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Home My WebLink AboutResolution 092-87 l RESOLUTION 92-87 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO APPROVING AN EQUIPMENT LEASE WITH SECURITY PACIFIC MERCHANT BANK WHEREAS, the City is desirous of purchasing a new fire truck for $137,318.76 and new computer hardware and software for $96 ,154. 00; and WHEREAS, the City feels it prudent to refinance an existing loan on a fire truck in order to save financing costs; and WHEREAS, the lowest interest rate available for leasing this package of equipment was submitted by Security Pacific Merchant Bank; and NOW, THEREFORE, BE IT RESOLVED that the Atascadero City Council does hereby approve and enter into a five Year lease with Security Pacific Merchant Bank for the lease/purchase of the aforementioned equipment. (Copy of lease attached. ) On motion by Councilperson R,,,,rhPa„ and seconded by CouncilpersonMark,-y , the foregoing resolution is hereby adopted in its entirety on the following roll call votes: AYES: Councilmembers, Bourbeau, Handshy, Borgeson, Mackey, and Mayor Norris NOES: None ABSENT: None ADOPTED: September 8, 1987 CITY OF ATASCADERO, CALIFORNIA B y� BARBARA NOR IS, Mayor (Resolution No. 92-87, con' t. ) ATTEST: eXdL'I.4y' — BOYD C. SHARITZ, C' Clerk PREPARED BY: DAVID Gj J GENSEN, Admin. Svcs. Director APPROVED AS TO CONTENT MICHAEL SHELTON, City Manager APPROVED AS TO FORM: JGO ENSEN, City Attorney I Municipal Lease and Option Agreement Dated as of September 18 , 1987 between Security Pacific Merchant Bank and the City of Atascadero Le L0L3j0 84eLadoadde aayjo kq uo `V j1g64x3 Se oPaay payoel4e `kpoq 6ULUaan06 S4i 10 UOL4nLos8a 844 3o SUOLSLAo.Ad pue swag; 941 aapun 4uawaaa6y SLy aaAllap pue a;noaxa 04 p9zLao44ne Klnp uaaq sey aassal (p) •aapuna,aay SUOL4e6LLg0 s1l 10 Lle waoj.Aad 04 pue `kgaaay pa4eLdwa4uoo uol4oeSUea4 a44 pue 4Uaw8aa6y sl44 04UL a84Ua 04 a4M a44 3o sMeL pue UOL4n4psuo0 a44 aapun pazLao44ne SL aassal (o) '0l4l Lod pue a4ejodaoo kpoq a se aoua4slxa sol 4oa3ja pue 9oao3 LLn3 ut daaN pue aAaasaad 04 R-AeSSaOaU S6ul44 LLe auop aq o4 asneo ao op flim aassal (q) •a4e4S 844 JO sMeL pue uopn4psuo0 844 aapun 6uL4slxa pue pazlue6ao kLnp `,Kpoq OlLgnd a sl aassal (e) :SmOLLo3 se `saaU6Lsse sol pue aossal 10 4Ljauaq a44 Aoj speaaem pue s4UEUanoo `s4uas9adaa aassal 33SS31 30 SiNVN3A00 I 313Ilad :sMOLLO3 Se aaa6e Kga.Aa4 SOL4aed a44 `p8uLe4uoo aa4jeULaaa4 Sas[waad a44 3o UOL4eaaplsuoo UL pue aO3 °3H033H3H1 `MON !ULaaay 44aoj 4as sasodand 844 ao3 4U8w8aa6y SL44 04UL Aa4Ua 04 aje4S 944 JO sMeL pue uopn4.4suo0 844 aapun PazP044ne sL aassal `Stl3a3HM pue -4U8wa8a6y SL44 UL 44ao3 48s sesodand 844 a03 pue 3o SUOL4lpuoo pue Swa84 ayl 04 pargns `aossal woa3 K4,Aadoad a44 aseaL 04 Saalsap aassal pue `aassal la 04 `pauLjap. aa43eua84 se `� 4.Aadoad 844 aseBL 04 Saalsap aossal `St/3b3HM :H 1 3 S S 3 N 1 I M '(ua4e4S„) eLUa03lLe3 3o a4e4S a44 3o sMeL a44 aapun 6UL4SLxa pue pazlue6ao kLnp oL4lLod pue a4eaodaoo Kpoq a (,,aassal„) oaapeose4y 30 IkM Pue `(„aOSsal„) UOL4eL00SSe 6ULjueq LeuOL4eU a `JUeq LeUOL4eN OLJLO �Ed 4pnoaS 3o UOLSLALp a `�UeB �LieyoaaW OL LOed � 4pnoaS uaaM4aq 04uL paaa4ua (,,4u8waaa6y„ a44) 4uaweaa6y UOL4do pue aseal LedLoLunW s141 £Zti£6 eLuao3lLe0 `oaapeose4V anuany ewLed 0059 oaape3se4v jo k410 :aassal IL006 eLua03lLe0 `SaLa6uy _Sol tIZd3H `anuany pue-Ag 44noSzVO£ Nue8 4ue4oaaW 3L3loed 44l,AnDOS :aossal 1N3W33HOV NOIldo ONd 3SV31 1ddI0INnW L60Z '0N 4uawaa.6b ,. . e W, 0 Agreement No. 2097 approval, and further represents and warrants that all requirements have been met, and procedures have occurred in order to ensure the enforceability of this Agreement, and Lessee has complied with such public bidding requirements as may be apalicable to this Agreement.: and the acquisition by Lessee of the Property hertander. Lessee shall cause to be executed an opinion of its counsel substantially in the form attached hereto as Exhibit B. (e) During the term of this Agreement, the Property will be used by Lessee only for the purpose of performing one or more governmental or proprietary functions of Lessee consistent with the permissible scope of Lessee's authority and will not be used in a trade or business of any person or entity other than the Lessee. (f) During the period this Agreement is in force, Lessee will annually provide Lessor with current financial statements, budgets, proof of appropriation for the ensuing fiscal year and such other financial information relating to the ability of Lessee to continue this Agreement as may be reasonably requested by Lessor or its assignee. (g) The Property will have a useful life in the hands of the Lessee that is substantially in excess of the Lease Term. (h) Lessee will not take any action which, if taken, or omit to take any action which, if omitted, would adversely affect the exemption of t*o interest component of the Rental Payments (shown in Exhibit E) from Federal income taxation or from taxation under the laws of the State of California. (i) Lessee hereby designates the lease obligation contemplated by this Agreement as a "qualified tax-exempt obligation", as such term is used in Section 265(b)(3) of the Internal Revenue Code. r ARTICLE II DEFINITIONS The following terms will have meanings indicated below unless the context clearly requires otherwise: "Acquisition" means the construction and/or purchase of the Property by the Lessee pursuant to the Agency Agreement. "Agency Agreement"means the Agency Agreement dated as of 9/18/87 by and between Lessor and Lessee, including any duly authorized and executed amendment thereto. "Agreement" means this Municipal Lease and Option Agreement, including the Exhibits attached hereto, as the same may be supplemented or amended from time to tin-* in accordance with the terms hereof. "Certificate of Acceptance" means the Certificate of Acceptance attached hereto as Exhibit F, whereby Lessee acknowledges completion of the Acquisition. "Closing Date" means the date on which Lessor deposits with the Escrow Agent the funds required to be deposited by Section 3.01 of this Agreement. - 2- •uotZe6tLgo IuawRed MUBB 841 RjstIes o punj luawRed LeIuaa 844 OJUL sRauow juatotjjns jtsodop LLeys aassal °(e)ZO•g uotjoaS JO Suotstnoad 844 04 juensand '00'tL0`IS o} Lenba wns a °4uaBy Moaos3 941 kq pautEl4ew put p84stLge4ss aq of iun000e Mo.aosa up 'punj juawRed Le4uaa 844 olut 4tsodap of saaa6t aossal 844 'utaaay aassal 844 jo slueuanoo put s4uawaaa6t aye aoj uot4ea8ptsuo3 uI •punj 4u w ed Lepaa •ZO'£ uot4oaS 6utsoLJ 'a4e0 It 4ua6y Mo.aos3 ay4 4Um 6Z'S66`L£S jo wns ay4 4tsodap LLtys aassal •4u96y Moa3s3 044 Rq play punj WwRed LeWa 844 put punj uot}tstnboy 944 4stLge4se o4 pasn aq o4 IL•6Zg`ZSZS jo wns 944 pe4tsodep eq o4 asneo lle 4s aossal '8420 6utsoLJ 841 uO t •10•£ uot4:)as SlNVN3A00 Xtll '.Ala3d0bd j0 NOIlIsino3b '.SA3NOW AO MOM III 313I V 'luawa846y RouaBtf 044 04 4uensand 44.aadoad 844 jo uot4tStnb:)d a44 aoj 6ut4oe,aluo3 st ao p84oealuo3 aassal w04M woaj joaa843 ,aoj3e.a4uoogns Rue put AO4oeAIU03 .ao aopuaA 844 sueaw waopuaA. 'luawaaa6y SL44 jo 3 4tg14x3 ut 44aoj 48s se `waal aseal aye. 6ut.anp sawtl 844 4e put s4unowe 844 ut aau6tsse sit .ao aossal 844 04 aassal Rq aLgeked aq LLeys s4u8wRed Muaa •waal LeMauab ao JpUt&, o juaa.ano ua44 844 6ut.anp (4,aado,ad 944 asn 04 aassal jo 4461- 844 jo uotp.aaptsuoo UL aLgeRed lwjal aseal 844 6ut.anp 4uewea.a6d s14e jo suotstno.ad a44 04 4uens.and aassal Rq oLgeRed sluawRed Muaa a44 sueaw „sluawRed Muga„ '4uaw88a6y stye, 04 3 4tgt4x3 ut 44uoj las luawRed Le4u8a ZSeL 944 jo 94ep anp '944 uo pua flays yotyM swaaI LeMauaa 3t4ewo4ne yons jo EL 044 Idaoxe IaeaR Ltostj s,aassal aye 44th antsua4xa-O:) w.aa4 a put -VOR auo jo uot:te.anp a 6utAe4 yoea `lu8wa8a6y stye jo Al aL4PV ut aoj paptnoad se 4uawMA4 stye jo swaa4 LeMaua.a ot4two4ne 844 sueaw Nswaal LeMauaa„ [q�4X3 ut •o4aaay 3 y4.aoj 4as se lkpado.ad ay4 aseyoand o4 Aapao ut .Aossal of Red not aaostp sit ut `REw aassal yotyM 4unowe ayl Sueaw uaot.Ad aspyoandu aye st yot M 'Juawaa,a6y SL41 jo 4oa�gns 4 pup 0 4tgtM UL pagta3sap kpadoad 844 sueaw „R�.aadoad„ '84e0 6utsoL3 844 4e 1oajje ut aassal jo aeaR Le3stj a44 JO pua 844 Lt4un am 6utsoL3 ayl woaj potaad 844 sueaw awaal Leutk-Ao, •aossal jo (S)aau6tsst Rue 'astMaay4o saaLnbaa lx84uo3 844 aaayM 4daoxe (M) pup !uot4eaodao3 eaaajsuea4 ao 6uMnsaa '6utntAans Rue (q) :aapunaaay ,aossal Se 6utl3e `UOL4Vt3OSSe 6utlueq Leuot�tu a 'lue8 Leuotl•EN ot3t3ed R4tanoaS jo UOLStAta a `JUeq 4ue4oaaW otjtoed 444 ,AnoaS (t) sutaw MAOSSaj. •4u8wa8a6d stye Jo uotstnoad 844 aapun aossal wo.aj (4aadoad 044lutspsL st 4:44m put lt%w99.a6y s[44 JO 4dea6eaed 3satj_ 844 ut pagtaosap st 444m SUlua 844 Sutam „aassal, 'Al aL:)LPV aapun 4uawaaa6y stye ut patjtoads w.184 844 sutaw uwaal aseal, L60Z *ON 4u8w88.A6d • Agreement No. 2097 The Lessee hereby pledges and grants a lien on and a security interest in the Rental Payment Fund to the Lessor in order to secure the Lessee's obligation to pay the Base Rental Payment as herein provided. Section 103. Acquisition Costs of the Property. Lessor agrees to deposit, or Cause to be deposited, into the Acquisition Fund, an escrow account to be established pursuant to the Escrow Agreement, a sum equal to $319,751.00. The moneys in the Acquisition Fund shall be used to acquire the Property pursuant to the Lessee's specifications. Lessee will supervise and provide for, as agent for Lessor, the Acquisition of the Property pursuant to the terms of the Agency Agreement, dated as of September 18, 1987, by and between Lessor and Lessee. Failure by the Vendor to perform shall not affect Lessee's obligation to make Rental Payments under this Agreement. Lessee agrees that the Property will be acquired in accordance with the specifications therefor and on file with the Lessee. Lessee further agrees that it will cause the Acquisition of the Property to be diligently performed after the deposit of funds with the Escrow Agent pursuant to Section 3.01, and that the Property will be substantially acquired in accordance with said specification within three years from the Closing Date. Upon completion of the Acquisition of the Property satisfactory to the Lessee, but in any event not later than thirty (30) days following such completion, Lessee shall deliver to the Escrow Agent a Certificate of Acceptance. Section 3.04. Payment of Acquisition Costs Payment to the Vendor of the cost of of the Property shall be made from the moneys deposited with the Escrow Agent as provided in section 3.01, which shall be disbursed in accordance with Section 2 of the Escrow Agreement. Section 3.05. Tax Covenants. The Lessee will not make or direct any use - of the proceeds of the obligation provided herein or any other funds of the Lessee which will cause such obligation to be an "arbitrage bond" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended (herein the "Code"), to be "federally guaranteed" within the meaning of Section 149(b) of the Code, or to be a "private activity bond" within the meaning of Section 141(a) of the Code. To that end, so long as any Rental Payments are unpaid, the Lessee, with respect to such proceeds and such other funds, will comply with all requirements of such Code sections and all regulations of the United States Department of the Treasury issued thereunder to the extent that such requirements are, at the time, applicable and in effect. Furthermore, to the extent applicable pursuant to Section 148(f) of the Internal Revenue Code of 1986, Lessee convenants to rebate all positive arbitrage to the United States of America. The Lessee will not use or permit the use of tire Property by any person for a "private business use" within the meaning of Section 141(b) of the Code in such manner or to such extent as would result in the inclusion of interest received hereunder in gross income for federal income tax purposes under Section 103 of the Code. 4 :£0•g uoL4aaS o4 juensand spun] algeLlene XLLe68L 10 XauaLaljjnsul (p) •aapunaa94 eassal Sq pled aq o; paaLnbaa ao p6ZLA044ne s4uawged Rluaa LLe 3o eassal Xq juawked a4l (a) ao !IIIX aLaleay aapun �uawaaa6y sly aIBulwaa 01 uol4aala s,aossal pue aassal Xq ILnelap a (q) :Iu8Waaa6d `sly4 Jo IX ao XI saLaLI.ay Jo suoLsLAoad 841 aapun pa4uea6 ,';aadoad a44 ase4aand 04 uoLIdo ay' o aassal iq asLaaaxa 844 (e) :sjuana 6uLMoLLo3 844 ,}o kUB ,}o 4saL(aea a4l uodn 94Bu Lwaa4 MM Waal aseal ayl •Waal OSeal Jo uolfeuLWaal '£0•ti uoW)as •Iuawaaa6y s144 10 3 4lgt4x3 UL paprAoad se aq LLeys sIuawked LeIuab M MI jdaoxa 'waal Leul6la0 aye 6uLanp suoL4lpuoa pue swa84 844 se awes a44 aq LLeys w.aal LeMauaa Sue 6uLanp suol4lpuoa pue swa84 841 luaw8aa6d SL44 a4euLWaa4 04 uoL4uaIuL s,aassal 30 43a338 ul ua44 Waal LeMauab ao Waal LeuL6l,a0 aye 3o pua aye 04 aolad skep 06 ue44 ssaL lou Aossal 04 8ai40u ua44laM saAl6 aassal 844 ssaLun `aeak auo LeuoMppe uv aoJ Waal LeMauaa iue ao Waal leuL6lao 844 Jo pua M 4e paMauaa XLLeal4ewo4ne aq LLLM waal aseal a41 •aeaK Leas LJ 4uaaana s,aassal 10 Cep 4seL M 84euLwa84 LLeys Pulea4ea 6ulsoL3 a4l uo aauawwoa LLeys 4uawaaa6y sl4l 3o waal leul6la0 ayl •waal asea 30 luawaauawwo _ 'ZO'ti uoL4aaS 'W 3ajL alay4 ao3 pL04 04 pue ane4 04 �uawaaa6y sl4� 3o suolslnoad aye y�lM aURPJOaDe UL `94.Aadoad aye, 'aossa3 Woa1 s8.AL4 pue saseaL "sluaa aassal pue `aassal 04 s4aL pue saseaL 'saslwap KgaAa4 Aossal •tea oad 3o ase 'T0•q uol4a8S Wb31 3Sd31 Al 310IINV •sasodand xe4 awoauL LeaapaJ ao3 aWoauL ssoa6 UL papn Lau L aq 40u LLLM Muaa asea aye Jo juauodwoa 4saa84uL M Mi aansse 04 Aapao ul aLgeaLsap ao Xaessaaau aae 4a14M MeL Sq pa44lwaad sBu144 pue s4ae LLe waojAad pue op saWL4 LLB 4e LLeys aassal 844 pue aossal a4l •suopona4suL vans 4Um aauepaoaae UL AOSS81 M Sq ua�Ej suopoe Sue ao3 aossal aye �fq paaanauL asuadxa ao e�4lllgell la6ewep 'wleLa °ssoL Rue ao3 aossal 844 ssaLwaey ploy pue SJJ UWapuL 04 saaa6e kgaa84 aassa3 044 pue '4uawa8a6y Moa3s3 a4l 10 Z0•£ uOW)OS 441M aauepaoaae ul 'suop3na4m vans jo aauasge 844 UL '-AO °suoL4ana4sul vans Sue uo �fLaa �CLOAtsnLauoa few -Aossal a4l •suol4ana4suL vans 441M aauepaoaae UL uolPe 84e; lLe4s Aossal aye pue `6ul4LaM ul aossal M 43na4suL os LLeys aassal 841"aseal sL44 aap.un aassal 844 ao Aossal 844 Sq play s�auoW Rue 30 4uaw4sanul 944 Rem �ue ul 86ue4a ao uo pLaLf aye 4lwlL ao 4:)la4saa 04 K.AeSSaaaU SL 4l So•£ uoL4aaS s144 10 sasodand aoi uoluLdo 844 30 sl aassal a44 OWL4 Sue 4e 3I L6 OZ 'ON 4uawaaa6y • Agreement No. 2097 ARTICLE V ENJOYMENT OF PROPERTY Lessor hereby covenants to provide Lessee during the Lease Term with quiet use and enjoyment of the Property, and Lessee shall during the Lease Term peaceably and quietly have and hold and enjoy the Property, without suit, trouble or hindrance from Lessor, except as expressly set forth in this Agreement. g Bement. Lessor shall have the right at all reasonable times during business hours to enter into and upon the property of Lessee for the purpose of inspecting the Property. ARTICLE VI RENTAL PAYMENTS Section 6.01. Rental Payments to Constitute a Current Expense of ess e. Lessor and Lessee understand and intend that the obligation of Lessee to pay Rental Payments hereunder shall constitute a current expense of Lessee and shall not in any way be construed to be a debt of Lessee in contravention of any applicable constitutional or statutory limitations or requirements concerning the creation of indebtedness by Lessee, nor shall anything contained herein constitute a pledge of the general tax revenues, funds or moneys of Lessee. Section 6.02. Payment of Rental Payments. The Lessee agrees to pay to the Lessor, its successor or assigns, without deduction or offset of any kind, as rental for the use of the Property, the following amounts at the following times: " (a) Base Rental. The Lessee shall pay to the Lessor as a base rental (herein called the "Base Rental") annual rental payments with principal and interest components, paid semi-annually,in accordance with the Rental Payment Schedule attached hereto as Exhibit E and made a part hereof. Each Base Rental payment shall be payable not less than ten (10) business days preceding its due date. The interest components of the Base Rental payment shall be paid by the Lessee as interest paid on the principal components of the Base Rental payments, computed on the basis of a 360-day year composed of twelve 30-day months. Each payment of Base Rental (to be payable as aforesaid) shall be in consideration of the promise of the Lessor to acquire and install or cause to be made available for use by the Lessee the Property and, following completion of the Property, for the use of the Property for the twelve-month period commencing on _ 'of the year in which such rental is payable. -6- 04 ysluanJ Mm aassal aye. `88-L861 aeak Leos[J 44Lm 6ulouawwo0 •paulelgo aq ue0 swaal Lemauaa 841 Jo yaea pue weal Leul6la0 844 6ulanp s4u8wked Muaa LLe aNew 04 JuatolIns 4unowe Lie 3o spun3 algellene �lle6aL �ey� sanallaq �flgeuoseaa aassal •sluaw�fed leIuab Lions Lle aoJ Ispunj algeLlene k[L ' 3o 4no KLOLOs lsuopeladoadde Lenuue kaessaoau 844 aNew of pue sla6pnq lenuue sol ul a9pun8.A04 anp s4u8wkBd Muab 4ons LLe apnLoul 04 k.AeSSa:)aU aq kew se uoLjoe 4ons ajej 04 s4ueuanoo 88SSBI ayl -s4abpng Lenuuy - •Ep•g uol4oa$ •84nIslp 43ns jo UOL4nLosaa LeL16 ayl 6ulpued s4uawked Le4u8.A kue pLOLlUm you i t!4s pue pulN Cue 10 4asI10 ao uoljonpap lnoy4lM anp uayM spawked PIMA LLe aNew LLeys aassal 844 '.Aossal 844 pue aassal 844 uaamlaq a4ndslp � Ue 6ulpuels4UmlON *pied aq LMS awes 844 Mun AapunBta4 anp sl awes a41 uayM 84ep 944 wOjj wnuuE aad (%Zj) 4uao Aad anLaml 30 a4ea a44 4e 4saa84ul Aeaq LLeys anp uayM p[ed aq IOU LLeys yoLyM 'Le4uaa ase8 844 Jo s4uauodwoo Ledloulad pue - 4sa.aa4ul 844 6ulpnL�ul �Aapunaaay 6ulnaooe Le4uaa Jo 4u8wLLe4 * yens �fuy -IL006 eluaodlLeO 'saLa6uy sol jTZd3H `anuany pueag g4noS 00£ le aossal 844 30 aapao a44 uodn ao 04 eolaawy 10 s84e4S pauun ayl Jo �fauow Ln3m!L ul pled aq lLeys Aepunaaa4 aLgeRed Le4u8a 10 4uawLLe4sul yoea •pllgnd Le.Aaua6 844 pue aassal 844 o4. anaooe film 4014m MAJO.Aay4 s4ljauaq 844 pue k4.Aadoad 844 Kq pan.aas aq kew 4olyM sesodand pue sasn 844 'asea3 slyl aapun saljaed 844 10 suol4e6lLgo a0440 '.Aossal 844 �kq paoueutj aq o4 k4aadoad 844 30 uoslnoad pue uoPeLLe4sul 'uol4lslnboe 844 Jo slsoo aye uol4eaaplsuoo °uoljeulwa84ap 4ons 6uljew uj -fjaadoad 944 Jo en Len PIMA .lel 844 s4uasaadaa Le4u8,A LeM Lions 4e44 paulwaa48p pue p+saa6e aney OZaaay s8l4aed ayl -pled sl Muaa 4ons yolyM A0J polaad 4uawked LftUOa 43ns yoea 6ulanp k4.Aadoad a44 Jo 4uswKOCu8 4alnb panul4uoo 841 pue asn 044 04 444A 944 10 uoPeaaplsuoo ul pue Ao3 `,k}aadoad a44 Jo uolslno.Ad pue ICaanllap `uolJlslnb:)e aye 10 uoP8ldw00 6ulMoLLOJ 'polaad 4uaw�fed Lelua.A Peaul aassa3 a44 kq pled aq LLeys pue 'pol.Aad 4uaw� ed Muaa 4ons a0,} .LR4u8a Le404 944 aln4t4suo3 LLeys asea3 sL44 10 waa4 aye. 6ulanp polaad 4uawked Le4ua.A yoea aoJ Muaa LeuoMppV pue Leluaa ase8 jo s4uawked yonS •88ssa3 844 kq Lllq a44 Jo ldlaoaa a84je skeP (0£) kla144 u 1441m aassal a44 Kq oLgeked pue anp aq LLeys paLLlq os sjunowd •swaU 4ons ao} aossal 844 kq aLgeKed u844 sl junowe 4ons 4e4l ao 1paglaosap anoge swa4l 844 10 aaow ao auo Aoj Aossal aye Kq pied uaaq sey paLLlq os junowe 844 Ml 6ulkjl4aao 4uawaje4s a LlUm A0449604 'awl4 04 awl4 woa_4 aossaJ 844 Kq aessal 844 04 MM aq LLe4s Le4uab LeuoMM 4onS •aseal 844 JO swaa4 844 441m ,K Ldwoo 04 Aapao u l j1 kq pled aq o4 paainbaa s86ae4o ao Aossal 844 .4o s4soo 8nl4eajslulwpe kaessaoau a8440 LLe pue Aepunaaay pled aslmaa440 jou swnlwaad aoueansul ls�fauao44e ao s.Ao4lpne jo seal 1(sjuawasangslp pue seal s��'auaoj4e `uo14e41wLL 4n0441M l6ulpnLoul) sasuadxa 1,K4,Aado.Ad 844 4Um uOP:)auuoo ul aoss83 841 10 sjsoo anl4eajslulwpe LLe pue sasuadxa pue s4soo 'saaJ LLe 3o 4uaw�fed 04 pa4lwll you 4nq 6uLpnLoul lk4aadoad 844 30 asn ayl laessal a44 04 x4aadoad 844 3o aseaL a44 pue K4jadoad a44 jo dlysaaumo_t 'aseal sly Jo 4u8w83aojua ao aouewaojaad luol4noaxa 044 44LM uoWoauu03a41 Aossal 844 kq paaanoul sasuadxa pue s4soo kue jo juawked a44 AOJ Aossal *6 Kq paalnbaa aq LLeys se aeak Pea ul s4unowe 43ns Aossal 944 04 'Muaa ase8 6400 aaoj a44 04 u01J1PPe ul 'aapunaaa4 (NP4M LeLlOM , a44 PaLLe_o ulaaay) Leluaa leuoljlppy se fed LLeys aassal ayl *MM LeuolIlPPd (q) L60Z '0N 4u9w8aa6y • Agreement No. 2097 the Lessor copies of each annual budget of the Lessee within ten (10) days after the filing of the 6adopted budget with the governing body of the Lessee. The covenants on the part of the Lessee herein contained shall be deemed to be.-And shall be construed to be duties imposed by law and it shall be the duty of each and every public official of the Lessee to take such action and do� such things as are required by law in the performance of the official duty of such officials to enable the Lessee to carry out and perform the agreements and covenants in this Lease agreed to be carried out and performed by the Lessee. Section 6.04. Application of Rental Payments. All Rental Payments received shall be applied first to the interest components of the Base Rental due hereunder, then to the principal components of the Base Rental due hereunder and thereafter to all Additional Rental due hereunder, but no such application of any payments which are less than the total rental due and owing shall be deemed a waiver of any default hereunder. ARTICLE VII TITLE TO PROPERTY; SECURITY INTEREST Section 7.01. Title to the Property. During the term of this Agreement, title to the Property and any and all all additions, repairs, replacements or modifications shall vest in Lessee. Section 7.02. Security Interest. To secure the payment of all of Lessee's obligations under this Agreement, Lessee grants to Lessor, [in addition to title to the Property,] a security interest constituting a first lien on the Property and on all additions, attachments, accessions and substitutions thereto, and on any proceeds therefrom. Lessee agrees to execute such additional documents, including financing statements, mortgage waivers, affidavits, notices and similar instruments, in form satisfactory to Lessor, which Lessor deems necessary or appropriate to establish and maintain its security interest, and upon assignment, the security interest of any assignee of Lessor, in the Property. ARTICLE VIII MAINTENANCE; MODIFICATION TAXES; INSURANCE AND OTHER CHARGES Section 8.01. Maintenance of Property by Lessee. Lessee agrees that at all times during the Lease Term Lessee will, at Lessee's own cost and expense, maintain, preserve and keep the Property in good repair, working order and condition, and that Lessee will from time to time make or cause to be made all necessary and proper repairs, replacements and renewals. Lessor shall have no responsibility in any of these matters, or for the making of improvements or additions to the Property. -8- -6- 941 uo swnlwaad 844 fed pup aoueansul 3o salollod paalnbaa ayl ase4oand (o4 uolle6LLgo_ou aapun aq LLeys Inq) � pWi aoss01 'uolIlpuoo 6ul4eaado UL l � 4-Aadoad 844 daal 04 LleJ LLeys ao Iuawaaa6y s144 Sq paainbaa a6paanoo aoUeaansul llnj 844 Ule4ULew 04 Lle3 LLeys aassal 4Uana 844 uI •saoupnPd 'ti0'8 Uoi}oas •uo14ell8:)ueo 4ons jo aoUenpe UL SKep 01 4SeaL 4e aoss8I 01 JOaaa44 a:440u U844laM 6Ulnl6 4sai� 4n0441M aossal Jo 14saaa4UL 844 � 04 Lasaanpe pup XLLelaa4ew 4[ gjtpow ao Sollod a44 Laoueo 40u {teys fuedwoo aoueansul a44 M4 4oaJJa a44 04 UolsLnoad a ule4uoo LLeys £0.8 UOW)as SL44 UL AOJ papinoad KolLod aoueansul 4:)e3 •3oaaa4 XI ahiMad UL papinoad Si pal{dde aq Lle4s £0'8 Uol�oaS s14� Ui paalnbai aoueansul aye jo (10'6 uol438s ui pauijap se) Spaaooad 44 841 •aeadde Sew s4saaa4UL anl4oadsaa alay4 se aossal pup aassal o4 aLge�fed '�fue jt 'sassoL Blew o4 se pasaopua ao u844i.Am os aq LLeys £0.8 uOMOS SL44 o4 4uensand SoiLod aoueansul Rud •94.Aadoad 844 jo an Len 4u8waoeLdaa LLn3 844 ueaw LLeys Ulaaa4 pasn se „an Lep aogeansul lin ju wa84 841 •s6ULUaea s4� jo Ono paule4ULew put apise 4as punj aoueansul a4enbape ue jo sueaw kq k4aadoad 844 aansui LLIM aassal 'aoueansui-JLas kq sai}aado.Ad aellwiS aansui LLeys aassal jl 'sai4aadoad a8440 4nq 94.Aadoad 844 � NO 40u Aanoo 43l4M salollod ao 4o4Lod aoueanSUi MupLq a aapun R4aadoad 844 aansui few aassal `�L9Aj4euaa4ld •Waal aseBI a44 4n046noa44 96eaanoo yons 6uloUapina s84eolJl4aa0 aossaj 04 ysivanJ LLe4s 98ss9I Iuawaaa6d 444 ul papinoad Aa4jeULaaa4 se algeged Rq Lfeys sassoL R4Lense:) -woaj spaaooad aoueansul LLd 's4Uana LLe UL KUUgeiL 10aj aossal 13a4oad o4 pue 194.Aadoad a44 Jo (paulJap a84jeul8aa4 si waa4 4M sib) anLvA aogeansul LLn j 944 4o94oad 04 4Ualoijjns Ik4aadoad a44 o4 4oadsaa 44!m papinoad si aoueansul-jLas 94enbapt qty aossaI Jo u0l43tJsL4es aye 04 a4ea4suowap LLeys ao 'paule4Ulew put palaaeo aq o4 a:)ueansui uognaaa4ui Le4Uaa pue 'a6ewep 94.Aadoad ',(UUgeil oilgnd 194ltnseo asneo LLeys aassal asuadxa uMo s4i 4d -93ueAnsul bUiPAebaN suoisinoad '£0'8 Uol438s 4oajja UL si 4Uawaaa6y sM awi4 a44 6ulanp ponaooe 8ne4 se s4u8wLLe4suL yons RLuO Red 04 pa4e6LLgo aq LLeys aassal 'Sneak 3o polaad a nano s4uawLLe4sul ul pled aq �fLLnjMeL few 4e44 sa6aeyo Le4uawua �ano6 Uel o4 4oadsaa 441m '4e44 papinoad :S4a9doad a44 jo daaldn pue kouedn000 'asn '8aUeua4ULew 'Uoi4eaado a44 UL paaanoUL sa6aeyo aay4o pup �'UMn '.au04d8L84 'aaMod '4ea4 ',K4lola4�aLa 'Weals '.Aa4eM 'se6 Up se LLaM se ',t4aadoad a44 04 Uol4lppe ao 4uawanoadwl 'uol eolJlpow a ao 'Jo '4uawaoeLdaa ao LeMauaa a st 'aoj uoi4n4l4sgns ul aassaj Kq paalnboe 94.Aadoad Aa440 ao R4aadoad a44 off, 4oadsaa 441m ao 4SULe6e palnaL ao passasse KLLnjmeL aq awl4 Sup 4e few M4 AaAaOsM14 pull Rue jo sa6ae4:) Le4Uawua8no6 pue saxe4 LLp `anp awoo KLani4oadsa.A awes 844 se 'waal aseal a44 6ULanp Red Mm aassal '(aossal jo saxe4 awoaui Aoj 4daoxa) waoj Sup UL UOlJexe4 o4 4oaCgns aq o4 punoj sl 44.aadoad aye, JS uoi4islnboy ao uoissassod 'asn aye. M4 4Uana ,-a44 uI -k4aadoad ayl o4 43adsaa 44lM painal pue passasse jfl4uasaad saxe4 Up woaj 4dwaxa eq ttim k4aadoad a44 4e44 'aaoj.aaa44 'pue aessal jo asodand kae48ladoad ao Le4uaWUaano6 e aoj pass aq Mm 44aadoad 844 M4 84eLdwa4uoo 4uawaaa6y s144 04 sal4aed ayl .saB,Ae4o ATILM Pup sa ae40 Le4uawuaanog aaM axel 'Z0'8 UOW)as L60Z *ON 4uawaaa.6d • • Agreement No. 2097 same or may make such repairs or replacements as are necessary and provide for payment thereof; and all amounts so advanced therefor by Lessor shall become additional rent, which amounts, together with interest thereon at -the maximum rate_allowable under the law, but not greater than 129 per annum, Lessee agrees to pay. ARTICLE IX DAMAGE, DESTRUCTION AND CONDEMNATION: USE OF NET PROCEEDS Section 9.01. Damage. Destruction and Condemnation. Unless Lessee shall have exercised its option to purchase the Property by making payment of the Purchase Price as provided herein, if prior to the termination of the Lease Term (a) the Property or any portion thereof is destroyed (in whole or in part) or is damaged by fire or other casualty or (b) title to, or the temporary use of, the Property or any part thereof or the estate of Lessee or Lessor in the Property or any part thereof shall be taken under the exercise of the power of eminent domain by any governmental body or by any person firm or corporation acting under governmental authority, Lessee and Lessor will cause the Net Proceeds of any insurance claim or condemnation award to be applied to the prompt repair, restoration, modification or improvement of the Property. Any balance of the Net Proceeds remaining after such work has been completed shall be paid to Lessee. For purposes of Section 8.03 and this Article IX, the term "Net Proceeds" shall mean the amount remaining from the gross proceeds of any insurance claim or condemnation award after deducting all expenses (including attorneys' fees) incurred in the collection of such claim or award. Section 9.02. Sufficiency of Net Proceeds. At no time shall the insurance coverage herein be less than the greater of the full insurance value or the applicable Purchase Price. Accordingly, insurance proceeds shall at no time be insufficient for the purposes contemplated herein. ARTICLE X DISCLAIMER Of WARRANTIES; VENDOR'S WARRANTIES; USE OF THE PROPERTY Section 10.01. Disclaimer of Warranties. LESSOR MAKES NO WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, AS TO THE VALUE, DESIGN, CONDITION, MERCHANTABILITY OR FITNESS FOR PARTICULAR PURPOSE OR FITNESS FOR USE OF THE PROPERTY, OR WARRANTY WITH RESPECT THERETO. In no event shall Lessor be liable for an incidental, indirect, special or consequential damage in connection with or arising out of this Agreement or the existence, furnishing, functioning or Lessee's use of any item or products or services provided for in this Agreement. -10- •aossal 04 a:Lud aseyo.and 9Lge3LLdde u841 844 pue 4u8wked Leluaa ay} 10 juawked uodn `luaw89a6b $Lys aapun ilnelap UL BW yons uo jou sL aassal .4I 'pue klaadoad 041 Jo uoL4euwapuoo ao uolionalsap '86ewep Lelol 30 Juana 941 -UL 'Ju8wa8a6y SL41 30 XI aLoL4aV o4 juensand paleup.Aal st wagl aseal ay4 it (o) a0 :aoLad aseyo,And aLge:)Udde u844 844 pue IuawKed Leluaa 844 10 aassal ,'q 4uawKed uodn 'waal LeMauaa Rue a0 w.aal LeuL6La0 844 10 pug 844 le (q) .ao :agpunaaay anp sluawked Leluaa 10 LLnj UL juawked uodn '(swaal LeMauab BULpnLouL) Waal aseal 844 10 pug 044 4e (e} :aleuMABI LLe4s lu8waa.a6y SL44 PUe Pa4eup.Aal aq LLLM KI.Aadoad 841 UL 4S8a84uL Klt.Anoas pue a«L4 sJossal 'aassal jo isanbaa ayl W 3SVHoHnd Ol NOIldO IX 310IIHV •juawaa.a6y SL44 aapun s446La .ao jsaaajUL sit Ao � 4.Aadoad ayl 10 swalt a44 3o kue of pue uL aossal jo 84e4sa a44 438.4je KLasaaApe 'aoss81 3o UOLULdo 844 UL '4ou saop 4o14M Asuuew aLgeuoseaa kue uL e1n.a ,Ao MeL yens Rue jo uoLleaLLdde ao KUPLLen 841 44Led p006 uL Zsazuo3 stew aassal leyl °aaA8m04 'papLAoad :,Kjaadoad 844 Jo swaU 844 A8AO uoLIoLpSLanr ao .Aamod KUe 6uLSLoaaxa Kpoq LeL:)Lpnr .AO aALjeajSLULwpe 'aALinoaxe 'aALjeLsL6aL Sue pue puaixa Sew kjaadoad 3o wait �tue 6uLALOAUL suoL4eaado sit y�14M UL SuoLj�LpSLanr a44 Jo sMeL LLe_ 4411 (�f4aadoad 844 Jo waU yoea 10 UoLleaado pue eaueualupw lasn 841 04 4oadsaa 44LM `UoLjejtWLL InO44tm '6uLpnLouL) s�oadsaa LLe uL KLdwoo of saaa6e aassgl 'uOMPpe uI 44.Aadoad a44 3o uotieaado pue UOLjeLLe4SUL ayl AOJ 'Kaessa:au ',Kue JL 'sasuaoLL pue sjpaad LLe OPLAoad LLeys aassal quawoaa6d sL44 Xq pale(dwa4uoo le44 04 Kaealuoo aauuew a UL ao meL gLge:)LLdde ,'ue 10 UoL4eLoLA uL ',KLssaLaaeo `,KLaadoadwL Kj.Aadoad 844 uLe4ULew ao aleaado °asn `LLe4SuL lou LLLM aassalbaa oad aye 30 ash •£0.Oi UoLj�aS •,Kjaado.ad 844 3o aoPuaA 844 Jo saLlueaaeM yons jo Xl1LLgeLLene ao aoua;sLxa ayl 01 se AaAaOs4e4M saL4ueaaeM a0 uopejuasaadaa ou View sey pue 'salew a0ssal Ml sa6pa{Moulae KLssaadxa eassal •aapunaaay sluawKed XLawL4 pue LLnj aALaoaa 04 146La a44 6ULpnLouL 'juawaaa6y SL44 of 1oadsaa 44tm a0ssaj 30 SuoLIe6LLgo pue uo aanaose4m 4oa ajja Rue aney aa44ew yons LLeys aou Iaossal 4suLe6e jou pue 1,KIaadoad ayl 3o aopu9A 941 ISULe6e aq LLeys uoL4e4uasaadaa ao UoLjeoLjLuwapUL `,K4UeaaeM yons 10 yoeaaq aye -AOJ KPawaA aLos s,aassal •,K4aadoad ayl Jo aopuaA ayl IsuLe6e aAsy stew aossal 4 1 `44-Aad0ad ayl Jo saLlueaaeM 6uLpnLouL °s446La pue smjV3 ASAale4M awL4 04 awL4 woaj Jaasse of Iaapunaaay Unelop uL aq fou LLeys aassal se 6uoL os 'Waal aseal ayl 6uLanp 4oej-UL-,KauaOjje pue jua6e sit aassal sluLodde KLgeoonaa.AL �fgaaay aossal •SaLjUeaaej4 s�aopuaA 'ZO'OI uoLloaS L60Z *ON 4uawaaa6y �_ • Agreement No. 2097 ARTICLE XII ASSIGNMENT, SUBLEASING, INDEMNIFICATION MORTGAGING AND SELLING Section 12.01. Assignment by Lessor. This Agreement, and the obligations of Lessee to make payments hereunder, may be assigned and reassigned in whole or in part to one or more assignees or subassignees by Lessor at any time subsequent to this execution, without the necessity of obtaining the consent of Lessee; provided, however, that no such assignment or reassignment shall be effective unless and until (i) Lessee shall have received notice of the assignment or reassignment disclosing the name and address of the assignee or subassignee, and (ii) in the event that such assignment or reassignment is made to a bank or trust company as trustee for holders of certificates representing interests in this Agreement, such bank or trust company agrees to maintain, or cause to be maintained, a book-entry system by which a record of the names and addresses of such holders as of any particular time is kept and agrees, upon request of Lessee, to furnish such information to Lessee. Upon receipt of notice of assignment, Lessee agrees to reflect in a book entry the assignee designated in such notice of assignment, and to make all payments to the assignee designated in the notice of assignment, notwithstanding any claim, defense, set-off or counterclaim whatsoever (whether arising from a breach of this Agreement or otherwisq) that Lessee may from time to time have against Lessor, or the assigneb. Lessee agrees to execute all documents, including notices of assignment aad chattel mortgages or financing statements which may be reasonably requested by Lessor or its assignee to protect their interests in the Property and in this Agreement. Section 12.02. No Sale. Assignment or Subleasing by Lessee. This Agreement and the interest of Lessee in the Property may not be sold, assigned or encumbered by Lessee without the prior written consent of Lessor. Section 12.03. Release and Indemnification Covenants. To the extent permitted by the laws and Constitution of the State, Lessee shallP rotect hold harmless and indemnify Lessor from and against any and all liability, obligations, losses, claims and damages whatsoever, regardless of cause thereof, and expenses in connection therewith, including, without limitation, counsel fees and expenses, penalties and interest arising out of or as the result of the entering into of this Agreement, the ownership of any item of the Property, the ordering, Acquisition, use, operation, condition, "purchase, delivery, rejection, storage or return of any item of the Property or any accident in connection with the operation, use, condition, possession, storage or return of any item of the Property resulting in damage to property or injury to or death to any person. The indemnification arising under this paragraph shall continue in full force and effect notwithstanding the full payment of all obligations under this Agreement or the termination of the Lease Term for any reason. Lessee agrees not to withhold or abate any portion of the payments required pursuant to this Agreement by reason of any defects, malfunctions, breakdowns or infirmities of the Property. -12- •Ju8wa8.A6y st44 10 uOWutw.a94 6ulpnl0ut K4aadOJd 844 Jo aaumO 841 se s146La sot aoaoJua 04 algealsap � ao jessaoau aeadde few �f4lnba ut ao MeL It Uot43e a8nale4M 81el (q) pue :Waal LeMauaa juaaano ua44 944 ao waal Leut6ta0 a4l Jo pua ay} 04 Aapunaaay aassal Kq algeked sjunowe aa410 pue s4uaa 844 ao3 aLgetL 99ss83 ButpL04 'aassa3 3o 4uno3oe 044 Aoj k4aadoad a4l aseaLgns ao aseaL Put K4aadOJd a4l 30 Uotssassod aje4aa 'Juaw8aa6y st44 6uLjeutwa84 InO4UM (e) :sda4s Letpawaa 6ULMoLLOJ 844 JO UOt4eULgwoo kue ao auo a�ej o4 'aOL40U ao puewap aa4lan} InO4Um UOLIdo aLos sIt It '446ta a44 aney LLeys aossa3 '6ULnUL4UoO aq put pauaddey aney «eys 308aa4 t0•£t UOL438S UL 01 paaaajaa 4Lne3ap Jo 4uana KUe aanauayM lLneJad uo satpawab •ZO•£i UOW)aS •suotsOLdxa ao :spoo13 !s446noap !swao4s !saati !sajenb44aea :saptLspuel !S40La !suot4Oaaansut :,KU.A044ne ,K,AEU tw ao Ltnto CUR ao 'sLet:)WO ao satoua6e 's4uaw4aedap a044 JO ,Kut ao p84e:)oL st aassa3 utaaayM aMs 844 3o a0 e0taawy Jo samS paitun a44 30 4uawuaano6 944 -40 pULI KUe 10 s4uLea saa -dsaapao 'satwaua otLgnd jo s4oe !saouegan4stp Leta4snput aay40 a0 s4noj3OL 'saIW4s 'pog Jo s4Oe :6uWLL0J 944 'UOL424tWU 4n04UA 'ueaw «eys uta-A84 pasn se „aanarew 9oao3„ wa94 a4l •,KULtgeUt 4ons jo aouenut4uoo 844 6ULanp Unejap UL pawaap aq 4ou LLeys 99ssa3 '3o9a94 IA OLot4ay UL paute4Uoo aassa3 jo 4aed a44 uo SUOL4e6tLgo "I ue44 aa440 'paute4uoO utaaay 4aed sot uo 4uawaaa6e sot Ono �faaeo ol, 4aed ut ao aLoyM ut algeun SL aassa3 a na,ew W: 3o uoseaa Kq 3I •paPaaao0 st Unejap a44 Mun pansand KL4u86RtP put poLaad aLgeotldde a44 UL44tM aassa3 Kq pa4n4t4sUL SL Uot43e ant438a403 it awl4 yons jo uotsu84xa ue 04 4uasuoO sol PL0444im kLgeuoseaaun 4ou IILM aossa3 'potaad aMORdde a44 uMy m pa4Oaaaoo aq 40uueo aOLIOU a44 ut Me4s aanUeJ 844 Jt 'aaAam04 'paptnoad :uot4eatdxa sol 04 aolad awt4 yons jo Uotsu84xa ue 04 6ut4taM ut aaAe LLeys aossa3 ssaLun 'aossal kq aass93 04 Uant6 se patpawa.A aq U 4M 6UL4sanbaa put aanLte3 yons BUL,KjtOads 'aot4ou u844laM aa4je sRep 0£ 10 potaad a Aoj '(e)t0'£t uotpaS ut 04 paaaaJaa se UM AaW 'pawaoj.Aad ao panaasgo aq o4 Ind sol uo 4uawaaaft ao UOL4tpuo0 '4ueuano3 RUe waojaad Put anaasgo q aassa3 Kq aanLLej (q) Put :utaaay patjtoads awt4 a44 It AapunaAa4 pled aq 04 paatnbaa 4uawked aa440 ao 4UawKed Le4uaa Cue fed o4 aassa3 Kq aanLte3 (e) :s4Uana 6ULMOLLOJ 844 3o aaow ao auo kUe '4U8w8aa6y sL44 ut pasn aae �44 AaAaU84M 'ueaw LLeys uUnejap, pue „40ejap jo 4Uana„ swa84 a44 Put 4uaw8aa6y sl44 aapun „4Lnvjap }o sjuana„ aq LLeys 6utmOLLOJ a4l 'paULJ8a 3Lne3 p Jo s4uaA .IO•£I uomaS S3Ia3W3H ONV llhVJ30 30 SlN3A3 s` IIIX 333I1atl . L60Z *ON luawaaa6b • s • Agreement No. 2097 Section 13.03. No Remedy Exclusive. No remedy herein conferred upon or reserved to Lessor is intended to be exclusive and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. ARTICLE XIV MISCELLANEOUS Section 14.01. Notices. All notices, certificates or other communications hereunder shall be sufficiently given and shall be deemed given when delivered or mailed by registered mail, postage prepaid, to the parties at their respective places of business. Section 14.02. Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon Lessor and Lessee and their respective successors and assigns. Section 14.03. Severability. In the event any provision of th4s Agreement shall be held invalid or unenforceable by any court of competet jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. Section 14.04. Amendments. The terms of this Agreement shall not be waived, altered, modified, supplemented or amended in any manner whatsoever except by written instrument signed by the Lessor and the Lessee, nor shall any such amendment that affects the rights of Lessor's assignee be effective without such assignee's consent. Section 14.05. Execution in Counterparts. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 14.06. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State. Section 14.07. Caption The captions or headings in this Agreement are for convenience only and no way define, limit or describe the scope or intent of any provisions or sections of this Agreement. Section 14.08. Entire Agreement. This Agreement constitutes the entire agreement between Lessor and Lessee. No waiver, consent, modification or change of terms of this Agreement shall bind either party unless in writing signed by both parties, and then such waiver, consent, modification or change shall be effective only in the specific instance and for the specific purpose given. There are no understandings, agreements, representations or warranties, express or implied, not specified herein regarding this Agreement -14- :'a L joZnsas anzIPIISTUTUIPV 3o Io�oa oaapeoseIV 10 4110 :33SS31 a p;saw i n MI �-�Q N--z ams :a M l :Isalld �M 4up4oaaW 36PRd kl[anoaS :bOSS31 •MoLaq u844laM Jsal,� alep 844 JO se pa,Aan000 anoge 844 JO LLV •saB:)LJJo pazlaoy1ne RLnp sol Rq pa4saj4e pup paxlIJp ojunaaay Leas a4paodaoo sol 411m aweu ajeaodaoo sjl ul palnoaxe aq of Iuawaaa6d sly pasneo sey aassal pup 'saaol}Jo pazlaoy1ne RLnp sjl Sq of pa4salle pue aweu aqpaodaoo sal ul Ju8waaa6y sM pa4noaxa sey aossal `303b3HM SS3NlIM NI •suolJlPuoo pup swa81 sit Xq punoq aq of saaa6p pue % spuelsaapun `juaw8aa6d sly Peart sey U IP44 sa6paLMou�op anljejuasaadaa pazlaoyjne sjl jo MoLaq aanjeu6ls t41 Sq aassal 'luawaaa6y sly of kLdde 4ou LLIM pup aossal uo 6ulpulq aq 4ou tUm luaw8aa6y sly 3o suolJlpuoa pueswaaI 841 4Um Iualslsuooul ao 01 uolJlppe ul aae yolyM luawaaa6y sly 4�1M uol4�auuoo ul aassal �fq politwgns juawnoop a8440 ao aapao aspyoand due o suoLjlpuoo pue swaal �fuV •aapunaaay paseaL kl.Aadoad 844 ao L60E 'ON Iuawaaa6y • - • RESOLUTION 92-87 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO APPROVING AN EQUIPMENT LEASE WITH SECURITY PACIFIC MERCHANT BANK WHEREAS, the City is desirous of purchasing a new fire truck for $137,318.76 and new computer hardware and software for $96,154.00; and WHEREAS, the City feels it prudent to refinance an existing loan on a fire truck in order to save financing costs; and WHEREAS, the lowest interest rate available for leasing this package of equipment was submitted by Security Pacific Merchant Bank; and NOW, THEREFORE, BE IT RESOLVED that the Atascadero City Council does hereby approve and enter into a five year lease with Security Pacific Merchant Bank for the lease/purchase of the aforementioned equipment. (Copy of lease attached.) On motion by Councilperson �,, .hPa„ and seconded by Councilperson , the foregoing resolution is hereby adopted in its en irety on the following roll call votes: AYES: Councilmembers, Bourbeau, Handshy, Borgeson, Mackey, and Mayor "Norris NOES: None ABSENT: None ADOPTED: September 8, 1987 CITY OF ATASCADERO, CALIFORNIA By: AARZBA_%A_rNOR IS, Mayor eons Aed oq pagebTTgo aq TTTM aasse Z quauiaa.zbV atlq'gt[autbg4 aapun gTnejap 3o quano ue 3O gTnssa a se sebemep Aauom UT aassaZ gSUTebe quambpn[ a SUTeggo aosseq quana atiq UI •su[aaq s4T u4TM 80uePI000e uT aTgeaoaojua 'aassaZ 3o UOTgebTTgo buTpuTq pue 'pTTen 'TebaT a ST quauzaaabV atty •� •WemsaabV atP 04 V qT g se patjOegge 'L8-Z6 *ON UOTgnTOsag pue U0TgoesUea4Ttiq S22TaOttgne t�OTL(M uoTstnoad ajna emott ao/pue 'Aaoatkav4s 'TeuoT4n4T4su00 o-4 quensand 'sesseq Aq Pam-Ttap Pue 'pagnosxa 'p9zTaog4ne ATnp uaaq set; quautaaabv et;y • Z eTua0JTTeD ;0 agegS sqq 3o sMeT 9t4 aapun buTgsTxa ATTebaT 'OTgTTod pue ageaodaoo Apoq OTTgnd a ST aassaZ •T 30 me I 'ageFado.zdde tu ao Aaessooau paaap gEttq LiOTtiTdO at,;q aneq I Be uOTgeuTutexa aeg4o gone uodn pue u0T4euiutex9 etr4 uodn peseg •queucaaabV qqq sgnoexe pUQ MzTaoggne 04 aassaZ Aq uaxeq sbUTposooad at;q pue ' (MaOSSWIN) ( queROaaK OT3TOed AgT.znoaS pue aassaZ uaaMgaq 'L86T '8T dTOT nx pegep (MquautaaabV ,) quauraaabV UOTgdp pue a$ga'i TpdTaTuny� at�q 30. sTeutbTI0 -pa4noaxa XTnp POUTutexe ozapEOsegV io AgTO auq aoi Tesunoo sy uauta Tquav TL006 K, 'satabuV Boa TTZdDH 'anuanV puea!) •S 00E xueg queg0a9K OWTOed AgTanosS L86T '8T aequtagdeS :quautaaabV 3o ageQ OaapeOseW 30 AqTD :aassaZ L86T 'TZ a9gm9gd9S IOIZ•99Y (608) :3NOHd ZZVE6 VINaOd11VD '0N30V:)SY1V - 3nN3AV SIM3l S009 1N3W12iVd30 381d 1N3WINVd30 NOI1V321:)3a ONY SNLIYd -IN3WlVYd30 SXMOM DI'land +• lWAWtN1/d301N3WdO-13A30 AlINf1WW07 0098.99V (908) 3NOHd 1NSWlMV,130 5371MUS 3AIIVNISINIWOtl �► V39VNVW Ali? EZ4E6 tlL X08 3tl� 40 ISO�SY1V 6L61 'Z A"inr G3IYWIOdWlO�NI LYL XOE 371d�0 1SOd Wl3iIf15Y3Wil Allo 1N3W121Yd30 30110d NN313 A110 ^� 'IIONno0Nf10o Allo 0008.991 (908) :3NOHd EZ6£6 VINNOd11V7'Oa30V0SVJV ��4C�Q 34lt coL X08 3:)Idd0 ISOd ` A3NH011V A110 • • 9NIOlil18 NOUVNISINIWOtl • • Security Pacific Merchant Bank Lessee: _ City of Atascadero September 21, 1987 Page 2 4. Applicable public bidding requirements have been complied with. 5. To the best of my knowledge, no litigation is pending or threatened in any court or other tribunal, state or federal, in any way questioning or affecting the validity of the resolution or the Agreement. 6. The signatures of the officers of the City of Atascadero which appear on the Agreement are true and genuine; I know said officers and know them to hold the offices set forth below their names. 7. ' The City of Atascadero is a political subdivision within the meaning of Section 103 of the Internal Revenue Code and the related regulations and rulings, and that the portion of payments identified as deferred interest charges to maturity, upon receipt, will not be includable in federal gross incomes under statutes, regulations, court decisions, and rulings existing on the date of this opinion and, consequently, will be exempt from present federal income taxes and income tax of--'the State of California. Sincerely, J REVe ENSEN Y JGJ: fr A:OPATA260 :BMI :,kg oa8pebse4tl 10 SM :33SS31 =61 3eqM04deS 10 A'ep sL44 puey kw 48s o4un8a04 ane4 I 4303H3HM SS3NIIM NI •passaadxa uiaaay suoi4e4oadxa 044 4391}e �fffeLaa4ea pLnoM 4e44 ULaaay passaadxa as041 ue44 a8440 saoue;swnoaLo ao se4ew[4sa `S43BJ ou aae 8a044 pue oLgeuoseaa aae possaadxa uLaaay uotleloadxa ay4 ja[Laq pue uoL4ewao,�ui °a6paLmoul Kw j o 4seq ay4 0l •pa4eLdwaluoo SL anuanaa Leu, 4U 10 aauolsstwwo3 ayl kq uoiloe asJanpe kue leyl pas�npe uaaq 4[ sey aou sonsst uMo s4i- o4 4oadsaa 44tm uodn pa U as aq jou few s4} M4 aotjou pan�aoaa lou sey aassal ayl •q •4uawaaa6d 941 uo 4saaalu� pue LedLoutad Ad o4 pasn aq o4 papadxa KLgeuoseaa ao luawaaa6d 944 o4 pa6paLd aae skauow aa440 ou pue sZuawked 4ons ajew ol pasn aq o4 pa4oadxa KLgeuoseei lou aae aassal 844 jo spunk Jeaau86 6utuLewaa ayl •lu8waaa6y 841 aapun sluawked paJLnbaa 844 t oo Ienba s4unowe u� suoilepdoadde Lenuue 3o sLseq a44 uo spun3 Le.Aaua6 $- sU woaJ luawaaa6y 844 aapun s4uaaed ajew o4 s4oadxa aassal ayl •£ •lu8waaa6y 844 JO Wsaa a se „spasooid, a8440 ao Ispunj 'sA'auow Ue aniaoaa 4ou Him aassal ayl •4uawaaa6y 844 Jo wa84 a44 6uLanp KI.Aadoad pies 3.o asodsp asiMaaylo 04 ao luawaaa6d p[es ao ,C1aadoad pies LLas 04 puaJUL 4ou saop aassal ayl 'aassal ayl 10 sasodand 3LLgnd 844 Jo aoueaayjanj UL pasn aq Mm k1aadoad p�eS • juawaaj 6y a44 aapun aassal aye, Jo uot�e6� �go aye ao3 uoL4eaap�suoo UL �C4aadoad pies aALaoaa 04 pa«Pua s! aassal a44 'Pawaaa6y ayl o4 4uensand •Z •uLaaay4 paq[aosap k4aadoad uLe4a83 3o uo[4is[nb3e ayl 83ueu�3 01 MeL ecuaoJILe0 30 a;e4S o; juensand pue aapun aassal ayl Kq panssl sem 4uaw88a6y ayl • 1 :4e4l AJIIH30 AMR alep pies panssi pue ff-61 81/60 palep („4uawaaa6y„ a4l) „4uawaa. 6y uoi4dp pue aseal Led [oiunW„ paL4ijue 4uawaaa6e ULe4a83 Ie44 Jo waoJ a44 UL uo[le6L{go s,aassal ayl 6ULnsSL aoj �� q�suodsaa y��M �saay�o y �M �f 'p86ae46uafq („aassal„ a44) oaapeoseld 10 413 ayl Jo aaoL3.Jo pau6tsaapun ayl `1 39V*d1IgHV 01 SV 31V3IJIiH33 3 lISIHX3 L60Z •ON 3uawaa.•” ,� 0.,reement No. 2097 EXHIBIT D DESCRIPTION OF PROPERTY The Property which is the subject of the attached Municipal Lease and Option Agreement is as follows: As per attached Schedule I consisting of one (1) page. Property Location: Together with all additions, accessions, and replacements thereto. Lessee hereby certifies that the description of the property set forth above constitutes an accurate description of the "Property", as defined in the attached Municipal Lease and Option Agreement. LESSEE: City of Atascadero By: A-111 4a. � Title: 4qO..2--' ,=r, 41 Date: September 18, 1987 £•£ uoLsaaA SOO WSI (ti) saaIu[ad VZIX JBIULadoad WSJ (Z) sa81uLad IX aaIu[adoad WSI (9) saoUuoW BWOJyoouoW Z WskS WSJ (11) N/S suun wain s BWOZ 0£ taPoN ZS/d we, (ti) N/S suun waiskS 0£ taPoW ZS/d WBI (L) N/S aniap ader 100 PPoW L919 W8I (1) N/S a81uLad ZOO iaPoW ti£ZV W8I (1) a N/S suo t� jS �feLdst0 mf PPoW 961£ WSI (£) N/S aotnaQ 86eaoIS ss833V 438ULO OZZ taPoW Z££6 W8I (1) N/S u un waiskS Z00 taPoW Z9£S W8I (i) £LIOVOVH£HIOI36di# DI sn jeaeddy 843 ysea 83aa ld (1) L9SOVOV3i910tl06di# QI jonal aa[j - aadwnd wolsn0 Moaay 83aatd (1) I A0 t 39Vd A1a3dOVd 10 NOI1dIb0S30 a 1I8IHX3 01 I 3lflG3H0S L60Z *ON luawaaa6y i • Aq*ment No. 2097 EXHIBIT E SCHEDULE OF PAYMENTS Principal Taxes Total Purchase Pmt Date-Due Repayment Interest Payment( 1 ) Due Payment Price 1 26752 . 81 11242. 48 37995. 29 0 . 00 37995. 29 259550 . 58 2 27816. 23 10179 . 06 37995. 29 0. 00 37995. 29 231028. 89 3 28921 . 93 9073. 36 37995. 29 0. 00 37995. 29 201466. 15 4 30071 . 58 7923. 71 37995. 29 0. 00 37995. 29 170824 . 38 5 31266. 92 6728. 37 ' 37995. 29 0. 00 37995. 29 139064 . 18 6 32509 . 78 5485. 51 37995. 29 0 . 00 37995. 29 106144 . 73 7 33802 . 04 4193. 25 37995.29 0. 00 37995. 29 72023. 72 8 35145. 68 2849 . 61 37995. 29 0. 00 37995. 29 36657 . 30 9 36542. 74 1452. 55 37995. 29 0. 00 37995. 29 0. 00 TOTALS: 282829. 71 59127. 90 341957. 61 0 . 00 341957.61 ( 1) Semi-Annual Payments Due in ARREARS LESSEE: CITY OF ATASCADERO By: Title: Date: •AlTunwwoo aqq uTg4Tm Alzadoad pup sanTT UT szeTTop 3o spuesnogj butnes 30 Tet4uagod aqq seq ATuTe4390 qT qnq 4uawdTnba sT44 3o asn aq4 woa3 pantzap ST anuanaa ON •aseaT 9q4 ;o w194 aq4 J03 pue AT4u93jno ggoq Puna 4uawanoidwl Te4Tdeo aq4 woz3 apew aq TTTm s4uawAed aseaZ •3aTgo 8=T3 aqq ;o uoTsTnsadns sq4 aapun uoT4e4s aJT3 aq4 UT pasn oq aq TTTm auTbue Mau sTgy •4uemdTnbe 3o adA4 sTg4 uT papaau u0140940ad ;o TanaT 9q4 sapTnojd 29buoT ou Pug PTO sieaA OZ Sano sT 4egl 4uawdTnba ;o aoeTd e saoeTdaz 4eg4 4uewdTnba 8JT3 30a0aTd Mau a ST sTgy auTbuH 9JT3 •T :smOTTo3 Be pasn aq o4 sn Aq p9408Tas sem A4j9doid aq4 'ATTeoT 3Toads •A3Tzog4ne ino ;o adoas aTgTssTw.zad aq4 gITM 4ua4sTsuoo suoT4oun; Aze4aTidoid 20 Te4u9wu2anob ano 3o ajow jo auo BUT m2OJ3ad 3o asodand aq4 309 ATuo sn Aq pasn aq TTTm Awadoid aqy •ain4n3 aTgeaase2o3 aq4 UT gsTuTMTp oq pa4oadxa 30 Aiejodwa4 4ou ST pasu goTgm 'Awadoid aq4 TTe ATTeT4ue4sgns '3o asn a4eTpawwT eXew oq 4oedxa pup 'ia; paau a4pTpawwT UT anpg am '2944ind •suazT4To zno o4 apTnoid am aoTnzas aqq 04 Jo paubtsiapun a44 go uoT4oun; aq4 04 TeT4uassa sT A4jado3d eq4 4eg4 sw.7T33p pug sM3T3uo3 sTgs •aseaZ gaps o4 a 4TgT4xa uT pagTJasap A gado=� aq� buTspaT 'osappaseW ;0 A4TO pup xuea quego29W aT;Toed A41 inoas uaar►49q 'L86T '8T 2aqw94deS pa4ep 'L60Z aagwnN 4uawaalbv uoT4do pup aseaZ TedToTunw uTe43aa 4egq 04 apRM ST a0uaja3aH :uawaT4uao L60Z 'ON 4uaw9ajbV uoT4do 1 aseaZ TedToTunW :aH TL006 eTuIo;TTeo 's9T96uV soq TTZdoH 'anuaAV pueio g4nog 00€ xueS 4u2g0JaW oTJToed A4Tinoas :oy Hallau saNA3 ao souflos/asn 'IKIZNassa 5 SISIHXS IVIZ-99V (908) '3NOHd 1N3W12lV6130 NOI1V321D3U ONV SNSVd ZZVE6 VIN210d1'IVD '0213Otl7SYltl 1N3W121Yd30 S)IaOM DIlBfld 3IWU SIM3I 5008 1NIIKLVVd301N3Wd0I3A3O A11NfIWWOD 1N3W121Vd30 3211] 1NBM"V430 5321IANN 3AIIVNISINIWOtl 2139VNVW AlID Alflf 031V110d2102N1 N3vnSV3Hl Alli JI2i31�A110 0099-99YINhI0J (908) :3NOHd II�Nf10D Alli EZ4E6 tlIN210d1'IV202130V75Y1Y LVL X06.3DId40lsOd 1N3WINW30 3DII0d 0009.994(908) :3NOHd EZVE6 VINMOSIIVD 'OH30VDSVIV ._ • [VL X06 1SOd �J ��• N1011f18 NOIlV IIVHI 21151NIWOtl 2. Computer Hardware and Software This hardware and software replaces existing hardware and software that has both reached it technical obsolescence and no longer- provides the type of management information needed to accurately manage the finances of the City. This equipment will be housed in the City Administration Building under the supervision of the Director of Administrative Services. Lease payments will be made from the General Fund both currently and for the term of the lease. No revenue is derived from this equipment. 3. Fire Engine (refinancing) This is an existing piece of equipment the City began purchasing two years ago. It is housed in the Fire Station under the supervision of the Fire Chief. Lease payments are being made and will continue to be made from the Capital Improvement Fund. While no revenue is derived from this equipment, the City will save $4,000 - $5,000 in financing costs by refinancing the existing lease/purchase. This is due to the lower interest rate of the new lease agreement. S 'nc ely, D VID JORGENSEN Direc r of Administrative Services DGJ:al '886T-L86T J03 aoupinsui ssaoxa go gooid pup quamaajbp var aqq si pagoegqV •uotTTTW £$ oq do 4pgq puoAaq aaupinsut ssaoxa AJJPo pup 00040OTS oq do pajnsut-JTas 9JP aM •AgtjogqnV siaMod qu or satgio 4spoD TpJ4u93 aqq go jaqwaw p st AgTo .agq sasodind aoupinsui A4TTigPTT J03 s4u9W9JTnb9g abpJanOD aoupinsuI oq wnpuappV L60Z 'oto 4u9tu99a6V • Janws FRED.S.JAMES&CO.OF CALIFORNIA P.O. Box 7601,San Francisco 94120 415983-5600 Telex 820236 August 28, 1987 Mr . Michael Shelton _ City Manager City of Atascadero P.O. Box 747 Atascadero, CA 93423 MUNICIPAL LIABILITY POLICIES 1987 to 1988 Effective July 1, 1987 we renewed the Central Coast Cities Self-Insurance Fund' s Municipal Liability with the Planet Insurance Company (A+ XV Best Rating) . Enclosed are the policies issued to your city as a member of the CCCSIF. The KB and: KZ policies are for the first layer of $900, 000 excess of a $100, 000 self-insred retention. The KZ policy is for General Liability on a claims made basis. The KB policy is for Automobile Liability on an occurrence basis. The KR policies provide limits to $4 , 000, 000 excess of the first $1, 000, 000. KR 670 6587 provides coverage to a limit of $2, 000, 000 excess $1, 000, 000 following form. KR 670 6502 provides coverage to a limit of $2,000, 000 excess of $2, 000, 000 excess of $1, 000, 000 excluding errors and omissions coverage . We su--es h the 1 olicies bekept t on file with our citV attorne with corresponding copies availab e o �u for day to day .activity. Sincerely, Bobbi urke Account Executive Public Entity Division encls . L899-£V5-1308 • 68L1-90V£6 TO `odsigp sin' ueS • 68L iGmeld pd 6Z -T •oua DOS ggauzPO •0 uozPgg 7,ONa0V HONV flSNI HHG I MEOW 1sjnoA ATnzq HIDA 'TTPo a aur OATS oq 99JJ T993 asPaTd 'aouPgsTsse jag4an3 3o aq ueo 13T Jo lJaggPur sigq bu-Tple69:1 suozgsanb AuP aAPq pThogs noA 31 •18T'S$ ST AOTTod stgg log uinTuiaad TPnuue Tengoe aqL apPut aq oq paau sa6uPgo AuP 3T asiApP puP ATTnjeavo sulIo3 asagg M91A82 aseaTd •smJ0J AOTTod aqq ur TTPgaP UT pOuTTgno aJV suoTsnToxa puP suoT4e4TUITT 'sa6PJanoO •88/T/L oq L8/1/L Jo urza aqq log Auvdtuoz) aouPinsul puna s ,UeU193Ta agq g6nojgq panssT AoTTod a6Putep TPoTsAgd aTTgouiogne jnoA 90 TeM9u9:1 aqq puTJaseatd pasoToua :uesua6aor IW jeea 88/TO/LO :HSVa NOI LVUIdXa L8/TO/LO :a1VC1 HAILOHaaa aNna SNVWaUIa :XNVcTWOO H0NVHf1SNI VINO TOI7I0d aDVWVa 'IKOISxHd :N0I1dIH0SHa XOI'IOci 8095£008vxw 2 aMIN AOI'IOd ZZV£6 VZ) 'o.zapeosegV LVL xoS •00d olapeosegv go AgTO L86T '9 ATnr ■ =OL.ICY NUMBER PREV. POLICY NOS. Coverage for policies 2 89 MXA -80035608 2 89 MXA 80025227 other than WORKERS' COMPENSATION is provi,:in.j in the fol.l owill�� campally FIREMAN'S FUND � a` INSURANCE COMPANY ``- NOVATO, CA 94993 FIREMAN'S A STOCK INSURANCE CO. (01) FUND INSURANCE - COMPANIES 3ENERAL DECLARATIONS MAILAOORESS NOVATO CALIFORNIA lamed Insured and Mailing Address 31TY OF ATASCADERO '3.0. BOX 747 ATASCADERO CA 93422 'rodUcer Name and Address AORRIS 8 DEE INS. AGENCY, INC. '.O. DRAWER 1189 iAN LUIS OBISPO, CA 93406 'he Named Insured is a(n) FIRE DEPARTMENT ,its.i.nes,s or Operations of the Named 111sUred.- FIRE= DIEPARTMENT --------------------------------- he illsurance provided by this policy consists of the fol lowing coverage orn(s) . The p)oemxUm May be sUbjert to adjUstmallt. In retUr;l for pay::lelit of he premium ani SUbject to all the terms of this policy, we agree with you to -ravide the il"ISUrallCe as stated ill this policy. AUTOMOBILE INSURANCE COVERAGES olicy Period (For above coveragetsa ) 'olicy Period is from 07-01-87 to 07-01-88 12:01 A.M. , Standard Time at the maililig address of the insured. ------------------------------------------------------------------------------- REMIUM SUMMARY: stimated Annual Premium 55, 181 .00 remium Due at Inception $5, 181 .00 ------------------------------------------------------------------------------ DE-CLARAT_i'ONS CONTINUED ON PAGE 2 NMO f10A SOind 30 3-in03HDS 10 aN3 X X r>00( X X ZOO( k X 900( X X X X SM X X tr00( X X £00( 300( X X 1.00( MOl 1,103 010 Idd did min nn 03w SVI1 'ON -_(NWnIOD-3DV8300D NT .X, Aa 031VDIONT) 03080AJV S3DVi 13603 OlM ?Z+r£6 VD O830VDSaiV 0006ts OOS $ A0V dS L9SOVGV3t9tOV36dt dm9 OSZt IA08UV-3383Id t+8 8000 33tx£6 VD O83aaDSdid 000` t S OOS S AOV dnO3 S66S0 t A00d t 0LmS9t M0nul NOl Z 1310MA3H0 ZS L000 ZZ,i£6 VD OH30dDShcd 0006'ts OOS s AOV dWOO StZ9tfASSNVLSXadt XOndl NOl Z/t t GMOA t8 9000 33'i£6 VD 0830VDSViV 000` t s OOS s AOV dS 98L0E t t3smvE)If 3Z t A3Nl3SM3M3 3m9 Z8 S000 Z:s+7£6 VD 0830VDSVIV 0004is OOS s AOV dS tOZSOEV9tZZLtL N0n8i 3813 IVNOIIVN831NI tL V000 :__.:_47.26 VD OH30VDSVIV 0004is oos s A0V dS EZSOEVBtZZLtL x3n8i 3miA IVNOIIVNU31NI tL E000 ZZ+7£6 VD 0830VDSVIV 0004 is 005 s AOV dS BVLZSSAV90ZA )10nai 3HId IVNOIIVN83INI 09 Z000 Z:''.+r£6 VD 0830VDSVIV 000, is OOS s AOV dS 99ty M0nul 3HId IVNOIIVNU31NI t9 t000 C130 03a 11WT1 6-OD NOTIVDO1 3DV8VD "O I 10 D10 .fi0 DiO 'ON al 3-1DTH36 ONV NOT1dIMZ)S30 3-1DTH30 :JA O1f1V NMOHS 1NnOWd 3Tari,)na3Ct 3H1 SS31 .3n3d() Hs v, 1dniDEi SI A1I1TakiI"1 30 IIWTI NOTSi-1-lOD 3H1 'N0ISI1-10:? 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(3) 3.8T3 ° (dWOD) 30TSN3H3ddWQ.) iSNTVE)V A1T17.aVT1 S,At1bdWOD 3Hi 30 1TWT1 3H1 ,013H3Hi 3DN383338 9NT6VH ADI10d 3H1 3O SW`J31 3H1 IIV 01 iD3ranS 3DVd SNOT1 _V8V1D3a 3Hi NO 031ViS Sit 39 1"'IVHS S39V,430OD (M01:) !)NTMOi (INV ` (rd.d:) 3DNV8ftSNT NOTID31OHd A183dO8d f (did) NOTID3108d AdnrNl •IVNOSy3d ' (win) S1ST8OlOW a3:Jns -Nr83aNn ` (Wn) SIST` 01OW a3HnSNTNn ` (-03W) S1N3WAad -IV, r(13W ` C aVll) AIT119VI-i 3DVWda A183dOMd ONV A8n.CNI A1I009 iSNT4Dd A1T1TadTI S,ANa.AWO.> 3Hi 3O IIWT-1 vr,no ,X, A`a a31VDICINr 388 SV 'ON Olfld HDV3 1-610-1 S39V83AOD !DNTMO11O3 3Hi 30 ANVW oivnoll ssauoor vvw OS (INV HDns 01 iD3dS38 H1IM A`iNO ST 'J3aNn3'J3H a3a'JO3.JV 3DNti;JnSNT 3Hi S3INVdV400 30Nv8nSNI GNnj NMo noA solnV 03H3AO3 do 31na3H35 S.NdW3f�i� 88-t0-L0 of L8-t0-L0 PIOT ca.A 5LtT4',-*,y Wo 0830V3SVIV d0 J11I0 Fra SUI PaWVN 909SE009 VXMI 68 Z 83f.1WnN ADT1Od eement No. 2097 INSURANCE COVERAGE REQUIREMENTS TO: Security Pacific Merchant Bank 300 South Grand Avenue, HCP211 Los Angeles, California 90071 FROM: City of Atascadero 6500 Palma Avenue Atascadero, California 93423 SUBJECT: INSURANCE COVERAGE REQUIREMENTS 1. In accordance with Section 8.03 of the Agreement, we have instructed the insurance agent named below (please fill in name, address and telephone number) Morris & Dee Insurance 1129 Pacific Street an Luis Ubispo, UA 93401 to issue: a. All Risk Physical Damage Insurance on the leased Property evidenced by a Certificate of Insurance and Long Form Loss Payable Clause naming Security Pacific Merchant Bank and/or its assigns" as loss Payee. Coverage Required: Full Replacement Value b. Public Liability Insurance evidence by a Certificate of Insurance naming "Security Pacific Merchant Bank and/or its assigns" as an Additional Insured. ed. Minimum Coverage Required: $500,000.00 per person $500,000.00 aggregate bodily injury liability $100,000.00 property damage liability OR 2. Pursuant to Section 8.03 of the Agreement, we are self-insured for all risk, physical damage, and public liability and will provide proof of such self-insurance in letter form together with a copy of the statute authorizing this form of insurance. 3. Proof of insurance coverage will be provided to Security Pacific Merchant Bank prior to the time that the Property is delivered to I .N , y: . B / t ' Dated: U. 11, 4Vly 7 ------------ WNIJIaO (LO-9 A3a) Lse •pia - ('aw•saaualddp"!.N(^9•6wuo!k a,o 6W+d,oa Ilo� pa°P^I>w Yao°a ,alw+1 !o� p PUD 90.1 (('��ao dip O-swP Jso) Pam 3,V O m o p+,tn� ,o4a °l°Ia Po$mpjnd+l°0 Paso ap!Y°� to Iso) •y ayl o payaouo t orsAgd soy Puo aauo,nw saxol Ibaq,o ams°P^lax j saa"°"�Wfu'sr+Pc+t duo I 11 4 w t lu+usdjnba tuo to lsoa ayl s+P^law w�olo9 lso)to atoa( s'Md Ma!Y°" °ja'Y +Yl)o aoa ayl ioyl saf4,aa+P's waw,ay1 uo uoyo.4,aa 14,°)+Yl w pualua a'1 ayl 6u!u6K,apaap ayl'�Iso)je N) .. ... .. ..... ........ ........1dO 3an PW anµ4 uo.wus,o)tr ON w❑ saj 'N * u>.µsaywaa uoyoayw.a41 Gwuu .....s.a..oua.4w.du.d(or-uoasw8u+sodBul,odu04toaA,ata) 44.m o+p!no,d el a+w9 j"p°sn+9 Is IP.M''+ss°Is y +su o Mj' apo) d(Z auas "0"aw,ppa,auaa Pa,°lgea s"WPPV awap(sav "POJ u+o4 lua,alip uayss .nba�*"JPP+.aaas° ,ossaatsng if a1a1g "Fly aouap(saa gsp!ut ,o ssau!av w � Spoa iI (/Urvlj(n/(M' Is ,o o t { G. bd1z Sown . - 's'�PPy aauap(say so ssaalsog 31oaw Lsa1i ao O Lsn GNV p 11'q O3a 33i 1Sald 1 w lal PISS 31v0 0Ota1 av3A / AYO / H1N0w 0uvil JALLSali 31vO 90 ^OOIIV Dia ONgISMON Nj 3000 3003 LH013M N30v1N11 S3uV y0 Dons Im do .o S coOd AOOOW ••WA0013 •� UAL 3dA1 ( � ( ) A1N0 S3FgvO0 co S*Om M HLOIM S3"A M HLM31 M3'MYtlI aOd UAesm t0 �/�I /O 3*MWGA MSN •V Sy O10S N3d afMv UAL A0O0 1SHIi 31v0 p/JhNV � � 3Hvw :11a3 AYto A0OG 3n1vA/1500 dk1 'ON '0.1 1.00v aO 'ON 3Nt<JN3 310A000low and c AM I V nam SS33n HLNOw av3A / AVG NOI1WJIdL1N301 310*GA / dx3 av3A AVO •o38 / / H1NOW 35O S33d T9TT992 3tra �•� `31V1d 3dA1 33J is 7vN0111Oor 3AIH3A MSN 10 s11v1d O3ZN10ID31138 NOUMsPld 801 N01117fiddy� • :i airs i0 ar3A wewnN 3SN3)n ._ 61 Form 8038-G Information Return for Tax-Exempt (December 1986) Governmental Bond Issues OMB No. 1545-0720 Department of the Treasury 4 ►Under Section 149(e) Expires 12-31-89 Internal Revenue Service (Use Form 8038-GC if Issue price is under$100,000.) Reporting Authority Check box if Amended Return 11- 1 1 Issuer's name 2 Issuer's employer identification number City of Atascadero 95-3389063 3 Number and street 4 Report number 6500 Palma Avenue G 19 81- 5 City or town,state,and ZIP code 6 Date of issue Atascadero, CA IM Type of Issue(check box(es)that applies) 7 Check box if bonds are tax or other revenue anticipation bonds► ❑ Issue Price 8 Check box if bonds are in the form of a lease or installment sale► ❑ 9 ❑ Education . . . . . . . . . . . . . . . . . 10 ❑ Health and hospital . . . . . . . . . . . . . . . . . . . . . . . 11 ❑ Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Public safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199 - 970 . 00 13 Environment(including sewage bonds) . . . . . . . . . . . . . . . . . . . 14 ❑ Housing . . . . . . . . . . . . . . . . . . . . . . . . 15 ❑ Utilities . . . . . 16 Other.Describe(see instructions)► A d m i n; c t-r a ;n n RS 930 . 0 1 Description of Bonds (d) (e) (S) (it (b) (�) Stated redemption Weighted (t) Net interest Maturity date Interest rate Issue price rice at maturityavera a maturit Yield cost 17 Final maturity % 2 2 18 Entire issue . 8 2 9 . 6 . 6 2 7 9 years 7 , 6 7 . 6 Uses of Original Proceeds of Issue(including underwriters'discount) 19 Proceeds used for accrued interest . . . . . . . . . . . . . . . . . . . . . 19 0 20 Proceeds used for bond issuance costs(including underwriters'discount) . . . . . . . . . . . 20 2 , 270 . 32 21 Proceeds used for credit enhancement . . . . . . . . . . . . . . . . . . . 21 0 22 Proceeds allocated to reasonably required reserve or replacement fund . . . . . . . . . . . 22 0 23 Proceeds used to refund prior issues . . . . . . . . . . . . . . 23 24 Nonrefunding proceeds of the issue(subtract lines 20,21,22,and 23 from line 18,column(c)) 124 1285 , 100 . 01 Description of Refunded Bonds(complete this part only for refunding bonds) 25 Enter the remaining weighted average maturity of the bonds to be refunded . . . . . . . . ► years 26 Enter the last date on which the refunded bonds will be called . . . . . . . . . . ► 27 Enter the dates the refunded bonds were issued ► Miscellaneous 28 Enter the amount(if any)of the state volume cap allocated to this issue . . . . . . ► N/A 29 Arbitrage rebate: a Check box if the small governmental unit exception to the arbitrage rebate requirement applies . . . . . . . . . ❑ b Check box if the 6-month temporary investment exception to the arbitrage rebate requirement is expected to apply . . . c Check box if you expect to earn and rebate arbitrage profits to the U.S. . . , . . 30 Enter the amount of the bonds designated by the issuer under section 265(b)(3)(B)(ii) . . . ► 2 8 5 , 10 0 . 01 31 Pooled financings: a Check box if any of the proceeds of this issue are to be used to make loans to other governmental units ► ❑ and enter the amount Bo- b b Check box if this issue is a loan made from the proceeds of another tax-exempt issue ► ❑ and enter the name of the issuer ► and the date of the issue Ili- Under Under penalties of perjury.I declare that I have examined this return and accompanying schedules and statements,and to the best of my knowledge and belief, Please they are true,correct,and complete. Sign x ' Here IF Signature of officer 0 Date 'Title For Paperwork Reduction Act Notice,see page 1 of the Instructions. Form 8038-G (12-86) *U.S.Oowrmmnt,Printing ONiw: 1167-191.447/40065 UO183O- AdOO 31ld ib) o#ujS!o AjajajaaS aq4 3q Panoiddy 00 CS 33d ONI1I.4—yoon waoj 3003 dIZ 0 •3daQ a►=vu,;jj 3uvWTfkbg =333 31111S g TL006 VTMOJTM 690TOR" so, A113 man `a>nuaAp rwi* gawS 00£ •SS3HGGV $ nmwa klTlnaas j 3WVN L :o;Adoo uin(ad *I I 9 S31 Ala Vd 03033S.10 S 3WVN 1NIad a0 3dA1 5 xmw 3> "x 0T3Taga 14Tswas b - (s3u AlaVd a3ano3sd0 (S)3an1VN91S f t Z (S)001930 JO(S)3WVN 1N I ad a0 3dA1 0sapeass3v 30 63T0 }� 3, (5)001930 d0 (S)3aniVN9is x - (M3:)Idd0 9NIIIA QNV o H38WnN Slid 3W11 31V0) U331:1-40 DNilld d0 3sn MOA 33VdS SIHI 'OI 3 :31Ya g 31GV31IddV At (a) (I) Sots § DDn H1IM3ONtlONODOV NI uA.Lriun D141111WSNYM1„ V Sl M01930 I )10.3 H:) i (b) (£) (Z)EJ (I)F] a383A03 oslV 3av❑ dL'ivI 319V�IlddV d1 a3lVlloo o siDnaoad ' I :W311 WS NOI1DnM1SN1 dI � A33HD 'L _ HIM3DNVaHODDV NI a3um03M.lON 3Mn1VNois (s)MO1B3G '6L + x -;oe=q zmw v ipsu.pTrs o""q ' p�rx�►ac�s `L60' '01[ 3 AIV Vm'T3d0 !R ewvw �T*SWU 3a Q 3TgTW pa►' 3s aag r k ' •t, uolpwpu! Aq pegnbaa U84M paoaa.t }o aauA%0 pua p040201 q*igm uo A4.sadoad jaej jo uoi+dlaasap apnpue) /4jadold }o swa;! .lo sadA4 6u!M01101 041 SranoD1N3W31V1S JNIJNVNI3 s!41 `g A a 3003 d13: 31V1S A113 sS3aaav 9Nn1Vw 3 W V N 'ON IF GUY 11SNYt1 XNYB 00- - - 'ON.XYlaYt303d "ON A11tn33S IYIDOS 'Vfy` �YY* (ANY di) A1MVd a3uno3S d0 33N91SSV `g +.::pp.qq 3000�L{lV V 'T^a� 31Y1S 'Tlt�2y..8001 A11D - Z0Z690£-S5 - .:!!- *� i Pam* yP� I�ACS_si3a0a_v9iNIl1VW �'�"V VPVAS "ON ONY 115NYt1 xwu a�=i *T�a 13Ta�g 3WVN 'Y't'Y XNYt t0 .� ., o,, .,_ - 'ON XYl IY83031"ON A11tn33S IVIDOS 'VV "�' " µf i ,"' " ' -Alava a3Mno3s 'b a39wnN XVI IVa303.4 'v$ (ANY d1) S31AIS NO S3WVN 3aVMl S.M0193a '$ 3000 d1Y •aZ .. ,n'. 31V1S•A11o. 'DZ SS3aaaV VNIIIV W '9Z 'ON XV11Va303d a0 A11an33S'Ivioos -VZ _ - (,ivnGIA10N1 NV di--.Sala 3WVN IStl9) (ANY d1) MOl9343 1VNOI11aaV 'Z fZ ►£6 VT0z0,iTTgJ ' a Y. MIL maS 00 •!I 3003 diZ 'a t _ 31VIS'AIID •3I ss3aaav 9NY71V W •9I £9068E£-56 osap$amv TO (4T:)XV17Vi1303d aO.A11an33S 7V1305 (ivnOlAIONI NV dhlSald 3WVN 1SY'1) M01930 •I apo .1013jawwo:) wjof!un DIUJO !IOD ayt of 4uonsind 6u!l6t jo} pa}uasaid.s! 3W31VIS JNOWN13 s!41 AGENCY AGREEMENT Dated as of September 18. 1987 between Security Pacific Merchant Bank and the City of Atascadero - Z aan4eu 844 .ABILP 40u LLP4s a6ue4o yons kuP Ie41 `.ABA8m04 `papino,Ad :,f,Aessaoau aq _04 sa6ue4o yons swaap `uolIa,Aoslp aLos sol ul `aassal a44 .AaAaUa4m 'Joa,A844 s uauodwob ,Ao juauodWoo ,cup jo jo 94jadOJd ayl 3o uol4dl,Aosap ayl ul sa6ueyo RuP aNew 04 446l.A aye. aAey LLeys `,Aossal AOJ lua6e se `aassal ayl NOIldIHOS30 A1H dOHd •AI luawaa.A6y Mo,Aos3 a44 441m aouep,A000e ul `4u86y Mo.Aos3 a44 kq pun3 uol4lsmboy ayl wo,AJ apew s4uawked ,Cup 9zl.Aog4ne 04 pa.ALnba.A aq L{Pys sal4,Apd 44oq 10 Lpno,Adde uMkAM ayl :slusEKvd •8 •,Aossal 10 Leno,Adde ua44l,AM aye p04UM 1oea4uoo -AO ,Aap,Ao OMO.And ,fue OJUL RLIoa.Alp ,Aa4ua few `4u86e se `aass93 a4 :s4oe.A4uoO •y S1N3WAVd ONd Sl3t/H1N0 •III •ula,Aay pa4lwlL se 4daoxa `yons 3.o uol4lslnboy PUP uoLsln,Aadns 6ulpjp6aj aossal Jo sal�lll suodsa,A pup sal4np `s446l,A LLP sawnsse `.Aossa3 3.o 4ua6e se `aassa3 ayl luawa9,A6y a44 01 payoe4jp `v 4lgl4x3 ul pagl,A:)sap kl.AadO.Ad ayl 10 uolllslnboy pup uolslA,Aadns ayl 10 saseyd LLP Ono R.A.Aeo of 4ua6e sal se a8ssa3 aye s4ulodde Xga,Aay ,Aossal 1N3WINIOddV •II aye ane luawaa,A6y ay4 ul w844 04 uanl6 s6uluPaw 4 LLeys 4uawaa,A6y k:)ua6V sl44 ul pazlLp4ldpo sw,Aa4 ayl 'I , Pup a Maye.A o�a.Aay sal�.APd `uol4e,Aaplsuoo :sMoLLo3 se aaA6P algenLPA ,Aay�o .AOJ PUP paule4uoo ulaaay s4uPuaAoo Len4nw a44 10 pup saslwaid anoge a44 3o uOW laplsuoo u#_. pup `s,AaMod .ALa44 10 aslo.Aaxa Len4nw PUP 4uloC aye ul `3H033H3H1 MON :,Aossal. wo,Aj k4jado,Ad a44 8sP4ojnd of saaa6p aassa3 844 pup 'aassal 844 04 `(,,,C4,AadOJd„ 844) 04a,AM 0 4lgM3 ul pagl,Aosap k4.Aado.Ad ulp4,483 aseaL 04 saa,A6P ,Aossal ,fga.Aa4m `(„4uawaa,A6y„ a44) 3oa,Aa4 a4Pp a44 3o SP pa4Pp 4u8waa,A6y uol4d0 Pup Mal LedlolunW a 04UL pa,A84ua aney ,Aossal pup aassa3 944 `Sd3H3HM :H 1 3 S S 3 N 1 I M .(,,,aossal,, 844) uol4eioossy 6ulJue8 LeuMeN P `luPS Leuol�.PN ol3l3pd 444 .AnoaS jo uolslA10 a `NuPB 4ueyo,AaW :)W:)ed ,fol noas PUP („aassal„ a44) eluao311eO 30 a4P4S a44 10 smRL PUP uol4n4t4suoO 944 .Aapun 6ul4slxa PUP pazlup6.Ao kLnp uol4p.Aod,Aoo Ledlolunw P loa8pPose4V jo 94lO uaam4aq pup Sq 1-f8-6j-"8T �agMj as 10 sP p84Pp `1N3W33H9V AON39V SIHJL 1N3W33H9d AON39V of the Property, and that any increase in the Acquisition Costs resulting from such a change shall, to the extent the increased Acquisition Costs exceed the total balance in the Acquisition Fund, be payable solely from other funds at the Lessee, which shall be deposited with the Escrow Agent for deposit into the Acquisition Fund prior to the approval of any such changes to the Property. V. LESSEE'S RIGHT TO SUPERVISE CONSTRUCTION AND/OR ACQUISITION The Lessee, as agent of Lessor, shall have the right to supervise the Acquisition of the Property related thereto and monitor the performance by the Vendor in whatever manner the Lessee, in its sole discretion, deems appropriate. VI. LESSEE'S RIGHT TO ENFORCE CONTRACTS Lessor hereby assigns to the Lessee all of its rights and powers under all such purchase orders and contracts as it enters into with respect to the Property and the Lessee shall have the right to enforce in its own name or the name of Lessor such purchase orders or contracts at law or in equity; provided, however, that the assignment of Lessor shall not prevent Lessor from asserting said rights and powers in its own behalf. ' IN WITNESS WHEREOF, Lessor has caused this Agreement to be executed U its corporate name by its duly authorized officer and sealed with its corporate seal; and the Lessee has caused this Agreement to be executed in its name by its duly authorized officers, as of the date first above written. Security Pacific Merchant Bank Attest: B Title:tle: V� c-e— ►P�p �n �- City of Atascadero By: Title: Mayor Atter By: 3 ojapeDse4v J0 k1lo pue lue8 luey:)aaW :)Ljl:)ed kjpnoaS �ue8 Leuoi4eN :)LjPed kl[.An:)aS 6uowe pue kq L861 91S jo se palep 1N3W33HSV MOa3S3 �..� TABLE OF CONTENTS ARTICLE I APPOINTMENT OF ESCROW AGENT; DEFINITIONS Page Section 1.01 Appointment of Escrow Agent I Section 1.02 Definitions I Section 1.03 Authorization 3 ARTICLE II ACQUISITION FUND Section 2.01 Deposit of Moneys by Lessor 4 Section , 2.02 Acquisition Fund 4 Section 2.03 Purpose 4 Section 2.04 Deposit of Funds; Payment of Acquisition Costs 4 Section 2.05 Transfers Upon Completion 5 Section 2.06 Lease Fund 5 ARTICLE III ' MONEYS IN FUNDS; INVESTMENT Y Section 3.01 Held in Trust 5 Section 3.02 Investments Authorized 5 Section 3.03 Disposition of Investments 5 Section 3.04 Accounting 6 Section 3.05 Allocation of Earnings 6 Section 3.06 Valuation and- Disposition of Investments 6 Section 3.07 Deposit of Moneys in Funds 6 Section 3.08 Commingling; Repurchase Agreements 6 ARTICLE IV THE ESCROW AGENT Section 4.01 Compensation of Escrow Agent 7 Section 4.02 Removal of Escrow Agent 7 Section 4.03 Resignation of Escrow Agent 7 Section 4.04 Appointment of Agent g Section 4.05 Merger or Consolidation 8 Section 4.06 Protection and Rights of the Escrow Agent 8 ARTICLE V DISCHARGE OF LIEN Section 5.01 Discharge of Lien; Further Assurances 9 (i) (LL) SI saLlaed Jo sassaaPPV 8 4�gHX3 vi wao j 4sanbab luawked d I�q HX3 ZI s6uLpe8H 80'6 uolJ38S Zi s4aedaa4unoo ul uoLjn38x3 LO-6 uoi438S Zt saossannS :1:)9113 6utpui8 90'6 uoi�oaS Zi �CjLpllenul lelIaed SO-6 uol13aS ZI Mel 6ulua8nog t0'6 uol43aS Zi sa:)l40N £0'6 u0POOS z spao3ab ZO'6 Uol438S ii aleS Jo slll8 !6ulljj 10'6 u0iPBS sn03NV1133SIW XI 313I1HV 11 salIaed 04 s446la Jo uol4e�.lwll LO'8 uoP:)aS 11 lasuno3 Jo uoluLd0 90'8 uoL408S 11 uol4e3LJ�Uw9puI 90'8 uoi4:)aS OI 4ua6d MoaDs3 ,Io k4q[gell _pa4�wll ti0'8 uoi�3aS OI aassal �fq s4u0wked le4uaa aoj Iu86V Moa3s3 ao aossal Jo KUMPLI ON £0'8 uol439S 01 83uewaoJa8d lue6y Moa3s3 aoJ aassal ao aossal Jo k4Mgell ON ZO'8 uoL408S Oi aassal Jo k41L[gell p94lwil 10'8 UOL438S AlIIISVII j0 NOIIVIIWIl IIIA 310IINV 01 sa3ueanssy aa44anj VO-L uol138S OT Juawa8a6V uoLId0 pup aseal £0'L uoi4:)9S OI s4a6png aassal ZO'L u0438S Oi 4u8w88a6y Moa3s3 Jo 4u8w8oaolu3 pup 4U14 8:)ueLldwo3 TO Uot438S S33IION 'S1NdN3A03 IIA 313IINV 6 s4uawpuawy ZO`9 uol4:)aS 6 �uawu6�ssb `10.9 uol4�aS a6ed S1N3WaN3Wav '1N3WNSISSb • IA 313I1bd .-.� ESCROW AGREEMENT • THIS AGREEMENT, made and entered into as of this 18th day of September , 1987, by and among Security Pacific National Bank, a national banking association, (the "Escrow Agent"), Security Pacific Merchant BanJ6 a Division of Security Pacific National Bank, a national banking association (the "Lessor"), and City of Atascadero duly organized and existing under the Constitution and laws of the State of California (the "Lessee"); WITNESSETH WHEREAS, the Lessee and Lessor have entered into a Municipal Lease and Option Agreement dated as of September 18, 1987 (the "Lease and Option Agreement"), a duplicate original of which has been furnished to each of the parties, whereby Lessor has agreed to acquire that certain Property and related and appurtenant property described in Exhibit D attached thereto (the "Property"), and to lease the Property to Lessee, in the manner and on the terms set forth in the Lease and Option Agreement; and WHEREAS, under the Lease and Option Agreement, the Lessee is obligated to make Rental Payments to Lessor for the Acquisition, possession and use of the Property, and Lessor has agreed to deposit moneys with the Escrow Agent sufficient to acquire the Property; and fi WHEREAS, the Lessee, as agent for the Lessor under an Agency Agreement dated as of September 18. 1987 between Lessor and the Lessee (the "Agency Agreement"), will cause the Property to be acquired in accordance with the purchase orders or contracts therefor by the Vendor, and such Agency Agreement provides that neither Lessor nor the Escrow Agent shall be obligated to assume or perform any obligation of the Lessee or such Vendor with respect thereto or under the Lease and Option Agreement; NOW THEREFORE, in consideration of the premises and the mutual covenants contained herein, the parties hereto hereby agree as follows: ARTICLE I APPOINTMENT OF ESCROW AGENT; DEFINITIONS Section 1.01. A000intment of Escrow Agent. Lessor and Lessee hereby appoint and employ the Escrow Agent, upon direction of the Lessee, to receive, :hold, invest and disburse the moneys to be paid to it pursuant to the Agreement and the Lease and Option Agreement for credit to the Acquisition Fund and Lease Fund established by this Agreement, and to perform certain other functions, all as hereinafter provided. By executing and delivering this EscrowAgreement, the Escrow Agent accepts the duties and obligations of the Escrow Agent provided herein, but only upon the terms and conditions herein set forth. Section 1.02. Definitions. Unless the context otherwise requires, the terms defined in this Section shall, for all purposes of this Escrow Agreement, have the meanings herein specified. -I - •su6Lsse pue saossaoans IseaRoLdwa 'Sa83L}3o Slt Pup 'uoLIeLDosse 6uLlueq LeUOPeU a 'Jue8 LeuoLIeN NAOvd XIP38S Jo uo. .. a ��ue8 lueyo.AaW oM3vd kjj .maS sueaw •luawaaa6d SM o3 1oadsaa y �M ao aapun �L�zyaq sl[ Uo doe o4 aassal 841 kq p84a041ne uosaad e ao aassal a4l 10 anLjejuasaadaa aye sueaw YanLjejuas a as ass 'eLUaoILLej jo alelS 844 Jo sMeL pup uo[In1L1suo3 841 aapun 6uLIsLxa pup pazLue6.Ao KLnp loaapeoseIV jo Kj[3 sueaw Ya�s3`� 'Joaaayl luawpuawe palnoaxa pup p82La041ne KLnp kue pup aossal pup aassal 844 uaemlaq pup Kq10 Se paIep `Juawaaa6y uoLzdo pup aseal LedLoLunW a4l sueaw YIuawaajov uoLj o pug M Moa:)s3 aye 'aossal 10 aaKoLdwa up fou •aassal aye ao Iua6y sL oyM pup aoLJdo up SULejULew a4 43L4M uL BIPIS a4l 10 janoo IS9444 044 a.Aoja,q MeL 10 aoLjocad 841 04 Paul wPe tLnp Kauao4le up sueaw YLasuno:) juap apuim •olaaay Iuawpuawe palnoexe pup pazta041ne SInp Sup pup Zuawaaa6b Moa3s3 sM sueaw YIuawaa-Ad Mo Y Moa3s3 sM 04 lucnsand lua6d Moa3s3 se 644:)e •4uawaaa6y olaaagp 1 aossaoons Kue ao 'lueg LeuOMN 3W:)vd kjj .AnoaS sueaw YIua b MO.A3s � •II aL:44ad of juensand pa4Lsodap aq 04 pa.ALnbaa sKOuow a4l lua6y Moa:)s3 a4l 44LM sjLsodsap aossal uayM Kep 844 sueaw Unea liumix, •4uawaaa6y uoLldo pup aseal a4l 01 3 ILgL4x3 se payoelle a:)ueldaooe jo aje:) ,jtjaao a sueaw manejm3v 10 ajp Lji a w •108aa44 luawpuawe palnoaxa pup PaZLa041ne kLnp kue pup aassal pup aossal uaaMlaq pup Kq L8/817-6 Jo se p84ep 'luawaaaBd k:)u86V 844 sueaw YIu w as y u Y •4u8waaa6y Moaas3 441 10 II aLoL:Pd of luensand Iua6y Moaos3 a4l kq pLay Pup Pa4sLLge4se aweu leyl kq punj aye sueaw Ypunj uofjfsfnD3V, •�f4aadoad a4l JO aossal Kq BULoUeULJ Pup �faanL�ap `uoL�LsLnboy a4l 44LM uoPoauuo3 UL Saopuap "I Pup aossal 'aassal 841 kq paaanoUL slsoo aaW Pup LePueutl 'LefiaL ``fiuLaa8UL6Ua `anL4eajsLULwpe a4l apnLouL s1soo uoLjtsLnbod •9L•ZLL`OZEf`ue4; aalpaa6 4ou aq LLeys Pup 'aoAaM 43eaIuoo ao aapao aseyoand a4l WM aouepa000e UL `aoue4da33d jo aleoL1L1aao a yUM aa4la6o4 `juawdLnba pajeLaa Pup Szaadoad a4l Jo uoti.Aod XUe Jo uoLjeLLejSUj ao K.AaALLap `uoL4Ls�nb3y uodn JOIB-Aayl aopuaA a4l 04 pled aq of Ao pLed aoLad 13ealuoo a4l 1,K4aadoad 1oadsaa 4UM 'sue8wLjtSfnD3V. "Lessor Rep- t� means any Vice Preside* f Lessor, or any person authorized to act on behalf of Lessor under or with respect to this Agreement, as evidenced by a certificate conferring such authorization, given to the Lessee or the Lessee Representative. "Net ,Proceeds" means any insurance proceeds, paid with respect to the Property, remaining after payment therefrom all expenses incurred in the collection thereof. "Payment Date" means, with respect to Exhibit E attached to the Lease and Option Agreement, the date upon which any Rental Payment is due and payable. "Permitted Encumbrances" means, as of any particular time: liens for general ad valorem taxes and assessments, if any, not then delinquent, or which the Lessee may, pursuant to Provisions of Article IV hereof, permit to remain unpaid; (ii) the Lease and Option Agreement and any leases, subleases and assignments superior or subordinate thereto which are in accordance therewith; (iii) any right or claim of any mechanic, laborer, materialman, supplier or vendor not filed or perfected in the manner prescribed by law, other than any lien arising through any of the Vendor; and (iv) the Assignment Agreement. "Prepayment Date means any date on which the Lessee may exercise its option to purchase the Property as set forth in Exhibit E attached to the Lease and Option Agreement. "Property" means the property and related and appurtenant property to be acquired from the moneys held in the Acquisition fund. "Oualified Investment" means and includes those investments permitted under California Government Code Section 53601. "Rental Payment" means any payment due from the Lessee to Lessor under the Lease and Option Agreement. "Term of the Lease and Option Agreement" means the time during which the Lease and Option Agreement is in effect, as provided in Article IV of the Lease and Option Agreement. "Unpaid Principal Balance" means the unpaid principal amount of all Rental Payments. "Vendor" means the_vendor or contractor of the Property as well as the sub-contractors of the contractor from whom Lessor has contracted or is contracting for the Acquisition of the Property pursuant to the Lease and Option Agreement. Section 1.03. Authorization. Each of the parties hereby represents and warrants that it has full legal authority and is duly empowered to enter into this Agreement," and has taken all actions necessary to authorize the execution of this Agreement by the officers and persons signing it. -3- juawked a _� - y1 'punj uolIlslnbotl 841 UL pLay s� ouow 841 10 Iu8w4s8nul pue 6uldaalajes aye .aoj aL%suodsa,a aq LLeys lua6tl Moaos3 ayl *kL4ulof pled aq LLeys Iso yons ase yolyM ul 'kL4uloP � 4.Aed ,aayloue Pue aa�Ced ,ao .aopu8A ayl 04 apew aq of juaw�fed sisenba,a aassal aye ssaLun eaRed JO .aopuaA 844 04 kLloa.alp pled aq Mm sIso0 uol4lslnbotl 'tl 4lgl4x3 se 04aJ84 pa43e44e w,ao; 844 kUel4ue4sgns UL w,ao j 4sanbaa luawked papoaxa Xjnp a 'lso0 uol lslnboy ,x8440 kue 10 4uawked ,}o aseo ayl ul (q) .ao !pa.aanlLap aq Sew ales 40 Lllq a 4:)14M ,Aoj KI.Aadoad 941 3o juauodwoo kue .ao3 ales 10 slliq (ti) pue :4uawked .Aoj pa4sonbw junowe 841 01 Lenba 4unowe ue ul lkl.aado.ad 941 .aoJ sLel.aalew ,ao I.aoM 6ulpino.Ad ul pa,a.anoul slsoo LLe 10 juawked 64Moys lk4jodo.ad 844 .aoJ sLel.aa4ew ao I,aoM papino.ad sey yolyM Aoloe.Aluoogns Rue pue ,aopuap ayl Kq pe4n3axa swlep pue su8lL kue 10 s.aanleM (£) :a� l.ad 4oe.aluoo ,ao ,40p,a0 aseyo.and Leul6l,ao 844 10 sseoxa ul junowe ue ul sjso0 uoljlslnboy 6ulsea.aoul 88ssal ayl kq panoidde JOP.ao a6ue43 kue 30 Leul6L.ao aleolldnp a 'aLgeolLdde a.aa4m (Z) 'payoe44e 4uawams sl,aopuaA a44 10 �fdoo an.a4 a 441M 'tl llgl4x3 se 048.aa4 M:)elle w,aoj aye SLLepuelsgns ul w,ao j Isanbab Iuawked pa4noaxa kLnp a (I) ',aap.ao asey:).and Ao 1oe.a4uoo a of 4uens,and IS03 uoljlslnbotl kue 10 juawked 10 aseo ayl ul (e) :o1a,aayl 4oadsa,a y1lM sWell 6ulMoLLo3 841 10 4dlaoaa uodn 'papino.ad .Aalle40.Aa4 se 'siso0 uoljlslnbotl ayl punj uoplslnbotl a44 wo,aj fed LLeys 4ua6tl Moaos3 ayl •asod.and yons .Aol jua6tl Moaos3 aye 41tm pallsodep awls of awlj waal spun] ,x9440 Cue pue 'Joa,aay Ip•Z uolloas o4 juens.and ula,aM pa4podep aq 04 pa.alnba,a skauow 844 punj uol4lslnbotl 844 01 pailpa,ao aq LLeys a,aayl 'SIS03 u l l l tl 10 Juaw ed. :spu j jo usoaad •to•Z uomas -,KljadOud 844 30 ,aossal kq 6uloueul,} pue 6ul.alnb3e 841 4Um uolloauuoo ul .aossal pue 88ssal 941 kq paA.anoul sIsoa .a8410 pue Leloueuld 'Le6aL '6ul.aaauOue 'anlle,a4sulwpe a44 6ulpnLoul 1XI-Aado,ad 841 Jo sIso0 uol�lslnbotl .Aoj papuadxa aq LLe4s punj uol4lslnb3tl 944 ul skauoW • sasodand •£o•Z uoljo8s *4Uma,aay 8ouep.a000e ul 4u86tl Moaos3 844 Sq palLdde pue pLay aq LLeys punj uoi4lslnb3tl 841 '108.aa4 III aLol�tl Pue uolloas s144 ul paPlno.ad se punj yons .AOZSLuLwPe LLeys pue :1l Kq pLay skauow pue spun] ,aa440 LLe wo,aJ 4,aede pue aje.aedas punj yons daal LLeys '(„punj uolllslnbod„ a44 se off. pa,AJa3a,a .aa4Jeulaa84) punj uol4lslnbotlu ayl se pajeu6lsap punt Leloads e 4slLge4sa LLeys `Iua6tl Moa3s3 841 -punj uolj.snU:—)b •Z0•Z uotpas •papinoad JaUeuta. 04 se pas,angslp pue palLdde 'PL04 aq o4 punj eseal ayl ul 00*tLO'T$ Pue punj uol4lslnbod ayl ul 00'ISL'61£S Usodap LLeys -4ua6tl Moaos3 ayl Mo,aas a R-966'LES � 'area 6ulsoL3 a4l le 4ua6 tl 3 44 4�1M 6Z'S66 L£S P sodep aq of esnso ao 4lsode LLeys aassa3 •IL-6Z8'Z8ZS 4ua6tl Moaos3 044 41tm 4lsodaAlMs Jossal `aie0 6ULso10 a44 IV -,AOSSGj AS SAaUOW l IO'Z uoljoes ONnJ N0IlISInb3v II 313Il11tl • thereof in accordance,,.h this Section, the applicat• of amounts paid pursuant to such Payment Request Forms, and the sufficiency of the moneys credited to the Acquisition Fund to make all of the payments herein required. Section 2.05. Transfers Upon Completion. Upon payment of the Acquisition Costs and the filing with the Escrow Agent of the Certificate of Acceptance, or in any event three years from the Closing Date, the Escrow Agent shall transfer all remaining moneys in the Acquisition Fund to the Lease Fund. Section 2.06. Lease Fund. The Escrow Agent shall establish a special fund designated as the "Lease Fund", and shall administer such fund in accordance with Section 3.02 of the Lease and Option Agreement. ARTICLE III MONEYS IN FUNDS; INVESTMENT Section 3.01. Held in Trust. The moneys and investments held by the Escrow Agent under this Agreement are irrevocably held in trust for the benefit of the Lessee, Lessor and for the purposes herein specified, and such moneys and any income or interest earned thereon, shall be expended only as provided in this Agreement, and shall not be subject to levy or attachment or lien by or for the benefit of any creditor of either Lessor or the Lessee. Section 3.02. Investments Authorized. Moneys held by the Escrow Agent hereunder may be invested, and upon written order of the Lessee Representative shall be invested, by the Escrow Agent in Qualified Investments. Such investments shall be registered in the name of the Escrow Agent and held by the Escrow Agent. The Escrow Agent may purchase or sell to itself or any affiliate, as principal or agent, investments authorized by this Section. Such investments and reinvestments shall be made giving full consideration for the time at which funds are required to be available. The Escrow Agent may act as purchaser or agent in the making or disposing of any investment. Section 3.03. Disposition of Investments. Any income received on the investment of moneys held by the Escrow Agent hereunder shall be credited to the respective fund for which it is held, subject to any provision of this Escrow Agreement specifying any different creditor the transfer thereof to another fund. Section 3.04. Accounting. The Escrow Agent shall furnish to the Lessee, no less than quarterly, an accounting of all investments made by the Escrow Agent. The Escrow Agent shall not be responsible or liable for any loss suffered in connection with any investment of funds made by it in accordance with this Section. -5- _g_ •�faessaoau aq Lle4s �L aanauayM aLgeuLe4go aoLad �saq aye �p s�uaw4sanuL-yons LLas LLeys 4ua6y Mo.a3s3 044 '4uana 4ons uI quawaaa6e aseyoandaa a44 kq paalnbaa a4ep 944 uo s4u8w4s8nuL 4ons aseyoandaa o} 44dwoad LPJ LLeys 4u8waaa6p yons o4 k4aed aa44o a44 3.l s4uaw4s8nuL yons LLas 04 P86y moaos3 844 4Lwaad 4e44 s4uawaaa6e aseyoandaa aapun pLay aq LLeys s4u8w4sanuL yons 's4uaw4s8nul paLI[Len6 aseyoand o4 pasn aaaM skauow 4o14M woaj 4un000e ao punj a44 3.o 4aed aq 04 sawL4 LLe 4e pawaap aq LLeys pup �uee anaasaa Leaapa3 e Rq ao 4ua6y moaos3 a44 Xq spunj 4sn q se pLay aq LLeys s4uawaaa6e yons jo 4:)afgns 841 aae 4e44 s4u8w4sanuL ayl •papuadxa aq of paaLnbaa aae sXauow 4o14m 4e sawL4 a44 44LM apLouLoo 43L4M sawL4 4e III alol4ay sL44 aapun paziao44ne s4uaw4sanuL 10 aseyoandaa a44 Aoj apinoad *e44 sa8440 ao JLas4L 44LM s4u8w98a6e 04UL Aa4ua Sew 4ua6y Moa3s3 a41 -4ua6y Moa3s3 a44 Rq 6uLL6uLwwoo 4ons 6uLpue4s44LM4ou 484paedas ao} pa4un000e aq LLeys Aapunaaa4 4u96y Moaos3 944 Rq pLay s;un000e ao spunj Up 4e44 `aanaMoy 'pap[noad 'RLuo sasodand 4uaw4s8nuL ao3 spun] ao punj aleaedas a 04uL 4Uawaaa6y SL44 o4 pensand 4[ kq play spunj aye jo Rue aL6uLwwoo `LLeys aassa3 ayj jo Isanbaa u844Lam ay4 uodn pup Xew 4ua6y Moaos3 a41 •s4uawaaa y aseyoan as tbULLbULWWOO '80•£ uoL40aS •s;Lsodap yons Aol 44Lanoas se 4u86y Moaos3 a44 3.o 4un000e a44 aoj Ao kq Pla4 Pup `lua6y Moaos3 a44 Sq paPaLas aq few se s�ueq ao jueq yons 44LM p94Lsodap aq LLeys suoL4e6LLgo yons 'Skauow oLLgnd jo s4Lsodap aanoas off. MeL Rq aLq[6LL8 aae 40L4M suoL4e6LLgo kq sawL4 Up 4e paanoas aq LLeys 'meL kq paalnbaa 4ua4xa aq4 o4 pup se pue (4ua6V Moa3s3 a44 jo 4uaw4aedap 6uuueq a44 6uLpnLouL) spun] oLLgnd jo s4Lsodap 4daooe o4 pazLao44ne kuedwoo 4sna4 ao jueq Cue uL (4Lsodap 10 s04e:)[ L4a93 awL4 kq pa4uasaadaa aq few 4314m) s4Lsodap awLj ao puewap UL pa4Lsodap aq LLeys 'papLnoad uLaaay se pa4sanuL awL4a4e 4e aae 4o14M SRauow 4:)ns 4daoxa '4u8waaa6y s144 of 4uensand paysLLgelsa spun] a44 Jo Rue UL 4ua6y 'Moaos3 a44 Xq Play skauow LLV *spunj UL s auoW do 4Lso as 'LO'£ uoL4oaS •4uawjs8nuL yons woaj 6uLUnsaa ssoL Rue ao,} oLglsuodsaa ao aLgeLL aq 4ou LLeys 4ua6y moaos3 a44 pue 'pa4paao SL 4uawjsanul paLJUen6 yons 4oLym off. punj aye. woaj 4uawasangslp ao LemeapylLm IaalsueA4 'juawked paAnbaa Rue 488w 04 SRauow apinoad 04 aapao UL fiaessaoau aq LLeys 4L aanauagm '4ua6y Moa3s3 ay4 Rq paseyoand os 4uaw4sanul paLiLLen6 Rue °uoL4dwapaa ao3. 4uasaad -AO '9LgeuLe4go aoLad 4saq 844 4e LLas Sew 4u86y Moaos3 ayl •(aseyoand 6uLmoLLoj s4uawRed ' 4saa84uL 4saL3. 844 .043.e 4saa84uL panaooe jo anLsnLoxa) 4s-O:) 4e pan Len aq LLe4s punj yons o4 paj[paao s4uaw4s9nul paLjUen6 Up 'pun} Cue UL 4unowe 944 6uLuLwaa4ap Jo asodand 944 ao3 's4uaw4sanul .Jo uoL4Lso sLa pup uoL4enLeA •90•£ uoL4oaS •aassa3 ay4 o4 pled aq aa43.eaaa44 LLeys puna asea3 a44 wo.Aj 4Ljoad ao awoouL '4saa84UL yons Rue pup puna uoL4�S[nboy 941 04 4ua6y Moaos3 944 Xq p8aaajsuea4 aq LLeys aoue4d9ooy 3.o a4eoLjL4aa3 844 3.0 4ua6y moaos3 ay4 Sq 4dLaaaa 844 04 aoLad puna asea3 a44 Jo s4uaw4sanuL ao s4Lsodap a44 woaj 4[joad ao awoosa uL °4aa4UL yons Rue 4e44 4daoxa lapew sem 4Lsodap yons 4o14M woa3 punj ay4 uL pa4Lsodap aq LLeys spun jo 4[sodap Rue uo 4s8aaJuL Cue pup 'spew aaaM s4uaw4sanuL yons 4o14M woaj spunj anL;oadsaa ay4 o4 pa6aeyo ao UL pa4[sodap aq LLeys s4uaw4sanuL yons uo ssoL ao 4LjoaduL Ruy •s uLuae3 -4o uoL4po- •50•£ uoL4oaS ARTICLE IV THE ESCROW AGENT Section 4.01. Compensation of Escrow Agent. The Lessee shall from time to time, on demand, pay to the Escrow Agent reasonable compensation for its services, and shall reimburse the Escrow Agent for all its advances and expenditures, including but not limited to advances to, and fees and expenses of independent t apprai sers, accountants, consultants, counsel, agents and attorneys-at-law or other experts employed by it in the exercise and performance of its powers and duties hereunder. Section 4.02. Removal of Escrow Agent. The Lessee and Lessor may by written agreement between themselves, may by written request, at any time and for any reason, remove the Escrow Agent and any successor thereto, and shall thereupon appoint a successor or successors thereto, but any-such successor shall be a bank or trust company doing business and having an office in Los Angeles, California, having a combined capital (exclusive of borrowed capital) and surplus of at least One Hundred Millions dollars ($100,000,000), and subject to supervision or examination by federal or state authority. If such bank or trust publishes a report of condition at least annually, pursuant to law or to the requirements of any supervising or examining authority above referred to, then for the purposes of this Section the combined capital and surplus of such bank or trust company shall be deemed to be its combined capital and surplus set forth in its most recent report of condition so published. Section 4.03. Resignation of Escrow Agent. The Escrow Agent or any successor may at any time resign by giving written notice to the Lessee and Lessor of its intention to resign and of the proposed date of resignation, which shall be a date not less than 60 days after such notice, unless an earlier resignation date and the appointment of a successor Escrow Agent shall have been or are approved. Upon receiving such notice of resignation, the Lessee shall promptly appoint a successor Escrow Agent by an instrument in writing; provided however, that in the event the Lessee fails to appoint a successor Escrow Agent within 30 days following receipt of such written notice of resignation, Lessor may appoint a successor Escrow Agent, and in the event that Lessor fails to appoint a successor Escrow Agent within 30 days following the expiration of such initial 30-day period the resigning Escrow Agent may petition the appropriate court having jurisdiction to appoint a successor Escrow Agent. Any resignation or removal of the Escrow Agent shall become effective upon acceptance of appointment by the successor Escrow Agent. Section 4.04. Appointment of Agent. The Escrow Agent may 'appoint an agent to exercise any of the powers, rights or remedies granted to the Escrow Agent under this Agreement, and to hold title to property or to take any other action which may be desirable or necessary. -7- •8au86L168u ssoa6 ,Ao 1onpuoosLw LnjMm � uMo sll AOJ OO 4daoxa I.Aapunaaa4 pa4sLLgejsa slun000e pue spun] 94; 44LM uoL4oauuo0 UL aanaIP4M 6u144Rue ao3 ao 4u8w89,A6y SL44 aapun Aamod ao uoL48aosLP Rue �o asLo,Aaxa 941 ,AOJ aLge.AaMsue aq jou LLeys �ua6y Moaos3 941 •a.Aeo oLgeuosee.A 441M U kq MoaLas ,ABALaoa,A .Ao '4ua6P ',Kau,Ao4je yons Rue jo lonpuoosLw ,Ao jLnejap 844 ,AOJ alge,AaMsue aq jou LLe4s lua6y Moa3s3 844 pue '.Aapuna.Aay Xjnp sjL pue Isn,A4 jo s.Ael4ew LLP 6uP.Aaouoo Lasunoo jo aoLnpe o4 peL4Ljua aq LLe4s pue 's,AanLa:)a,A ,Ao 's4ua6P °skau,Ao44e 46noa44 ao Sq aapunaaa4 JL Jo pa.ALnba.A saLlnp 844 waolaad pue Joaaay saaMod ao s4sn.Al 844 10 Rue a4naaxa few 4ua6y Mo,Aos3 941 •Joa,Aay4 Cue Jo ss9u4oa.A.Aoo a4l aoJ uoLle6LLgo Ao 44LLLgLsuodsaa Rue °aney lOu LLe4s pue lawnsse jou scop 4ua6d Mo,Aas3 844 pue '4u86y Mo.Aos3 844 Sq 4ou pue laq Xew ase:) aye. se '.Aossal pue aassal a4l Jo Ind a44 uo pue Sq apew se panajsuoo pue u9je4 aq LLe4s Pawaaa6y SM UL p8uLe4u00 aossal pue aassa3 a4l Rq suoL4e4uasaadaa pue s4uawalPls 'sLelLoaa a4l •oLgeuosea.A wags kew 1[ 01 se aouapLna LeuoL4We yons a.ALnbe.A kew ao ,Aal4ew yons jo aouapLna aa440 4daooe 'Joa,Aa44 naLL UL 'few Ju86b Mo,Aos3 a4l uoL48assLp SjL UL 4nq 'Joa,Aayl 4UeJ 844 uodn ivawaaa6y sL44 3o suoLsLnoad a4l .Aapun pa.Aajjns ,Ao uajej uoL4oe Rue .AOJ Ju86y M0a0s3 844 04 k4ueaaeM LLnj aq LMS a4e:)M4-A8r yons pue anL4ejuasaadab .Aossa3 a4l .Ao anLje4uasa.Adaa aassal a4l Jo aleDMI.Aao a4l Rq pa4sgge4sa pue pano.Ad XPAn snLouoo aq 04 pawaap aq LLe4s I(pagL,nsa.Ad 4LM)[jj oads uLaa84 aq Joa.Aa44 40adsaa UL aouapLna .0440 ssaLun) a844ew yons ' apuna.Aay uoL4oe Sue 6uL.Aajjns ao 6uLjej 01 AOL.Ad paysLLgejsa ,Ao pano.Ad aq aa4jew a le44 aLge,ALsap ,Ao K,AessaoaU 4L weep LLe4s lua6d Moa3s3 a4l 'Iuawaaa6d s j aapun saLinp s4L Jo uoLje.AjsiuLwpe a4l uL .AaAaua4l4 •4UMa,A844 aouep.aoaoe UL 4Ued Pooh UL .Aepunaaa4 j� Sq pe.Aajjns ao uajej uoLpe Rue jo 10adsaa UL uoLIoa4oad pue uOPvzLa04zne 34aLdwo3 pue LLnd aq LLe4s Lasunoo yons jo UO jULdo a4l pue IsuoLIsenb Le6aL 04 pae6a,A 44LM 'aassal a4l ,Ao ,Aossa3 04 Lasunoo aq Rew 0414 Lasunoo 4UM 4Lnsuoo few ju96y Mo,Aas3 a4l •slu8w84els yons 3o gbean00e pue 41na4 a44 J0 aouapLna anLsnLouoo se awes a44 uodn KLaa pue 4dao0e /dew 4nq 14uawnalsul yons /Cue *UL 04 pa,A.Aaja,A s,Aajjew ,Ao pauLe4UO3 sPawalels Rue o4 se kaLnbuL Ao uoL4e6Ljs9nuL Sue ajew o4 K4np ou aapun aq LLe4s V86d 140.Aos3 a44 pue °Pawaaa6V sL44 ,}o SUOLSLnoad a4l jo Rue of luensand p84s[uanj pue paaedaad uaaq aney of ao uosiad ao paeoq aadoad 044 Xq pau6Ls ao passed uaaq aney 01 pie auLnua6 aq 04 anaLLaq 44LeJ pooh uL LLe4s U 4314M juawnoop Ao ,Aaded ,Aay10 ao uoL�LsLnbaa 'puoq 'aa40n0n '4LneP13je °Juaw84ejs `ale0L3L4aao 'aaALeM '4uasuo0 `4sonbaa 'wea6aL84 `80POu luoL4n Losaa Rue uodn 44M pooh UL 6uLpeaOoad JO 6uL40e UL 94[LLgeLL ou AnouL LLe4s pue papajoad aq LLe4s P86d Moaos3 a4l 'Jua d Moaos 3 a44 30 s44 La Pue uOP:)8Ioad '90'ti uOL439S •6uLpue4s4lLMlou X.Aealuoo a44 04 u Laaa4 6u L44gue 'Pe A044.An j ao waded Rue JO 6uLL6 ao uoLjnOaxa a44 4n044LM 4u86 M0aos3 a4l of aossaoons 844 aq LLe4s (Zo•t votloaS .Aepun alq[6LLa aq LLe4s Kuedwoo yons le44 papLAoad) ssauLsnq jjmaj aleaodao0 SU J0 LLP KLIPL4ue4sgns ao LLe aaJsueal ao LLas kew :IV96y Moaos3 a4l 4o14M of Kuedwo0 Cue Ao 1,KIaed a aq LLe4s U 43M 04 UMVPLLosuoo JO uoLsaanuoo 'aa6aaw Rue woaJ 6ullLnsoa kuedwoo Rue Ao 1pa4epLLosuoo aq ,dew 41 4ot4M 441M ao 'pa4aanuoo ao pa6aaw aq few lua6d M0aos3 841 40t4M 04UL Kuedwo0 Cub •uO NLosuO3 ao as a W 'go-t uoL439S ARTICLE V ,DISCHARGE OF LIEN SectiQQ_ 5.01. Discharge of Lien; Further Assurances. Upon the payment by Lessee of all rental payments or upon Lessee's exercise of its option to purchase the Property, the Escrow Agent and Lessor shall take whatever action shall be necessary to discharge any lien on the Property, and shall execute and deliver any and all such further instruments and assurances as may be reasonably necessary or proper to consummate such discharge. ARTICLE VI ASSIGNMENT; AMENDMENTS Section 6.01. Assignment. Except as provided in Article IV, the rights and duties of each of the parties under this Agreement shall not be assignable to any person or entity without the written consent of all of the other parties. Section 6.02. Amendments. This Escrow Agreement may be amended in writing by agreement among all of the parties, but no such amendment shall become effective until approved. Notwithstanding the foregoing, this Escrow Agreement may also be modified or amended at any time without consent, but only (1) for the purpose of making such provision for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained in this Escrow Agreement, or (2) in regard to questions arising under this Escrow Agreement which the Lessee may deem necessary or desirable and not inconsistent with this Escrow Agreement and which shall not adversely affect the interests of the Lessor or its assignee; provided that Lessor, the Lessee and the Escrow Agent may rely in entering into any such amendment hereof upon an opinion of nationally recognized bond counsel acceptable to the Escrow Agent stating that the requirements of this sentence shall have been met with respect to such amendment. ARTICLE VII COVENANTS; NOTICES Section 7.01. Compliance with and Enforcement of Escrow Agreement. The Lessee covenants and agrees to perform all obligations and duties imposed on it under this Escrow Agreement. Section 7.02. Lessee Budgets. The Lessee agrees to furnish to the Escrow Agent a copy of its final budget as provided in the Lease. and Option Agreement. -9- -01- 'jLnp3aP LnILLLM ao a:)u86lL6au uMo sl[ ao3 lda:)xa 'aapunaaay salInp sol jo a:)uew.Aojaad 844 44lM u0l138uu03 UL aLgeLL aq IOu LLeys 4u86y Moa:)s3 ayl 'U uodn pasodwl ulaaay suoLje6lLgo ao saljnp 844 41lM UOL438000D UL ueyj a8410 '3oaa844 1oadse.A ul 441MLsuodsoa kue An:)uL LLeys ao '4u8waaa6y sl41 jo kouaL�133ns -10 k�IPLLeA 844 04 se suoL4e4uasaadea Kue sajew ao 'awes ayl 3o ssauloaa.Ao:) 844 ao3 AtLtgLsuodsaa ou sawnsss ''jua6y Moa:)s3 841 pup 1(aq kew ase: 941 se) aossal ao eassal 941 jo sluawaaa6e pule sjueuanoo °s4u8wajejs se ua3ej aq LLpys pauLeIuoo ulaaay s4uamaaa6e pup sjueu8no3 'sl:)e3 Jo sLPIPaa ayl •aapunaaay It uodn pasodwl (Lssaadxa sa[Inp 844 jo aouewaojaad 8UL-ss8ulsnq 844 aoJ kLaLOs aLglsuodsaa aq LLpys Inq '4u9waaa6d uoljd0 pue aseal a44 ao juawaaa6d slyl Aapun wayl jo Kue Kq aplew JuawaaAe ao ZueuaA03 Kue wao3aad o4 kjaed aayjo ,Kue Jo Lesn jo.A ao aan Llle3 ayl ao 4uawaaa6y sL41 o4 padsaa 4UM saLjaed aa410 ayl 3o Mule 04 A'UMelL ao uoLIe6llgo ou anley LLpys jua6d Moa:)s3 ayl •juawaaa6d SL41 of kjaed aa440 iue Jo suoLjejuasaadaa ao suolloe ayl aoJ uoLjewaojuL 6ulpinoad ao3 KI1L[gsuodsaJ ao uoLle6LLgo ou aney LLeys jua6d Moa:)s3 ayl •4u8V '4OJ3s3 30 A41Lfqpfj Pallwll We uoP38s •4uawaaa6y uolld0 pup aseal ayl ul jl kq appw 4uEuano: a8440 Kue JO' aassal ayl kq a:)uewaojaad ayl o4 43adsaa 441m ao °anp uayM aassal aye Kq sluawked Leluaa 844 Jo juawked aye. o4 13adsaa 44lM k4tMelL ao uolje61Lgo kup aney LLpys jua6y 14oa:)s3 aye, aou aossal aa441au 'u Laaay pap lnoad se Idaox3 •aa sal Xq S4U8WAed Muaa JOJ qua d Moan ao .10T a-1 30 4lllgell oN '£0'8 uoW)ag •Iuawaaa6y sly aapun 4l uodn pasodwl klnp kue jo 4ua6y Moa:)s3 ayl Kq a3uewao3aad 844 of 43adsa.1 4Um sal4aed aa440 a44 30 KuP 04 �f Mgell ao uoLze6LLgo Cue aney LLeys aossal aou aassal a44 aa4418N •a3u waoJa d luabV MOJ3s3 JOIaaSSal JO aossal Jo A4Mqffl oN 'ZO'8 uolPas •4uawa9a6d SL44 04 4:)adsaa 4UM sal4aed aa440 844 Jo kue 04 kUllgell ao uope6llgo ou aney LLeys aassal 944 •juawaaa6d pies ul pauLe4uo:) aassal 844 }o sluawaa,aft pue sjueu9no3 aa410 a44 3o aouewaoJaad 844 pup 4uawaaa6d uopdo Pup aseal 844 4UM a3uepao33E UL onp uayM s4uawked Lejuaa 3o 4uawked aye. ao3 4da3x3 'WUTf7a 30 JlLlgell pa4lwll '1018 uoW)as AlIIISVII 30 NOIIdIlIWII IIIA 310Ilbd •ulaaay papinoad s41jauaq Pup s446La a44 6ulwaL3uo: pup 6ulansse aa44aq ayl aoJ pup 'juaweaa6y sl44 3o a:)uewao3aad 844 aleULloe3 01 ao uoljua4ul et14 Ino kam of aadoad ao Raessaoau ALgeuoseaa aq few se saoueansse put sluawna4suL IsuolInlosaa a844anJ yens Up p-ue Kue aanllap pup ijp t 39X8 'a�ew LILM aassal a4l pup aossal • ileanssy aa44an3 •to•L aogoaS •4uawaaa6y uol4d0 pup aseal ayl aapun It uo pasodwl sapnp pup suol4e6LLgo Up waojaad o4 saaaft Pup s4ueuano3 aos •4uawa8a y UOL4 0 pue asea�•£0•L uoL gas p ad ` •..� 0 Section 8.05. Indemnification. Lessor and the Lessee agree to indemnify and save the Escrow Agent harmless from and against all claims, suits and actions brought against it, or to which it is made a party, and from all losses and damages suffered by it as a result thereof, where and to the extent„such claim, suit or action arises out of the actions of any other party to this Agreement including but not limited to the ownership, operation or use of the Property by the Lessee. Such indemnification shall not extend to claims, suits and actions brought against the Escrow Agent for failure to perform and carry out the duties specifically imposed upon and to be performed by it pursuant to this Agreement. In the event Lessor or the Lessee is required to indemnify the Escrow Agent as herein provided, Lessor or the Lessee shall be subrogated to the rights of the Escrow Agent to recover such losses or damages from any other person or entity. Section 8.06. Opinion of Counsel. Before being required to take any action, the Escrow Agent may require an opinion of Independent Counsel acceptable to the Escrow Agent, which opinion shall be made available to the other parties hereto, or a verified certificate of any party hereto, or both, concerning the proposed action. If it does so in good faith, Escrow Agent shall be absolutely protected in relying thereon. Section 8.07. Limitation of Rights to Parties. Nothing in this Agreement, expressed or implied, is intended or shall be construed to give any person other than the Lessee, Lessor, the Escrow Agent any legal a or equitable right, remedy or claim under or in respect of this Agreement or any covenant, condition or provision hereof; and all such covenants, conditions and provisions are and shall be for the sole and exclusive benefit of the Lessee, Lessor and the Escrow Agent. -'ARTICLE IX MISCELLANEOUS Section 9.01. Filing; Bills of Sale. The Escrow Agent shall be responsible for the filing of any supplemental instruments or documents of further assurance as may be required by law in order to perfect the security interests created by this Escrow Agreement, and shall hold all financing documents and bills of sale, and transfer same, as required by the provisions of this Agreement. Section 9.02 Records. The Escrow Agent shall keep complete and accurate records of all moneys received and disbursed under this Agreement, which shall be available for inspection by the Lessee, Lessor, or the agent of either of them, at any time during regular ular business hours. Section 9.03. Notices. All written notices to beiven this Agreement shall be given by mail to the g under its address set forth in the attached Exhibit 8,aoryatnsuclh address�ast -11 - I _ . -Zi- '108,aa4 uoLslnpgns ao uoL4:)aS 'aL:)LIad aeLno}1aed Sue of IOU pue a104M a se 4uawaa.A6y spit o4 aajaa IaodWL AeLlWtS Jo spaoM aa410 pue „aapunaa84, '„108aa4, ',ut8aa4u spaoM aye pue :juawaaa6y sM do suo}slnlpgns ao suopagS •SaL:)LIay 6ulpuodsaaao� 044 04 aae suolS}Alpgns -0440 pue 'MsuomsS„ `asaL�14ayu 04 ULa.aay s83uaaaJaa LL%f •4u8w8aa6y sly 10 4:)Bjja ao uop:)najsuoo 6upe8w aye PaJle IOU LLe4s pue 93uaaaJaa -40 a:)ua[uanuo:) ao} 48Los aq LLe4s 'Joaaay saldo:) 04 papuadde s4uaPo3 }o aLgel Cue pue '3oaa94 SuoL4:)aS pue saL:)l4ay �. LeaanaS 044 10 sal414 ao s6u}pea4 a4l -sbuWeaH '80'6 uOW)aS luawa946e awes a44 pue auo 4nq a4n414suo: LLe4s 43i4M Jo LLe pue leuOpo ue aq LLe4s 4o14M J0 4:)ea °s4aeda94uno:) Le.MaS ul pa4n�axe aq Kew luaw9aJ4 sl41 •s4a aajno q uo[4 pax 'LO-6 uOM-as JoaaayI su6Lsse pue saossa3ons a �� aopassaadxa os aa4484M 44 do 4.dauaq a44 04 aanUL pue pulq LLe4s 049,A04 �4aed �fue Jo JLe49q uo ao �fq 4u8waa ft sM UL pauLejuoo S4u8wa8a6e pue sjueuano3 LLe pue 'JOaaa44 su6LSSe ao Saossaoons a44 apn Liu L 04 pawaap aq LLe4s a:)uaaa,}aa 4:)ns of paaaa1aa -40 paweu 4 oPa84 k4aed kue 4u8waaa6y sM UL AaAaUa4l4 •su6tsse pue saossa33ns aAL43adsaa aL844 pue saL4.Aed 044 3o lljauaq ayl 04 aanu[ pue uodn 6uLpulq aq lle4s 4uaw8aa6d sHl •saossa :)nS .4oajulput8 '90'6 uoL4:)aS luawaaa6y sM Jo aapulswaa 044 aleptLenuL IOU LLe4s pue 'uopgNoad 4:)ns jo 4ua4xa a44 off, �Luo 8nl4:)ajjaUL aq LLe4s Mel kq pa4�gNoad aq of punoj juawaaa6y SL44 Jo UOLSLAoad kuV A 4tpil e nui 1e11 ed '90.6 uOW)9S •eluaoJlLeO Jo aMS 844 10 sMeL M 4Um a:)uepao:)3e u} fauaaAo6 pue. pana4suoo aq LLe4s luawaaa6y SLU •Me �u an8� •ti0•6 "4395 •ptedaad KLLnj a6e4sod 4W4 'waoj pal1�4aaa ao paaa4s0aa ut Llew saMS paUun 044 uL 4lsodap aa4je s.An04 qtr panla38a uaaq ane4 of pawaap aq LLe4s 83Mu 4:)ns Rut' •awi4 04 awLI WO - 1ppm ul sapaed Aa440 a44 oad kew k4aed 044 r • iV IN WITNESS WH E16F, the parties have executedois Agreement as of the date and year first above written. Security Pacific National Bank as Escrow Agent By: AA"�� Title: Vf � Date: l 1 l Security Pacific Merchant Bank as Lesso By-, — Title: Date: I t 8 City of Atascadero as Lessee By: Title: Mayor Date: September 18, 1987 -13- -Si- £Zti£6 eLUJOJ�leO 'oaape:)seIV anuany ewled OOS9 oaapeoseid jo xjIO '£ IL006 eLuaojileO 's8l86uy sol iiZdOH- `anuany pueag 41noS 00£ lue8 lue4:).aaW :)[J[:)ed k1pn3aS 'Z IL006 eP.AOJtLeO 'salaBud SOI laaa4S adOH 4Vno.S £££ lue8 LeuotleN 31113ed Xf anaaS 'i s9t4ae .4e s aaPPtl 8 iI IHX3