1997-24241-Resolution No. 97-093 Recorded 7/10/1997WED
97-2 Y,` 4 LEGAL COUNSEL
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
97 JUIL 10 AM 8• 24
A Resolution Authorizing the Purchase ' fF PE{ 1JOLLU`iY
of One 1995 D71I Caterpillar Crawler * J1`,Ty-'K
Tractor Utilizing One 1987 D7H Crawler
Tractor as Exchange.
RESOLUTION NO. 97-093
WHEREAS, the Deschutes County Department of Solid Waste owns one 1987 D7H caterpillar
crawler tractor, serial number 79L01715, equipment number 7-284, which has, by equipment hour
meter, 11,380 hours of usage; and
WHERF,AS, the department also has under a 3 -year lease one 1995 D7H caterpillar crawler
tractor, serial number 5BF06047, equipment number 0-297A, which has approximately 1,000
equipment meter hours; and
WHEREAS, with the closure of the demolition landfill, the department has need of only one
D71I caterpillar crawler tractor; and
WHEREAS, Pape Brothers, Inc., the leaseholder of the 1995 D7H, has agreed to allow a trade-
in value of $75,000 for the 1987 D71I; and
WHEREAS, the remaining value for purchase of the 1995 D7H is $177,279.48, leaving a net
purchase price of $102,279.48; now, therefore,
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES
COUNTY, OREGON, that
Section 1. The 1987 D7H caterpillar crawler tractor is considered excess property and is not
required for any public purpose.
Section 2. Retaining the 1987 D7H caterpillar crawler tractor for potential use may result in an
expense of $55,000 for under carriage and power train repairs.
Section 3. The trade-in value of $75,000 for the 1987 D7H caterpillar crawler tractor is a fair
price according to the Fleet Equipment Manager.
Section 4. The net purchase price of $102,279.48 for the 1995 D7H caterpillar crawler tractor
is fair and reasonable.
Section 5. Funds for this purchase have been budgeted and approved in the 1997-8 fiscal year
budget, Fund 32-62-3625.[[�11 CHID
L;C% 'OFILMED 1
LL
1UL 16 1997
M7
PAGE 1 - RESOLUTION NO. 97-093 (7-9-1997)
0162 15 6
Section 6. This resolution is subject to Pape Brothers, Inc., giving Deschutes County a full and
complete release from the terms and conditions of the attached September 1, 1995, lease. This
transaction is also subject to review and approval by Deschutes County Counsel.
Dated this 91h day of July, 1997.
BO RD OF COUNTY COMMISSIONERS FOR
D CHUTESk�UNhY, OAEGON
ANCY POVE SCAILANGEN, Chair
ATTEST: ROB T L. NIPPER, Commissigt%r
Recording Secretary I L. SWE RIN , Commissioner
PAGE 2 - RESOLUTION NO. 97-093 (7-9-1997)
PAPEBROS., INC.
LEASE AGREEMENT
0162-1541
DATE: September 1, 1995
Deschutes County
LESSOR Pape' Bros., Inc. LESSEE: Department o Solid Waste
PO Box 698 6T,=�;—S�=7+i,-5;Teet
Redmond, OR 97756 F.RenH, OR 97702
Lessor agrees to lease to Lessee and Lessee agrees to lease from Lessor, the items of
Equipment (the "Equipment") described in Exhibit A attached to this Equipment Lease
Agreement (the "Lease"), upon the following terms and conditions:
1. Delivery and Acceptance: Lessee, or if Lessee so requests, Lessor, will cause
the Equipment to be delivered to Lessee at the location specified in Exhibit A (the "Equipment
Location"). Lessee will accept the Equipment as soon as it has been delivered and is operational.
2. Term: This Lease will become effective upon the execution hereof by Lessor. The
term of this Lease will commence on the date the Equipment is accepted pursuant to Section 1
above and, unless earlier terminated as expressly provided for in this Lease, will continue until the
expiration date set forth in Exhibit B attached hereto (hereinafter the "Lease Term").
3. Rent: Lessee agrees to pay to Lessor or its assignee the Lease Payments (herein
so called), including the interest portion on a yearly basis on presentation of invoice. Except as
specifically provided in Section 4 hereof, the Lease Payments will be absolute and unconditional in
all events and will not be subject to any set -offs, defense, counterclaim, or recoupment for any
reason whatsoever. Price shall be firm throughout the term of this Lease. No price increases will
be allowed.
Lessee reasonably believes that funds can be obtained sufficient to make all Lease
Payments during the Lease Term and hereby covenants that it will do all things lawfully within its
power to obtain, maintain and properly request and pursue funds from which the Lease Payments
may be made, including making provisions for such payments to the extent necessaryin each
budget submitted for the purpose of obtaining funding, using its bona fide best efforts to have
such portion of the budget approved and exhausting all available administrative reviews and
appeals in the event such portion of the budget is not approved. It is Lessee's intent to make
Lease Payments for the full Lease Term if funds are legally available therefor and in that regard
Lessee represents that the use of the Equipment is essential to its proper, efficient, and economic
operation.
LEASE PAGE 1 OF 6
0162� 15;48
4. Nonanpropriation of Funds: In the event no funds or insufficient funds are
appropriated and budgeted or are otherwise not available by any means whatsoever in any fiscal
period for Lease Payments due under this Lease, then the Lessee will immediately notify the
Lessor or its assignee of such occurrence and this Lease shall terminate on the last day of the
fiscal period for which appropriations were received without penalty or expense to Lessee of any
kind whatsoever, except as to the portions of Lease Payments herein agreed upon for which
funds shall have been appropriated and budgeted or are otherwise available. In the event of such
termination, Lessee agrees to surrender possession of the Equipment to Lessor or its assignee on
the date of such termination and pay the cost of transportation to return the Equipment to Lessor
or its assignee.
5. Limitation of Warranties: Lessee understands that Lessor is not the
manufacturer of the Equipment nor the agent of said manufacturer. "Manufacturers' products are
leased subject to the applicable manufacturers' Warranty. Copies of the warranties applicable to
this Lease are attached hereto as Exhibit C, and the Lessee by signing this Lease acknowledges
receipt of the warranties".
6. Authority and Authorization: Lessee represents, covenants, and warrants, and as
requested by Lessor, will deliver an opinion of counsel to the effect that: (i) Lessee is a fully
constituted political subdivision or agency of the State of the Equipment Location; (ii) the
execution, delivery, and performance by the Lessee of this Lease have been duly authorized by all
necessary action on the part of the Lessee enforceable in accordance with its terms. Lessee agrees
that (i) it will do or cause to be done all things necessary to preserve and keep the Lease in full
force and effect and (ii) it has sufficient appropriations or other funds available to pay all amounts
due hereunder for the current fiscal period.
7. Title: Title to the Equipment will vest in Lessor, in the event that the purchase
option has been exercised, title will immediately vest in Lessee.
8. Security Interest: In order to secure all of its obligations hereunder, Lessee
hereby (i) grants to Lessor a first and prior security interest in any and all right, title, and interest
of Lessee in the Equipment and in all additions, attachments, accessions, and substitutions thereto,
and on any proceeds therefrom and (ii) agrees that this Lease may be filed as a financing statement
evidencing such security interest.
9. Personal Property: The Equipment is and will remain personal property and will
not be deemed to be affixed to or a part of the real estate on which it may be situated.
10. Use; Repairs: Lessee will use the Equipment in a careful manner for the use
contemplated by the manufacturer for the Equipment and shall comply with all laws, ordinances,
insurance policies, and regulations relating to, and will pay all costs, claims, damages, fees, and
charges arising out of its possession, use or maintenance. Lessee, at its expense, will keep the
Equipment in good repair and furnish all parts, mechanisms, and devices required in normal
maintenance.
LEASE PAGE 2 OF 6
0162--1540
11. Alterations: Lessee will not make any alterations, additions, or improvements to
the Equipment without Lessor's prior written consent unless such alterations, additions, or
improvements may be readily removed without damage to the Equipment.
12. Location; Insnectiom The Equipment will not be removed from, or if the
Equipment consist of rolling stock, its permanent base will not be changed from, the Equipment
Location without Lessor's prior written consent which will not be unreasonably withheld. Lessor
will be entitled to enter upon the Equipment Location or elsewhere during reasonable business
hours to inspect the Equipment or observe its use and operation.
13. Liens and Taxes: Lessor shall keep the Equipment free and clear of all levies,
liens, and encumbrances except those created under this Agreement.
(a) It is hereby acknowledged and agreed by the Lessor and the Lessee that the
Lease Payments payable hereunder have been negotiated and established to reflect the savings
resulting from the exemption of the Equipment from property taxes under the laws of the State of
Oregon.
(b) The Lessee hereby agrees to file a claim for exemption with respect to the
Equipment pursuant to ORS 307.112, as amended. In the event the Lessee fails to duly file such a
claim for exemption, or in the event the Equipment fails to qualify for such exemption, or in the
event such exemption is lost due to a change in use of the Equipment, the Lessee agrees to pay or
to reimburse the Lessor (together with interest thereon at the then applicable Interest Rate),
promptly upon demand, any and all property taxes owing with respect to the Equipment under the
laws of the State of the Equipment Location resulting from the failure of the Equipment to be or
remain exempt from such taxes.
(c) The Lessee agrees to pay, or to reimburse the Lessor (together with interest
thereon at the then applicable Interest Rate), promptly upon demand, any and all property taxes
owing with respect to the Equipment under the laws of the Sate of the Equipment Location as a
result of the loss of such tax-exempt status due to any early termination of this Contract.
15. Risk of Loss; Damage; Destruction: In the event of damage to any item of
Equipment, Lessee will immediately place the same in good repair with the proceeds of any
insurance recovery applied to the cost of such repair. If Lessor determines that any item of the
Equipment is lost, stolen, destroyed or damaged beyond repair, Lessee at the option of Lessor
will replace the same with like equipment in good repair.
16. Maintenance: Lessor shall be responsible for all repairs during the lease period,
which shall include all power train components, hydraulic system, under carriage and etc. at no
cost to the Lessee. Lessor must complete repairs within two working days of request. If this is
not feasible, Lessor is to supply equipment of equal or greater size for the use of the Lessee while
repair of the leased equipment is being completed. The replacement equipment is to be delivered
and picked up at no charge to the Lessee. This maintenance shall exclude damage to the unit due
to operator abuse.
LEASE PAGE 3 OF 6
0162-R`750
17. Insurance: Lessee will, at his expense, maintain at all times during the Lease
Term property insurance for the leased equipment and will include in such policy Lessor as Loss
Payee. Proceeds of any such policy paid on any claim will be payable to Lessee and Lessor or its
Assigns as their interest may appear. It is understood that Lessee is self-insured with regard to all
other aspects of its risks, but in no way will change Lessee's responsibility with regard to any loss,
damage, injury, theft, or other accident involving Equipment. In the Event of any loss, damage,
theft, injury, or accident on the Equipment, Lessee will promptly provide Lessor with a notice
thereof and make available to us all information and documentation relating thereto, and inform
Lessor how Lessee plans to take care of any personal injury or property loss or damage from the
incident.
18. Lessee's Failure to Pay Insurance: Should the Lessee fail to maintain insurance
as herein provided, then the Lessor shall have the right, after demand upon the Lessee, and
without releasing the Lessee from any obligation hereunder, to effect the same, and to pay and
expend whatever amounts in its absolute discretion it may deem necessary therefor. All sums so
paid or expended by the Lessor shall be added to and become a part of the Principal Installments
due and payable by the Lessee and shall bear interest at the then applicable Interest Rate.
19. Indemnification: To the extent permitted by Article XI, Section VII of the
Oregon Constitution and by the Oregon Tort Claims Act, Lessee shall indemnity the Lessor,
against any liability for damages to life or property arising from Lessees' actions under this lease
provided, however, Lessee shall not be required to indemnify the Lessor for any such liability
arising out of the wrongful acts of employees or agents of the Lessor.
20. Hold Harmless: Lessor shall be responsible for any and all injury to any and
all persons or property caused directly or indirectly by reason of any and all activities by Lessor in
the performance of this Agreement; and further agrees to indemnify, save harmless and defend the
Lessee, its officers, agents, and employees from and against all claims, suits, actions, damages,
costs, losses and expenses in any manner resulting from, arising out of, or connected with any
such injury.
21. Assignment% Without Lessor's prior written consent, Lessee will not either (i)
assign, transfer, pledge, hypothecate, grant any security interest in or otherwise dispose of this
Lease or the Equipment or any interest in this Lease or the Equipment, or (ii) sublet or lend the
Equipment or permit it to be used by anyone other than Lessee or Lessee's employees. Lessor
may assign its rights, title and interest in and to this Lease, the Equipment, and any other
documents executed with respect to this Lease and/or grant or assign a security interest in this
Lease and the Equipment, in whole or in part. Any such assignees shall have all of the rights and
obligations of Lessor under this Lease. Subject to the foregoing, this Lease inures to the benefit
of and is binding upon the heirs, executors, administrators, successors, and assigns of the parties
hereto. Upon assignment of Lessor's interest herein, Lessor will cause written notice of such
assignment to be sent to Lessee which will be sufficient if it discloses the name of the assignee and
address to which further payments hereunder should be made. No further action will be required
by Lessor or by Lessee to evidence the assignment, but Lessee will acknowledge such
assignments in writing if so requested. Notwithstanding this Paragraph 20, if this Lease is
assigned or therwise transferred to a third party, Lessor shall still be primarily responsible for
carrying out the terms and conditions of this Lease.
LEASE PAGE 4 OF 6
0162-1551
22. Events of Default The term "Event of Default", as used herein, means the
occurrence of any one or more of the following events:
(a) Except in the case of nonappropriation as provided in Section 4 herein, Lessee
fails to make any Lease Payments (or any other payment) as it becomes due in accordance with
the terms of this Lease, and any such failure continues for ten (10) days after the due date thereof;
(b) Lessee fails to perform or observe any other covenant, condition, or
agreement to be performed or observed by it hereunder and such failure is not cured within
twenty (20) days after written notice thereof by Lessor; X
23. Remedies: Upon the occurrence of an Event of Default, and as long as such
Event of Default is continuing, Lessor may, at its option, exercise any one or more of the
following remedies:
(a) By written notice to Lessee, declare an amount equal to all amounts then due
under this Lease to be immediately due and payable, whereupon the same shall become
immediately due and payable;
(b) By written notice to the Lessee, request Lessee to (and Lessee agrees that it
will), at Lessee's expense, promptly return the Equipment to Lessor in the manner set forth in
Section 4 hereof, or Lessor, at its option, may enter upon the premises where the Equipment is
located and take immediate possession of and remove the same;
(c) Sell or lease the Equipment or sublease it for the account of Lessee, holding
Lessee liable for all Lease Payments and other payments due to the effective date of such selling,
leasing, or subleasing and for the difference between the purchase price, rental, and other amounts
paid by the purchaser, lessee or subleases pursuant to such sale, lease, or sublease and the
amounts payable by Lessee hereunder; and
(d) Exercise any other right, remedy, or privilege which may be available to it
under applicable laws of the State of the Equipment Location or any other applicable law or
proceed by appropriate court action to enforce the terms of this Lease or to recover all damages, -
costs and expenses, excluding attorney's fees, incurred as the result of the breach of this Lease or
to rescind this Lease as to any or all of the Equipment.
In the event an action, suit or proceeding, including appeal therefrom, is brought
for failure to observe any of the terms of this Agreement, each party shall be responsible for their
own attorney's fees, expenses, costs and disbursements for said action, suit, preceding or appeal.
24. Notices: All notices to be given under this Lease shall be made in writing and
mailed by certified mail, return receipt requested, to the other party at is address set forth herein
or at such address as the party may provide in writing from time to time. Any such notice shall be
deemed to have been received five days subsequent to the mailing.
LEASE PAGE 5 OF 6
25. Section Headings: All section headings contained herein are for the
convenience of reference only and are not intended to define or limit the scope of any provision of
this Lease.
26. Governing Law: This Lease shall be governed by the provisions hereof and
by the law of the State of the Equipment Location.
27. Delivery of Related Documents: Lessee will execute or provide, as requested
by Lessor, such other documents and information as are reasonably necessary with respect to the
transaction contemplated by this Lease.
28. EntireAgreement; Waiver: This Lease, other attachments hereto, and other
documents or instruments executed by Lessee and Lessor in connection herewith, including
limitation to Bid, information for Bidder, Contract, Special Provision and Technical Specification
of Exhibit B to the contract, constitute the entire agreement between the parties with respect to
the lease of the Equipment, and this Lease shall not be modified, amended, altered, or changed
except with the written consent of Lessee and Lessor. Any provision of this Lease found to be
prohibited by law shall be ineffective to the extent of such prohibition without invalidating the
remainder of this Lease. The waiver by Lessor of any breach by Lessee of any term, covenant or
condition hereof shall not operate as a waiver of any subsequent breach thereof.
LEASE PAGE 6 OF 6
LESSEE: ,l�EsciSkiT� �Gav�y
By: /V 462'ae
Title:.SoGa.0 ldAs» ,!7/R�7�rL
0102-'1553
EXHIBIT A
EQUIPMENT DESCRIPTION
QUANTITY DESCRIPTION SERIAL NUMBER
One (1) Caterpillar D7H D.S.II 5BF06047
Crawler Tractor
EQUIPMENT LOCATION
VARIOUS LOCATIONS IN DESCHUTES COUNTY
STATE FINANCING STATEMENT STANDARD FORM UCC -1 01C2 LVJZ) 3
PLEASE TYPE LEGIBLY (ILLEGIBLE TYPE WILL BE REJECTED).
READ INSTRUCTIONS ON BACK BEFORE FLUNG OUT FORM.
A. Ut-b I UN(S) NAME .soctat See. numoer or I IN
(Required for EFS Fling)
t DESCHUTES COUNTY
2
3.
(Last Name) (First Name) (Middle) : I'
DEBTOR MAIUNG ADDRESS:
61150 SE 27TH STREET
BEND, OR 97702 Reserved for My officer use
B. SECURED PARTY(IES) C. ASSIGNEE NAME AND ADDRESS (if any)
NAME AND ADDRESS (from which security Information Is obtainable) Industrial Finance Co.
PAPE' BROS., INC. P.O. Box 10052
PO BOX 698 Eugene, OR 97440
REDMOND, OR 97756 CUSTOMER
Telephone Number. I NUMBER Telephone Number.
D. This financing statement covers the following types (or items) of collateral (ORS 79.4020).
One (1) Caterpillar D71-1 D.S.II Crawler Tractor, S/N 58FO6047
THE PROPERTY IS THE SUBJECT MATTER OF A LEASE BETWEEN LESSOR, PAPE' BROS, INC. AND LESSEE,
DESCHUTES COUNTY DEPT OF SOLID WASTE. THE LESSOR AND LESSEE INTEND THAT THE TRANSACTION BE
TREATED AS A LEASE IN ACCORDANCE WITH THE TERMS OF THEIR LEASE AGREEMENT.
X EI PRODUCTS of collateral are also covered
E. DEBTOR'S SIGNATURE NOT REQUIRED. This statement is filed without the debtors signature to perfect a security Interest In collateral Cd applicable check box):
(1) 0 Collateral already subject to a security interest in another Jurisdiction; (2) ❑ Which Is proceeds of the described original collateral which was perfected; (3)0 Collateral
as to which the filing has lapsed; or (4)❑ Collateral acquired after a change of name, Identity or corporate structure of debtor.
By.
Secured Party(ies) signature Secured Party(ies) signature
F. DEBTOR SIGNATURE(s)
By By.
/e�sc u s our y
By: CL� .�!lLd�L • By.
Debtor($) Sipnature
FARM PRODUCTS EFFECTIVE FINANCING STATEMENT FORM EFS -1
FARM PRODUCT CODE
AMOUNT(Wapplimbte)
EFS Statement requires signature of debtor(s) and secured party(ies).
Visa/MasterCard p
By. By. (see Instruction 6-D on reverse of
Signature of Secured Party Original copy)
By k
Signature of Debtor(s)
RETURN TO: (name and address)
Industrial Finance Co.
P.O. Box 10052
Eugene, OR 97440
Submit completed form to:
Corporation Division
Public Service Building
255 Capitol St., NE, Suite 151
Salem, OR 97310-1327
(503) 986-2200
FAX (503) 373-1166
FORM No llOr-1 IFFS-1
NC
IIIIIIII
08/28/95 15:28
$503 341 3355 PAPE GROUP
0162-1555
THREEANN LESSEE: DESCHUTES COUNTY E X H 1 8 1 T B
Z002
ADJUSTMENT FOR ROUNDING INCLUDED IN LAST PAYMENT
FINANCIAL TERMS
AND PAYMENT SCHEDULE
------------------------------------
------------------------------------
INTEREST BEGINS
28 -Aug -95
THE EQUIPMENT DESCRIBED IN
EXHIBIT 'A'
INCLUDES A SELLING
PRICE SHORN
SALES PRICE
273,510.00
TO THE RIGHT, ALONG WITH LEASE PAYMENT,
INTEREST RATE,
DATE INTEREST
NO ADV PMTS
1
BEGINS AND A CONCLUDING PAYMENT.
PAYMENT AMOUNT
56,000.00
THE LEVEL PAYMENT CONSISTS
OF PRINCIPAL
AND INTEREST COMPUTED AT THE
STATED
ADV PMT AMOUNT
56,000.00
RATE PER ANUM AND SHOWN IN
THE AMORTIZATION
SCHEDULE WITHIN
THIS EXHIBIT.
BALANCE TO FINANCE
211,510.00
AT THE TERMINATION OF THE
LEASE AND AFTER
ALL OF THE ANNUAL
PAYMENTS
INTEREST RATE
1.25%
HAVE BEEN MADE, THE LESSEE
MAY PURCHASE
THE EQUIPMENT
BY PAYING
NO PAYMENTS
3
THE LESSOR THE CONCLUDING
PAYMENT AS SHOWN.
CONCLUDING PMT AMT
14 83
PMT DUE
CONCLUDING PMT DATE
27 -Aug -98
MO E DATE
BEGIN SAL
TOTAL PMT
INT DUE
PRIM PAID
ENDING BALANCE
--------------------I------------------------------
0 28 -Aug -95
217,510.00
217,510.00 MACHINE-
CATERPILLAR
1 27 -Aug -96
217,510.00
56,000.00
15,789.48
40,230,53
177,279.48 MODEL-
D7H
2 21 -Aug -97
177,279.48
56,000.00
12,852.76
43,147.24
134,132.24 SERIAL NO-
58F00047
3 27-A09-98
134,132.24
143,856.83
9,724.59
134,132.24
(0.01)
CONCLUDING PMT
143,856.83
---------
---------
---------
---------
255,856.83
38,346.82
217,510.01
(0.01)
TOTAL PMT
INT PAID
PRIN PAID
END SAL
ADJUSTMENT FOR ROUNDING INCLUDED IN LAST PAYMENT