HomeMy WebLinkAboutWilliam Scotsman 1AGREEMENT TERMINATION
Please complete this form when the attached agreement is no longer ineffect.effect.
C F t� OI k RA ANT
Return form to the Sr. Deputy Clerk of the Council (M-30)_ Call 6 -S 3� &f yaial v Upy
questions.
The agreement with 10 ([ t a/' s� � pq4// - No. A—�(o—OB
was completed on /�'(i/Jj &, Y/L c� and final payment has been made.
Department: i re-
Signature
Date:
City of Santa Ana
Revised 8-7-03 Clerk of the Council
JI; iB A-2006-083
I101, !1('T LEASE WITH OPTION TO PURCHASE AGREEMENT
THIS AGREEMENT, made and entered into this 25rs day of April, 2006 by and between Williams
Cg Scotsman, Inc., a Maryland corporation (hereinafter "Lessor") and the City of Santa Ana, a charter city and
municipal corporation organized and existing under the Constitution and laws of the State of California
(hereinafter "City"). Lessor and City may be referred to individually as a "Party" and collectively as the
"Parties."
RECITALS
A. Lessor builds and leases relocatable modular and/or prefabricated structures, together with stairs,
railings, furniture and other items attached or appurtenant thereto, referred to collectively as "the
Equipment'.
B. Lesssor is willing to lease to City and City is willing to lease from Lessor the Equipment described
below upon payment to Lessor of the amounts set forth below.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and
conditions hereinafter set forth, the parties agree as follows:
SCOPE OF WORK
Lessor will design, build, deliver, install and maintain the following Equipment:
• A 64x84 Section Modular, as set forth in Quotation No. 1143425-8, dated April 25, 2006,
attached hereto as Exhibit A, and incorporated by reference.
• Two sets of steps
■ One prefabricated ramp
• Skirting and tiedowns
2. TERM
a. The term of this Agreement shall commence on the date said Equipment is installed at
Centennial Park, Santa Ana, California and shall continue for 60 months.
b. At the conclusion of the 60 month lease, if all lease payments, including all outstanding amounts
due under the lease, have been made by City, City may exercise an option to purchase the Equipment for $1,
and title to the equipment shall pass to City, as set forth in "Purchase Option", attached as Exhibit B and
incorporated by reference.
3. COMPENSATION
a. City agrees to pay, and Lessor agrees to accept as total payment for the lease of the Equipment, a
monthly lease rate of $8,460.00, plus tax, as set forth in Exhibit A, hereto. The total cost for production,
delivery, installation, maintenance and purchase of the option to buy the Equipment shall not exceed
$626,272.32 during the term of this Agreement.
c. Payment by City shall be made monthly, on or before the 10`h day of each month, subject to City
accounting procedures.
4. DELIVERY
4.1 Delivery shall be made within eight (8) weeks following execution of this Lease Agreement
by both parties. Delivery shall be defined as actual delivery and installation of the Equipment on the site.
4.2 FREIGHT. Lessor will pre -pay and bill City for all freight charges. Risk of Loss of the
Equipment will pass to City upon City's acceptance of the Equipment after installation. Lessor will pack
and ship all Equipment in accordance with good commercial practices.
4.3 City shall procure and/or maintain insurance on the Equipment for the full insurable value
thereof during the entire term of this Lease Agreement and for extension periods if any.
INDEMNITY
5.1. GENERAL INDEMNITY BY LESSOR. Lessor will indemnify and hold City harmless from
any and all liability, expense, judgment, suit, cause of action, or demand for personal injury, death, or direct
damage to tangible property which may accrue against City to the extent it is caused by the negligence of
Lessor, its subcontractors, or their employees or agents, while performing their duties, including production,
delivery, installation, repossession and/or removal of the Equipment, pursuant to this Agreement. City will
cooperate with Lessor in its defense or settlement of the claim or suit.
5.2. GENERAL INDEMNITY BY CITY. City will indemnify and hold Lessor harmless from
any and all liability, expense, judgment, suit, cause of action, or demand for personal injury, death, or direct
damage to tangible property which may accrue against Lessor to the extent it is caused by the negligence of
City, its employees or agents, while performing their duties, including the use and possession of the
Equipment, pursuant to Agreement. Lessor will cooperate with City in its defense or settlement of the claim
or suit.
6. DISPUTES
The Parties, by their project managers, will attempt to settle any dispute arising from this Agreement
through consultation and a spirit of mutual cooperation. The dispute will be escalated to appropriate higher -
level managers of the Parties, if necessary.
DEFAULT AND TERMINATION
7.1 DEFAULT BY A PARTY. If either Party fails to perform a material obligation under this
Agreement, the other Party may consider the non -performing Party to be in default (unless a Force Majeure
causes the failure) and may assert a default claim by giving the non -performing Party a written and detailed
notice of default. Except for a default by City for failing to pay any amount when due under this Agreement
which must be cured immediately, the defaulting Party will have thirty (30) days after receipt of the notice
of default to either cure the default or, if the default is not curable within thirty (30) days, provide a written
cure plan. The defaulting Party will begin implementing the cure plan immediately after receipt of notice by
the other Party that it approves the plan.
Lss04/25/06 Page 2
7.2 FAILURE TO CURE. If a defaulting Party fails to cure the default as provided above in
Section 7.1, unless otherwise agreed in writing, the non -defaulting Party may terminate any unfulfilled
portion of this Agreement. In the event of termination for default, the defaulting Party will promptly return
to the non -defaulting Party any of its Confidential Information.
8. CONFIDENTIALITY
CONFIDENTIAL INFORMATION. During the term of this Agreement, the parties may provide
each other with Confidential Information. Each Party will 1) maintain the confidentiality of the other
Party's Confidential Information and not disclose it to any third party, except as authorized by the disclosing
Party in writing or as required by a court of competent jurisdiction; 2) restrict disclosure of the Confidential
Information to its employees who have a "need to know" and not copy or reproduce the Confidential
Information; 3) take necessary and appropriate precautions to guard the confidentiality of the Confidential
Information, including informing its employees who handle the Confidential Information that it is
confidential and is not to be disclosed to others, but these precautions will be at least the same degree of
care that the receiving Party applies to its own confidential information and will not be less than reasonable
care; and 4) use the Confidential Information only in furtherance of the performance of this Agreement.
Confidential Information is and will at all times remain the property of the disclosing Party, and no grant of
any proprietary rights in the Confidential Information is given or intended, including any express or implied
license, other than the limited right of the recipient to use the Confidential Information in the manner and to
the extent permitted by this Agreement.
9. INSURANCE
9.1. Prior to undertaking performance of work under this Agreement, Lessor shall maintain and
shall require its subcontractors, if any, to obtain and maintain insurance as described below:
9.1.1. Commercial General Liability Insurance. Lessor shall maintain commercial general
liability insurance naming the City, its officers, agents, volunteers, and employees as additional
insured(s) and shall include, but not be limited to protection against claims arising from bodily and
personal injury, including death resulting there from and damage to property, resulting from any act
or occurrence arising out of Lessor's operations in the performance of this Agreement, including,
without limitation, acts involving vehicles. The amounts of insurance shall be not less than the
following: single limit coverage applying to bodily and personal injury, including death resulting
there from, and property damage, in the total amount of $1,000,000 per occurrence. Lessor shall
supply City upon request with an additional insured endorsement. Sample of which is provided and
will be marked as Exhibit `C'
9.1.2. Worker's Compensation Insurance. In accordance with the provisions of Section 3300
of the Labor Code, Lessor is required to be insured against liability for worker's compensation or to
undertake self-insurance. Prior to commencing the performance of the work under this Agreement,
Lessor agrees to obtain and maintain any employer's liability insurance with limits not less than
$1,000,000 per accident.
9.2. The following requirements apply to the insurance to be provided by Lessor pursuant to this
section:
(i) Lessor shall maintain all insurance required above in full force and effect for the entire
period while working at the site.
Lss04/25/06 Page 3
(ii) Certificates of insurance shall be furnished to the City upon execution of this Agreement and
shall be approved in form by the City Attorney.
(iii) Certificates and policies shall state that the policies shall not be canceled or reduced in
coverage or changed in any other material aspect without thirty (30) days prior written notice
to the City.
10. GENERAL
10.1. ASSIGNABILITY AND SUBCONTRACTING. Except for Lessor's financial obligation,
neither Party may assign this Agreement without the prior written consent of the other Party. Lessor may
subcontract any of the work, but subcontracting will not relieve Lessor of its duties under this Agreement.
10.2. WAIVER. Failure or delay by either Party to exercise a right or power under this Agreement
will not be a waiver of the right or power. For a waiver of a right or power to be effective, it must be in a
writing signed by the waiving Party. An effective waiver of a right or power will not be construed as either
a future or continuing waiver of that same right or power, or the waiver of any other right or power.
10.3. SEVERABILITY. If a court of competent jurisdiction renders any part of this Agreement
invalid or unenforceable, that part will be severed and the remainder of this Agreement will continue in full
force and effect.
10.4. INDEPENDENT CONTRACTORS. Each Party will perform its duties under this
Agreement as an independent contractor. The Parties and their personnel will not be considered to be
employees or agents of the other Party. Nothing in this Agreement will be interpreted as granting either
Party the right or authority to make commitments of any kind for the other. This Agreement will not
constitute, create, or be interpreted as a joint venture, partnership or formal business organization of any
kind.
10.5. HEADINGS AND SECTION REFERENCES. The section headings in this Agreement are
inserted only for convenience and are not to be construed as part of this Agreement or as a limitation of the
scope of the particular section to which the heading refers. This Agreement will be fairly interpreted in
accordance with its terms and conditions and not for or against either Party.
10.6. GOVERNING LAW. This Agreement and all questions relating to is validity, interpretation,
performance, and enforcement shall be governed by and construed in accordance with the laws of the State
of California. Both parties further agree that Orange County, California shall be the venue for any action or
proceeding that may be brought or arise out of, in connection with or by reason of this Agreement.
10.7. ENTIRE AGREEMENT. This Agreement, including the Revised Williams Scotsman Lease
Agreement, Williams Scotsman Purchase Option Agreement and all Exhibits, constitutes the entire
agreement of the Parties regarding the subject matter of the Agreement and supersedes all previous
agreements, proposals, and understandings, whether written or oral, relating to this subject matter. This
Agreement may be amended or modified only by a written instrument signed by authorized representatives
of both Parties.
10.8. NOTICES. Notices required under this Agreement to be given by one Party to the other
must be in writing and either personally delivered or sent to the address shown below by certified mail,
return receipt requested and postage prepaid (or by a recognized courier service, such as Federal Express,
UPS, or DHL), or by facsimile with correct answerback received, and will be effective upon receipt:
Lss04/25/06
Page 4
Lessor: William Scotsman Inc
Attn:
11811 Greenstone Ave.
Santa Fe Springs, CA 90670
FAX 562-903-9210
CITY: Santa Ana Fire Administration
Attn: Don Mahany
1439 S. Broadway
Santa Ana. CA 92707
FAX 714- 647-5779
10.9. COMPLIANCE WITH APPLICABLE LAWS. Each Party will comply with all applicable
federal, state, and local laws, regulations and rules concerning the performance of this Agreement or use of
the Equipment.
10.10. AUTHORITY TO EXECUTE AGREEMENT. Each Party represents that it has obtained all
necessary approvals, consents and authorizations to enter into this Agreement and to perform its duties
under this Agreement; the person executing this Agreement on its behalf has the authority to do so; upon
execution and delivery of this Agreement by the Parties, it is a valid and binding contract, enforceable in
accordance with its terms; and the execution, delivery, and performance of this Agreement does not violate
any bylaw, charter, regulation, law or any other governing authority of the Party.
IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the date first above
written.
ATTEST:
PATRICIA E. HEALY
Clerk of the Council
APPROVED AS TO FORM:
JOSEPH W.FLETCHER
City Attorney
By:
Laura Sheedy
Assistant City Attorney
CITY OF SANTA ANA
DAVTD N. REAM
City Manager
WILLIAMS SCOTSMAN INC
r , k
(NAME) E�bu-Lc.
(Title)Srn. r� cEr��Re�� nnon
Tax ID # 5;t - ccr4 s, s
Lss04/25/06 Page 5
09/25/2006 11: 22 FAX ¢829038210
WILLIAMSAMS SCOTSMAN 0 002
SCOTSMAN
Mobile otraces . Smrage
And Mae
CUSTOMER.
Mindy Ly
City of Santa Ana
20 Civic Center Plaza -
PO Box 1999
Santa Ana, CA 92701
WILLIAMS SCOTSMAN, INC.
11811 Greenstone Avenue
Santa Fe Springs, CA 90670
Phone: 562-903-9200
Fax: 562-903-9210
Toll free: 800-782-1500
Daniel Thompson, Sr. Sales Representative
S TO
QUOTE DATE
April 25, 2006
City of Santa Ana
QUOTE EXPIRATION
Centennial Park
Santa Ana, CA
May 25, 2006
64 x 84 Section Modular (60 x 84 box size) per the enclosed floorplan.
FIRE TRAINING FACILITY— PLAN#5
SALE PRICE:
$400,000.00
MONTHLY LEASE RA
TE:
$9,460.00
INCLUDES FINANCE
GES
60 months
M>NRMUM TERM:$40,000.00
REQUIRED DOWN P
NT AMT:
INITIAL OPTIONS
@ $3.960.00
EXT. AMT.
$3,960-00
❑ Skirting Installation
Q
TicdownInstallatio
@ $7,140.00
S7,140.00
❑
Ramp delivery (Pref
) @ $90.00
$90.00
❑
Ramp installation (J?
fab) @ $1,845.00
$1.845-00
❑
Ramp sales (prc-fab
@ $6,875.00
56,875.00
Prc-Fab Metal Rarnj
Skirting @ S570.50
$570.50
❑
(2) Srep(s) sales - steel
@ $413.00 each
$826.00
Tax - 7.750/a of 540,
00-00 (Down
$3,100.00
Payment) @ $3,100
00
❑
Tax - 7-75% of $73
1.00 O'tatnp/Sreps) @
$596.82
$596.82
DELIVERY FREIGHT: $5,124.00
BLOCK AND LEVEL: $9,750.00
PAYMENT DUE AT END OF $1.00
M M4UM LEASE TERM
MONTHLY OPTIONS EXT- AMT.
❑ Tax - 7.75% of $8460-00 (Moodily S655.65
Lease Rate) @ $655.65
TOTAL $625,816-N
(excludes final Option & 1S Buy -Out)
FINAL OPTIONS EXT. AMT.
❑ (7) License transfer fee @ 365.00 each S455.00
(if $1.00 Buy -Out is exercised)
TOTAL w/FINAL OPTION $62627232
EXHIBIT A
04/25/2008 13-22 FA% 58280J9210
WILLIAMS SCOTSMAN a 003
WILLIAMS SCOTSMAN, INC.
11811 Greenstone Avenue
Santa Fe Springs, CA 90670
S C O T S M A Phone: 562-903-9200
Fax: 562-903-9210
Mobile Offices - SCOlage Pl0dt cts Toll free: 800-782.1500
AndMnre Daniel Thompson, Sr. Sales RepresenrfiPve
Page 2 Of 2
CLARIFICATION(S):
1. Delivery pricing is ased on clear, level, accessible site for track and trailer with no obstructions above or below
grade. Additional cl arges may be incurred for nose in/nose out and wait time.
2- Block and level is b m
ed on Williams Scouaes standard blocking on level grade to a maximum floor height of 30"_
Additional cost will be incurred for heights above 30
3. Unit is covered by illiam% Scotsman's full term lease warranty utilizing our full time service staff
4. Customer is respo ible for locating underground structures and/or utilities prior to delivery; for connecting all
utilities including cal, phone, water, waste.
COMM1rNT(S):
A Delivery of unit i
based upon satisfactory credit approval and subject to permitting process, weather, and
holiday restrietio
• Customer is respi
.
nsible to perform normal maintenance to the leased equipment, which includes the HVAC
system filters (ch
inge monthly), light bulbs, general cleaning, and the prevention of damage and abuse-
for changes or additional costs required by local code or building
s Williams scotsm
m is not responsible
inspectors.
D Williams Scotsmm
is not responsible for site restoration upon trailer removal. .
ALL PRICING
PER BEARDSLEX "PIGGY -BACK" MATRIX / PLAN #5 (with reductions).
BUILDING INCLUDES.-
2411 HIGH PARAPET (ENTIRE PERIMETER) AND 5/16" HARDI-BOARD
(SYNTHETIC
TUCCO) PANEL EXTERIOR SIDING,
*1* ALL RAMP PRIC NG SUB7ECT TO CHANGE DUE TO SITE CONDITIONS AND CUSTOMER
REQUIREMENTS (ESTIMATE ONLY).
EXCLUSIONS: TAX, VERMITS, UTILITY CONNECTIONS, PLUMBING MANIFOLDS, WATER
rnh7niF.rTTnN.S/CR SSOVERS. FIRE
JLWE SAFETY DEVICES, SITE PREPJACCESS, AND DECKS. *!*
Cunomer hereby agrees to the abo quoredpricesandspcdficetionv CWtamerfuxrhetmn1mivc Wffih=SatMmlomaleappmpnaeeasogeracmtfarthedeaveryofine
abovedesmrosl Equipmme u ddivery. and unra a nrbscquem tn•CAgmementis exeeutedby Williams Scoesman(u Lessor)and Cuuomer (as LtSee), IheStaodnid
Williams Scotsmml.easmg terms and Conditions, which are i¢wrporsted by reference herein, will govern this camaaiom
The items described above CO se the Equipmed4 which be Cummu desires an ]case from Williams Scotsman. All cquipmrnr is =him ro availability. Physical
Damage and Coauverdat tiabi lneamnce cavaagc are required be&ming on the date of the Equipment's Delivery. to addiuoa m the above qumedprices-
cusmmm sbail also pay m wi111 s Scotsman any locaL slam, federal, or tursonal property taxes andforany fen meted m the Fgrdpmenr andror Ususe. (]francs
andtor tees am Quo[ed above. th y am subject m change hued on delivery address.) Ayrnenr rc ,ns me ner 10 days- Pcmrits, footings, steps, simprepmadon, dccoical,
and phsmbin& eonnecdons are n included in the quoted price unless speciriGdly stated.
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EXHIBIT A
WILLIAMS SCOTSMAN, INC.
GENERAL TERMS & CONDITIONS (03/27/06)
REVSIED FOR CITY OF SANTA ANA (4/18/06)
1. True Lease. This Agreement is a true lease and not a sale. Lessee shall not acquire ownership interest in the Equipment. The
Equipment shall remain the sole personal property of Lessor unless and until Lessee exercises the Purchase Option set forth in
Section 2, TERM, of the Lease with Option to Purchase Agreement.
2. Delivery: Acceptance. Upon delivery, which shall be defined as the date on which equipment is installed and signed off by the
Santa Ana Building Department, Lessee agrees to inspect and accept the Equipment. The Equipment is deemed finally accepted
at the time of delivery unless Lessee notifies Lessor of a defect/deficiency in writing within 15 business days after delivery.
3. Site Suitability: Inspection. Lessee shall choose a firm level site accessible by truck to locate the Equipment. If Lessee fails to
provide such a site, then Lessee shall pay for any resulting additional delivery and return charges. Lessee shall not alter the
manner of installation or location of the Equipment without written consent of Lessor. Lessor shall have the right to inspect the
Equipment during the term of this Agreement.
4. Use; Maintenance: Condition. Lessee has the right to peaceably and quietly hold, use and enjoy the Equipment, subject to the
terms and conditions of this Agreement. Lessee agrees not to remove existing nameplates or decals affixed to the Equipment.
Lessee shall use the Equipment solely in the conduct of its business and in a careful and lawful manner. Lessee shall pay any and
all fees, charges and expenses and comply with all laws related to the use, possession, and operation of the Equipment while it is
in Lessee's possession, including obtaining all approvals and permits related to the use and/or possession of the Equipment.
Lessee shall maintain and keep the Equipment in good repair and safe operating condition during the term of this Agreement in
accordance with the Williams Scotsman Service Guide, receipt of which is hereby acknowledged by Lessee. Lessee shall not,
without Lessor's prior written consent, make any changes, alterations or improvements in or to the Equipment or remove any parts,
accessories or attachments from it. Lessor represents that the Equipment complies with federal and state building codes.
5. Term of Lease; Extension. The term of this Agreement begins on the date of delivery of the Equipment, and ends on the later
of the last day of the Minimum Lease Term ("Term"), the Extension Period (as herein defined), or upon exercise of the Purchase
Option as set forth in the Lease with Purchase Option. At the end of the Term, this Agreement may be extended on a month -to -
month basis until the Equipment is returned to Lessor (the "Extension Period"). During the Extension Period, Lessor may annually
amend the Lease Rate. An increase in the Lease Rate may not exceed the percentage increase in the Consumer Price Index -Los
Angeles/Orange County Area. After the end of the Term, either party can terminate this Agreement on 30 days written notice.
6. Rent; Fees; Taxes; Late Charges. Rent begins to accrue on the Delivery Date. If delivery is not made on the first of the month,
then rent shall be prorated for the first month of the Term. Lessee shall pay Lessor monthly rent for the Equipment on the due date
at the Rate Per Month stated in this Agreement during the Term, and at the Rate Per Month established by Lessor during the
Extension Period. If any payment is not paid on the due date, Lessee agrees to pay Lessor a charge of 1 %% per month of the
amount in arrears for the period such amount remains unpaid. Lessee shall pay or, if requested by Lessor, reimburse Lessor for
any and all sales, use, personal property taxes, or other taxes, fees or assessments levied against or imposed upon the
Equipment, its value, use or operation, including storage related charges attributable to delayed delivery and/or installation of the
Equipment required and/or requested by Lessee. Payments shall be effective upon receipt. Lessor may apply any payment from
Lessee against any obligation due and owing by Lessee under this Agreement, regardless of any statement appearing on or
referred to in any remittance from Lessee or any prior application of payment. The receipt by Lessor of a partial payment of any
amount due to Lessor endorsed as payment in full will be deemed to be a part payment only, and any endorsements or statements
on the check or any letter accompanying the check shall not be deemed an accord and/or satisfaction. Lessee's obligation (without
prior notice or demand) to pay rent and all other amounts due hereunder shall be absolute and unconditional, and not subject to
any abatement, set off, defense, recoupment, or reduction.
7. No Liens. Lessee agrees to keep the Equipment free and clear of any and all claims, liens, encumbrances or attachments.
8. Indemnity. Lessee agrees to indemnify, defend and keep harmless Lessor, its agents and employees, from and against any and
all losses, claims, attorneys' fees and expenses, including but not limited to those arising out of or caused by the
negligence of Lessor or its agents or employees, related to: (a) the death of, injury to, or damage to the property of, any person
or party related to or arising out of the, use, possession, condition, of the Equipment; and/or (b) the failure of Lessee to maintain
the Equipment as agreed to herein.
9. Loss: Damage. Upon satisfactory delivery, Lessee assumes the risk of all loss and damage to the Equipment from all
causes. Upon the occurrence of the total loss of the Equipment, to such an extent as to make the repair thereof uneconomical (in
Lessor's opinion) Lessor shall declare the Equipment a Total Loss. In the event of a Total Loss, Lessee shall pay Lessor, on the
next date for the payment of rent, the rent then due plus the Equipment Value as set forth herein (the "Total Loss Amount"). Upon
Lessor's receipt of the Total Loss Amount, the lease will terminate and all Lessees obligations will terminate. Lessor will transfer
available documents of ownership of the Equipment to Lessee unless Lessor agrees to dispose of the Equipment at Lessee's cost
and expense. In the event of loss or damage to the Equipment that does not constitute a Total Loss, Lessee, at its sole cost and
expense, shall pay for the repair of such damage as directed by Lessor to the condition required by this Agreement.
10. Insurance. Lessee's responsibility for the Equipment begins immediately upon delivery of said Equipment by Lessor. Lessee
she obtain and keep in force during the entire Lease Term the following liability and property insurance coverage naming Lessor
as Additional Insured and Loss Payee. Lessee has elected to meet the insurance requirements contained herein by self-insurance.
If Lessee subsequently elects not to self -insure, Lessee shall provide Lessor with (30) days prior written notice of such election
Lss04125 /06 /(,V Page 6
along with a valid certificate of insurance evidencing the required coverage. (A) General Liability Insurance: A policy of combined
bodily injury and property damage insurance insuring Lessee and Lessor against any liability arising out of the use, maintenance,
or possession of the Equipment. Such insurance shall be in an amount not less than $1,000,000 per occurrence. (B) Property
Insurance: A policy of insurance covering loss or damage to the Equipment, in an amount equal to 100% of the Equipment Value,
providing protection against all perils included within the classification and special extended perils ("all risk" insurance). (C)
General. (1) The insurance for the Equipment shall be issued by insurance companies satisfactory to Lessor. Within 10 days after
the delivery of the Equipment, Lessee shall provide Lessor with Certificates of Insurance showing that the required coverages are
in effect and naming Lessor as Additional Insured and Loss Payee, The Certificates of Insurance must provide Lessor with 30 days
prior written notice of any cancellation. Any proceeds of such insurance shall be paid to Lessor and shall be applied to the
replacement of the Equipment or payment of monies due under this Agreement, at the option of Lessor. Lessee shall comply with
all requirements of the insurance underwriters or any governmental authority. (2) Lesse will only be assessed missing or expired
certificate fees, as provided herein, if Lesee subsequently elects not to self -insure and does not provide Lessor with a certificate
evidencing insurance coverage, or if Lessee shall provide Lessor with one (1) month prior written notice of any self-insurance
termination.
Lessee shall pay a Missing or Expired Certificate fee of $10 per storage unit, $50 per 8' wide, $60 per 9' and 10' wide, $90 per 11'
and 12' wide, and $100 per 13' wide and above mobile unit each month that Lessee fails to timely provide the required Certificate
of Insurance for property coverage. Lessee shall pay a fee of $10 per storage unit and $20 per unit for all other mobile units for
each month that Lessee fails to timely provide the required Certificate of Insurance for liability coverage. Payment of such fees
shall not provide Lessee with any insurance coverage, nor excuse Lessee from performing its obligations under Sections 8 & 9
11. Insurance Waiver Program. In the event Lessee prefers not to provide evidence of either or both insurance coverages in
accordance with Paragraph 10 hereof, Lessee may elect to participate in Lessor's Insurance Waiver Program ("Program"), if
available The Program is not an insurance policy. The waiver fee(s), when paid, relieves the Lessee of the contractual
responsibility to provide evidence of the required insurance coverage(s). Lessee may elect to participate in this Program, in lieu of
providing evidence of either or both insurance coverages by signing a Lease Agreement Insurance Waiver Addendum, paying all
applicable fees and abiding by the other terms of the Program and this Agreement.
12. Defaults: Remedies. (A) Lessee shall be deemed to be in default hereunder upon the occurrence of any of the following
events ("Events of Default"): (1) Lessee shall fail to make any payment due hereunder within 10 days after its due date; (2) Lessee
shall fail to perform or observe any other term, covenant, or condition of this Agreement; or. (B),Following Lessors prior written
notice to Lessee's Event of Default, and ten (10) days provided to Lessee in which to cure such Event of Default, should the Event
of Default remain uncured, Lessor may declare this Agreement to be in Default, and thereafter may exercise any one or more of
the following remedies: (1) Declare the rent for the Term and all other unpaid rent, fees, taxes and charges under this Agreement
immediately due and payable; (2) Repossess, retake and/or retain any or all of the Equipment free of all rights and claims of
Lessee with notice, but without legal process, or judicial intervention, unless required by law and without releasing Lessee of any
term, covenant or condition provided herein; (3) Sell or otherwise dispose of any or all of the Equipment in a commercially
reasonable manner and apply the net proceeds of such disposition, after deducting all costs, to the obligations of Lessee, with
Lessee remaining liable for any deficiency; (4) Cancel this Agreement; and/or (5) Exercise any other right or remedy available to
Lessor at law or in equity. Lessor's waiver of any Event of Default shall not constitute a waiver of any other Event of Default or a
waiver of any term or condition of this Agreement. No right or remedy referred to herein is intended to be exclusive, and each may
be exercised concurrently or separately and from time to time. In the event Lessor shall repossess or retake the Equipment, and
there shall be in or attached to such Equipment any property owned by, or in the custody or control of Lessee, then Lessor is
hereby authorized to take possession of such property for a period of 10 days. Lessor shall provide written notice to Lessee of any
property left in the Equipment and, thereafter, any such property not claimed by Lessee, will be deemed abandoned, and Lessor
shall have the right to dispose of it. (C) Lessee and Lessor waive all right to trial by jury of all claims, defenses, counterclaims and
suits of any kind arising from or relating to this Agreement.
13. Return of Equipment Termination of Lease. At the end of the lease term, if Lessee does not exercise its Option to
Purchase, Lessee shall make the Equipment available to Lessor, without impediment, at the Delivery Address or any other address
to which Lessor has previously provided written approval of relocation of the Equipment. Any impediment to pick-up of the
Equipment may result in additional charges to Lessee. Lessee shall provide Lessor with at least 30 days advance written notice of
the return of the Equipment. The Equipment shall be "broom clean' and in the same condition as delivered to Lessee, ordinary
wear and tear excepted. Termination will become effective only when the Equipment has been returned to Lessor as herein
provided and Lessee has paid Lessor all unpaid rental and other charges applicable to the Equipment. Lessee agrees that prior to
the return of the Equipment to Lessor or upon notice of its repossession, Lessee shall immediately disconnect all utilities, remove
all of Lessee's personal property, and vacate the Equipment. Lessee hereby consents to entry by Lessor or its agents upon the
premises where the Equipment may be located for return or repossession of the Equipment. Unless otherwise specifically provided
in the Agreement, Lessor shall not be responsible for site restoration. Lessor shall not be liable for keeping or storing any personal
property of Lessee left in or on the Equipment, such property will be deemed abandoned by Lessee. Any accessories and additions
to the returned Equipment shall be deemed to be part of the Equipment and the property of Lessor. Lessee shall reimburse Lessor
for any and all costs incurred related to the return of the Equipment and in repairing, cleaning or otherwise restoring the Equipment
to its condition when delivered, ordinary wear and tear excepted.
14. Limited Warranty. For as long as Lessee timely makes all payments due hereunder, Lessor warrants throughout the term of
this Agreement that it will repair structural or mechanical defects in the Equipment (excluding HVAC filters, fire extinguishers,
fuses/breakers and light bulbs), provided that Lessee notifies Lessor in writing of any defects, malfunctions, or leaks within two (2)
business days of the occurrence thereof. Lessor shall have no liability for the repair of any defect or condition resulting from
Lessee's relocation of the Equipment, utilities connection, alteration of the Equipment, use of the Equipment for a purpose for
which it was not intended, vandalism, misuse of the Equipment, for excessive wear and tear or for which timely notice is not
provided to Lessor. The repair of the Equipment by Lessor, due to a defect or condition resulting from any of the preceding causes
Lss04/25/06( G,4 Page 7
shall result in additional charges to Lessee. Lessor shall have no liability whatsoever for any consequential, incidental or punitive
damages, costs or expenses. Except as specifically provided herein, Lessor disclaims any and all warranties, express or implied,
related to the Equipment and any maintenance or repair work performed by Lessor including any warranties of merchantability,
suitability, or fitness for a particular purpose.
15. Assignment. Lessee shall not assign this Agreement or sublet the Equipment without the prior written consent of Lessor. This
Agreement shall be binding upon any permitted assignee or successor of Lessee. Lessor may assign any of its rights hereunder
without notice to Lessee.
16. Miscellaneous. (a) Time is of the essence with respect to this Agreement. (b) This Agreement, when signed by both parties,
constitutes the entire agreement between the parties, superseding and replacing all prior documents and representations, with
respect to the subject matter hereof. It may only be amended by a document signed by both parties. (c) If any provision of this
Agreement is deemed unenforceable for any reason, then such provision shall be deemed stricken and shall not affect the
enforceability of any of its other provisions. Notwithstanding anything contained herein to the contrary, if it should be determined by
a court of competent jurisdiction that any indemnification or other protection afforded to an indemnitee under Section 8 would be in
violation of or otherwise prohibited by any applicable law, then Section 8 shall automatically be deemed to be amended in a
manner which provides the maximum indemnification and other protections to such indemnitee consistent with such applicable law.
(d) The obligations of Lessee under Sections 6, 7, 8 and 9, which accrue during the term of this Agreement, shall survive the
termination of this Agreement. (e) If Lessee fails to perform any of its obligations hereunder, Lessor shall have after three (3) days
written notice to Lessee, the right to effect such performance; the amount of any out-of-pocket and other reasonable expenses of
Lessor incurred in connection with such performance shall be payable by Lessee upon demand. (f) Except for Lessees
responsibility to make timely payments, neither Lessor nor Lessor shall not be responsible for delays beyond that party's control.
(g) Except for for all costs and expenses incurred by Lessor in enforcing this Agreement, Lessor and Lessee shall have no
liability whatsoever for any consequential, incidental or punitive damages, costs or expenses. (h) Lessee if requested by
Lessor agrees to execute any UCC financing statements in order to protect Lessors ownership and interest in the Equipment, (i)
This Agreement shall in all respects be governed by the laws of the state ofCalifornia. Lessee hereby consents and submits to the
jurisdiction of the courts of Orange County, California for purposes of enforcement of this Agreement. Lessee hereby waives any
and all rights to or claims of sovereign immunity. 0) Lessee will pay all costs and expenses, including reasonable attorney's fees,
incurred by Lessor in enforcing any terms, covenants and indemnities provided herein.
Lease Terms & Conditions, Revision 03/27/06/coo/4/19/06
Lss04/25/06/(, c o Page 8
Lessee: CITY OF SANTA ANA
Telephone:
EXHIBIT B
PURCHASE OPTION
Delivery Address: Centennial Park
Santa Ana, CA
Telephone:
Equipment Specifications
Model
Serial Number
Delivery
Value
Minimum
Rate Per
Date
Lease
Month
Term
6
-14�
} t% a�i
1�I��06
TNOO,OCp W
MCn-t"K
Equipment Specifications
Provided there is then no default, and has never been a default by Lessee under the Lease Agreement applicable to the
described Equipment, Lessee may exercise an option to purchase this equipment at the termination of the lease by payment to the
Lessor of $1.00. Upon receipt of such full payment plus all applicable taxes, Lessor shall execute and deliver to Lessee appropriate
ownership documentation.
To secure Lessor's interest in the mobile office(s) identified above ("Equipment") pending any sale thereof pursuant to the
foregoing option and to secure the payment of all sums due to the Lessor and the discharge of all obligations owed to Lessor by
the Lessee under the lease agreement pertaining to the equipment and all related documents, the Lessee hereby grants to the
Lessor a security interest in the equipment, all parts, accessories and ancillary equipment and all proceeds thereof (including
insurance proceeds). Lessee agrees to execute financing statements at Lessor's request publicizing the foregoing security interest.
Notwithstanding any language contained to the contrary in the Lease Agreement, Lessor's obligation to repair structural
and mechanical defects in the Equipment shall be as follows (based upon the condition of the Equipment that Lessee is electing to
lease purchase):
X The Equipment identified by the Serial Number indicated on the Lease Agreement and this Purchase Option is New
Equipment at the time of delivery to Lessee. Lessor warrants the Equipment for one (1) year from the date of
delivery of the Equipment only.
The Equipment identified by the Serial Number indicated on the Lease Agreement and this Purchase Option is
Used Equipment at the time of delivery to Lessee. Lessor warrants the Equipment for thirty (30) days from the
date of delivery of the Equipment only.
Subject to the aforementioned time frames, Lessor's warranty obligations are contained in the Limited Warranty provision
of the Lease Agreement and all other terms and conditions of the Limited Warranty provision shall remain in full force and effect.
Lessor is hereby authorized to accept and rely upon a facsimile signature of Lessee on this agreement. Any such
signature shall be treated as an original signature for all purposes.
Lessee
DAVID . REAMDynt'e
City Manager
PATRICIA E. HEALY, Clerk of thYCouncil U
C Wy DocumentslContmctsl orms & Languagel$1 Pumhase Option with mulbple warranty final i
Lessor: WILLIAMS SCOTSMAN, INC
Lss04/25/06 Page 9
EXHIBIT C
0
Additional Insured — Automatic - Owners, Lessees Or ZURICH
Contractors - Broad Form
Policy No.
Eff. Date of Pol.
Esp. Date of Pol.
Eff. Date of End.
Producer
AWL Prem
Return Prem.
L0298356205
/l/06
/1/07
/1/06
$
$
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
This endorsement modifies insurance provided under the:
Commercial General Liability Coverage Part
A. WHO IS AN INSURED (Section II) is amended to include as an insured any person or organization whom you are required
to add as an additional insured on this policy under a written contract or written agreement.
B. The insurance provided to additional insureds applies only to "bodily injury', "property damage" or "personal and advertis-
ing injury' covered under Section I, Coverage A, BODILY INJURY AND PROPERTY DAMAGE LIABILITY and
Coverage B, PERSONAL AND ADVERTISING INJURY LIABILITY, but only if:
1. The "bodily injury' or "property damage" results from your negligence; and
2. The "bodily injury', "property damage" or "personal and advertising injury' results directly from:
a. Your ongoing operations; or
b. "Your work" completed as included in the "products -completed operations hazard",
performed for the additional insured, which is the subject of the written contract or written agreement.
C. However, regardless of the provisions of paragraphs A. and B. above:
1. We will not extend any insurance coverage to any additional insured person or organization:
a. That is not provided to you in this policy; or
b. That is any broader coverage than you are required to provide to the additional insured person or organization in the
written contract or written agreement; and
2. We will not provide Limits of Insurance to any additional insured person or organization that exceed the lower of:
a. The Limits of Insurance provided to you in this policy; or
b. The Limits of Insurance you are required to provide in the written contract or written agreement.
D. The insurance provided to the additional insured person or organization does not apply to:
1. "Bodily injury', "property damage" or "personal and advertising injury" that results solely from negligence of the addi-
tional insured; or
U-GL-1175-A CW (9/03)/coo/5/2/06/WS
PaeIof2
Includes copyrighted material of Insurance Services Office, Inc. with its permission. 9
2. "Bodily injury", "property damage" or "personal and advertising injury" arising out of the rendering or failure to
render any professional architectural, engineering or surveying services including:
a. The preparing, approving, or failing to prepare or approve maps, shop drawings, opinions, reports, surveys, field
orders, change orders or drawings and specifications; and
b. Supervisory, inspection, architectural or engineering activities.
E. The additional insured must see to it that:
1. We are notified as soon as practicable of an "occurrence" or offense that may result in a claim:
2. We receive written notice of a claim or "suit" as soon as practicable; and
3. A request for defense and indemnity of the claim or "suit" will promptly be brought against any policy issued by an-
other insurer under which the additional insured also has rights as an insured or additional insured.
F. The insurance provided by this endorsement is primary insurance and we will not seek contribution from any other in-
surance available to any additional insured person or organization unless the other insurance is provided by a contractor
other than you for the same operations and job location. Then we will share with that other insurance by the method de-
scribed in paragraph 4.c. of SECTION IV - COMMERCIAL GENERAL LIABILITY CONDITIONS.
Any provisions in this Coverage Part not changed by the terms and conditions of this endorsement continue to apply as writ-
ten.
U-GLA 175-A CW (9/03)
Page 2 of 2