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO ANY MATTER WHATSOEVER. 20. EXPIRATION. If Lessee shall comply with all pro- visions of this Lease on it -s part to be kept and performed, then upon the expiration of this Lease, all right, title and interest of Lessor in the Equipment subject to this Lease shall vest in and become the property of Lessee, and Lessor will thereupon execute and deliver to Lessee a bill of sale transferring such Equipment to Lessee, "AS -IS- WHERE -IS ", WITHOUT WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO ANY MATTER WHATSOEVER. -4- 21. TAX EXEMPTION. The "Rent ", "Interest ", "Agreed Option Price and other computations set forth in this Lease and exhibits attached hereto have been fixed and computed upon the assumption that the amount designated as "Interest" will be exempt from federal income taxation and (if so noted on Exhibit B) state income taxation in the hands of the Lessor and its assignees. If it is determined that such "Interest" payments are not so exempt, then the items of "Rent", "Interest ", "Agreed Option Price" and related com- putations payable by the Lessee to Lessor hereunder shall be adjusted so as to provide Lessor with the amount of such items as shall equal, on an after tax basis, the amount thereof set forth in this Lease and Exhibits attached hereto. The method and timing of the payment of such adjustment shall be as mutually agreed upon promptly following notice to Lessee of the need for such adjustment. 22. FINANCIAL STATEMENTS. Lessee shall furnish to Lessor, within sixty (60) days after the end of each fiscal quarter of Lessee, financial statements of Lessee which shall include a balance sheet and statement of revenue and expense of Lessee for the quarter and the year to date and such other information and reports as Lessor shall reaso- nably request. All such financial statements shall be cer- tified to be true and correct by the appropriate officer of Lessee. 23. CLAIMS. Lessor hereby appoints and constitutes Lessee as its agent and attorney -in -fact during the term of this Lease to assert and enforce, at the sole cost and expense of the Lessee, whatever claims and rights the Lessor may have as owner of the Equipment against any vendors, manufacturers, suppliers or contractors in respect thereof. 24. NON - WAIVER. No waiver of any of the Lessee's obligations under this Lease shall be deemed to take place unless such waiver has been made in writing and signed by the Lessor. Failure to exercise any remedy which Lessor may have under this Lease or any other acquiescence by the Lessor in any default by the Lessee shall not constitute a waiver of any obligation of Lessee hereunder, including the obligation as to which Lessee is in default. 25. CONCURRENT REMEDIES. No right or remedy conferred upon or reserved to the Lessor in this Lease is exclusive of any other right or remedy provided or permitted herein by law or equity; but each shall be cumulative of any other right or remedy given hereunder, or now or hereafter existing at law or in equity or by statute or otherwise, and may be enforced concurrently therewith, or from time to time. 26. MODIFICATION. This Lease constitutes the entire agreement between Lessor and Lessee and shall not be amended, altered or modified except in a writing signed by the parties hereto. 27. NOTICES. All notices required or permitted hereunder shall be sufficient if delivered personally or mailed to the parties at the address hereafter set forth or at such other address as either party may designate in writing from time to time. Any such notice shall be effec- tive 48 hours after it has been deposited in the United States mail, duly addressed and with postage prepaid. 28. GOVERNING LAW. This Lease and other instruments or documents executed by the parties hereto, and the rights and duties of the parties hereto, shall be construed and enforced in accordance with the laws of the State of Colorado. -5- 6: 29. TIME. Time is of the essence of this Lease and each and all of its provisions. 30. SEVERABILITY. If any provision in this Lease or the application of such provision to any person or cir- cumstance shall be invalid, illegal or unenforceable, the remainder of this Lease or the application of such provision to persons or circumstances other than those to which it is invalid, illegal or unenforceable shall not be affected thereby. IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year first above written. ATTACHMENTS: Resolution No.3 LESSOR: COLORADO NATIONAL LEASING, INC. By Gti Bldg. 51, Suite 150 14142 Denver West Pkwy. Golden, CO 80401 LESSEE: TOWN OF AVON By Title: % 2 of the Equipment Description (Exhibit A) Equipment Lease Schedule (Exhibit B) Certificate of Acceptance (Exhibit C) Opinion of Counsel Incumbancy Certificate -6- I I EQUIPMENT LEASE SCHEDULE #88205 A. EQUIPMENT LEASED: 3 - 1983 Dodge Diplomat Patrol Pursuit cars, four door, -� 318 DID Engine, plus standard equipment B. TERM: Unless sooner terminated as set forth in the Lease, the term of this Lease respecting each item of equipment listed on this schedule on shall commence on > > and shall expire on C. RENT: As rent for said equipment, Lessee shall pay Lessor the sum of $31,680.00 payable in installments as follows: 48 consecutive monthly installments of $660.00 commencing on -� h �. , which said installments of ental include interest at a rate of 10.75 per annum on the Agreed Option Price. D. LOCATION: The above described equipment shall be located at Town of Avon, Avon, Colorado and shall not be removed therefrom without the prior written consent of Lessor. APPROVED AND AGREED TO THISCpAY OF G�-C %/ 19 as a schedule to that certain Lease dated the ,7 5 day of -6y 19 &3. COLORADO NATIONAL LEASING, INC. By LESSOR TOWN OF AVON T, Wirld' Unless sooner terminated as set forth in the L ase, the term of this lease res ect* ing eachppp item of equipment shall commence on j� j s'h g ;3 and shall expire on As rent for said equipment, Less de all pay Lessor the sum of $31,6 0, pay° le in instal ents as follows: 48 consecutive monthly installments of $660 com- mencing on el which said installments of rent include interest at the rate of 10.75 per annum on t e Balance of Principal. Oak LEASE 1` PP20r; RYPTPTT P F011IPMFNT LEASE SCHEDULE PAYMENT PENT DESTGNATF.D REDUCTION OF PALANCE OF P,GRFFP VO. - - - - - -- PAYMFNT - - - - - -- INTEREST ---- - - - - -- PRINCIPAL ------ - - - - -- PRINCIPAL OPTION PRICE ---- - - - - -- ------ - - - - -- TP'TTTAL PALAT'CF 25,P87.6P 26, ,776.69 1 660.00 236.42 423.58 25,464.10 26, -16.F3 2 660.00 231.50 428.50 25,035.60 25,P52.79 660.00 226.57 433.4? 24,602.17 25, ?F?4.59 4 660.On 221.64 438. ?6 24,163.81 24,91.2..21 5 660.00 216.72 443.2P 23,720.53 211.11 ?5.67 6 660.00 2.11.79 448.21 2?,272.'? 27,054.96 7 660.00 206.87 453.13 22,819.19 2 ?,47n.08 8 660.00 201.94 458.06 22,361.14 22.961.03 9 660.00 197.02 462.98 21, 898. 16 - S3 •22, hP7. F'0 10 660.no 192.09 467.91 21,430.25 21,990.41 11 660.00 187.17 472.83 20,957.41 21,4PP.85 12 660.00 1F2.24 1177.76 20,479.66 20,96'3.13 13 660.00 177. ?2 492.68 19,996.97 20;473.23 14 660.00 172.39 487.61 19,509. ?6 19,959.16 15 660.00 167.47 4Q2.53 19,016.83 lA,l�il(�.92 16 660.00 162.54 497.46 1P.519.37 1P,91P.51 17 660.00 157.61 502.39 1P,016.98 1P, ?91.94 1P 660.00 152.69 507. ?1 17.509.67 17,F61.19 19 660.00 147.76 512.24 16,997.43 17,?26.28 20 660.00 142.P4 517.16 16,460.27 16,787.19 - 2-1-.. 660.00 137.91 522.00 19,958.1F_ "V 16,243.94 22 660.00 132.99 527.01 15,431.17 15,66.51 2? 660.n0 128.06 5 ?1.94 14,6'99.23 15,144.92 24 25 660.00 660.00 123.14 11P.21 536.86 541.79 14,362.37 13,820.58 14,5PQ.16 14,029.22 \ 26 660.00 113.2.9 546.71 13,273.86 1 ?,465.12 27 660.00 108.36 551.64 12,722.22 12,-806.85 2F (:60.00 107.4? 056.67 12,165.66 12, ?211.41 29 (.60.00 98.51 561.1i9 11,604.17 11,747.F0 3n 660.0 Q3.5P 566.42 11,037.75 11,1(7.02 31 660.00 PP.F6 571.. ?4 10,466.41 10,5P2.07 2. 660.00 83.73 576.27 9,890.14 4,092.95 �? 660.00 7A.P1 5F?1.10 0,30F.95 a, 94.66 34 660.00 73.8P 5P6.12 P,722.P3 P,P02.20 35 6.60.00 68.96 591.04 8,131.78 8,200.58 36 660.00 64.03 545.97 7,535.82 7,594.78 ?7 660.00 59.11 600.P9 6,934.92 69984.81 3P 660.00 54.1P 605.P2 6,329.10 6,170.68 39 660.eo 49.25 610.75 5,71P.-46 8 .. 5,752.37 40 660.00 44. ?3 615.67 5,102.68 5,1 29.90 41 660.00 39.40 62 ().(0 4,482.09 4,503.25 112 660.00 34.48 625.52 3,P56.57 3.872.44 43 660.00 29.55 630.45 3,226.12 ?7.46' 44 660.00 24.63 635.37 2,590.75 1 .2 2,598.31 45 660.00 19.70 640. ?0 1,950.45 1,954.98 46 660.00 14.78 6115.22 1,305.22 1, ?07.49 47 66n.00 4.65 650.15 655.07 6,55.83 48 660.00 4.93 655.07 .00 .00 Unless sooner terminated as set forth in the L ase, the term of this lease res ect* ing eachppp item of equipment shall commence on j� j s'h g ;3 and shall expire on As rent for said equipment, Less de all pay Lessor the sum of $31,6 0, pay° le in instal ents as follows: 48 consecutive monthly installments of $660 com- mencing on el which said installments of rent include interest at the rate of 10.75 per annum on t e Balance of Principal. Lease No. 88205 EXHIBIT C CERTIFICATE OF ACCEPTANCE The undersigned hereby certifies that it has received, inspected, approved and hereby accepts delivery of the following equipment upon the terms and conditions set forth herein and in that Equipment Lease Agreement dated %may 7 �, /9 �� between the undersigned and Colorado National Leasing, Inc., a Colorado corporation: 1. Description of Equipment: 3 - 1983 Dodge Diplomat Patrol Pursuit cars, four door, 318 CID engine, plus standard equipment 2. Cost: The cost of the equipment is $25,887.68 The undersigned further certified that the foregoing equipment is in good order and condition, and con- forms to the specifications applicable thereto. The execution of this Certificate will in no way relieve or decrease the responsibility of the manufacturer of the equipment for any warranties it has made with respect to the same. The undersigned hereby requests Colorado National Leasing, Inc. to process payment in the amount of $25,887.68 to the vendor. Dated: -Z-Z �� 3 TOWN OF AVON By Lessee ATTEST: ` i TOWN OF AVON ORDINANCE NO. #83 -13 SERIES OF 1983 AN ORDINANCE AUTHORIZING EXECUTION OF CERTAIN EQUIPMENT LEASE AGREEMENTS BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: Section 1. Those certain Equipment Lease Agreements, together with their Exhibits A,B, and C, copies of which agreements are attached hereto as Addenda I and II, and the terms of each are hereby approved, properties described Section 2. and the acquisition of the municipal therein are hereby authorized. The Mayor and Town Clerk are hereby authorized and directed to execute each of said Equipment Lease Agreements. INTRODUCED, PASSED ON FIRST READING, APPROVED AND ORDERED POSTED, THIS 8 day of March hearing on this ordinance shall be held at 1983 and a public the regular meeting of the Town Council of the Town of Avon, Colorado, on the 22 day of March , 1983 at 7:30 p.m. in the municipal building of the Town of Avon, Colorado. �- Sheila R. Davis, Mayor Pro -Tem ATTEST: Patricia J. Doyle, Town Clerk' INTRODUCED, PASSED_ON SECOND READING, APPROVED AND ORDERED POSTED THIS -y.' :� , . ;/ day of 1983. Al an R. ottingham Mayor ATTEST: Patricia J. Doyle, Town Clerk e s -STATE OF COLORADO ) .�OUNTY OF EAGLE ) SS GOWN OF AVON ) NOTICE IS HEREBY GIVEN OF A PUBLIC HEARING BEFORE THE TOWN COUNCIL DF THE TOWN OF AVON, COLORADO, AT 7:30 P.M. ON THE 22ND DAY OF KARCH, 1983 AT THE MUNICIPAL BUILDING, 400 BENCHMARK ROAD, AVON, --OLORADO FOR THE PURPOSE OF CONSIDERING THE ADOPTION OF ORDINANCE NO. #83 -13, SERIES OF 1983: AN ORDINANCE AUTHORIZING EXECUTION OF CERTAIN EQUIPMENT LEASE AGREEMENTS A copy of said Ordinance is attached hereto and is also on file at the office of the town clerk and may be inspected during regular business hours. Following this hearing, the Council may consider final passage of this Ordinance. This notice given and passed by order of the Town Council of the Town of Avon, Colorado. Dated this 10th day of March, 1983. TOWN OF AVON, COLORADO / By Patricia J.�D0 le, Tow C POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON ON MARCH 10, 1983: THE MAIN ENTRANCE OF THE POST OFFICE, THE MAIN ENTRANCE TO CITY MARKET, THE PESTER GAS STATION; AND THE MAIN LOBBY IN THE MUNICIPAL BUILDING Colorado National Leasing, Inc. 14142 Denver West Parkway Building 41, Suite 150 Golden, Colorado 80401 Re: Equipment Lease Agreement Gentlemen: We have acted as counsel to the Town of Avon in connection with the execution and delivery of Equipment Lease Agreements, Lease Nos. 88205 and 88204, including the Equipment Lease Schedules, Exhibits and Certificates attached thereto, between Colorado National Leasing, Inc., a Colorado corporation, and Town of Avon, pursuant to which the Town of Avon has agreed to lease the equipment referred to in the Equipment Lease Agreement on the terms therein contained. In rendering this opinion, we have examined copies of the Equipment Lease Agreements, and the Equipment Lease Schedules as well as such other documents, records, certifi- cates and legal matters as we have deemed relevant and necessary as a basis for our opinion hereinafter set forth. Based on the foregoing, it is our opinion that: 1. The Town of Avon has all the requisite power and authority to lease the property which is the subject of the Equipment Lease Agreements and has all requisite power and authority to enter into such Equipment Lease Agreements, each Equipment Lease Schedule and the Certificate of Accep- tance attached thereto. 2. The Equipment Lease Agreements and each Equip- ment Lease schedule have been duly authorized, executed and delivered by the Town of Avon and constitute the legal, valid and binding obligations of the Town of Avon, enforceable against the Town of Avon in accordance with their respective terms. LAW OFFICES COSGRIFF, DUNN & FRENCH, P. C. P. O. BOX 340 VAIL, COLORADO 81658 (303) 476.7552 PETER COSGRIFF LEADVILLE OFFICE: JOHN W. DUNN P. O. BOX I 1 ROBERT H. S. FRENCH LEADVILLE, COLORADO 00461 STEPHEN C. WEST TIMOTHY H. BERRY 13031 486.1885 DAVID H. MILLER April 20, 19 8 3 BRECKENRIDGE OFFICE: ARTHUR A. ABPLANALP, JR. P. O. BOX 588 JOHN B. WOOD BRECKENRIDGE, COLORADO 80- - 13031 453.2901 Colorado National Leasing, Inc. 14142 Denver West Parkway Building 41, Suite 150 Golden, Colorado 80401 Re: Equipment Lease Agreement Gentlemen: We have acted as counsel to the Town of Avon in connection with the execution and delivery of Equipment Lease Agreements, Lease Nos. 88205 and 88204, including the Equipment Lease Schedules, Exhibits and Certificates attached thereto, between Colorado National Leasing, Inc., a Colorado corporation, and Town of Avon, pursuant to which the Town of Avon has agreed to lease the equipment referred to in the Equipment Lease Agreement on the terms therein contained. In rendering this opinion, we have examined copies of the Equipment Lease Agreements, and the Equipment Lease Schedules as well as such other documents, records, certifi- cates and legal matters as we have deemed relevant and necessary as a basis for our opinion hereinafter set forth. Based on the foregoing, it is our opinion that: 1. The Town of Avon has all the requisite power and authority to lease the property which is the subject of the Equipment Lease Agreements and has all requisite power and authority to enter into such Equipment Lease Agreements, each Equipment Lease Schedule and the Certificate of Accep- tance attached thereto. 2. The Equipment Lease Agreements and each Equip- ment Lease schedule have been duly authorized, executed and delivered by the Town of Avon and constitute the legal, valid and binding obligations of the Town of Avon, enforceable against the Town of Avon in accordance with their respective terms. 1 Coloradg National Leasing, Inc. April 20, 1983 3. The execution, delivery and performance by the Town of Avon of the Equipment Lease Agreements, each Equipment Lease Schedule and the Certificate of Acceptance will not violate or contravene any provision of the existing Colorado or federal law or any order of any court or govern- mental agency having jurisdiction, the Town Charter, or any mortgage, indenture, security agreement or other instrument to which the Town of Avon is a party or by which it, or any of its property, is bound. Yours very truly, COSgIF,F , DUNN & FRENCH, P. C. • JWD :kem:M5 cc: Mr. James TO: Richard D. Blodgett FROM: William D. James.` DATE: March 17, 1983 SUBJECT: Lease agreements for copier and police cars The Attached Agreements are the same as previously authorized by the Council through Colorado National Leasing. January 21, 1983 TO: Richard D. Blodgett, Town Manager FROM: William D. James, Finance Director SUBJECT: LEASE VS. PURCHASE OF POLICE CARS At the January 11, 1983 meeting the Town Council requested further information on leasing three (3) patrol cars for the Police Department. Concerns expressed at that time were: 1) Would the Town receive the full value of the vehicle at the end of the lease in an amount eaual to a greater than the $4,750 as stipulated in the lease itself. 2) The mileage limitation of 50,000 miles over three years and the cost of 8� per mile for any mileage in excess of said limit. 3) The 13.5% interest rate applied to the lease. 4) Should we own the vehicles rather than lease. Item 1: Hascall & Haines Chevrolet - Oldsmobile, Inc. will guarantee the depreciated value of the vehicle in the amount of $4,750. Item 2: The 50,000 miles limitation over three years remains the same. However, we still feel that the vehicles should be under this mileage limitation. Also, the 8� per mile charge is to remain the same for any miles over 50,000 Item 3: The 13.5% interest rate is to remain the same for all lease agreements. The 11.9% financing is for purchase of vehicles only. Item 4: Lease vs. Purchase Analysis: Lease (Buick Skylarks) Purchase (Police Equip. Dodi Interest Rate 13.50 10.75%(1) Purchase Price $8,850 /unit $8,859.06/unit(2) Monthly Payment 195.49 $ 227.89 Richard D. Blodgett, Town Manager Lease vs. Purchase of Police Cars January 21, 1983 Page Two Cost Reduction Over Present Operation for Repair and Maint- enance (Based on all Three (3) Vehicles) lst Year 2nd Year 3rd Year 4th Year 5th Year Assumptions $ 8,500 3,500 2,000 3,500(6) 3,500(6) $21,000 $6,000(3) 1,000(4) 1,000 (500) (7) (500) (7) $7,000 NOTE: 1) 10 3/4% financing over four (4) years - quote from Colorado National Leasing. 2) If the Town owns the vehicles we would probably obtain the regular police vehicles off the State Bid List. These vehicles have the small V -8 (318CI) engines compared to the lease vehicles which have V -6's. If we are going to retain the patrol cars for five (5) years, we do not feel that the smaller engines could handle the mileage and use, and indeed would probably incur high maintenance on the engines themselves. 3) The difference between the first year costs of $8,500 and $6,000 is gasoline. We have estimated that with the V -8 engines instead of V -6's, that all three (3) vehicles would use an additional $2,500 in gasoline. We assumed all other maintenance cost to be equal. 4) The second year savings is related only to gasoline over present operations. 5) Reduction of $1,500 in savings in the third year. We assumed some maintenance on the V -6 engines and little maintenance on the V -8 engine. 6) In the fourth year the lease cars would be replaced and the original savings on gasoline reinstated. 7) The fourth and fifth year we estimated that each vehicle we own will incur additional maintenance and cost the Town a net $500. Richard D. Blodgett, Town Manager Lease vs. Purchase of Police Cars January 21, 1983 Page Three Cost of Financing Three (3) Patrol Cars Lease (13.50/3 yrs.) lst Year $ 7,037.64 2nd Year 7,037.64 3rd Year 7,037.64 4th Year 8,093.29 5th Year 8,093.29 1,462.36 $37,299.50 Budget Savings First Year Purchase (10 3/4 %/4 yrs.) $ 8,204.04 8,204.04 8,204.04 8,204.04 4,717.32 37,533.48 Sale of 2,250.00 Vehicles $35,283.48 Summary of Cost Comparison LEASE PURCHASE Operational Savings $(21,000.00) $(7,000.00) Financing (net) 37,299.50 35,283.48 Total Net Costs $ 16,299.50 $28,283.48 (Over Current Operations) LEASE PURCHASE Maintenance /Repair $5,000.00 $5,000.00 Gasoline 3,500.00 1,000.00 8,500.00 6,000.00 Payments 7,037.64 8,204.04 1,462.36 (2,204.04) Sale of Five (5) 2,500.00 2,500.00 Vehicles $3,962.36 $ 295.96 Summary of Cost Comparison LEASE PURCHASE Operational Savings $(21,000.00) $(7,000.00) Financing (net) 37,299.50 35,283.48 Total Net Costs $ 16,299.50 $28,283.48 (Over Current Operations) / Richard D. Blodgett, Town Manager Lease vs. Purchase of Police Cars January 21, 1983 Page Four Summary Recommendations Even though the lease of mid -size cars shows a significant savings over five (5) years based on the assumptions, at this time I can not recommend leasing the vehicles for the following reasons: 1) I am not confident that the lease cars will last three (3) years. 2) Even with the guarantee of the depreciated value of $4,750 there are too many variables that could affect this value such as accidents, condition of the engine, etc. 3) Also, we have heard that all (X) type cars which includes the lease cars are going to be discontinued and have been recalled at least ten (10) times by the manufacturer for repairs. 4) The vehicles to be purchased from the State have a 50,000 mile warranty whereas, the lease vehicles would only have a 12,000 mile warranty. 5) The 50,000 mile limitation on the lease is of some concern. Therefore, I would recommend that the Town purchase the vehicles from the State Bid List and financing be arranged through Colorado National Leasing with a four (4) year payment at 10 3/4% annual interest rate. William ames Finan irector WDJ:lp ADDITIONAL TERMS AND CONDITIONS 1. PAYMENTS BY'•LESSEE. If any. rental instalment i5 pain after its due date, that instalment, whenever rnade, shall include inferi'$t, or delinquency afid'� °1= collection charges, at the highest lawful contract rate from its due date,(or such later date as may be required by applicable law) to the date when paid except as otherwise provided on the face of this- Lease.,lf this Lease is referred for collection to vn attorney nlot the salaried employee of, the holder of this Lease, LESSEE shall, to the extent permitted by applicable law, pay attorney's fees and court',eosts and expanses incurred in connectiori with any delinquency. 2. ASSIGNMENT LESSEE shall not assign this Cease without thr, prior written consen't of LESSOR. LESSOR may assign this`Lease and if so assigned, the term LESSOR in this Laase'shall include LESSOR'S assignee excent as may be otherwise stated. If not prohibited by applicable law, LESSEE waives, as to any assignee of LESSOR, all claims an'd'd+sfertses LESSEE might have_' or assert against LESSOR and'LESSEE further agrees;tha't no such 615irmor defense will be asserted against any assignee of..LESSOR. The following applies only if thfs is ri Consumer Credit Controc t entered into in,North Carolina: NOTICE — ANY I!OLDE.R OF THiS CONSUMER CREDIT CO-N T RACT IS SUBJECT.TO ALL CCAINIS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAII`IST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WTH THE PROCEEDS HEREOF.' RECOVERY HEREUNDER BY T}il= DEBTOR SHALL NOT EXCEED AMOUNT PAID BY THE DEBTOR HEREUNDER:' 3. TAXES; LIABILITY AND INSURANCE. LESSEE shall br liahle for all taxes, fees or assessments on'the Equipment, its use or operation or on this Lease or any payments to bri made. LESSEE shall report the. Eq`,irr^rnt to the local assessor on LESSEE'S personal property taz listing and shall' pay all state, county and city personal property taxes assessed. LESSEE shnil immediately notify LESSOR of any attachments, tax notices; tax reports or inquiries from taxing authorities concerning applicable taxes, fees or assessments. LESSEE assumes all risk and liability for, and agrees to indemnify and hold LESSOR harmless against, all claims, demands, suits and expenses of any kind arising from LESSEE'S possession, operation or use of Equipment, including but not limited to damages for injuric3'to or death of persons, injury to property, claims and liens' for storage, repairs and, taxes and all loss of and damage to Equipment. 'LES3EE shall supply LESSOR a certificate of insurance evidencing fire, extended coverage perils, vandalism.and:malic!ous mischief and theft., insurance in an amount equal to the'full insurable value of the Equipment. The certificate must include a loss payable clause showing Clark Equipment Credit Corporation, assignee of. LESSOR, as 1110 loss` payee. LESSEE shall also supply LESSOR a certificate Of insurance evidencing comprehensive general liability insurance vvith lia, its not less than $100,000 each occurrence: $300,000 aggregate for personal injury and $100,000 for each. occurrence; $100,000 aggregate for property damage. Such certificates shall state that 10 days' written notice will be given to Clark,Equipment Credit Corporation prior to cancellation of any such insurance. 4. MAINTENANCE AND CARE. LESSEE; at its own expense, shall maintain the Equipment in good operating order, repair and appearance, shall assure that all safety devices are at ail times properly attached to the Equipment and are in -gotid operating condition and shall maintain Equipaierit in such mechanical condition as is adeq'!ata to comply with any applicable Federal or state, laws or--regulations. Repair and maintenance work shall be performed only by qualified persons who are satisfactory to LESSOR. The Equipment shall he used solely in LESSEE'S business, within LESSEE'S possession, under its control and shall be cp ^rated only`by competent employees of LESSEE.,LESSEE shall not, Without 'pri'or,written approval of LESSOR, affix or install any accessory, attachment cr other device to the Equipment, and all repairs, replacements, accessories, attachments and devices 'furnished or'affixed to•such Equipment shall, un!rns otherwise agreed in writing, become the property of LESSOR'. LESSEE will keep Equipment free from liens and encumbrances. The Equipment shall at all times and for all purposes, be consid ^red personal property, notwithstanding the manner or. mode,of its attachment to'real estate. If a certificate of title or registration is'reduired for any item of Equipment, LESSEE will Cooperate with LESSOR in obtaining Stich certificate.-or registration showing LESSOR'S ownership of that Equipment. 5. DEFAULT AND REMEDIES, If LFSSFC- fails to pay the r ^ntal or any other "sums when due; or if LESSEE defaults,fn or fails to perform day term,; or conditions; or if a tnt,tee is appointed for LESSEE or its prortrrty; or if LESSEE makes'anassignmertt for thr, benefit of creditors; or if LESSEE hecomes the subject of any procec( ling under the Bankntptry Act or h"rnnws in,61vent or attempts to ramove, sell, transfer, encumber, sublet or part with the possession of the Equipment or do any actor thing tending to impair the title of LESSOR (each of which is an. event of defatiltby LESSEE under .this Lease), LESSOR may: _ A. Proceed by appropriate court action or actions, either at law or in equity, to'enf.brce performance by LESSEE'of the applicable tetrris and conditions of this Lease or to recover damages for the breach of such terms and conditions; or 1 . . . B. Terminate this Lease, at which time all right, title and interest of LESSEE to or in the-Equipment shall terminate as though this Lease had never been made, and the following shall occur: all rents and other amounts due or to become due -under this Lease (the sum;of,which is called. "unpaid balance "f shall accelerate and become immediately due and payable withoiir notice or demand; LESSEE shall Immediately deliver possession of the Equipment to LESSOR and LESSOR may, with or without legal process or prior judicial hearing take possession of'and remove the Equipment; LESSOR may either retain the Equipment or may sell the Equipment at a public. or private sal.^ in accordance with the Uniform Commercial Code as then in•effect under applicable state law and apply the proceeds of such sale in accordance with -thy Uniform Commercial Code. If a deficiency results,- LESSEE will pay'the deficiency together with reasonable attorney's fees and other expenses incurred by LESSOR. C. The remedies f+rovicir_d by tltis'Agreement in favor of LESSOR shall he-cumulative and shall be in addition to all other legal or 0ditable remedies in accordance with the I lniform Commercial Code or other applicahle lav✓s. D: In any event, LESSOR may recover reasonable attorney's revs and Such expenses as Shall be expended or incurred i:n the collection oEany amount due, in the enforcemrn+ of ;toy other right 'or privilege, or in nny rem s ltation cr action in'conntction with any of the abover if not prohlbited'by appficable law. 6. REBATE. E::Cept ns otherwise provided on the face of th ^; t_rsr, upon prepa,,;ment in full or acceleration of the unpaid balance, LESSEE shall receive a rebate of the unearned portion of the finance charge, comp, trd in accordance with the Rule of 78's and sub;rct to any reasonable acquisition fee permitted by applicable law. A rebate. of less than $1.00 will riot be ma,! . 7. GENERAL, Time of ihr es.cnce'. h /aiver of any def .7u't I i n,_ vniv,;.,,r.y at" her dr.fault, l_ES50R'S.failurr to rrqutre strict prrforralace by'LESSEEInf any - provision Of tl,�:; I i r sha'I oaf diminish LESSOR'S r.,. ng ri ,hl td rcr.luirc'slrict perfor!`nailce of any provision. Any notice required to be given shall, be in writing &rt le l t; !�, other party at its art I.,—, ! on I:.� face of this Leose,'until eit!ter'givps.w4tten ttdtice crf a` different nddrrss:=Anv notice, prepay I -nil [ p :-ly ad 1! ! d.err ! t•' n +, ^ositecl in n U.S. Post Office. No obligation Of,LESSOR'shall survive 'any terminatipn of t (' r aril if 1 E ,17.79 [ ,•r:7 i r i •. t T, of r•r• ,yymrnt f:.cyond the specified Term, the obligations of LESSEE OIali covtinuri and Stich ptbrmisslvr i, °!1 rot br, r rn s c! I 'r' al r: t r a `,,,ivcr of at�y right or ront'nuation of .ny obligatibn,of LESSOR;fariq LESSOR may Like po e „io C r h Cqu o' i,_nt r; t +r i ' !. ; +,r cthcn ✓isn, exprres!y provtdra;'ih;, Lrc•se is ir'cevocahl ; fqr -its fulj term. if Try parr' of;this Lease is d. J s; :,I'ni., :! d. *h;: r:anai' d ^r w -;!! n I ; '•: ,,:. Les: C: (7 , f;S`` It;�h;dTEC TERMS AfwO CG'd %t i sFS LESSOR sells .fs t , • ^ ' ;r-`:w-,, all rinhi., !ide and i t;t in and fo the. Lease;, the Equipmrnt And all enta s and ot'., F,' Or retain, the righr ta ?� . rscn in the E;Iulomeiit: if the option to. `cF•a a is note p r i t c , .i h jr tern, ; r' in default, the Equipment ment sh l r ` +ort to LESSOR uptia full•performancrt by SCCE of _•' n T I r f ”' Or .ut;der S ^ction'5. LFSCn9 r, rrants the t_ras &'ts genuinr,`r olle t ble, ,rrr able, cant g „cr., ,., , ;' 1, •md i s and W'111 eontihue f+-rr: ..'n defens_s and offsets` ari signatflres, n_Irnes: ses, arno" t�trr�crr, in ih I t.,,,: t i, t I ; ,;rert; the F ;•_iipmenl ha- Lr:n dclivr.'red to 'the LESSEE 'In 'satisfactory ion and r; c fir i Lf_ ,1717; th:: 1. °se vu v of title to or first lien upon rh Ftl•.upmrrjt and all necessary;actioti has been acrordcrCr c,;'h my lirahle '.xv :,a +hat t' I I•• v `,! in the. Lr'nsF! is perfected anal e.f'er•tive against any poson., ✓Updn blr6lch bf any -love, I ESS�'? till c•i drniand r r t ' °a" ! u * rnving, plus all costs and e:<p­nses paid or; incin -reel by lhd.holdcr. LESSOR paymrr ; r. onw n is c'.:,tg fro;r. +r ; 4 L' an j covcrtants R default is made in payment af,any rental other amount due, . full an nrr i t,. n tmpaicl to Cf?C[l!T i g `; (nr t! r [<t ±rcr5ntagr. rcintingrnt li ild'ity stated ficf6w anti aroVed by Cre?litl $n thout rr.cluinng any proceedin(l a; ,t LE` Slit 1 .;',,r ct In the prtT✓isions of an 'underlying written agreement roilatihx 'to .the`IiE5SOR'S reta;! paper t:etween the LESSOR, and CR [)!T, :r ' r is r-ich an a{jrea'rnh rt). LESSOR shall be liable undo r LhG;puaradtLrr regardless of-any te—ion or variation of terms of the' Lease. LFSSCR evaives; notice of acceptance of_ this guarantee and ntp ril as of nonpayment• and e and waives any right of contribution from other sua-antors. / LESSOR MUST CONFIRil1 (OR ATTACH) TPE FOLIOWING: t ;i NON- MAINTENANCE LEASE AGRr�IIENT (Street Address) e (City) (State) agrees to lease to Z e9l N �L it�oTL address is -Ox (Street Address) (City) (State) (Lessor) whose address is (Zip Code) (Lessee) whose (Zip Code) and Lessee agrees to lease from Lessor, subject to the terms set forth below and upon the reverse side hereof, the following described motor vehicle, attachments and accessories, delivery and acceptance of which is hereby acknowledged in good order by Lessee, for a term of __L& months, commencing on the date of execution of this lease as shown below Car I Truck I Year Make Model Color Vehicle Identification No. Describe major Items oifAdditional equipment: N jn ,01.e e-r4/ �snj Ti+'O�f � �,a •,� �,,e_ VEHICLE USE: Lessee represents that this lease is entered into primarily for (check one) ❑ Personal, family, household Business or commercial use or agricultural use; TYPE OF LEASE: Refer to TERMINATION & DEFAULT Provisions on reverse side (check one) ❑ Closed -End; )� Open -End LESSEE LIABILITY DISCLOSURE: (Must be completed if this is an open -end lease) 1. ORIGINAL VALUE OF VEHICLE ......................................................... .............. ......._.....____ __........._. 1 2. CASH DOWN PAYMENT Credited Against Original Value (Prepaid Depreciation) ................................... ............................ - ................................. ............................ 2 $ 3. NET TRADE -IN Credited Against Original Value (Prepaid Depreciation) (Complete for both open and closed -end leases ) .............................. 3 $ 4. NET ORIGINAL VALUE (Item 1 less Items 2 and 3) ................................... ................................ _ ......... _...._._ ... _.............................................................................. 4 5. AGREED DEPRECIATED VALUE OF VEHICLE at the completion of the originally scheduled term of this lease. The agreed depreciated value of the vehicle will be compared to the net amount received from the sale of the returned vehicle at wholesale upon lease termination to establish the amount of Lessee deficiency or rebate. The MAXIMUM LESSEE LIABILITY for deficiency shall be established in accordance with the NORMAL LEASE TERMI- NATION provisions on the reverse side. In the event of default or premature lease termination the MAXIMUM LESSEE LIABILITY shall be determined in accordance with the DEFAULT or PREMATURE LEASE TERMINATION provisions on the reverse side ..................................................... .............................._ 5 6. TOTAL AMOUNT OF FIXED MONTHLY RENTALS FOR THE FULL LEASE TERM TO BE CREDITED AGAINST ORIGINAL VALUE (Depreciation Included in Fixed MonthlyRental Charges —Item 4 less Item 5) .................................................................................................................................................... ............................... 6 6A. TOTAL AMOUNT OF FIXED MONTHLY RENTALS NOT TO. BE CREDITED AGAINST ORIGINAL VALUE (Item 7A less Item 6) ..............6A $.Jq�2� Total of Monthly Monthly SUMMARY OF MONTHLY CHARGES Charges for Lease Term Charges 1. FIXED MONTHLY RENTAL CHARGES ..__.. .._.__ ..__. _ __._.._.__ .... ................._............_.. ......._............._.._...... 7A $ 7 3% 7 $ /9S • �9 8. SALES OR USE TAX ............ _ ............ _ ..... .......... ...................................... _ ............. _. ................. .............. ...................................... 8A $ 8 $ 9. BODILY INJURY AND PROPERTY DAMAGE INSURANCE CHARGES ........................................................................... ............................... 9A $ 9 $ 10. PHYSICAL DAMAGE INSURANCE CHARGES (Collision and Comprehensive) ...................................................... ............................... 10A $ 10 $ 11. OTHER INSURANCE (describe) ............................................ _ ................ ....................................................................... .......................... 11A $ 11 $ 11. TOTAL MONTHLY RENTAL PAYMENT (sum of Items 7, 8, 9, 10, and 11) ............................................................ .................. ............. 12A $ 12 $ m'4' CASH DUE UPON DELIVERY 13. TOTAL MONTHLY RENTAL PAYMENT (For 1st Month —Same as Item 12) ....................... 14. DEPOSITS: LEASE SECURITY: 14A $_ a ; INSURANCE: 14B $ 15. INITIAL TITLE, LICENSE, AND REGISTRATION FEES _ ... _ .................. ......._....................... 16. CASH DOWN PAYMENT (if any —same as Item 2) .............................. ............................... 17. SALES OR USE TAX (if levied upon Cash Down Payment, Trade -In or Vehicle) ........ -_ .... 18. TOTAL CASH CHARGES DUE UPON DELIVERY (sum of Items 13, 14, 15, 16, and 17) ..... Cash Due Upon Delivery 13 $ /�%S,44 14 $ -2 Zan0 15 $ 16 $ 17$ 18$ TOTAL LESSEE CHARGES FOR LEASE TERM Charges for Lease Term 19. TOTAL AMOUNT OF PAYMENTS TO BE MADE BY LESSEE (sum of Items 3, 12A, 15, 16 and 17) EXCLUSIVE OF SECURITY DEPOSIT AND ANY TERMINATION LIABILITY OR EXCESS MILEAGE CHARGE WHICH ARE DESCRIBED SEPARATELY AND. SUBSEQUENT LICENSE AND REGISTRATION FEES WHICH ARE BILLED SEPARATELY ANNUALLY ...................................................................................................._.......................__........ .................._..___......_ 19 $ J©.�,ZZV 20. EXCESS MILEAGE CHARGE: This lease grants the Lessee the right to drive this vehicle for as many as �'Sr(��00 miles during the full term of this lease without incurring a charge for excessive mileage. In the event of premature lease termination the number of miles that the Lessee will be entitled to drive without incurring a charge for exces- sive mileage will be determined by pro- rating the mileage allowed for the full lease term according to the proportion of tt a full lease term represented by the number of months the lease was in effect prior to premature termination. The Lessee will be billed for excessive mileage at a rate of _- cents per mile for each mile driven in excess of the mileage herein allowed. DESCRIPTION OF INSURANCE COVERAGE OBTAINED BY LESSEE tBodily ✓`�L� LL C /-F- ereln Lessee affirms that at his own expense Lessee has obtained insurance coverage independently of the Lessor which meets the insurance requirements set forth h and that HLessee agrees to maintain such coverage at Lessee's own expense for the full term of the lease. The insurance coverages provided by the Lessee's policy(s) are as follows: Injury and Property Damage: Coverage Limits Policy No. f Insurance Carrier: £Sdt� �� %Y��f ,cff�.f� �� Insurance Agent: n Deductible Amt. Comprehensive: Deductible Amt. Policy No. f Insurance Carrier.. Insurance Agent: INITIAL CHARGES FOR INSURANCE COVERAGES WHEN OBTAINED BY LESSOR HERE Lessee requests that the Lessor attempt to procure for the Lessee insurance coverage which will provide for the coverage limits and deductible amounts specified. The * Lessee agrees to remit the charges, as shown above in Items 9, 10 and 11, for insurance coverage to the Lessor together with and in addition to the fixed monthly rental charges. The Lessee agrees to pay any increase in insurance premiums as may be approved by any state in order to maintain the insurance protection requested by the Lessee during the term of this lease. The insurance coverages requested by the Lessee and provided in this lease are as follows and as shown in Item 11. ADDITIONAL,- PROVISIGNS 22. LATE CHARGES: Time is of the essence of this lease. If any payment is not paid within 10 days after it is due, a charge of 5% of the unpaid instalments will be payable by the Lessee together with reasonable collection costs, including attorney fees and legal expenses incurred by Lessor. 23. DEPOSITS: (a) Lease Security Deposit —The lease security deposit (Item 14A) shall be applied to any loss suffered by Lessor which is occasioned by Lessee default, abuse of the vehicle, and /or applied against any due unpaid late charges. In the case of an open end lease the lease security deposit may also be applied against any Lessee deficiency that may arise under the terms of the DEFAULT and TERMINATION provisions of the lease agreement. If the Lessee fully performs under this lease, then the lease security de- posit shall be returned to the Lessee at the time such performance is completed. (b) Insurance Deposit —The insurance deposit (ITEM 14B) shall be remitted to the insurance carrier who shall retain it for the full term of the lease. If the Lessee fully performs under this lease, then the insurance deposit shall be returned to the Lessee at the time such performance is complete. In the event that the insurance coverage requested by the Lessee and procured by or provided by the Lessor is cancelled as a result of the Lessee's premature termination of the lease; the Lessee's request to cancel the insur- ance coverage; or Lessee default and /or non - payment of insurance premiums when due; then the insurance deposit shall be applied to any Lessee insurance deficiency which may arise from such cancellation of insurance coverage. 24. INSURANCE: Lessee shall at all times and at his sole expense obtain and maintain an insurance policy on the vehicle which provides liability insurance in the amounts of et least $100,000 for any one person for injury or death, $300,000 for any one accident for personal injury or death and $25,000 for property damage if the leased vehicle is an automobile or $50,000 for property damage if leased vehicle is a truck, and Uninsured Motorist Coverage. Such coverage is to be provided by a policy from an insurance company satisfactory to Lessor and the policy shall also name the Lessor as additional insured. Lessee shall at all times and at his sole expense also keep vehicle insured against all loss, damage or destruction due to fire, theft and physical damage. The deductible amount Is not to exceed $100 for collision nor $50 for comprehensive coverage. Such coverage is to be provided by a policy from an insurance company satisfactory to Lessor and the policy shall contain a standard loss payable clause under which such insurance shall be payable in case of loss to Lessor and General Motors Acceptance Corporation as their interests may appear. Lessee shall provide and pay for any other insurance or bond that may be required by any governmental authority as a condition to, or in connection with, Lessee's use of the vehicle. Lessee shall furnish Lessor with satisfactory evidence of the above insurance. If any mutually approved carrier refuses to issue any insurance herein required or if the Lessee fails to maintain such insurance, or if such insurance is cancelled or suspended, the Lessor, at his option, may terminate this lease and take possession of the vehicle which will be disposed of as hereinafter provided, or the Lessor may elect to attempt to procure such insurance for the Lessee. In the event that the Lessor procures such insurance the Lessee agrees to pay as an additional paVt of the obligation under this lease agreement an additional charge equal to the premium together with ipterest. In the event the vehicle is involved in an accident, damaged, stolen or destroyed by fire, the Lessee will notify Lessor, in writing, within 24 hours and will also comply with all terms and conditions entered in the insurance policies. The Lessee agrees to cooperate with the Lessor and the insurance companies in defending against any claims or actions resulting from the Lessee's operation or use of the vehicle. This vehicle shall not be used by any person, in any manner, or for any purpose that would cause any insurance herein specified to be suspended, cancelled, rendered inapplicable or increased in cost. 25. MAINTENANCE AND REPAIRS: Lessee shall pay for all maintenance and repairs to keep vehicle in good working order and condition and will maintain the vehicle as required to keep the manufacturer's warranty in force. The vehicle will be returned at the end of the lease period in good condition, reasonable wear and tear excepted. 26. REGISTRATION, LICENSE, EXPENSES, FEES, TAXES AND INSPECTION: Lessee shall pay all expenses incurred in the use and operation of the vehicle, including license, registra- tion and title fees, gasoline, oil, antifreeze, repairs, maintenance, tires, storage, fines, inspections, assessments, sales or use taxes, if any, and all other taxes as may be imposed by law from time to time, except those levied on the net income of the Lessor. Lessee will reimburse and hold Lessor harmless for any and all amounts Lessor may pay in satisfaction, release or discharge thereof. Lessee shall permit Lessor and its designees to inspect the vehicle at reasonable times, places and intervals. 27. DELIVERY AND LOSS OF USE: The Lessor shall not be liable for any failure or delay in delivering the vehicle or for any loss of business attributable to the loss of use of the vehicle. 28. VEHICLE USE: Lessee shall keep vehicle free of all taxes, liens and encumbrances and any sum of money that may be paid by Lessor in release or discharge thereof, including legal costs, shall be paid on demand by Lessee. Lessee shall not use vehicle illegally, improperly or for hire and shall not remove vehicle outside the United States or Canada. Vehicle shall not be altered, marked or additional equipment installed without the prior written consent of Lessor, in which case Lessee will bear the expense of restoring vehicle to its original condition. 29. TITLE: Lessee acknowledges that this is an agreement to lease only and title to the vehicle shall at all times remain in Lessor. Lessee covenants and agrees not to assign this lease without the prior written consent of Lessor nor do any act to encumber, convert, pledge, sell, assign, re -hire, lease, lend, conceal, abandon, give up possession of, or destroy the vehicle. 30. NORMAL LEASE TERMINATION AT THE END OF THE SCHEDULED TERM (a) Open -End Lease— Immediately upon the termination of this lease, the Lessee shall return the vehicle to the Lessor at the address hereinbefore mentioned and Lessor shall sell the vehicle at wholesale in such commercially reasonable manner as Lessor shall determine. If the net amount received from such sale is more than the Agreed Depreciated Value of'Vehicle (ITEM 5), Lessor shall pay such excess to the Lessee. If the net amount received from such sale is less than the Agreed Depreciated Value of Vehicle (ITEM 5) the total amount of such deficiency shall be paid by Lessee upon demand to the Lessor with the understanding that only if this vehicle is leased primarily for personal, family, household or agricultural use and only if this vehicle is returned at the end of the full lease term, that the maximum amount of such deficiency shall not exceed two times the amount of the Fixed Monthly Rental Charges (ITEM 7). This deficiency limitation does not apply to charges for damages to the leased vehicle or for other default nor does it apply to vehicles leased for business or commercial use. The "net amount" received from the sale of the vehicle as used in this lease shall be defined as the sale price of the vehicle less all direct expenses of the Lessor incurred in selling, preparing and holding the vehicle for sale and less all debts incurred by Lessee which if not paid, might constitute a lien on the vehicle or a liability to the Lessor. (b) Closed -End Lease— Immediately upon termination of this lease the Lessee shall return the vehicle to the Lessor at the address hereinbefore mentioned in good condition and if all terms and conditions of this lease have been complied with, neither party shall have any further obligation to the other. 31. PREMATURE LEASE TERMINATION: It is intended that this lease will run for the full term specified on the preceding page, however, should unforeseen developments arise, the Lessee may elect, at his option, to terminate at any time after the first six months providing that Lessee is not in default, by giving the Lessor at least 30 days prior written notice of his intention and by return of the vehicle to the Lessor at the address hereinbefore mentioned. In the event of premature termination, if insurance has been procured by or provided by the Lessor, the provisions of the insurance policy(s) will define the Lessee's liability for insurance premiums. Lessee liability to the Lessor for vehicle rentals in the event of premature lease termination is defined according to the type of lease as follows: (a) Premature Termination Liability — Open -End lease: The Cash Down Payment (ITEM 2) together with the Net Trade -in (ITEM 3) constitute prepaid depreciation which will be credited against the Original Value of the Vehicle (ITEM 1) at lease inception. The portion of the Total Amount of Fixed Monthly Rentals NOT To Be Credited Against Original Value (ITEM 6A) will be earned by the Lessor according to the "Rule of 78." The earned portion of the Total Amount of Fixed Monthly Rentals NOT To Be Credited Against Original Value will be subtracted from the sum of all the Fixed Monthly Rental Charges (ITEM 7) paid by the Lessee to the Lessor up to the point of lease termination to establish the amount of the depreciation credit against the Original Value of the Vehicle (ITEM 1) to which the Lessee will be entitled based upon the Fixed Monthly Rental Charges which he has paid. The depreciation credit calculated in this way together with the prepaid depreciation based upon both the Cash Down Payment.(ITEM 2) and the Net Trade -in (ITEM 3) will be subtracted from the Original Value of the Vehicle (ITEM 1) to, establish the Maximum Amount of Open End Lessee Liability in the event of premature lease termination. The Lessor shall sell the vehicle at wholesale in such commercially reasonable manner as Lessor shall determine. If the net amount received from such sale is more than the Maximum Amount of Open End Lessee Liability in the event of premature lease termination as set forth in this paragraph, Lessor shall pay such excess to Lessee. If the net amount received from such sale is less than the Maximum Amount of Open End Lessee Liability in the event of premature lease termination, the total amount of such deficiency shall be paid by Lessee upon demand to Lessor. (b) Premature Termination Liability — Closed -End Lease: In the event of premature termination of a closed -end lease the Lessee shall be responsible for an amount equal to the total amount of unpaid Fixed Monthly Rental Charges (ITEM 7A) for the remaining months of this lease and this total amount shall be payable according to the original pay- ment schedule except that if the Lessee is in default with respect to the originally agreed upon payment schedule this total amount will become due and payable to the Lessor upon demand. 31. DEFAULT: In any of the following default events, viz, (1) default in any payment due hereunder, (2) failure to comply with any of the terms or conditions hereof, (3) a proceeding in bankruptcy, receivership or insolvency is instituted by or against the Lessee or his property or the Lessee makes an assignment for the benefit of creditors, or (4) the Lessee fails for any reason to comply with the insurance requirements of the lease or said required insurance is cancelled prior to the expiration of this lease, the Lessor shall have the right, at his election to sue Lessee for damages or to terminate the lease and in such event Lessor may take immediate possession of the vehicle without demand and for this purpose may enter upon the premises where the vehicle may be and remove it. Lessor may take possession of any property in the vehicle at time of repossession, if such other property may be therein, and hold same for Lessee at Lessee's risk without liability on the part of the Lessor, Lessee to be liable for any charges for storing such property incurred by Lessor. In the event of repossession, the Lessor shall have the rights and remedies as provided and permitted by law and shall dispose of the vehicle In such commercially reasonable manner as Lessor shall determine. The maximum amount of Lessee liability and any associated deficiency or rebate shall be established on the same basis as would have been applied had the Lessee himself voluntarily elected to terminate the lease prematurely as of the date of repossession as herein provided for in the PREMATURE LEASE TERMINATION provisions. Any deficiency or rebate, so determined for open or closed end leases will be in addition to any excess mileage charges; damages, or other remedies herein provided. December 9, 1982 TO: Richard D. Blodgett, Town Manager FROM: William D. James, Finance Director!✓ SUBJECT: 1) AUTHORIZATION TO LEASE 3 PATROL CARS 2) AUTHORIZATION TO PURCHASE 3 MOBILE RADIOS ITEM 1 Authorization to Lease 3 Patrol Cars. Bob Wilcox and I have been reviewing the feasibility of reducing our costs for maintenance and operation of the Town's patrol cars. Basically, in the acquisition of Patrol Cars there are 3 options available: A) Cash B) Lease Purchase C) Straight Lease A) Cash: With other financing methods available today cash is not an appropriate source of funding equipment purchases of this type. Also, the budget impact in anyone year ($25,000 to $30,000 in this case) could impact other programs or result in delaying other necessary capital expenditures. B) Lease Purchase: The Town has used this method of financing in the past and is an appropriate method where the life of the vehicle either equals or exceeds the financing period. A good example is the Oshkosh. The payment period is five years, whereas the life of the vehicle is over 20 years. C) Straight Lease: The straight lease method is appro- priate in cases for short term vehicle use, less than three years, with a residual value at the end. For example, a lease purchase for a Buick Skylark would cost approximately 350 per month, whereas a straight lease would cost $200 per month. The difference comes into play in the value of the vehicle left at the end of the lease. In this case, the following situation would apply: Richard D. Blodgett Lease 3 Patrol Cars and 3 Mobile Radios December 9, 1982 Page Two Price of the vehicle is $8,850, but the financing amount of the lease agreement would be $5,700 for principal over three years. At the end of the lease period, the vehicles would be released back to the dealer and three new vehicles would be leased. Also, at the end of the lease period the Town would have the option of purchasing the vehicles at a specified price, but I do not foresee this happening on police vehicles. Presently, the Town has 8 police cars. Two of these are in fairly good shape with low miles. The other 6 vehicles require high maintenance and have high mileage. We are recommending the following occur: 1) Retain the two good vehicles. 2) Retain the 4 wheel drive vehicle. 3) Sell the remaining 5 vehicles. 4) Purchase three new Buick Skylarks. This will reduce our fleet by two vehicles. We have estimated the first year cost reduction in the 1983 Budget to be as follows: $ 500 For tires 500 For parts 3,500 For gasoline (V -6 engines with front wheel drive) 4,000 Maintenance $8,500 Cost reduction $7,200 Lease payments ($200 /month /vehicle) $1,300 Net savings first year Not only should the dollar amount of savings be considered, but also the safety factor in driving emergency vehicles with over 100,000 miles. We are also estimating to receive approximately $2,000 to $2,500 from the sale of the five vehicles. /+3\ Richard D. Blodgett Lease 3 Patrol Cars and 3 Mobile Radios December 9, 1982 Page Three r� ITEM 2 Authorization to Purchase 3 Radios. We are requesting at this time to be authorized to purchase 3 radios as provided for in the 1983 Budget. These radios have sufficient power to cover all areas of the Town including Wildridge. These radios will be used in the three new police cars. Only two other police cars currently have mobile radios of this quality (5 watt to 100 watt). These radios we will be purchasing will be procured off the State Bid List at a unit cost of $1,191 each plus $150 for installation or a total cost of $4,023 (amount budgeted for 1983 $4,000) Recommendation: That the Town staff be authorized to lease three 1983 Buick Skylarks through Hascall Haines, Inc. of Salida, Colorado, and that appropriate documents be prepared and presented to the Council at its January 11, 1983 meeting and upon approval of such lease that the Town staff is hereby authorized to purchase three radios off the State Bid Prices in an amount not to exceed $4,100. WDJ:lp cc: Bob Wilcox Linda Halverson