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Resolution No. 2012-035RESOLUTION NO. 2012-35 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A MASTER RENTAL LEASE AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND PACIFIC MOBILE STRUCTURES, INC. FOR THE LEASE OF TWO MOBILE TRAILER UNITS LOCATED AT FIRE STATION NO. 1 WHEREAS, on March 1, 2010, the City Council of the City of Vernon adopted Resolution No. 2010-36 approving a Master Rental Lease Agreement for the period of January 18, 2010 through January 18, 2011 with Pacific Mobile Structures, Inc. ("Pacific") whereby the City directly leased two mobile trailer units for Fire Station No. 1; and WHEREAS, on February 1, 2011, the City Council of the City of Vernon adopted Resolution No. 2011-18 approving a Master Rental Lease Agreement for the period of January 18, 2011 through January 18, 2012 with Pacific; and WHEREAS, by memo dated February 7, 2012, the Director of Business Services has recommended that the City enter into a Master Rental Lease Agreement with Pacific for the period of January 18, 2012 through January 17, 2013; and WHEREAS, the City Council of the Vernon has determined that, pursuant to the provisions of subsection (b)(1) of Section 2.27 of the Vernon City Code, it is in the best interest and necessity to enter into a lease agreement with Pacific to ensure the uninterrupted operation of the administrative offices of the Fire Department and enhance the efficient operation of the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby approves the Master Rental Lease Agreement with Pacific (the "Agreement"), a copy of which is attached hereto as Exhibit A. SECTION 3: The City Council of the City of Vernon hereby authorizes the Mayor or Mayor Pro -Tern to execute said Agreement for, and on behalf of, the City of Vernon and the City Clerk or Deputy City Clerk is hereby authorized to attest thereto. SECTION 4: The City Council of the City of Vernon hereby instructs the City Administrator, or his designee, to take whatever actions are deemed necessary or desirable for the purpose of implementing and carrying out the purposes of this Resolution and the transactions herein approved or authorized. SECTION 5: The City Council of the Vernon hereby directs the City Clerk, or the City Clerk's designee, to transmit two executed Agreements to: Pacific Mobile Structures, Inc. Attention: Michael Thompson, Agent 39252 Winchester Road #107-406 Murrieta, CA 92563 2 SECTION 6: The City Clerk of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk of the City of Vernon shall cause this resolution and the City Clerk's certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 21st day of February, 2012. Name: William J. Davis Title:/ Mayor Pro-Tem -3_ STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, Willard G. Yamaguchi, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2012-35, was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, February 21, 2012, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of Febru y, 2012, at Vernon, California. � A W' lardY/amaqclli, i y Clerk (SEAL) 4 EXHIBIT A MASTER RENTAL LEASE AGREEMENT Date: 1118/2012 PACIFIC MOBILE STRUCTURES, INC. HEREINAFTER REFERRED TO AS "LESSOR' Hereby rents and hires to: SEND STATEMENT TO: SITE DESTINATION: +� Lessee: 'City of Vernon Location -T-94 a?etewalaeC See adWendwy) Address: 4305 Santa Fe Ave. Address: + r 2 Vernon, CA, 80058 Phone: ;323-583-8811 Fax: 323-826-1407 Site Contact: Site Ph: Ordered By: Mark C. Whitworth PO#: hereinafter cilled'lessee" that certain Unit# , Size: , Unit Description: at the mont4 Rental Rate hereinafter set forth and subject to the terms and conditions herein, and the conditions stated on page 2 Term Start 11/18/2012 Term End 1118/2013 In consideration thereof Lessee hereby agrees as follows Under the general cohditions Of lease printed on the reverse side of this sheet, the Lessor hereby agrees to rent Lessee various items of equipment from the Lessor's rental fleet on both a continuing and peripdic basis and Lessee agrees to pay for such rental in funds currently due. 3:hQ FAata'Fate and all equipment rented to Lessee by Lessor shall be under the terms avid conditions of the balance of this agreement, pages 1 and 2. The equipment under this agreementsaa!! B6 us' ed at various construction project sites within the state AfFStates and rental cha.rqesshall be accounted for and billed by Lessor by project. i kb 4 v ewnon /N Attached Addendums: #1 Pricinq Plus Tax Spread Sheet, #2 Addendum to Master Lease Agreement Sales Tax Not Included. Please Note: Sales Tax Break Down on attached spreadsheet. This agreement only applies to units 6085 (24x60) and 9133 (10x24). Rental Rate for lease term: 01/18/12-01/17/13 remains at the same rate as original term. TWO WEEKS NOTICE REQUIRED FOR PICK-UP OF 13I DING Pricing is be�sed on an exclusive agreement between Pacific Mobile and City of Vernon. Pacific Mobile agrees that pricing applies to all branch locations. "=INSURANCE•": Year: Mfg: Serial #: Lessee, at itl expense will obtain and keep In force fire and extended coverage, vandalism and malicious mischief insurance covering said property in the amount of the market value of the building, with a loss payable clause protecting Lessor as its interests may appear, per Paragraph 5. Lessee will also indemnify Lessor with respect to all liability in accordance with the provisions of Paragraph 14 on the second page hereof. Each and every month during the term hereof, Lessee shall pay to PACIFIC MOBILE STRUCTURES, INC. in advance on the term start date of each month the rental shown above, at PMSI remittance address as shown on the Invoice. Authorized Agent: Michael Thompson BranchSouthem CA I HEREBY WARRANT that I have fully read and noted the Agreement 1 stated on page 2 of this contract and Addendum to Master Rental SIGNED 4 a 1 Z Lease Agreemment and received a copy of same. SIGNED LESSOR: 'PACIFIC MOBILE STRUCTURES, INC. P.O. BOX 1404 TITLE CHEHALIS, WA 98532 (360) 748-0.121 Fax (360) 748-0578 DATE Southern California Branch 2323 Hall Avenue, Riverside, CA 92509 (Physical Address) 39252 Winchester Road#107.406, Murrieta, CA 92563 (Mailing Address) Mobile & Modular Buildings 800-441-6123 phone 951-782.8142 fax Odd Id +-� 1 ''�,{*�y F' `.'d "`i, kk,.. r 7?ta 4r.R 5,i f is XI ��?C'>Y !,', c� 5 r""ef �'1' r5q`6'�. Grand Total ' $ 27,449.7E LEASE/RENTAL TERMS AND CONDITIONS This is an agreement between Pacific Mobile Structures, Inc. (PMSI) and Renter. I. Basic Terms/Quote Form - The basic terms of this Agreement, including but not limited to, rental price, Renter's identity, are set forth in the cover letter and Quote Form accompanying these Terms and Conditions. Additional terms and details agreed upon after Renter returned its signed Quote Form are set forth in the Order Confirmation. Renter acknowledges that absent written notice within 48hours of receiving the Order Confirmation, the additional terms and details therein are deemed incorporated into this Agreement. The following terms and conditions also 2. Assays/Site Conciflions/Utility Service — Renter shall provide free and clear access for delivery and return of leased equipment by standard mobile transport vehicles. Renter shall provide firm and level ground on no more than six-inch slope from one end to the other for safe installation of the leased equipment. Site selection is the sole responsibility of Renter and PMSI shall have no liability for determining the adequacy of any site. Furthermore, PMSI solely reserves the right, for any reason, to refuse to release delivery to any site it deems inadequate for use or installation. Renter shall be responsible for obtaining any permits required to install and operate the equipment. Renter shall provide at Renter's expense adequate electrical power, water and other utility services with proper connection to leased equipment. 3. Other Fees, Expenses and Taxes — In addition to the rental payments provided for herein, Renter shall pay all expenses, fees, charges, and fuel surcharges incurred in connection with the leased equipment durinit its delivery. use and recovery_ taxes, use taxes, personal or real property taxes and other use taxes, and all assessments and other governmental charges whatsoever payable on Renter's use. possession, rental, shipment, transportation, delivery or operation thereof. 4. Delivery by PMSI / Location and Return of Leased Equipment — PMSI shall not be liable to Renter for any failure or delay in delivering the leased equipment By taking delivery thereof Renter acknowledges that the leased equipment is in good working condition, free of any physical defect or damage, and is fit for the purpose for which it is leased. Further, the leased equipment shall remain at the delivery site until the termination of this lease, at which time PMSI shall pick up the leased equipment. The leased equipment shall not be moved without PMSI's prior written consent. 5, Lawful Use, Assignment, and Subletting— Renter shall use or permit the use of the leased equipment only for lawful purposes and operate in compliance with all laws. If the leased equipment is used by any parry in association with unlawful activity prior to it being returned to PMSI, Renter agrees to reimburse PMSI upon demand for any and all incidental costs PMSI incurs, including, but not limited to, time and cost expenses associated with pani..pining in governmental administrative or law enforcement processes, attorney fees, and remedial costs. Renter shall not assign, transfer, sublet, or in any way assign its rights hereunder, and shall not pledge, Permit to be lined, mortgage, or otherwise encumber its rights or interests hereunder. All third -parry claims of possession, interest or ownership outside those of PMSI's or the Renter, as stated herein, shall be deemed invalid. 6. Insurance— Renter, at its expense, will obtain and keep in force Property damage insurance -special form, replacement cost coverage, with PMSI added as loss payee, ATIMA. Renter will also indemnify PMSI with respect to all liability in accordance with the provision of Paragraph 9 and provide general liability protection in the amount of S1,000,000 each occurrence listing PMSI as additional insured. If Renter shall fail to produce the required property insurance coverage certificate within ten (10) days from the commencement of the Lease, they are automatically opted into the Property Damage Waiver Program referenced in Section 7 until proof is presented. 7. Properly Damage Waiver Program Option — Renter's participation in the Property Damage Waiver program relieves the requirement that Renter provide PMSI with a property damage insurance certificate, as required in the preceding Insurance Damkratifl. However, eenent liability insurance still needs to he contents. turrrnqunao, smsmw activity, mgn winds, nurricane, romped, rood), acts of terrorism, building contents, damages caused by Renter or its employees, collision damage from vehicles and other equipment, collision damage while being transported or moved, abuse or neglect by Renter. The responsibility for property damage due to these perils is on the Renter. nottc • Either party can cancel the waivers with 10 days prior written givers are canceled, the customer must provide Insurance. The waiver foes must be paid in order for this option to be valid. If the customer fails to pay [heir rent or the waiver fees the waivers are terminated automatically. Claims• Must be reported by fax or email within 48 hours of their oceurtence for t ere Pro —perry damage waiver to be valid. 8. Accidents or Claims — Renter shall within 24 hours after any property damage or casualty event involving the leased equipment notify PMSI by telephone, and within 48 hours notify PMSI in writing. Said report shall state the time, place, and nature of The event, the damage sustained, the names and addresses of persons involved, persons injured and witnesses, and any other information relating to said event and it shall Promptly forward to PMSI all correspondence, notices or documents received in connection with any claim or demand relating to the leased equipment or its operation, and shall aid in the investigation and defense of all such claims and demands. Nothing herein shall be deemed to modify the provisions of the Paragraph herein in which Renter holds PMSI harmless and indemnifies PMSI against all these matters, and PMSI shall have no responsibility to take any action whatsoever in the event of such casualty. 9. Non -Liability of PMSI and Indemnification — Unless caused solely by PMSI's negligence, PMSI shall not be liable to Renter for any loss, damage, or expense of any kind or nature caused directly or indirectly by the leased equipment or by the use, maintenance, operation, handling or storage thereof, or for the loss of Renter's business or damages whatsoever or howsoever caused. Renter does hereby indemnify PMSI and holds PMSI, its agents and employees harmless from any and all losses, damages, claims, demands, or liability of any kind whatsoever, including legal expenses and attorney's fees arising from the use, condition or operation of the leased equipment. 10. Maintenance, Damage and Destruction — Renter shall at Renter's own expense at all times keep the equipment in good and efficient working order, condition and repair and shall maintain thereon such identification of ownership as PMSI may require. PMSI will maintain and make any repairs required from normal use to the roof, doors, windows, light fixtures, heating, ventilating and air conditioning systems, except that Renter shall replace henting, ventilating and air conditioning filters and burnt out lamps as required and pay for any damage caused by the Renter. Renter shall bear the risk of damage, theft or destruction of the leased equipment from every cause, except as outlined in paragraph 7, if selected, and shall make all replacements, repairs or substitution of pans of equipment thereon at its expense, all of which shall constiNla Renter's obligatory maintenance of the leased equipment. If Renter does not adequately maintain The equtpmenl or adequately repair any damage for which Renter Is responsible, PMSI shall have the option to perform the maintenance or repair at Renter's expense. Renter shall al its expense provide adequate janitorial service to keep the lapsed equipment in good condition, fair weer and leer excepted. On termination of this lease, the leased equipment shall be returned to PMSI in the same condition as when delivered, fair wear and fear excepted. 1 L. Inspection by PMSI - PMSI may inspect the leased equipment at any reasonable lime, end may post any notice of non -responsibility or interest protecting notice. 12. Default —Renter defaults on this Agreement if Renter fails to: snake timely payment of any rent installment or other amount due and payable; or, comply with the other terms, covenants, or conditions herein. Default also occurs if Renter or its creditors files for relief under any bankruptcy or similar debtor relief law, or if Renter assigns for the benefit of creditors, or if a receiver is appointed to take possession of any assets of Renter, n PMSI may at its option immediately terminate Renter's right to possession o the used equipment by giving written notice to Renter, nanm agrees rant me leased egmpmem 0011 ne Surendered to PMSI and PMSI may lake possession thereof by entering upon Renter's premises without further notice of repossession. PMSI shall retain all rents and any other amounts paid by Renter herounder. possession by PMSI or the surrender of the leased equipment to PMSI shell not affect the right of PMSI to rocover from Renter any and ell damages which PMSI shall have sustained by reason of Renter's breach. PMSI reserves the right to (e) relet the leased equipment and apply any net proceeds as an offset td any unperformed Renter temt, or (b) sell the leased equipment and apply the net proceeds es appropriate under the circumstances to Renters unperformed financial obligations, or (c) cancel and terminate the lease. In addition ta any other remedies provided for herein, PMSI may recover from Renter the worth et the time of the termination of die lease the unperformed value of the lease. 13. Renter's Possession on Termination — If Renter retains possession of the leased properly beyond the term expiration date without proper written renewal notice, PMSI shall have the option of (i) repossessing its property at any time without notice or (ii) deeming this Agreement renewed as a month to month tenancy. 14. Attorney's Fees, Collection Fees, Costs, interest — If Renter defaults on this Agreement, PMSI shall be entitled to recover from Renter all items of damages, costs and expenses, including court costs and reasonable attorney's fees, incurred by PMSI .to enforce its rights and remedies hereunder. PMSI shall also be entitled to interest on delinquent payments at the maximum rate permitted by law. 15. Miscellaneous — This Lease shall be construed and interpreted under the laws of the state of California. All signed copies shall constitute duplicate originals, 16. Notices — All notices required under the term and provision of the Lease shall be in writing and shall become effective when: deposited in the United States mail, with proper postage prepaid, addressed to the parties at the respective addresses appearing herein; and/or, upon actual delivery by other means, including electronically. Rev. Auauet 2010 Page 3 of 3 Addendum #2 to Master Lease Agreement 1. Pacific Mobile signage to remain on building at all times. 2. Payment terms are Net 30 days upon receipt of invoice. Late penalty charge will 1 % % per month for all accounts past due. 3. Two weeks notice must be given for return of units or they will be billed for an additional month. 4. Site Destination: Location: Fire Station No. 1 Address: 3375 Fruitland Avenue, Vernon, CA Los Angeles County, or such other location within the City of Vernon as Lessee shall designate from time to time in writing to Lessor. Site Contact: Mark C. Whitworth 5. The initial Term of Agreement shall commence on January 18, 2012 and end on January 17, 2013. Thereafter, the Term of the Agreement shall be on a month -to -month basis. The rental rate during the Term of the Agreement shall remain as stated in the Agreement. The Lessee may terminate the Agreement at any time during the Term upon 30 days prior written notice to Lessor. OFFICE OF THE CITY CLERK 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 February 22,2012 Michael Thompson, Agent Pacific Mobile Structures, Inc. 39252 Winchester Road #107-406 Murrieta, CA 92563 Re: Master Rental Lease Agreement — Two Mobile Trailers at Fire Station No. 1 Dear Mr. Thompson: Transmitted herewith is one original fully executed lease agreement referenced above, approved by City Council on February 21, 2012, through Resolution No. 2012-35. If you have any questions regarding this matter, please call Ms. Martha Valenzuela, at (323) 583- 8811 ext. 226. Very ly yours; WILL R City Clerk WY:dj Enclosure c: Mark Whitworth Purchasing Department Resolution No. 2012-35 Agreement No. 12-022 Ey,cfusivefy Industfid MASTER RENTAL LEASE AGREEMENT Date: 1/18/2012 PACIFIC MOBILE STRUCTURES, INC. HEREINAFTER REFERRED TO AS "LESSOR" Hereby rents and hires to: SEND STATEMENT TO: Lessee: City of Vernon Address: 4305 Santa Fe Ave. Vernon, CA, 90058 Phone: 323-583-8811 Ordered By: Mark C. Whitworth SITE DESTINATION: Location See O�dderd� Address: 2 Fax: 323-826-1407 Site Contact: Site Ph: PO#: hereinafter called "lessee' that certain Unit# , Size: , Unit Description: at the monthly Rental Rate hereinafter set forth and subject to the terms and conditions herein, and the conditions stated on page 2 Term Start 111812012 Term End 1/18/2013 In consideration thereof Lessee hereby agrees as follows: Under the general conditions of lease printed on the reverse side of this sheet, the Lessor hereby agrees to rent Lessee various items of equipment from the Lessor's rental fleet on both a continuing and periodic basis and Lessee agrees to pay for such rental in funds currently due. -The Fental Fate^ _ I=cs,m fFeF . iffim . to time ARd , i, and all equipment rented to Lessee by Lessor shall be under the terms and conditions of the balance of this agreement, pages 1 and 2. The equipment under this agreementsPaall us' ed at various construction project sites within the All des and rental charges all be accounted for and billed by Lessor by project. Attached Addendums: #1 Pricinq Plus Tax Spread Sheet, #2 Addendum to Master Lease Agreement Sales Tax Not Included. Please Note: Sales Tax Break Down on attached spreadsheet. This agreement only applies to units 6085 (24x60) and 9133 (10x24). Rental Rate for lease term: 01/18/12-01/17/13 remains at the same rate as original term. TWO WEEKS NOTICE REQUIRED FOR PICK-UP OF BUILDING Pricing is based on an exclusive agreement between Pacific Mobile and City of Vernon. Pacific Mobile agrees that pricing applies to all branch locations. **INSURANCE**- Year: Mfg: Serial #: Lessee, at its expense will obtain and keep in force fire and extended coverage, vandalism and malicious mischief insurance covering said property in the amount of the market value of the building, with a loss payable clause protecting Lessor as its interests may appear, per Paragraph 5. Lessee will also indemnify Lessor with respect to all liability in accordance with the provisions of Paragraph 14 on the second page hereof. Each and every month during the term hereof, Lessee shall pay to PACIFIC MOBILE STRUCTURES, INC. in advance on the term start date of each month the rental shown above, at PMSI remittance address as shown on the invoice. Authorized Agent: Michael Thompson Branch Southern CA SIGNED /I4� 12 LESSOR: PACIFIC MOBILE STRUCTURES, INC. P.O. BOX 1404 CHEHALIS, WA 98532 (360) 7 8-0121 F c (360) 748-0578 APP EA 11 W 1 and d. Ya c i ief Deputy City Attorney I HEREBY WARRANT that I have fully read and noted the Agreement stated on page 2 of this contract and Add dum to Master Rental Lease Agreemme an eiv a cogy o ame. SIGNED`— Southern California Branch 2313 Hall Avenue, Riverside, CA 92509 (Physical Address) 39252 Winchester Road #107-406, Murrieta, CA 92563 (Mailing Address) Mobile &Modular Buildings 800441-6123 phone 951-782-8142 fax OdderdUxy-, # i Description Mnthly Rent -Office Mnthly Rent -Ramp Rental Amount $ 1,105.00 $ 266.00 Taxable? yes Yes Taxamount 5 96.69 5 23.28 Amount $ 1,651.00 $ 1,595.00 $ 420.00 $ 672.00 $ 845.00 Taxable? Ves No No Yes No Tax amount S 144.46 1 S - $ - $ 58.80 1 $ - Rental Amount $ 249.00 $ - Taxable? Yes Yes Tax amount $ 21.79 $ Desciption Return Freight 1 Tear Down I Tledown Rem (6) Skirting Rem (26811) Amount $ 338.00 S 79.00 S 180.00 S 272.00 LEASE/RENTAL TERMS AND CONDITIONS This is an agreement between Pacific Mobile Structures, Inc. (PMSI) and Renter. 1. Basic Terms/Quote Form -The basic terms of this Agreement, including but not limited to, rental price, Renter's identity, are set forth in the cover letter and Quote Form accompanying these Terms and Conditions_ Additional terms and details agreed upon after Renter returned its signed Quote Form are set forth in the Order Confirmation. Renter acknowledges that absent written notice within 48 hours of receiving the Order Confirmation, the additional terms and details therein are deemed incorporated into this Agreement The following terms and conditions also apply to this Agreement. 2. Access/Site CondilionstUtility Service — Renter shall provide free and clear access for delivery and return of leased equipment by standard mobile transport vehicles. Renter shall provide firm and level ground on no more than six-inch slope from one end to the otter for safe installation of the leased equipment. Site selection is the sole responsibility of Renter and PMSI shall have no liability for determining the adequacy of any site. Furthermore, PMSI solely reserves the right, for any reason. to refuse to release delivery to any site it deems inadequate for use or installation. Renter shall be responsible for obtaining any permits required to install and operate the equipment. Renter shall provide at Renter's expense adequate electrical power, water and other utility services with proper connection to leased equipment. 3. Other Fees, Expenses and Taxes — In addition to the rental payments provided for herein, Renter shall pay all expenses, fees, charges, and fuel surcharges Incurred in connection with the leased equipment during its delivery, use and recovery. Additional charges include, but are not limited to, the following instances: (I ) where assessments and -other governmental charges whatsoever payable on Renter's use, possession, rental, shipment, transportation, delivery or operation thereof. 4. Delivery by PMSI / Location and Return of Leased Equipment — PMSI shall not be liable to Renter for any failure or delay in delivering the leased equipment. By taking delivery thereol'Renter acknowledges that the leased equipment is in good working condition, free of any physical defect or damage, and is lit f'or the purpose for which it is leased Further, the leased equipment shall remain at the delivery site until the termination of this lease, at which tine PMSI shall pick up the leased equipment The leased equipment shall not be moved without PMSI's prior written consent. 5. Lawful Use, Assignment, and Subletting— Renter shall use or permit the use of the leased equipment only for lawful purposes and operate in compliance with all Imes, It the leased equipment is used by any party in association with unlawful activityprior to it being returned to PMSI, Renter agrees to reimburse PMSI upon dennand for any and all incidental costs PMSI incurs, including, but not limited to, time and cost expenses associated with participating in governmental administrative or law enforcement processes, attorney fees, and remedial costs. Renter shall not assign, transfer, sublet, or in any way assign its rights hereunder, and shall not pledge, permit to be liened, mortgage, or otherwise encumber its rights or interests hereunder. All third -parry claims of possession, interest or ownership outside ([lose of PMSI's or the Renter, as stated herein, shall be deemed invalid. 6. Insurance —Renter, at its expense, will obtain and keep in force Property damage insurance -special form, replacement cost coverage, with PMSI added as loss payee, ATIMA. Renter will also indemnify PMSI with respect to all liability in accordance with the provision of Paragraph 9 and provide general liability protection in the amount of $1,000,000 each occurrence listing PMSI as additional insured. If Renter shall fail to produce the required property insurance coverage certificate within ren (10) days from the commencement of the Lease, they are automatically opted into the Property Damage Waiver Program referenced in Section 7 until proof is presented. 7. Property Damage Waiver Program Option — Renter's participation in the Property Damage Waiver program relieves the requirement that Renter provide PMSI with a property damage insurance certificate, as required in the preceding Insurance ra neraph. However. general liability insurance Still needs to he unit itself: and Renter is responsible for insuring the contents. The waiver does not Sandy if the uroneriv damage is caused by an, of the following: acts of God (earthquake, seismic activity, high winds, hurricane, tornado, flood), acts of terrorism, building contents, damages caused by Renter or its employees, collision damage from vehicles and other equipment, collision damage while being transported or moved, abuse or neglect by Renter, The responsibility for property damage due to these perils is on the Renter. Cancellation: Either parry can cancel the waivers with 10 days prior written notice. If the waivers are canceled, the customer must provide insurance. The waiver fees must be paid in order for this option to be valid_ If the customer fails to pay their rent or the waiver fees the waivers are terminated automatically. Claims: Must be reported by fax or email within 48 hours of their occurrence for the Property damage waiver to be valid. 8. Accidents or Claims — Renter shall within 24 hours after any property damage or casualty event involving the leased equipment notify PMSI by telephone, and within 48 hours notify PMSI in writing. Said report shall state the time, place, and nature of the event, the damage sustained, the names and addresses of persons involved, persons injured and witnesses, and any other information relating to said event and it shall promptly forward to PMSI all correspondence, notices or documents received in connection with any claim or demand relating to the leased equipment or its operation, and shall aid in the investigation and defense of all such claims and demands. Nothing herein shall be deemed to modify the provisions of the paragraph herein in which Renter holds PMSI harmless and indemnities PMSI against all these matters, and PMSI shall have no responsibility to take any action whatsoever in the event of such casualty. 9. Non -Liability of PMSI and Indemnification — Unless caused solely by PMSI's negligence, PMSI shall not be liable to Renter for any loss, damage, or expense of any kind or nature caused directly or indirectly by the leased equipment or by the use, maintenance, operation, handling or storage thereof, or for the loss of Renter's business or damages whatsoever or howsoever caused. Renter does hereby indemnify PMSI and holds PMSI, its agents and employees harmless from any and all losses, damages, claims, demands, or liability of any kind whatsoever, including legal expenses and attorney's fees arising from the use, condition or operation of the leased equipment. 10. Maintenance, Damage and Destruction — Renter shall at Renter's own expense at all times keep the equipment in good and efficient working order, condition and repair and shall maintain thereon such identification of ownership as PMSI may require. PMSI will maintain and make any repairs required from normal use to the roof, doors, windows, light fixtures, heating, ventilating and air conditioning systems, except that Renter shall replace heating, ventilating and air conditioning filters and burnt out lamps as required and pay for any damage caused by the Renter. Renter shall bear the risk of damage, theft or destruction of the leased equipment from every cause, except as outlined in paragraph 7, if selected, and shall make all replacements, repairs or substitution of parts of equipment thereon at its expense, all of which shall constitute Renter's obligatory maintenance of the leased equipment. If Renter does not adequately maintain the equipment or adequately repair any damage for which Renter is responsible, PMSI shall have the option to perform the maintenance or repair at Renter's expense. Renter shall at its expense provide adequate janitorial service to keep the leased equipment in good condition, fair wear and tear excepted. On termination of this lease, the leased equipment shall be returned to PMSI in the same condition as when delivered, fair wear and tear excepted. 11. Inspection by PMSI - PMSI may inspect the leased equipment at any reasonable time, and may post any notice of non -responsibility or interest protecting notice, 12. Default — Renter defaults on this Agreement if Renter fails to: make timely payment of any rent installment or other amount due and payable; or, comply with the other terms, covenants, or conditions herein. Default also occurs if Renter or its creditors files for relief under any bankruptcy or similar debtor relief law, or if Renter assigns for the benefit of creditors, or if a receiver is appointed to take possession of any assets of Renter. Upon default, PMSI may at its option immediately terminate Renter's right to possession of the leased equipment by giving written notice to Renter. PMSI and PMSI may take possession thereof by entering upon Renter's premises without further notice of repossession. Upon remnssesditn. PMSI shall retain all rents and any other amounts paid by Renter hereunder. Repossession by PMSI or the surrender of the leased equipment to PMSI shall not affect the right of PMSI to recover from Renter any and all damages which PMSI shall have sustained by reason of Renter's breach. PMSI reserves the right to (a) relet the leased equipment and apply any net proceeds as an offset to any unperformed Renter term, or (b) sell the leased equipment and apply the net proceeds as appropriate under the circumstances to Renter's unperformed financial obligations, or (c) cancel and terminate the lease. In addition to any other remedies provided for herein, PMSI may recover from Renter the worth at the time of the termination of the lease the unperformed value of the lease. 13. Renter's Possession on Termination — If Renter retains possession of the leased property beyond the term expiration date without proper written renewal notice, PMSI shall have the option of (i) repossessing its property at any time without notice or (it) deeming this Agreement renewed as a month to month tenancy. 14. Attorney's Fees, Collection Fees, Costs, Interest — If Renter defaults on this Agreement, PMSI shall be entitled to recover from Renter all items of damages, costs and expenses, including court costs and reasonable attorney's fees, incurred by PMSI to enforce its rights and remedies hereunder. PMSI shall also be entitled to interest on delinquent payments at the maximum rate permitted by law. 15. Miscellaneous — This Lease shall be constmed and interpreted under the laws of the state of California. All signed copies shall constitute duplicate originals. 16. Notices — All notices required under the term and provision of the Lease shall be in writing and shall become effective whem deposited in the United Slates mail, with proper postage prepaid, addressed to the parties at the respective addresses appearing herein; and/or, upon actual delivery by other means, including electronically. Rev. August 2010 Page 3 of 3 Addendum #2 to Master Lease Agreement 1. Pacific Mobile signage to remain on building at all times. 2. Payment terms are Net 30 days upon receipt of invoice. Late penalty charge will 1 %2 % per month for all accounts past due. 3. Two weeks notice must be given for return of units or they will be billed for an additional month. 4. Site Destination: Location: Fire Station No. 1 Address: 3375 Fruitland Avenue, Vernon, CA Los Angeles County, or such other location within the City of Vernon as Lessee shall designate from time to time in writing to Lessor. Site Contact: Mark C. Whitworth 5. The initial Term of Agreement shall commence on January 18, 2012 and end on January 17, 2013. Thereafter, the Term of the Agreement shall be on a month -to -month basis. The rental rate during the Term of the Agreement shall remain as stated in the Agreement. The Lessee may terminate the Agreement at any time during the Term upon 30 days prior written notice to Lessor. RECEIVED FEB 13 2012 CITY CLERK'S OFFICE STAFF REPORT PURCHASING DEPARTMENT DATE: February 7, 2012 RECEIVED FEB 0 9 2012 CITY ADMINISTRATION TO: Mayor and City Council FROM: Martha Valenzuela, Director of Business Services/Personn� RE: Trailer Rentals for Fire Department Purpose The Purpose of this Staff report is to obtain permission from City Council to renew a lease agreement with Pacific Mobile Structures, Inc. for (2) trailers used by the Fire Department. Background The trailers are located at Fire Station #1. The have been used as offices by the Fire Department since December 2008. The new lease period is from January 18, 2012 thru January 17, 2013. The monthly charge will remain at the same rate $1,761.76 (taxes included). Total for year will be $21,141.12. Recommendation It is Purchasing's recommendation to renew the lease for another year. It is requested that this item be included on the agenda for the Council Meeting scheduled for February 12, 2012. The attached lease agreement has been reviewed and approved as to form by Willard Yamaguchi, Chief Deputy City Attorney. Fiscal Impact There is no fiscal impact to the City. Funding for the renewal of the lease was specifically budgeted in the Fire Departments fiscal year 2012-2013 operating budget. CITY ATTORNEY'S OFFICE INTER -DEPARTMENT MEMORANDUM DATE: January 30, 2012 TO: Martha Valenzuela, Director of Business Services/Personnel FROM: Willard G. Yamaguchi, Chief Deputy City Attornein RE: Pacific Mobile Structures, Inc. I have received and reviewed your Memorandum dated January 24, 2012, and the attachments thereto. The rental lease agreement for the rental of two trailers is approved as to form. WY:em Enclosures JAN 2 5 2012 CITY ATTORNEY DEP-r MEMO PURCHASING DEPARTMENT DATE: January 24, 2011 TO: Willard Yamaguchi, Chief Deputy City Attorney FROM: Martha Valenzuela, Director of Business Services/Personne RE: Trailer Rentals for Fire Department The Rental Lease Agreement approved by City Council Resolution #2011-18 for rental of (2) trailers for the Fire Administration has ended its term as of January 18, 2012. The Fire Department would like to continue with the same services for another year. The vendor, Pacific Mobile Structures, Inc., is providing the same rates for the renewal (sales tax is lower than previous year). The terms and conditions have changed from previous year. Attached for your review and approval as to form is the agreement for the new annual term.