Loading...
17-0207_CREATIVE BUS SALES, INC_Lease AgreementLEASE AGREEMENT Between CREATIVE BUS SALES, INC. and any related companies or affiliates of Creative Bus Sales, Inc. (Lessor) 14740 Ramona Avenue Chino, CA 91710 Phone: 909-465-5528 Fax: 909-465-5529 And City of San Juan Capistrano (Lessee) 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Attn: Thomas Toman 949-234-4580 ttoman@san'uanca istrano.or DESCRIPTION OF LEASED VEHICLES: Unit #:50029, VIN: #1F66F5DY3G0A00013, Unit #:61910, VIN: #1F66F5DY0H0A15568, DURATION OF LEASE: Year:2016, Make:Hometown Trolley Year:2017,. Make:Hometown Trolley Monthly from the date of acceptance of delivery of each vehicle by the Lessee until the date of acceptance by the Lessor of the returned vehicle. The duration of lease of each vehicle will be based on the duration of each particular vehicle. Lessee must provide Lessor with notice of termination of the lease 30 days or more prior to termination date. RATE OF LEASE: (3) Month lease term, month to month thereafter. (Start Date: 6/7/17 - End Date: 9/8/17) $6,900.00 per month per bus. Pro -rated to a calendar basis for the first month's payment. enrUc mrv. Paid by Lessee with each monthly payment. Adjusted as applicable for San Juan Capistrano, CA. DEPARTMENT OF MOTOR VEHICLE REGISTRATION FEES: Lessee will reimburse Lessor for DMV fees of $1,540.00 at inception of lease. If the vehicles are retained by the Lessee beyond the DMV renewal date, Lessee will reimburse the Lessor for the annual renewal fees. Page 1 of 5 TERMS AND CONDITIONS The initial lease payment and DMV fees will be due before the vehicles are delivered to Lessee. The initial lease payment will be first month's amount (pro -rated if necessary for partial month), plus second month's amount (if applicable). Subsequent lease payments will be due in advance by the first of each calendar month. Lease payments will be due for each month until vehicles are returned and accepted by Lessor. If a vehicle is returned before the end of a calendar month, Lessor will return the pro -rated portion of that month's lease payment to Lessee within 10 business days after Lessor's acceptance of the vehicle. Lessee will be responsible for any additional taxes, fees or penalties relating to Lessee's operation or storage of the vehicles. Lessee will return the vehicle at the end of the lease in good condition with no excessive wear and use as that term is defined in the paragraph titled "Standards for Wear and Use". INSURANCE: Lessee will at Lessee's expense provide and maintain for the term of this lease Auto Liability and Physical Damage Insurance on the leased vehicle covering both Lessee and Lessor. The coverage must be in amounts not less than $5,000,000 bodily injury, and property damage and physical damage coverage with deductibles not to exceed $1,000.00 for collision and $1,000.00 for comprehensive. Lessee's insurance must provide hired auto physical damage coverage equal to or greater than the value of the vehicle. Lessee will at all times during the term of this Lease maintain at Lessee's expense insurance of the types and in the amounts specified. The policies must reflect "Creative Bus Sales, Inc. its successor and assigns" as an "Additional Insured" and "Loss Payee". This coverage must be written by a carrier acceptable to Lessor and which is authorized to do business in the state where Lessee's is domiciled or stores the vehicle. Lessee will provide appropriate evidence of this coverage, by certificate of insurance and written endorsement to the Lessor before delivery can be achieved. Thirty days advance written notice of non -renewal or cancellation will immediately be forwarded to the Lessor. Cancellation clause on the certificate of the insurance is to read, "Should any of the above described policies be cancelled before the expiration date thereof, the issuing company will mail 30 days written notice to the certificate holder named." Lessee accepts responsibility for the vehicle to the full extent of its value during the term of this lease. LOSS OR DAMAGE: In the event that any vehicle shall become lost, stolen, destroyed, or damaged beyond repair for any reason, or in the event of any condemnation, confiscation, theft, or seizure or requisition of title or use of any vehicle, Lessee shall promptly notify Lessor of such event and pay to Lessor within thirty days of such event an amount equal to the Lease End Value less any proceeds of insurance previously applied by Lessor, if any. Upon the making of such payment, the Lease shall terminate with respect to such vehicle and any proceeds of insurance received by Lessor subsequent to the above payment will be for Lessee. Lease End Value is defined as the value of the vehicle stated on page 1 of this agreement. EXPENSES AND MAINTENANCE: Lessee shall pay all expenses with respect to the use and operation of the vehicle, including, without limitation, the cost of Page 2 of 5 gasoline, tires, storage, washing, parking, towing, tolls and fines. Lessee, at its own expense, shall maintain the vehicle in good operating condition and repair (ordinary wear and tear excepted), including, without limitation, suggested maintenance as set forth in any applicable Owner's Manual. Lessee shall not cause or permit to be caused any Manufacturer's Warranty covering any vehicle to become void for any reason. Lessee shall be liable for any damage resulting from Lessee's failure to comply with the terms of this Subparagraph. STANDARDS FOR WEAR AND USE: "Excessive wear and use" includes, among other things: (a) glass breakage or discoloration; (b) damage or deterioration of body, fenders, metal work, trim or paint; (c) missing wheel covers, jack or wheel wrench; (d) torn dash, floor covers, seats, head -liners, upholstery or interior work or trunk liners; (e) any wheels or tires (including spare) that are missing or not in safe condition; (f) damage from flood water, hail, sand; or (g) any damage that makes the vehicle either unsafe or unlawful to operate. Lessee acknowledges that vehicle was received on the date indicated in a clean, unlittered condition without physical damage to the interior or exterior except as noted. USE: Lessee will allow only the appropriately licensed drivers to operate the vehicle. Such drivers shall be duly authorized by Lessee, properly licensed to perform the type of driving for which they are employed, and while operating the vehicle, acting within the scope of their employment. Lessee will keep the vehicle free of all fines liens and encumbrances. Lessee agrees to pay any such fines or remove any such liens and encumbrances immediately. If Lessee does not, Lessor may do so and any amounts paid by Lessor shall be additional amount owed by Lessee under the lease. Lessee will not allow any use of the vehicle to tow or push anything. Lessee will not allow the vehicle in any test, race or contest and will not allow its use for any illegal, improper, or unsafe purpose. Lessee will not operate the vehicle with any damage that makes the vehicle either unsafe or unlawful to operate. Lessee will not remove the vehicle from the United States or Canada. Lessee will not alter, mark or install equipment in the vehicle without Lessor's written consent. Lessee will return vehicle on Lessor's demand in the event of default. Lessee will be in default if any of the following occur; (1) Lessee's property is the subject of a proceeding in bankruptcy, receivership or insolvency or Lessee makes an assignment for the benefit of creditors; (2) Lessee fails to comply with the insurance requirements of this lease agreement; (3) Lessee has made any material misrepresentation on or in connection with this lease agreement; (4) Lessee fails to answer any traffic summons or pay fines when due; (5) Lessee fails to comply with any other terms or conditions of this lease agreement. Lessor retains the right to waive any or all of the above events or default, and any waiver of a default shall operate only to waive the event so waived and shall not operate as a continuing or permanent waiver of any default by Lessee. If Lessee is in default, Lessor may terminate this lease prior to the scheduled term. Upon lease termination, it is Lessee's responsibility to return the equipment to a location chosen by Lessor. COLLECTION: All charges, fees and expenses, including payment for loss of or damage to the vehicle are due at Lessors request. If Lessee is in default Lessor will have the rights and duties provided by law. Lessor will have the right to sue Lessee for damages and/or recovery of the vehicle. Lessor may take the vehicle from Lessee without demand. To take, Lessor may enter Lessee's premises or the premises where the vehicle is stored, so long as it is done Page 3 of 5 peacefully. If there is any personal property in the vehicle when Lessor takes it from Lessee, Lessor can take it or store it for Lessee. The taking of the vehicle by Lessor shall be considered an early termination and Lessee will not be released from any obligation from this lease. Lessee will be charged the reasonable expenses for taking and storing the vehicle. Lessee will also be charged reasonable attorney's fees and legal expenses incurred by Lessor, or the extent permitted by law. If Lessee does not pay all charges when due, Lessee agrees to pay a late charge of $150 per month or portion of a month on the past due balance. INDEMNIFICATION: Lessee agrees that the payment will not be subject to any defense, and hold damages, condition vehicle. set-off, counterclaim or recoupment. Lessee also agrees to indemnify Lessor and its assignees and employees harmless from all losses, injuries, claims, and demands and expenses arising out of the maintenance, use or operation of any amounts to Lessor of the INSPECTION: Lessor may inspect the vehicle at any reasonable time. If Lessor asks to inspect the vehicle, Lessee will tell Lessor the location of the vehicle and allow inspection. If the vehicle is damaged or there is excessive wear and use, Lessor will decide if the vehicle is reasonably repairable. If the vehicle is reasonably repairable, Lessee will promptly have the necessary repairs made when Lessor asks that Lessee do so. OWNERSHIP: This is a lease only and Lessor remains the owner of the vehicle. Lessee will not transfer, sublease, rent or do anything to interfere with Lessor's ownership of the vehicle. TOTALITY OF AGREEMENT: This lease contains the entire agreement between Lessee and Lessor. There are no other agreements between Lessee and Lessor except those included in writing in this lease. No change or other agreement will be binding unless in writing and signed by Lessee and Lessor. ASSIGNMENT: Lessee agrees that this lease or any rentals may be assigned by Lessor. Lessee has no right to assign this lease. NONCANCELABLE FOR TERM OF LEASE: This lease with respect to any vehicle cannot be canceled or terminated by Lessee for the term of this lease applicable to such vehicle, and Lessee shall not be entitled to any abatement, setoff or reduction of basis rent or other amounts due hereunder, whether arising from past, present, or future claims of any kind by Lessee against Lessor or otherwise. Lessee's obligation to pay all basic rent and other amounts hereunder shall be absolute and unconditional, except as expressly provided herein. SEVERABILITY AND VENUE: If any part of this lease i law, all California, this lease. other parts will remain enforceable. The the County of San Bernardino and the City Page 4 of 5 s not valid according to laws of the State of of Chino, CA will govern Lessee agrees to all the provisions of this Lease Agreement. Lessee signed this agreement at (city) NVN CC, plg+ronG CG l i Porn 11A (State) and received a copy on (date) J (Ane '2 Lessee: City of San Juan Capistrano By: S' aLu e>,l GYV1 a���er Title Lessor: Creative Bus Sales, Inc. Printed Name: 1i6G1MIh� t�q! �7— By: Anthony Matijevich, President or, Terry McCrea, Chief Financial Officer, or Mike Stoller, Finance Manager Date: Page 5 of 5 Lessee agrees to all the provisions of this Lease Agreement. Lessee signed. this agreement at (city) to (State) and received a copy on (date) J wit � 2d0'f Lessee: City of San Juan Capistrano By: Printed Name: G,Yhlr1 �1°rC S` Sat e `+-�-_ Title Lessor: Creative Bus Sales, Inc. By: An hong atijevic , President or, Terry cCrea, Chief Financial Officer, or Mike Stoller, Finance Manager Date: (b Page 5 of 5