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HomeMy WebLinkAbout98-132Resolution No. 98- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND AUTHORIZING THE CITY CLERK AND PEG COORDINATING COMMITTEE TO AWARD CONTRACTS FOR IDENTIFIED CAPITAL EQUIPMENT LEASES (WITH OPTION TO PURCHASE) FOR THE PEG ACCESS STUDIO The City Council of the City of Port Townsend, Washington, does resolve as follows: WI-IEREAS, the City of Port Townsend is in the process of establishing and operating a Public, Education and Government (PEG) Television Access Studio located at the Port Townsend High School; and WHEREAS, the PEG Coordinators have worked with the PEG Access Coordinating Committee to develop an equipment list for setting up the PEG access production, editing, and broadcast studio (Attachment A); and WHEREAS, for leases subject to bidding law requirements, the City has followed the "competitive negotiation" process authorized by RCW 39.04.270, and advertised for two weeks (from 11/25/98 to 12/2/98) in the Port Townsend Jefferson County Leader requesting bids for leasing the telecommunication equipment listed in Attachment A; and '~qqEREAS, the City received two bids: one from Troxel Industry, PhOenix, Arizona and the other from Professional Video and Tape, Seattle, Washington; and WI-IEREAS, both bids were price competitive in dollar amounts and identical in all other criteria set forth in the Request for Proposal with the exception of criteria No. 5 (on-site warranty contract and technical support from vendor); and WHEREAS, the PEG Committee recommends the bid be awarded to Professional Video and Tape because they are a local company with an excellent reputation for technical and administrative support for their clients; WHEREAS, the City Council desires to lease the equipment listed in Attachment A under the terms set forth in the Lease Agreement in the amount of $34,887.75, with bi-annual payments of $4,019.17 for a five-year term; and WHEREAS, the PEG Coordinating Committee has also recommended approval of equipment lease for a Grass Valley 110 Switcher, in the amount of $6,178.00, with bi-annual payments of $1,545.00 over a term of two years, which contract the City Clerk previously signed as authorized by Resolution 95-93 (which allows department heads to authorize expenditures up to $7,500); and 1 Res. 98- /3~ WHEREAS, the PEG Coordinating Committee has recommended approval of an equipment lease for an automated tape playing system, in the amount of $5,973.00, with bi-annual payments over a term of three years; and WItEREAS, all of these purchases are within budgeted capital funds, as projected by the .45¢ per-month, per-subscriber fee revenues; and WHEREAS, the City Council desires to delegate authority to the PEG Coordinating Committee to authorize further lease arrangements for future capital equipment purchases for the PEG studio, not to exceed $20,000.00, NOW, THEREFORE, BE IT RESOLVED, by the City Council for the City of Port Townsend as follows: 1. The City clerk is authorized to sign the attached Associates Commercial Corporation Equipment Lease-Purchase Agreement for $40,191.70 (principal, plus interest) in substantially the same form as attached. 2. The City Council hereby ratifies the purchase of the Grass Valley 110 Switcher in the amount of $6,177.96 (principal, plus interest). 3. The City Clerk is authorized to sign a similar lease agreement for the automated tape playing system in the amount of $5,973.00 (plus interest). 4. The PEG Access Coordinating committee is hereby authorized to approve, and the City Clerk is authorized to sign, further lease arrangements for future capital equipment purchases for the PEG studio, not to exceed $20,000.00. ADOPTED by the City Council of the City of Port Townsend and signed by the Mayor on this 21st day of December, 1998. Julie McCulloch, Mayor Attest: Approved as to Form: Pam Kolacy, City'Clerk ~ , City Attorney Attachment: Attachment A, Associates Commercial Corp. Equipment Lease Purchase Agreement, w/Attachment 1, WCIA 12/15/98 Evidence of Coverage (18 pgs) 12/16/98 CA§Res{PEGequip.res} 2 Res. 98- /3 :~ ASSOCIATES COMMERCIAL CORPORATION Pert Townsend, City of 540 Water Street Port Townsend, WA 98368 Subject: Equipment Lea~e-Purchsse Agreemonl: Lessee: Port Townsend, City of,WA Dear Para Kolacy: The Lease documentation far tJ~e equipment beino acquired i$ en¢iosed, P~ease review for accurBcy, execute where indicated by each "Red X'~, and then return along with pa~/ment {if required) to the address below: · Lease/Purchase Agresment ~ Please oxecuto. Opinion et Counsel - Please have your attorney execute, OR return with the executed documents, a photocopy of the minutes of the Board meeting or Board R~solution i~l which the purchase el~ ih9 equipment was approved, Scheduto A, Equipment Description - Please execute, Schedule B, Payment Schedule - Please review, Schedule C, Delivery and Acceptance Certificate - The documen~ should be returned only upon final delivery and acceptance of the equipment. Associates will pay the. vendor/supplier upon receipt, Please execute and indicate the date the equipment was accepted, Incumbency Certificate - Please have completed by the Governing Body members authorized to en'.'er into the Lease on behalf of your organization. Then have "Keeper of the Record," such as the Secretary, execute. · 8038-G/GC - Please complete/veri~y item 2, your Federal ID Number,' review ~or accuracy and execute. ' UCC-1 - Uniform Commercial Code filing f~ Page 2 December 1 5, 1998 · Insurance Fact Sheet - Complete and return with the documents · Fact Sheet - Please complete and return with documents for proper account/payment processing. · Essential Use Letter - Please copy this letter onto your letterhead and properly execute. · Tax Exemption/Resale Certificate - Please enclose a photocopy, if available. Please return all of the documents with original signatures to me at: Associates Commercial Corporation 333 W. Pierce Road, Suite 200 Itasca, IL 60143-1247 Attn: Alvina Olson Also, please remit to my attention at the address given above a check for $ 4.169.17 made payable to Associates Commercial Corporation. This represents the first payment deposit plus the $ 150.00 documentation fee. An invoice is enclosed for your convenience. If you have any questions, please call me at (800) 526-8638. Thank you for doing business with The Associates. Sincerely, Stacy Leavitt Credit Specialist /tim Enclosures r EQUIPMENT LEASE-PURCtIASE AGREEMENT Lc~se¢: (Name and Address) Port Townsend, City of Assoc!ates Commercial Corporation 540 Water Street 333 West Pierce Road, Suite 200 Pon Townsend~ WA 98.368 Itasca~ IL 60143.1247 Lessor agrees to lease to Lessee and Lessee agrees to lease from Lessor the Equipment described in Schedule A attached hereto ("Equipment") in accordance with the following terms and conditions of this Equipment Lease-Purchase Agreement ["Lease'*), TERM. This Lease will become efi~ctive upon the execution hereof by Lessor. The term of this Lease will commence on the first Lease Payment Date ("CommencementDate")pursuantto Sccfiou2 hereunder and, unlessearlicr terminated as expressly provided for in this Lease, will c,antinue until he payment of'all Lease Payraenlsand all other amounts anihorizedor required to be paid ~' Lessee hereunder with respect to the Equipment (the "Leas~ Term"). RENT, Lessee agrees to pay ~o Lessor or its assignee the Lease Payments, includin8 the interest I~ortion, equal to the amounts specified in Schedule B. The Lease Paynlents will be payable without notice or demand at thc office of Lessor (or s'~:¢b other place az Lessor or its assiguee may t¥om time to dine designatein writing), and will co~ee o~ Ih~ first Lease Payment Dale as scl fo~h In Sch~ule B and t~reaRer on t~e subsequent dates set forth in Schedule B, Any payments received later than ten (10) days [Y~m th~ d~e d~ will b¢~ interest at th~ hlghcst lawful rate the dug date. Except as spccificallyprovMcd in Section 6 hereof, thc ob{igation of Les~c to make tee Lease Paymcnls he.under and perform all of its o~cr obligalions hereunder will b~ absolute and unconditional in all events and will not be subject to any setoff, defense, counterclaim, or ~¢¢oopmeat %r any re.on whatsoever including, wi~o~t limitation, ~y failur~ cf Ihs Equipment to bo delivered or iflstallcd, nay matfunelion~breakdownsor [nfirmitiesin thc Equipmcntor any acctd~nt,¢ondcmnadonor unf~caccn ~ircumstmcgs. L~¢~ r~nabiy that ~nds can be obtained su~cient to make a~l Le~c Paymcn~ during the Le~e Term and hereby cevenmls thai it ~¢11 do alt things lawMlly within its power to obtain, maintain ~d properly requ~t and pursue funds from which the Leto Paymc. t$ may be ma~o, iocluding making provisions for such payments to th~ extent ncccss~ ia cash budg~l submitted for th~ purpose of obtaining fundin~ using itu bona fid~ best e~bRs ~ have such ~flion of the budget approved and ¢xhnustingall availablead~iMstrativergvicws md appeals in the event such ~flJon of ih¢ budget is not approve, It is L~¢¢'s intenl to make Lease Payments for the full L¢~ %rm if iliads arc legally availablethcreforand in that ~g~d repr~ntsthat th~ use oft~ Equi~¢ntis essential to its proper, ¢~¢ient and economi~ o~{afioa, Lessor and Lessee uedemtand and intend that the obligaliono fL~see to pay Le~e Payments hereunder shall constitute a current expen~ of Lessee and shall not in a~y wsy b~ ¢onslru~ to a debt of Lessee in ¢o~travenlion o f anr appli¢abl¢ ¢oast[tutional or statuto~ l imitalion or requi~¢~nent con<era[ag ~¢ ¢reafon of indebtedness by L¢~¢¢, nor 5hall anything conta~n~ he. in constitute a ~ledg~ ofth~ general t~x ~venu~. ~flds or monies of Les~. DELIVERY AND ACCEPTANCE. Lcascz~ or if Lessee so requests, Lessor, will cause the Equil~mcnt to b~ delivered to Les.~e at the Ioc~'~tion specified iq Schcdu{eA (~'Equipment Location"). Less¢~ will pay all transportationand other eost5~ if say, |neurred in connection with the delivery and installati on of the Equipment Lessee will accept th~ Equipment as soon as it. ho.,~ been delivered and inspected, Less¢~ will er[donee its acceptaneeofthe Equipment b)' executing and deliveringto Lessor a Delivery and Acceptance Certificate aa set ~orth in Sc~edaleC attached hereto, (or other s'ach form ~ acceptable br Lessor, ~pon delivery of the Equipment. DISCLAIMEROF WARRANTIES. Le..~ee aeknowledgesand agr~s that the Equipment is of a size, design and capacity selected by Lessee, that Lessor is neither a mar, ufacturernor a vendor of such equipment, that LESSOR LEASES AND LES.SEE 'FAKF_ S TIIE EQUIPMENT AND PART THEREOF "AS-IS" AND TIlAT LESSOR }lAS NOT-MADE, AND DOES NOF HEREBY MAKE, ANY REPRESENTATION, WARP. FIN'FY, OR COVENANT, EXPRESS OR IMPLIED. WITH RESPECT TO THE MERCllANTABILITY, CONDITION, QUALFFY, DURABILITY, DESIGN, OPEILATION, FITNESS FOR USE, OR SUITABILITY OF TI IE EQUIPMENT IN ANY RESPECT WI-IATSOEVER OR IN CO,WNECTION WITH OR FOR THE PURPOSES AND USES OF LESSEE, OR AS TO THE ABSENCE OF LATENT OR O1HER DEFECTS~WHE'i IIEROR NOT D[SCOVERABLE,OR AS TO THE ABSENCE OF ANY INFRINGEMENTOF ANY PATENT, TRA DEMAP.~ OR COPYRIGIL'I, OR AS TO ANY OBLIGAT[ON BASED ON STRICT LIABILITY IN TORT OR ANY OTHER REPRESENTATION, WARRANTY, OR COVENANT OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, WiTH RESPECT TIIERETO, IT BEINO AOREED THAT ALL RISKS INCIDENT THERETO ARE TO BE BORNE BY LESSEE AND LESSOR SI IALL NOT BE OBLIGATED OK LIABLE FOR ACTUAL, INCIDENTAL, CONSEQUENTIAL, OR OTHER DAMAGES OF OR TO LESSEE OR ANY OTHER PERSON OR ENTITYARISINOOUT OF OR iN CONNECTIONWITH TIlE USEOR PERFORMANCEOP TIlE EQUIPMENTAND THE MAINTENANCE THER EOF. Lessor hereby assigns to Lessee during the Lease Term, so long as no Event of De~ult has occurred hereunder and is continuing, manufactarer'swarranties, if any, c×prcsscdnr implied w{Ih respect to Ibc Eciuipmcnl, and Lessor ~aulhorizesLcssc¢ to obtain thc customary services £umis/led in connection with such warranties at Lessee's expense. Lessee':: sole remedy for lhe breach ofan¥ such manufa¢lul'er'$ warranty shall be against ff~ m~nufacturer of tho Equipment, and not against Lessor, Lessee expressly aeknowl~xlg¢~ that Lessor make, and has made, no representations or warra~tlcs whatsoever as to th,~ existence or thc availabiliD' of' such ~arranlie~ of thc manufacturer of the Equipment, Page 1 RETURN OF EQUIPMENT. Unless Lessee shall have exerdsed its purchase option as provided in Section 20 hereof, upon the expiration or eca'l terminationof 0tis Lease pursuit to ~he terms hereof, Lessee shall, at its ~lecxpc~ but at Lcssct's oplloa, return thc Equipment to Lessor to a~y I~ation in the continental United State~ d~igna~ by Le~or, 6. NON-APPROPRIATIONOF F~DS;NON-SUBSTITUTION.Nolwi~h~din8 anything co.tattled in ~his Lc~e to the coatr~, ia th~ event funds or inefficient funds are ~ppropriatcd ~nd budget~ or ~o othe~ise unavailable by any means ~hatsoever in ~y fiscal period for Le~e Paymenlsdue under this Le~e, Lessee will immediately notify Lessor et its ~signee in writing of such oeeur~nce and lhls Leto shall on the l~t day of the fiscal period for which appropriates have b~n received ~r made without penalty or expense to Lesse~ except ~ to (1) the portions of Lea~ Payments he. in agreed upon tot which funds shaB have been appropriated and budgeted or ~re othe~im available and (ii) Lessee's ot~t obligallons and liabilities under ~is Le~e relating to, or accruing or arising prior to, such termination. In ~e event of such ie~ination, Lessee agrees to ~aceablysurrender possession of ihe Equipmenlto Lessoror im a~ignee on the date of such t~tnation in the ma~n~ set ffo~ ia Section 5 hcrcofa~ Le~or will have all legal ~ equit~le rights and remedies to tak~ ~sse~ion of the Equipm~t, Notwithstmdin8 the foregoing, Lessee ag~es (I) that it will not c~cel this L~ and this Le~e shatl ~ot terminate under the pmvision~ of this Section it any funds ~e appropriated to it, or by it, tot the acquisition, retention or operalioa of the Equipment or olher equipment or services performing ~nctlons stmil~to the tumtionsotthe Equipment tot thc fis~l ~fiod in ~hlch such rumination would h~ve otherwise occurred or for ~e next succeeding fiscal ~riod, ~d (ii) that it will not during the Le~e Term g~ve priori~ tn ~e application et fimds lo an~ olh~ functionally similar equipment or to ~ices ~ttormlng functions similar to the functions of the Equipment. This s~tion will no~ be constr~d so as to ~rmit Less~ to resinate this Leme In order ta purchase, Ieee, rent or othc~isc acquire the use otmy olhcr equipment or services performin8 functions similar to the tunctions ofthe Equipment, and, iff ~is Leme terminates pu~antto ~is Section, Lesse~ agrees that during the fiscal period immediately following the fi~al period ia which such termination occurs it will not so ~reh~e, leme, rent or otherw~s~ acquire the use oFany such other equipment or senices. REPRESENTATIONS, COVENANTS AND WAR~NTIES. Les~e rcprc~ent~ eovenant~ ned warrant~ ~ et the date hemof~d at all times cluing the Le~e'Fe~ thut: (I} Lessee is a state or a fully constituted political subdivisiomhereof, or its obllgationsh~cun~cr consfi~te obligations i~ued on b~alfofa staleor a political subdivislonthereof, such ~at any intere~ derived under thi~ Lease will quali~ for exemption from Federal inc~e t~es under scetlon 103 of the Internal Revenue C~e of 1986, m ~ended (the "Code"~ ~md that tt will do or c~se to ~ done all lhings ne~ssa~ to pre~e and keep in full force and effe~ (a) its existence and (b) this Lease; (ii) the cxecution.dclive~ and ~ffo~ance by the Lcsse~ of~is Lease and all doeument~ executed in connection herewith, including, without limitation,Schedule A hereto ~d t~ ~live~ md Acceptance Certificate re~e~d to ia Section 3 hereof (the Le~ together wi~h ali ~eh documents shall be collectively referred to herein ~ the "Lease Docum~ts")have ~en duly authorized by all n~css~ action on the ~ o~the Lessee; (iii) the Lease ~cuments each constitul~ a legal, valid and binding ~ligalion ortho Lcssce ~foreeable ia me~d~ce with their msp~tive terms; (iv) no additional governmental orde~ ~rmissions. consent~pprovalsor authorizatlons~ requited to be obtained and no registrations or declarations am ~qulr~ to be filed in e~n~tion with the execution md deiive~ of the Le~e Documents; (v) L~ee h~ su~cient appropriationsor other funds ~vail~bleto pay all L~e Paymcatsand oth~ amoumsdue hcreundc~ t~ the current fiscal period;(vi) the use ortho ~uipment by the Levee is es~ntia: to and will be limited to lhe F~fform~ce by L~see prone or more governmental functions otL~sce consistent with lhe pe~issible scope et Less~'s authority; (vi~) no po. lea o~the Equi~ent will be used directly or indirec:ly in ~y trade or busine~ ca~ied on by any pomes other than Lessee; ~d tviii) no po~lon ortho ~uipmeatwill ~ us~ by ~ organizatioademribcd in section ~01 ~ (3) ofth~ Code an~ (ix) ~his Leme does eot eonstitum an arbitrage obligation within the morning of section 148 ortho Code and is not ~er~ly guarmteed within t~ morning otsection 149(b) of the Code. Le~e shall deliver to Lmsor an opinion of Lessee's counsel ~n form and substance ~ set fo.h he. in or as othe~i~ acceptable to Less~t. In t~ cvenl that a question ~ises ~ ~ L~ce's quali~atlon ~ a political subdivision, Lessee a~ c~s to exeeule a power of attorney authorizing L~or to m~e epplieation to ~e Internal Revenue Se~i~e for a l~t~ mien8 with ~spect lo the 8, TITLE TO EQUIPMENT. U~n acceptance of the Equipment by Lessee hereundeh title to the Equipment will vest in Less~ subject to Lear's rights under ibis L~e; pmvi&d, however, that (1) in the event of rumination otthls Le~o pnrsuat~t to Section 6 hereo f, (ii) up~ th~ occurrence otto Event of Default hereunder, and ~ long as such Event o~ Default is eontlnuing, or 0ii) in thc event that th~ purchme option has not been exercised prior to the E~plration Date, title will immediatelyv~t ia Lessor or ils a~ignm wilhout any ~ction by Lessee and Lessee shall imsnediate~ surrender ~osscssien or,he Equipment to Lessor or its ~signee in ~e intoner set ~onh in Section ~ hereof 9. USE; REPAIRS, Les~ will use ~e Equipment in a camel intoner flor the use contemplated by ~he manuf~turer or the Equipment Lessee shall comply wilh all laws. o~inancc~ insurance policies md regulations minting to ~he pos~ssion, ~se, operation or m~ntenance of Ihe Equipment. Lessee, al its expense, will keep the Equipment in go~ working order and repair and fiirnish all pa~s, mechanisms and devices requlr~d therefor. IO. ALTE~TIONS. Less~ will not make any aIte~allon~a~ditionsor impro~ments to the Equipment wilhout Lessor's prior written consent unl~ such alterations, additions or improvemen~ may be r~dily remov~ w~thout damage to the Eq~ipment. !!. LOCATION; INSPECTION. TEe Equipmcntwill not be ~moved from oh if ~e Equipment eonslsts of rolling stock, i~ pcrmmcnt base will not be changed from the Equipm~t Loeatlonwithout LesseEs ~ior written consent which wil~ not be unre~onably withheld. Lessor will be entitled to enter upon ~e ~uipmc.t Lo~tion ~ elsewhe~ during r~onable business hours to inspect the Equipment or observe its u~ and operation, t2. 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) ~'hich may now or hereafter be imposed upon the ownership, leasing, rental, sale, purchase, possession or use of the Equipmenl, ~cluding however, all taxes on or measured by Lessors incol~le. If Lessee falls to pay- ---~" Pago 2 said charges, or taxes when due, Lessor may, but need not, pay said char$cs or taxes and, in such event, Lessee shall reimburse Lessor therefor on demand, with interest at the maximum rate permitted by law lmm the date of such payment by I,¢ssor to the date of reimbursement by Lessee. 13. RISK OF LOSS; DAMAGE; DESTRUCTION. Lessee nssumes all risk of loss of or damage to the Eqnipmcnt from any cause whatsoever, and no such Iossofor damage to the Equipment nor defect therein nor unfitness or obsolescence thereof shall relieve Lessee of the obligation to make Lense Payments or to I~rform any other obligation under this Lense. In the event of damage to any item of Equipment, Lessee will immediately place the same in good repair with the proceeds ofany insurance recovery applied to the cost of such repair. If Lessor determines that any item of Equipment is ~ost, stolen, destroyed or damaged beyond repair, Lessee, at the option of Lessor, will either (al replace the same with like equipment in good repair, or (b) on the next Lense Payment Date, pay Lessor: ([) all amounts then owed by Lessee to Lessor under this Lease, including the Lease Payment due on such date, and (ii) an amount equal to the applicable Concluding Payment set froth in Schedule A opposite such Lease Payment Date. lo the event that Lessee is obligated to make such payment pursuant to subparngraph (b) above with respect to less than all of the Equipment, Lessor will provide Lessee with the pro rata amount of thc Lease Payment and the Concluding Payment to be made by Lessee wilh respect to the Equipment which as suffered the event of loss. 14. PERSONAL PROPERTY. The Equipment is and will remain personal property and will not be dcemed to be afflxcd 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 interest in any such real estate or building. 15. INSURANCE. Lessee, will, at its expense, maintain at all times during tho Lease Term, fire and extended coverage, public liability and property damage insuraneewith respect to the Equipment in such amounts, covering such risks, and with such insurers as shall be satisfactory to Lessor, or, with Lessor's prior written consent, may self-insure against any or all such risks, in no event will the insuranc~ limits he less than the amount of the then applicableConcludingPaymentwith respect to such Equipment. Each insurance policy will name Le~ as an insured, and will contain a clause requiring the insurer to give Lessor or its assigns at least thirty (30) days prior written notice of any altcration in tho terms of such policy or the cancellationthcreof. The proceedsofany such policieswill be payable to Lessee and Lasher or its assigns as their interestsmay appear. Upon acceptance of thc Equipment and upon each insurance renewal date, Lessee will deliver to Lessor a certificate evidencing such insurance, in the event that Lessee has been permitted to self-insure, L~se¢ will furnish Lessor with a letter or certificate to such effect. In the event ofany loss, damage, injury or accident involvingthe Equipment, Lessee will promptly provide Lessor with written notice thereof and make available to Lessor all information and documentation relating thereto and shall permit Lessor to participate and cooperate with Lessee in making any claim for insurance in respect thereof. 16. INDEMNIFICATION. Lessee shall indemnify Lessor against, and hold Lessor harmless from, any and ali claims, actions proeeedings, expenses, damages or liabilities, including attorney's fees and court costs, arising in connection with the Equipment, including, but not limited to, its selection, purchase, delivery, installation, posscssion, use, operation, rejection, or return and the recovcry of claims under insurance policies thereon. The indemnification provided under this Section shall continue in full force and effect notwithstanding thc full payment of all obligations under this Lease or the termination of the Lease Term for any reason. ¸!7. ASSIGNMENT. Without Lessor'sprier written consent, Lessee will not either (I) assign, transfer, pledge, hypothecate, grant any security interest in or otherwisedispose of this Lense or the Equipment or any interest in this Lense or the Eqt~ipment or (ii) sublet or lend the Equipment or permit it to be used by anyone other than Lessee or Lessce'semployccs. Lessor may assign its rights, title and interest in and to the Lease Documents, the Equipmentand/orgrant or assign a security interest in this Lease and the Equipment, in whole or in part, and Lessee's rights will be subordinated thereto.. Any such assiBnces shall have all of the rights of Lessor under this Lense. Subject to the forcgoin& this Lense inures to the benefit of and is binding upon the successors and assigns of the po~ies hereto. Lessee covenants mid agrees not to assert against the assignee any claims or defenses by way of abatement setoff, counterclaim, rccoupmcnt or the like which Lessee may have against Lessor. Upon assignment of Lessor's {nterests herein, Lessor will cause written notice ofsoch assignment to be sent to Lessee which will be sufficient if it discloses the name of the assignee and address to which funher paymentshcreunder should be made. No further action will be required by Lessor or by Lasse~ to evidence theassignment,but Lesscewillacknowledgesuchassisnmentsin writingifsorequcsted. Lessee shall retain all notices ofassignment and maintain n book-entry record (as referred to in Section 2 i) which identifies each owner of Lessor's interest in the Lease, Upon Lessee's receipt ofwritten notice of Lessot*sassignment of nil or any part of its interest in the Lense, Lessee agrees to attorn to and recognize any such assignee as the owner of Lessors Interest in this Lense, and Lessee shall thereafter make such payments, including without limitation such Lense Payments, as are indicated in the notice of as,~ignment, to such assignee. EVENT OF DEFAULT. The term "Event of Default," as used herein, means the occurrenccof any one or more of the following events: (i) Lessee fails to make nny Lease Payment (or any other paymen0 ns it becomes due in accordance with the terms of this Lease, and any such failure contim~cs 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 nny 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, misleading, 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, trustee, conservator or liquidator of Lessee or of any of its assets, or a petition for reliefis filed by Lessee under any bankruptcy, insolvency, rcorganizeion or similar laws, or a l~tition in, or a proceeding under, any bankruptcy, insolvency, reorganization or similar laws is filed or instituted against Lessee and is not dismissedor fully stayed within twenty (20) days after the filing or institution thereof; (v) Lessee fails to make any payment when due or fails to performer observe any covenant, condition, or agreement to be performedby it under any other agreement or obligation with Lessor or an affiliate of Lessor and any applicablegrnce 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 against the F.~uipment. Page 19. REMEDIES. Upontheoecurrenceofany Event of Default, and as long as such Event of Dcfaul~ is continuing, Lessor may, at its option, exercise any one or more of the followiqg remedies: (!) by written notice to Lessee, declare an amount equal to all amounts then due under the Lease, and all remaining Lease Payments due during the fiscal year of Lessee [n which the default occurs to be immediately due and payable, whcceupon the same shall become immediately due and payable; (ii) by written notice to Lessee, request L~ssee to (and Lessee agrees that it will), at Lesse¢'s expense, promptly return the Equipment to Lessor in the manner set forth in Sect~or~ S l~ereot', or Lessor, at its option, may enter upon the premises where t.h~ Equipment is located and lake immediatepossession of and remove lhe same, (iii) sell or lease the Equipment or suble~¢ it t'~r the of Lessee, hol~ing Lessee liable flor all Lease Payments and other payments du~ to the etTectlvc date of such selling, leasing or su~l~lng and thc differeneebetween the purchase price, rental and other amounts paid by Ih¢ purchaser, I~ssce or'~ublcss¢c pursuant to such sale, lease or sublease and the ameunts otherwise payable by Lesso: hereunder; and (iv) exercise any other right, remedy or privilege which may be available to it under applicable laws ct'the slate where the Equipment is then located or any other applicable l~w or proceed by appropriat~ court action to e~t'oree the terms of this Lease or to recover damages l'or the breach of this L~se or to rescind this Lease as to any or ail of thc Equipment. In Mdition, Lessee will remain Ji~te for all covenants and indemnities under this Lease and for all legal tees ,'md other costs and expenses, including court costs, incurred by Lessor with respect Io the en forcemem al any of the remedies lislcd above or any otl~er remedy available to Lessor. 20, PURCHASE OPTION. LIpon thirty (30) days prior written notice from Lessee, and pro¥1ded that th~r~ is no Event o[De£ault, or an event which wi'~h notice or lapse of time, or both, could become an Eveal of Default, then existing. Lessee will b~v¢ the right to purchase the F, quii0ment on any Lease Paymcnl date scl fo~h in Schedule B F~er¢lo by paying to L~ssor, on such date, the Lease Payment then du~ together with the Concluding Paymentamount set forth in Schedule 13 oppositcsuch date. Upon satisfactionby Lcs~c~ of such ~urchase conditions, Lessor will ~n~fet any all o~' its right, title ~nd interest in the Equipme~t to Lessee AS I$, WITHOUT WARRANTYi EXPRESS OR IMPLIED, except L~sor will w~,~rant that the Equipment is free and ¢!ear of any liens created by Lcsso~'. 21. 'FAX ASSUMPTION; COVENANTS. The p.~rties assume that Lessor can exclude £rom Federal grl~ss incom~ the inlcrest portion ct'each 1L~as~ Paymentse~ forth In Schedule A under the column captioned "Interest Portion." Lessee covenants that it will (I] register ~his Lease and transfers thereof ia accordance with section 14g(a) off the Code and the regulations thereunder, (iO timely fi h; a statcmenl with respect to this L~ase in required I'orm in accordance with section 149(e) o£the Code, (iii) not permit ~,e properly financed by this Lease 1o be directly or indirectly used for a priwte basieess use withlrt the meaning of s~ction 141 of'the Code, (iv) not t~k~ any action which resulLs, directly or indi~'ectly, in thc lntezesl portion of any Lease Payment not being excludable from Federal gross income pursuant to section 103 or' the Code and will take any reasonable action necessary to p~evcn~ such resuit, and (v) not take any action which results in this Lease becoming, a~d will take any reasanable action to pre, eat this Lease from becoming Ca) an arbitra~ obligation within thc meaning of section 148 oF thc Code or (b) federally guaranteed within meaning of'section 149 of the Code. Notwithstanding the earlier tennina'don or expiratlun of this Lease, Ihe obligations provide0 £o~ in this Se~:tion 21 shall survive such earlier tcrmi~atlon or ¢×pira~ion. 22. NOTICES. AIl notices to be given under this Lease shall be made in'~vfifingand mailed bYccrli fled mail' remm receipt requested' t° :he °thor party at its address sci t'orth herein or ~t such address as the party may provide in writing from time to time. Any such notice shall be deemed to have been received Bye days subsequent to mai!ing. SECTION [lEADINGS. All section headings contained herein are for the convcnienceofrefcrcnze only and are not intended to defir~v or limit the scope of any provlsioc of~this Lease. 2¢, GOVERNING LAW. This Lease shall be construed in accordance with, and governed by~ ~he laws at'the st,~te of the Equipmer~t Location. 25. DELIVERY OF Rff, LATED DocuMENTS. Lesseewill execute or provide, as requested by Lessor, such other documents and information as are reasonably necessary with ~espcct to thc tmnsactlon contemplated by this Lease. :26. F~N'IFIREAGREEMENT; WAIVER. '[he Lease Documentsconstitute the entire agreement between ~he parties w~th respect to the lease of the Equipment, a~d this Lease shall not be modified, ~mendcd, altered, or changed e~cept ~v[th the written consent of Lessee and Lessor. Any of this Lease found to be prohibited by lax¥ shall be Ineffective to the extent of such prohibition without invalidatin8 the remainder of this Lease. The waiver by Lessor of any breach by Lessee of any term, eovenanl or condition hereof shall not operate ~s a waiver of any subsequent breach thereoE LESSEE: Title: Date: Port Townsend, Cit~y of, WA LESSOR: By: Title: Associates Commercial Corporation Page 4 LESSEE: Port Town, send, City of, WA OPINION OF COUNSEL With respect to that certain Equipment Lca,~a-PurehasaAgrcement ("Lease") dated by ~d between ~ssor and Lasso, I am the opinion tha: (I) Lessee ~ a ~ax exempt entity under Section 103 otthe Internal Revenue Cod~ ~f 1986, ~ amcndcd; (ii) thc =~ecution, dellve~ and pertom~ance by ~ssee of the Lease have been dely authorized by all ne~ssa~action on the p~n o~ !.~< (iii) ~e Lea~ constitutes a ~cgal, va~id and bindi~ ~bligationot Les~e ~n forceableie ac~rdancewith i~ te~s and all statements conlai~ed in the Le~ and all re~a~ed inslntmen~a~ tree; (iv) ~cre a~ no proceedings ot ~nvealigat[o~ pending or, to m~ knowl~ge, Ih~atened asalns~ or affecti~8 Lessee, at law or in equity, er before or by ~y governmental ~minis~rativeagen~y or instmmenmlity~hich, ifadvcmc[y dctcnnined, would have a mater~at adverse effect on the ~nsaot[~ contemplated in ~e Lease or t~ abiU:yofLessee to peffonn i~ ~iig~ti~s under the Lc~e and Lessee is not in default under any ma~eriM obligat~n ~or the payment of bo~owed money, f~ the d~fe~d purchase price ofprope~y or for ~e payment of any rent under any leaso agreement which either individually or in th~ aggregate would have the same such e ffec~; and (v) all ~ulredpubUc bidding pr~edures reg~din8 tho award oflha Le~e have been followedby Lessee and no ~ovemmental orders, permlsa~ns, ~onsen~, approvats or authorizations are required to be obtained and no refistrafions or dcctarations are required 1o be filed ia connection the ex~ctition and dciivc~- ortho Lease, Counsel for Lessee: By: Date: ,s, OI~,TVER'~LE A S I~p U kr D<~I~ RaW LVI SCHEDULE A EQUIPMENT DESCRIPTION) Lessor hereby leases to Lessee under and pursuant to the Lease andl Lessee hereby leases from Lessor under and pursuant to the Lease the following items of Equipment: DESCRIPTION (MANUFACTURER, MODEL AND SERIAL NO. ') ' Lessor shal! have the tight to insert Serial Nos. at t~me or Delivery & Acceotance. IK¥-tNJST 2 ~ JVC 3CCD Studio C, amera Package . ~ .... 2 ' JVC CameraHe~ " JVC Camera Adapter ....... ~.2~u. '~' . .~F.P~OOU 2 JVC 5' ~t~lo NZ~a~3U 2 ~VC GeCo zoom Cont~ 2 jvc c i,i C~'2~U. 2 Case AG-BP20 4 Psnaso~c 1~ ~.~ [~I~x?3KI~U . ~ . ~.a~non 14'.11Otemal~o gon~o~ ..... ~pm,40 , . Poffa. com 2~ In~m syaem ~r ' 3ill 2 8ogan 30~ Tripod wi ~83 Ho~ ..... SUPPLIER Professional Video & Tape LESSEE: TITLE: .DATE: Port Townsend, City of, WA ,..-If:) '" Equ pment Location: 540 WaTer Street Jefferson County, Pert Townsend, WA 98368 OJ. Compound Period ....... : Monthly Nominal Annual Rate ... ' 6.500 12/0911998 Page 1 CASH FLOW DATA Event Start Date 1 Loan 12/15/1998 2 Payment 12/15!1998 '-' A-mount '"Number Period... En_d....D_a_t.e 34,887,75 1 4,Ot9.t7 10 ,Semiannual 06/1512003 AMORTIZATION SCHEDULE- Normal Amortization Date Payment Interest Loan 12/151l 998 I t2/15/1998 4,019.17 0.00 '1998 Totals 4,019.17 0.00 2 06115/1999 4,019,17 1,016.91 3 12115/'1cJ99 4,01g.17 9i8.01 1999 Totals 8,038,:34 1,934.92 4 06/15/200[3 4,019. ~ 7 815.85 5 12115/2000 4,019.17 710.32 2000 Totals 8,038.34 t,526.17 6 06115/2001 4,019,17 601.31 7 1211§12001 4,0~19,17 488.72 2001 Totals 8,038.34 t,090.03 8 06/15/2002 4,019.17 372.41 9 12/1512002 4,0t9.17 252.28 2002 Totals 8,038.34 624.§9 10 06/15/2003 4,019.'17 128.14 2003 'rotals 4,01g. 17 128.14 Grand Totals 40,191.70 5,303,95 One Dollar Purchase Option Princip ti 4,019.17 4,019,!7 3,002.;~6 3,101,' 6 6,103.~2 3,203.;i2 3,30~.~15 6,512.'17 3,417,.~6 3,530.. ~5 6,948. ]1 3,646, 76 3,766.69 7,413.85 3,891.03 3,891 34,887.75 Balance 34,887.75 30,868,58 27 866.32 24 76.~. 16 21.561.84 18,252.99 14,835.13 11,304,68 7,657.92 3,891,03 0,00 DELIVERY AND ACCEPTANCE CERTIFICATE ,P.u, rsua~t to that certain Equipment Lease-Purchase Agreement date~ as of ase' the undersi ned Lessee hereby acknowledges receipt of the ~quipment, as more fully described ( Le ), . ~. '~ .............. ,,-~ -~-~ ;-. ~.ood w°~ino condition and Lessee hereby ' , chedule A to the Lease [ cqulpmen[ ~ is in~tuii~u -.u ,,, u ',' ~ :c'cS. epts the Equipment after full inspection thereof as satisfactory I°r all purp°seS under the Lo°se executed by forth I: ;Iow: see and Lessor as or ~ne aaLu 'iKY-I~CH 2 JVC O~ra ~.P25~ ' ' 2 ~O pow~ ~aWd o~er ' _J. ~M6~ 2 Pinmnl~ Combo p~.com LESSEE: T?TLE: DATE ACCEPTED: Port Townsend. City of, WA INCUMBENCY CERTIFICATE I do hereby certify that I am the duly elected or appointed end acting Secretary/Clerk of ..P__o_[t Townsend. City of. ("Lessee"), a body corporate and politic duly ergainized and existing under the laws of the State of _~__ that I have custody of the records of Lessee, arid that, as of the date hereof, the individuals named below are the duly elected or appointed officers 0f Lessee holding the offices set forth opposite their respective names. I further certify that (i) the signatures sot forth oppoeite · '.'/;'.. their respective names and titles are their true and authentic signs!utes, and (ii) such officers have '~.~(.(., the authority on behalf of Lessee to enter into that certain Equipment Lease-Purchase Agreement dated · '.'... r to be dated ___ ~, between Lessee and AsSociates Commercial Corporation. I, tho undersigned, duly qualified and acting . __(Secretary,Board Chairman or other authorized Governing Body Member of Lessee) do hereby certify the above.' Port Townsend, City of, WA WITNESSED BY: TITLE: (Auii~orized Clove{ming andy Member of Lassie, other thorn the indlvld~li=) who~Se signature i~ listed aboveJ (DJ. ~o.. 8038-GC I.fo.mat,o.Eet.m for Small Tax-Exempt Governmental Bond issues, Leases, and Installment Sales (Rev. M~'/1995) ~ Under ~nt~rnat R~venue Code section ~4g[e) ~ Foe calen~a~year ending 199~ OMa No. 15~5-07~0 Ir:lentil flu'tar,ua ~e, v'Ce (Use Form 8038--G if Ihs ssue price Gf the issue is $~ 00 0~ o¢ more,) Pa~ I Repealing Authority Cn~ck ~x if Amended Return LJ identificetio~ 4 ~y town. or posl ~ =tats, an~E Pa~ Il Description of Obligations Is,~ue price of small tax-exempt governmental obligations repoNed on th~s form ............ Check ~he boX Ib~t most nearly ~pp~oximates the weighted average maturity of the obl ~ation(s): Less than 5 years [~j From G to 10 year~ ~.] Mo~e titan t0 yea~ C~ecK the ~ex that most nearly ~pprox~n~tes the weighted nvernge interest rate on the obhgatio~(s): [~ 1 ~ than 5% [.~] F~om 5% ia 10% ~ More tha~ 10% Tgtal i~su~ pri~ of the obligation(s) repode~ en line 5 that is/am: a Obiigation(~] ~ssued in the farm of a lease or installment sate ........................... b Obligation(~,) de~;gnated by the issuer under section 265(b)(3)(B~{i)(lll) .................... 34.887.75 34,587.75 c Obtiga~,iOe(~t) ~sued to refund prior ~ssues d Loans made t'iom the lsroceeds of another tax*exempt obligation 9 Check box ~f 13suer has ele6te, d to pay a pe~.~,[~ i~ ~ieu of atbit¢~ r?..~.~?..;~,: ......... :..:.:_:...,, ............................ ............. ~ Please [ Under penalties of padua, I declare that I have examined this return and accompanying schedules and statements, ~nd to the bestof my knowledge ~d belief, they are true, c~rrac~, a~d complete Sign / .................................. H~ j ..... Issuer's a~lhodzed representallve Date Ty~ o~ p~i~t name ~n~ flue separate return should specify the calendar year Paperwork Reduction Act Notice We ask for the informafiOnon this f,3rm t~ carr~ OUt the ]rltern~I Revenue laws of the U~ited S~ates. You are required to give us the info~rnatim. We ne~ ~t t~ e~9uie that you ~re ~mply~n~ with these The time ~eeded to compiele and ~iie thi~ f~m varies depending on indivdUal clr~mstanc~s, ¥;~ estimated ave~8ue t~me Learning abe[Jr law or t~e fon~ ......... ~ hr. 46 mm. Preparit~g the form ..... 2 ~r 50 sending the form lo the IR~ .... 16 If you have comments concerning th~ accuracy of these time estimates su~eshons for ma~og thi.~ f0tm simple', we woutd be happy to 'leaf from yc;u. You can write Io t~e Intefnat Revenue Se~ice Aite~t~on: fax Forms Comm~Itee, PC Washington DC 2~224 DO NOT send the f~rm to ~his address. Instead. see Where to File on page 2. General Instructions ,5'eot/on referonce.~ a~e to the I~t~rn.al F~'evon~Je Purpose of Form Form 803~C is used by ~ssuers of exempt governmental obligabon= to provide Ihs IRS with the information required ~y section 1 ~9~e) and t0 men tot Ihs mquirermnta et ~clions t41 througA Who Must File Issuem of t~x*e~empt governmental obligations wilh issue pri~s o~ I~S ~ 00, 3~ must file Form 8038..GC. Issuers of e lex-exempt goverm~ent~l obt~alion with an i~sue p~e of $100.000 more muot rite Fo~ 8038,G IntormeIien Relum for l*ax~Exem~t GovernmentAl Obligaiions, Filing a separate mturn.-*-Jssuers have option to file a sepm'ate From 803&GC for /ax.,axempt governmental ~blig~tion with an ~ssue price of less Ih~n $~0 ~0 Each in which the Issue was issued. An Issuer of a tax-exemot bond used to finance construction exoendit~res must file a ~parate Form 8038-GC for each issue to give ~oliCe to the IRS that an electlo~ was made to pay a penalty ih lieu of srbitmge rebate (see 9 in'st~ctions), Filing a consolidated return.---For ali exempt governmental obl~at~ns with issue pri~s of less than $100,000 Ihat am not mpo~ on a separate Form 8038-GC~ an ~ssuer must file a coflso~Mat~ caiendar year, Thus, an issuer ~ay file a separate Form B038.*GC for each of a number of small and repoA the mmai~er ~f smn~[ issue~ issued du~ng the c~lendar year cn one consoll~ate~ Form 8038.GC, However, a ~ep~m~e Fe~m 8038-GC must be fil~ to give the IR9 ~oli~ of the e~ecfion ~o ~ay a peralty i~ tieu of arbitrage rebate. ATTACHMENT A LESSEE: Port Townsend, City of, WA LESSOR: Associates Commercial Corporation _IKY-I~UST !KY. IOUCH JVC 3CCD 61udlo Camera ,Package Jvc C~ra He~' JVC C~eta.'.,Ad..a.p. ter JVC ~' 8t~to-~nder ~VC Remora C~.Unl~ ... On~ for'~-19q Cann~ 14:1 Inte~al Fo~s Le~e~ Po~.Com ~ I~temom dVC t3' Color together with all future attachments, accessories, replacement parts, additirms, and all chattel paper, documents. general intangibles, instrument~, accounts, contract rights and teases now e>0isting or hereafter arising with respect to the above collateral.and all rental payments, and other income relating thereto or arising therefrom, andall cash and non-cash proceeds thereof. Lessee: Port Townsend, Ci~ of,', WA INSURANCE FACT SHEET LEASE NO.: 2346-16031 VALUE PRICE: MUNICIPALITY: CONTACT: ,Port T~w_nsend, City of ,WA PHONE: FAX: EQUIPMENT DESCRIPTION: Pursuant to Sec[ion 13 of the Equipment Lease-Purci~aseAgreement dated a~ of ~ , Le3see is obligated to provide insurance coverage naming Assoclate~ Commercial Corporation as Lose Payee and Additional In'~urod. Please complete this form and return it with y0ut documentation pe0~<age and contact your Insurance age~lt to fo~vard a Certificate of Insurance Showing coverage, If you ere self insured, please note as such below. PARENT iNSURANCE COMPANY: ADDRESS: CITY: PHONE: UNDERWRITE. R/AGENT COMPANY: STATE; ZIP: ADDRE88: CITY: CONTACT: POLICY NO; STAT E: PHONE; EXPIRATION DATE: ZIP; PUBLIC LIABILITY AMOUNT: PHYSICAL DAMAGE AMOUNTS: PHYSICAL DAMAGE AMOUNTS: OTHER COVERAGE: OTHER COVERAGE: C(]MPREHENSIVE: COLLISION; AMOUNTS; AMOUNTS: INJ~.J~.:.!NSUi~Fn. OR IF POLICY 18 CONTINUOUS: DEDUCTIBLE: DEDUCTIBLE: DEOUCT;BLE: DEDUCTIBLE; DEDUCTIBLE: SELF-INSURED; YES NO IIf YES, please torwarda lei:er or cefltflcata of coverage) LIABILITY: PHYSICAL DAMAGE: OTHERI ~ ALL: CONTINUOUS UNTIL END OF LEASE/PURCHASE AGREEMENT: YES: __ NO: FACT SHEET PLEASE RE'TURN THIS SHEET WITH THE FINANCIAL STATEMENTS ACCOUNT NUMBER: . .2348-16031 __ LEGAL NAME OF ENTITY: DEPARTMENT USING EQUIPMENT' FEDERAL iD NUMBER'~ NAME OF COUNTY: $'rREET ADDRESS: Please give complete physical street address. Do not give address with P.O. Box as express delivery wi[~ not deliver to BILLING ADDRESS: Please indicate any special billing inszru~;tion~ that are required to avoid la~e payrnen[8 end subsequent late charges. ACCOUNI' PAYABLE: CONTACT TELEPHONE//: SIGNAI"URES: Please pdnt or type names exactly as ',he person will be signing the document. ~i~natures are no~ required here. AUTHORIZED OFFICIAL: Name: Titl0; ATTORNEY SIGNING OPINION OF COUNSEL: N~me: MAJOR R~VENUE SOURCI;: BANK REFERENCE; CONTACT NAME: I=ACT-$H.FRM TELEPHONE #: TELEPHONE #: ESSENTIAL USE LETTER (Sample) (Please complete on your letterhead) ^aeoeiates Commercial Corporation 353 W. Pier¢o Road, Suite 200 Itasca, IL 6014341247 ' Ger~tlemen: Re: Equipment Lease-Purchase Proposal Number; I am furnishing ti~e following information to facilitate the credit review process for tho proposed Equipment Lease-Purchase transaction. A detailed explanation of the use and application of the equil3rnent is as foflows; The equipment is essential to £he organization for the following reasons: This equipment replaces previous equipment: No Yes if yes, the previous equipment was originally purchased in 1 9 ........... 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 I'or the equipment are: The program/department has been in operation for __ years. The source of funds for the payments due under the Equipment Leaso~Purchase Agreement for [he current fiscal year is the fund{s). The fund(s) generates its revenue from: SincerelY, Lessee: Title: Date: ESEN,LTR,FRM ASSOCIATES COMMERCIAL CORPORATION INVOICE Date: December 9, 1998 Bill To: Por~ l'ow~l~¢nd, City of 54i) Water Street Port Townsend, WA 98368 Invoice #: Remit To: A.qso¢iates Commercial Coq>, 333 W. Piercu Road, Suito '200 itasca, [L 60143-1247 'l'lfi~ invoicu covc[s the first installment due UPON RECEIPT of _ $4..0_L9,17. in eonnection with Olo financing off Documentation Fee: $ 150.00 Date Due: UPON RECEIPT Amount Duc: $ 4,169.17 Washington Cities Insurance Authority 15-Dec-98 Cern: 1455 CITY ATTORNEY DEC ~ 6 1998 RECEIVED Associates Commercial Corporation ATTN: Stacey Leavitt 333 West Pierce Rd., Suite 200 Itasca,IL 60143-1247 RE: City of Port Townsend AS RESPECTS, EQUIPMENT LEAS E-PURCHASE AGREEMENT. Evidence of Coverage The above captioned entity is a member of the Washington Cities Insurance Authority (WCIA), which is a self insured pool of over 86 municipal corporations in the State of Washington. WCIA has at least $1 million per occurrence combined single limit of liability coverage in its self insured layer that may be applicable in the event an incident occurs that is deemed to be attributed to the negligence of the member. WCIA is an Interlocal Agreement among municipalities and liability is completely self funded by the membership. As there is no insurance policy involved and WCIA is not an insurance company, your organization cannot be named as an "additional insured'. Sincerely, Eric B. Larson Assistant Director cc Michael Hildt Pam Kolacen, Mary Winters cletter - ~0 ~-~ 3~ EO. Box l 165, Renton, WA 98057 (425) 277-7237 Fax 277-7242