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City Council Agendas

Regular Meeting

Blue Springs, MO · May 2, 2016

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Minutes

CITY OF BLUE SPRINGS, MISSOURI MINUTES OF COUNCIL MEETING MAY 2, 2016 A meeting of the City Council of the City of Blue Springs, Missouri, was held on Monday May 2, 2016, 6:00 p.m. in the Council Chambers of the Howard L. Brown Public Safety Building , 1100 Smith Street with Mayor Carson Ross presiding. COUNCILMEN IN Jeff Qui bell Dale Carter ATTENDANCE Chris Lievsay Kent Edmondson Ron Fowler Susan Culpepper Also present were City Administrator Eric Johnson, Deputy City Administrator Adam Norris, Assistant City Administrator, Christine Cates, City Attorney Nancy Yendes, and City Clerk Sheryl Morgan. CALL MEETING Mayor Carson Ross called the City Council meeting to order and led TO ORDER in the Pledge of Allegiance. APPROVE CITY COUNCIL Councilman Edmondson moved to approve the minutes of the April MINUTES 18, 2016 meeting of the City Council meeting. Motion seconded by Councilman Carter and carried with the following votes: Councilman Qui bell -Aye Councilman Carter- Aye Councilman Lievsay -Aye Councilman Edmondson -Aye Councilman Fowler- Aye Councilman Culpepper- Aye Mayor Ross -Aye ADOPT RESOLUTION NO. Councilman Edmondson moved to adopt Resolution No. 16-2016 16-2016 APPROVING approving a lease purchase of two triplex mowers for greens at the LEASE PURCHASE Adams Pointe Golf Club from Professional Turf Products, LP with AGREEMENT FOR TWO the lease financing provided by PNC Equipment Financing, LLC. MOWERS Motion seconded by Councilman Carter and carried with the following votes: Councilman Quibell -Aye Councilman Carter- Aye Councilman Lievsay -Aye Councilman Edmondson- Aye Councilman Fowler- Aye Councilman Culpepper- Aye Mayor Ross -Aye APPROVE LIQUOR Councilman Edmondson moved to approve a new liquor license for LICENSE FOR NEW OLM Enterprises, LLC d/b/a Buckets Bar & Grill located at 1331 SW LIQUOR LICENSE FOR US Highway 40, Blue Springs, MO to sell intoxicating liquor by the OLM ENTERPRISES, LLC drink on premises (weekdays) and Sunday sales. Motion seconded by Councilman Carter and carried with the following votes : Councilman Quibell -Aye Councilman Carter- Aye Councilman Lievsay -Aye Councilman Edmondson -Aye Councilman Fowler - Aye Councilman Culpepper - Aye Mayor Ross- Aye May 2, 2016 City Council Meeting Page 2 APPROVE BOARDS/ Councilman Edmondson moved to approve the following COMMISSIONS Board/Commission appointments/reappointments: APPOINTMENTS/ REAPPOINTMENTS Board of Adjustment: New Appointment: Evelyn Erickson William Washington Ill (Alternate Member #2) Reappointment: Frederick Manning Ron Amos (Alternate Member) Development Advisory Commission: Reappointment: Susan Culpepper (Council representative) Downtown Review Board: New Appointment: Jennifer Hauschild Reappointment: Chris Lievsay (Council representative) Kent Edmondson (Council representative) Yvonne Woods Cindy Miller Economic Development Corporation: Reappointment: Susan Culpepper (Council liaison) Historic Preservation Commission: New Appointment: Kay Burris (Historical Society representative) Reappointment: Mary Potter Chris Lievsay (Council representative) Human Relations Commission : Reappointment: Gino Bueno Jane Bowerman Kynette Campbell - appointed as Chairman Gino Bueno - appointed as Vice Chairman Industrial Development Authority: Reappointment: Susan Culpepper (Council representative) Land Bank Agency: New Appointment: Tracy Baldridge Park Commission: New Appointment: Dale Carter (Council liaison) Reappointment: Dena Mclean Jennifer Splitorff Kathy Richardson Planning Commission : New Appointment: Jackie Fairbanks Chris Lievsay (Council liaison) Reappointment: Phil Bartolotta Public Art Commission : New Appointment: Kent Edmondson (Council liaison) Reappointment: Kathe White 2 May 2, 2016 City Council Meeting Page 3 Ramon Magee Public Safety Citizen Advisory Board New Appointment: Bob Morton - appointed as Chairman Grant Bowerman - appointed as Vice-Chair Bob Morton (term expiring in 2017) Jeff Quibell (Council liaison) Natalie Beltgens (term expiring in 2017) Reappointment: Grant Bowerman Jerry Kaylor Patrick Mitchell Solid Waste Commission: New Appointment: Eli Noland Reappointment: James Barry Ron Fowler (Council liaison) Technical Review Committee: New Appointment: Peggy McCartan Gary Grist Reappointment: Bob Frost Motion seconded by Councilman Carter and carried with the following votes: Councilman Quibell- Aye Councilman Carter - Aye Councilman Lievsay- Aye Councilman Edmondson -Aye Councilman Fowler- Aye Councilman Culpepper- Aye Mayor Ross - Aye PUBLIC HEARING - Mayor Ross opened the Public Hearing on the Vacation of a VACATION OF Stormwater Drainage Easement for Parkway Villas. At the request STORMWATER of the applicant, the public hearing will be continued to the May 16, DRAINAGE EASEMENT 2016 Council meeting. A motion to continue these public hearings FOR PARKWAY VILLAS is in order. (VAC-03-16-5235) MOTION TO CONTINUE Councilman Quibell moved to continue the public hearing on the (VAC-03-16-5235) Vacation of a Stormwater Drainage Easement for Parkway Villas to the May 16, 2016 Council meeting. Motion seconded by Councilman Edmondson and carried unanimously. MAYORAL Mayor Ross expressed sympathies to the family of Venda Craine, ANNOUNCEMENTS fellow Hallmark retiree, who passed away this week. Thoughts to Ponder: "We were given a mouth that closes and ears that don't, which tells us something." (Author Unknown) VISITORS Charlotte Tewksbury and Tamera Ayers approached Council about a mold issue at Autumn Place Apartments on Candletree Drive. Ms. Ayers stated they have contacted the Attorney General's Office 3 May 2, 2016 City Council Meeting Page 4 and have a public attorney coming to their homes to investigate. City Attorney Nancy Yendes stated the State is the appropriate authority for this issue and they are taking the correct steps for resolution . ADJOURNMENT At 6:13 p.m. there was no further business to come before the Council; Councilman Carter moved the meeting be adjourned. Motion seconded by Councilman Edmondson and carried unanimously. Carson Ross, Mayor 4

Agenda

CITY COUNCIL MEETING May 2, 2016 6:00 p.m. Council Chambers Howard L. Brown Public Safety Building 1100 SW Smith Blue Springs, Missouri PLEASE NOTE: Anyone wishing to address the Mayor and Council, either in a Public Hearing or in the Visitors Section of the Agenda, must fill out a Speaker’s Appearance Form. Forms are located at the entrance of the Multipurpose Room. After completion, the form is to be given to the Assistant City Administrator. 1. Call meeting to order 2. Pledge of Allegiance 3. Consent Agenda  All matters under Item 3, Consent Agenda, are considered to be routine by the City Council and will be enacted by one motion in the form listed below. There will be no separate discussion of these items. If discussion is desired, that item will be removed from the Consent Agenda and will be considered separately. a. Approve April 18, 2016 City Council Meeting Minutes b. Adopt Resolution No. 16-2016 approving lease purchase agreement for two mowers for Adams Pointe Golf Course c. Approve liquor license for OLM Enterprises, d/b/a Buckets Bar & Grill d. Approve appointments/reappointments to City Boards/Commissions 4. Public Hearing – Vacation of Stormwater Drainage Easement for Parkway Villas (VAC-03-16-5235) (to be continued to May 16, 2016 Council meeting) 5. Mayoral Announcements Thoughts to Ponder 6. Visitors Adjourn Miscellaneous Items Park Commission Meeting – Tuesday, May 3, 6:00 PM, Blue Springs Field House, 425 NE Mock Ave Planning Commission Meeting – Monday, May 9, 6:30 PM, Council Chambers – Public Safety Building, 1100 SW Smith Public Safety Citizens Advisory Board Meeting – Tuesday, May 10, 6:00 PM, Journagan Family Community Room – Public Safety Building, 1100 SW Smith Board of Adjustment Meeting – Wednesday, May 11, 6:30 PM, Public Safety Building, 1100 SW Smith City Council Meeting – Monday, May 16, 6:00 PM, Council Chambers – Public Safety Building, 1100 SW Smith Human Relations Commission Meeting – Tuesday, May 17, 6:30 PM, Journagan Family Community Room – Public Safety Building, 1100 SW Smith Public Art Commission Meeting – Thursday, May 19, 3:30 PM, Blue Springs Field House, 425 NE Mock Ave Planning Commission Meeting – Monday, May 23, 6:30 PM, Council Chambers – Public Safety Building, 1100 SW Smith Memorial Day Holiday – Monday, May 30, 2016 – CITY OFFICES CLOSED TO: Mayor, City Council, Department Directors, and Press FROM: Eric Johnson City Administrator DATE: April 28, 2016 SUBJECT: Agenda Explanations Item 3b – Adopt Resolution approving a lease purchase agreement for two mowers for the Adams Pointe Golf Course Approval of the lease purchase of two triplex mowers for greens at the Adams Pointe Golf Course from Professional Turf Products, LP with the lease financing provided by PNC Equipment Financing LLC. For further information, please refer to Council Information Form submitted by Dennis Dovel, Director of Parks & Recreation. Item 3c – Approve Liquor License for Buckets Bar & Grill Approval of a new liquor license for OLM Enterprises, LLC dba Buckets Bar & Grill located at 1331 SW US Highway 40, Blue Springs, MO 64015 to sell intoxicating liquor by the drink on premises (weekdays) and Sunday sales. Mr. C’s Restaurant used to occupy this space. For further information, refer to Council Information Form from Scott Allen, Director of Community Development. Item 3d – Approve Boards and Commissions Appointments/Reappointments Pursuant to Blue Springs Home Rule Charter Section 4.4.C – Powers and Duties; Appointments, the Mayor appoints all members of committees, boards, and commissions, with the advice and consent of the majority of the Council. The slate of 2016 appointments and reappointments will be submitted to Council for approval. For further information, refer to Council Information Form from City Clerk Sheryl Morgan. Item 4 – Public hearing – Vacation of Stormwater Drainage Easement for Parkway Villas (VAC- 03-16-5235) At the request of the applicant, the public hearing will be continued to the May 16, 2016 Council meeting. A motion is in order to continue this public hearing. CITY OF BLUE SPRINGS, MISSOURI MINUTES OF COUNCIL MEETING APRIL 18, 2016 A meeting of the City Council of the City of Blue Springs, Missouri, was held on Monday April 18, 2016, 6:00 p.m. in the Council Chambers of the Howard L. Brown Public Safety Building, 1100 Smith Street with Mayor Carson Ross presiding. COUNCILMEN IN Jeff Quibell - ABSENT Dale Carter ATTENDANCE Chris Lievsay Kent Edmondson Ron Fowler Susan Culpepper Also present were City Administrator Eric Johnson, Deputy City Administrator Adam Norris, Assistant City Administrator, Christine Cates, City Attorney Nancy Yendes, and City Clerk Sheryl Morgan. CALL MEETING Mayor Carson Ross called the City Council meeting to order and led TO ORDER in the Pledge of Allegiance. APPROVE CITY COUNCIL Councilman Edmondson moved to approve the minutes of the April MINUTES 4, 2016 meeting of the City Council meeting. Motion seconded by Councilman Culpepper and carried with the following votes: Councilman Lievsay – Aye Councilman Edmondson – Aye Councilman Fowler – Aye Councilman Culpepper – Aye Councilman Carter – Aye Councilman Quibell – ABSENT Mayor Ross – Aye ACCEPT APRIL 5, 2016 Councilman Edmondson moved to accept the April 5, 2016 election ELECTION RESULTS results as certified by the Jackson County Board of Election Commissioners. Motion seconded by Councilman Culpepper and carried with the following votes: Councilman Lievsay – Aye Councilman Edmondson – Aye Councilman Fowler – Aye Councilman Culpepper – Aye Councilman Carter – Aye Councilman Quibell – ABSENT Mayor Ross – Aye ADOPT RESOLUTION Councilman Edmondson moved to adopt Resolution No. 15-2016 NO.15-2016 – approving an agreement for a space needs study and design AGREEMENT WITH SFS services for City Hall with SFS Architecture, Inc. Motion seconded ARCHITECTURE, INC. by Councilman Culpepper and carried with the following votes: Councilman Lievsay – Aye Councilman Edmondson – Aye Councilman Fowler – Aye Councilman Culpepper – Aye Councilman Carter – Aye Councilman Quibell – ABSENT Mayor Ross – Aye OATH OF OFFICE City Clerk Sheryl Morgan administered the Oath of Office to re- ADMINISTERED elected Councilmen: District 1 - Dale Carter; District 2 – Chris Lievsay; and District 3 – Susan Culpepper. Former Judge Vernon April 18, 2016 City Council Meeting Page 2 Scoville III administered the Oath of Office to re-elected Mayor Carson Ross. ELECTION OF MAYOR Mayor Ross called for nominations from the floor for the one-year PRO TEMPORE term of the Mayor Pro Tempore. Councilman Carter nominated Councilman Lievsay for the position of Mayor Pro Tempore. No further nominations were made, and Councilman Edmondson made a motion that nominations cease and to approve the nomination of Councilman Lievsay by acclamation. Councilman Lievsay was elected Mayor Pro Tempore by acclamation. PRESENTATION – Kim Nakahodo and Jacqueline Reed of the Mid-Continent Public BUSINESS RESOURCES Library gave a presentation to Council on the 2015 NETWORK accomplishments of the Blue Springs Business Resources Network and the scope of work for 2016 and beyond. A copy of the PowerPoint presentation is attached to these Minutes and incorporated herein. PUBLIC HEARING – TAX Mayor Ross opened the Public Hearings on the Tax Increment INCREMENT FINANCING Financing (TIF) and Economic Development Incentive at 6:25 p.m. AND ECONOMIC The minutes of the public hearing were recorded by a certified court DEVELOPMENT reporter. City Clerk Sheryl Morgan entered one exhibit into the INCENTIVE UPDATE record. STAFF REPORT Christine Cates, Assistant City Administrator stated State law requires a public hearing be held for each TIF project once every five years; Blue Springs reports on all projects every year. Ms. Cates provided an update on all TIF projects that are currently active within the City and Economic Development Incentives that were approved during the 2014-2015 fiscal year. The projects included Target Time Defense, White Oak, Adams Farm, and Fall Creek TIFs. The TIF Annual Report is available on the City’s website for public review. A copy of the PowerPoint presentation is attached to these Minutes and incorporated herein. COUNCIL DISCUSSION Councilman Fowler requested that the projected date of payoff be added to the TIF District Table. The Mayor hearing no further comments for or against, closed the public hearing at 6:36 p.m. INTRODUCTION AND 1ST Councilman Edmondson introduced Bill No. 4422 providing for READING – BILL NO. 4422 submission of a proposal to discontinue application and collection of SUBMITTING THE the local motor vehicle sales use tax, and submitting the ordinance PROPOSAL TO to qualified voters at a special election to be held concurrently with DISCONTINUE the primary election called on August 2, 2016. City Clerk Sheryl APPLICATION AND COLLECTION OF THE Morgan made the first reading of Bill No. 4422, by title; copies of the LOCAL MOTOR VEHICLE proposed Bill having previously been made available to the public. SALES USE TAX, 2 April 18, 2016 City Council Meeting Page 3 ORDINANCE TO Councilman Fowler moved to approve Bill No. 4422 upon its first QUALIFIED VOTERS reading and proceed with the second reading. Motion seconded by Councilman Carter and carried unanimously. COUNCIL DISCUSSION Councilman Fowler said the language on the ballot seemed odd as it approves the discontinuance of the tax. City Attorney Nancy Yendes confirmed that the State Legislature wrote the ballot language requiring a “No” vote to continue to the tax. 2nd READING – BILL NO. Ms. Morgan made the second reading of Bill No. 4422 by title. 4422 Councilman Carter moved to adopt Bill No. 4422 upon its second reading and give it ORDINANCE NO. 4595, with a copy attached hereto and made a part of the minutes. Motion seconded by Councilman Lievsay and carried with the following vote: Councilman Fowler – Aye Councilman Culpepper – Aye Councilman Carter – Aye Councilman Quibell – ABSENT Councilman Edmondson – Aye Councilman Lievsay – Aye Mayor Ross – Aye MAYORAL Mayor Ross expressed sympathies to the family of former Police ANNOUNCEMENTS Chief Howard L. Brown for the loss of his wife, Jolene. The Public Safety Building is named after Chief Brown. Thoughts to Ponder: “The most important thing about goals is having one.” (Godfrey Abert) At 6:39 p.m., Councilman Culpepper moved the Council go into closed session pursuant to Section 610.021, subparagraphs (12) and (17) Revised Statutes of Missouri, for the purpose of having confidential and privileged communications between a governmental body or its representatives and its attorney relating to contract negotiations, and privileged communications between a governing body or its representatives and its auditor, and that any records or votes taken remain closed and that this body stand adjourned at the end of such session. Motion seconded by Councilman Carter and carried with the following votes: Councilman Carter – Aye Councilman Quibell – ABSENT Councilman Edmondson – Aye Councilman Lievsay – Aye Councilman Culpepper – Aye Councilman Fowler – Aye Mayor Ross – Aye 3 April 18, 2016 City Council Meeting Page 4 ADJOURNMENT Following completion of the executive session, the Council stood adjourned at 7:37 p.m. ___________________________________ ATTEST: Carson Ross, Mayor ______________________________ Sheryl Morgan, City Clerk 4 Council Meeting Date: 05/02/2016 Agenda Item #: 3b Page 1 of 2 CITY OF BLUE SPRINGS CITY COUNCIL INFORMATION FORM DATE: April 13, 2016 SUBMITTED BY: Dennis Dovel DEPARTMENT: Parks and Recreation Ordinance Resolution Presentation Public Hearing Agreement Discussion Rezoning Other ISSUE/REQUEST Approval of the lease purchase of two triplex mowers for greens at the Adams Pointe Golf Course from Professional Turf Products, LP with the lease financing provided by PNC Equipment Financing LLC. BACKGROUND/JUSTIFICATION The Adams Pointe Golf course has a fleet of mowers that perform different functions. These mowers are used on a daily basis 8 to 9 months out of the year to maintain the golf course to provide patrons a quality experience. The Adams Pointe Golf Course staff is requesting the replacement of two of the four triplex mowers that maintain the greens. These mowers are nine years old and have over 2,300 hours of service on them. The mowers have required significant repairs over the last couple of years. In order to have reliable equipment to keep up with the required maintenance, staff is recommending replacement. It is recommend that mowers be replaced every 5 – 6 years. Currently the Golf Course holds a lease for a rotary rough mower that is nearing its term in May. The current monthly payment for the rotary rough mower is $762. The proposal presented to staff would increase the monthly payment by $52 a month for a monthly payment of $814 for 72 months. The following bids were received: Professional Turf Products, LP – Toro $51,925 Van-Wall Equipment – John Deere $51,900 Kansas Golf and Turf - Jacobsen $63,090 Staff recommends the purchase and leasing of two triplex mowers from Professional Turf Products, LP based on performance, cost and feedback from other golf courses. PNC Equipment Finance, LLC will provide the financing for Toro and is providing the current lease that is expiring in May. Because the total purchase price exceeds $50,000, this purchase requires Council approval. FINANCIAL IMPACT Contractor: Professional Turf Products, L.P. 10935 Eicher Drive Lenexa, KS 66219 Amount of Request/Contract: $51,925 plus financing and documentation fees for a total Rev. 2/17/16 Council Meeting Date: 05/02/2016 Agenda Item #: 3b Page 2 of 2 contract price amount of $58,834 Amount Budgeted: $9,144 annually Funding Source/Account #: Included in Orion Management Budget PROJECT TIMELINE Estimated Start Date Estimated End Date June 2016 June 2022 Years and Months Contract in effect Number of times renewable 6 years None STAFF RECOMMENDATION Staff recommends approval. OTHER BOARDS & COMMISSIONS ASSIGNED Name of Board or Commission: N/A LIST OF REFERENCE DOCUMENTS ATTACHED 1. Resolution with proposed contract attached as Exhibit “A” IF CONTRACT REQUIRED: E-Verify Affidavits Required? Yes Parent Company: Contract Executed? No Affidavits Executed Yes REVIEWED BY Requesting Director: Budget: Dennis Dovel Christine Cates Legal: City Administrator: Nancy Yendes Eric Johnson Rev. 2/17/16 Introduced by Councilman Resolution No. 16-2016 A RESOLUTION APPROVING A CONTRACT WITH PNC EQUIPMENT FINANCE, LLC, FOR THE LEASE PURCHASE OF TWO TRIPLEX MOWERS FROM PROFESSIONAL TURF PRODUCTS, L.P. WHEREAS, the City of Blue Springs has owned and operated the Adams Pointe Golf Club since 1997; and WHEREAS, the City hired Orion Management Solutions as the contracted operator for Adams Pointe Golf Club in 2010 and 2015; and WHEREAS, two of the four current triplex mowers were purchased in 2007 to maintain the greens of the golf course; and WHEREAS, the mowers are experiencing significant down time due to required repairs; and WHEREAS, Orion Management Solutions secured quotes for the lease purchase of two triplex mowers; and WHEREAS, the Parks and Recreation Department received three (3) bids and now recommends that the City enter into a contract with Profession Turf Products, LP to lease purchase through PNC Equipment Finance, LLC for two (2) Toro Greenmaster 3300 Triflex mowers at $51,925 plus financing and documentation fees for a total lease purchase price of $58,835. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BLUE SPRINGS, MISSOURI, as follows: 1. The City Administrator has the authority and is hereby authorized to enter into a contract with Profession Turf Products, L.P. 10935 Eicher Drive, Lenexa, KS 66219 and PNC Equipment Finance, LLC, 995 Dalton Avenue, Cincinnati, OH 45203, for the lease purchase of two (2) Toro Greenmaster 3300 Triflex mowers at a total financed price of $58,835. A copy of the proposed Contract is attached hereto as Exhibit “A” and is incorporated herein. 2. City Staff is directed to perform all tasks necessary to implement said Contract. Rev. 05/01/2015 PASSED by the City Council of the City of Blue Springs, Missouri, and approved by the Mayor of Blue Springs, this 2nd day of May, 2016. CITY OF BLUE SPRINGS _________________________ Carson Ross, Mayor ATTEST: ________________________________ Sheryl Morgan, City Clerk Rev. 05/01/2015 EXHIBIT A E04 Lease-Purchase Agreement Dated as of March 29, 2016 Lease Number: 196880000 Lessor: PNC Equipment Finance, LLC 995 Dalton A venue Cincinnati, OH 45203 Lessee: LESSEE FULL LEGAL NA.VIE FEDERAL TAX ID City of Blue Springs 446000139 1601 NERD Mize Rd Blue Springs, MO 64014 Equipment See attached Certificate of Acceptance for Equipment Description Description Rent Lease Term is for 72 months, with Rent payments due in arrears [8J monthly;O quarterly; O semi- Payment annual; O annually; each in the amounts set forth in the attached Schedule of Payments. Schedule Lessee shall pay Rent payments exclusively from legally available funds in U.S. currency to Lessor in the amounts and on the dates set forth herein, without notice or demand. TERMS AND CONDITIONS I. LEASE. Subject to the terms of this Lease, Lessee agrees to lease from Lessor the equipment (the "Equipment") described in the attached Certificate of Acceptance when Lessor accepts this Lease. Lessee agrees to be bound by all the terms of this Lease. 2. DELIVERY AND ACCEPTANCE OF EQUIPMENT. Acceptance of the Equipment occurs upon delivery. When Lessee receives the Equipment, Lessee agrees to inspect it and to verify by telephone or in writing such information as Lessor may require. Delivery and installation costs are Lessee's responsibility. If Lessee signed a purchase contract for the Equipment, by signing this Lease Lessee assigns its rights, but none of its obligations under the purchase contract, to Lessor. 3. RENT. Lessee agrees to pay Lessor Rent (plus applicable taxes) in the amount and frequency stated above. If Lessee's Rent payments are due in Advance, Lessee's first Rent payment is due on the date Lessee accepts the Equipment under the Lease. Lessor will advise Lessee as to (a) the due date of each Rent payment, and (b) the address to which Lessee must send payments. Rent is due whether or not Lessee receives an invoice from Lessor. Lessee will pay Lessor any required advance rent when Lessee signs this Lease. Lessee authorizes Lessor to change the Rent by not more than 15% due to changes in the Equipment configuration, which may occur prior to Lessor's acceptance of this Lease. Restrictive endorsements on checks Lessee sends to Lessor will not reduce Lessee' s obligations to Lessor. Unless a proper exemption certificate is provided, applicable sales and use taxes will be added to the Rent. NON-APPROPRIATION OF FUNDS. Lessee intends to remit all Rent and other payments to Lessor for the full Lease Term if funds are legally available. In the event Lessee is not granted an appropriation of fund s at any time during the Lease Term for the Equipment subject to this Lease and operating fund s are not otherwise available to Lessee to pay the Rent and other payments due and to become due under this Lease, and there is no other legal procedure or available funds by or with which payment can be made to Lessor, and the non-appropriation did not result from an act or omission by Lessee, Lessee shall have the right to return the Equipment in accordance with Section 16 of the Lease and terminate this Lease on the last day of the fiscal period for which appropriations were received without penalty or expense to Lessee, except as the portion of Rent fo r which funds shall have been appropriated and budgeted. At least 30 days prior to the end of Lessee's fiscal year, Lessee's chief executive officer (or legal counsel) shall certify in writing that (a) funds have not been appropriated for the upcoming fiscal period, (b) such non-appropriation did not result from any act or failure to act by Lessee, and (c) Lessee has exhausted all funds legally available fo r the payment of Rent. 4. UNCONDITIONAL OBLIGATION. LESSEE AGREES THAT IT IS UNCONDITIONALLY OBLIGATED TO PAY ALL RENT AND ANY OTHER AMOUNTS DUE UNDER THIS LEASE IN ALL FISCAL YEARS IN WHICH FUNDS HAVE BEEN APPROPRIATED NO MATTER WHAT HAPPENS, EVEN IF THE EQUIPMENT IS DAMAGED OR DESTROYED, IF IT IS DEFECTIVE OR IF LESSEE HAS TEMPORARY OR PERMANENT LOSS OF ITS USE. LESSEE IS NOT ENTITLED TO ANY REDUCTION OR SET-OFF AGAINST RENT OR OTHER AMOUNTS DUE UNDER TffiS LEASE FOR ANY REASON WHATSOEVER. 5. DISCLAIMER OF WARRANTIES. THE EQUIPMENT IS BEING LEASED TO LESSEE IN "AS-IS" CONDITION. LESSEE AGREES THAT LESSOR HAS NOT MANUFACTURED THE EQUIPMENT AND THAT LESSEE HAS SELECTED THE EQUIPMENT BASED UPON LESSEE 'S OWN JUDGMENT. LESSEE HAS NOT RELIED ON ANY STATEMENTS LESSOR OR ITS EMPLOYEES HAVE MADE. LESSOR HAS NOT MADE AND DOES NOT MAKE ANY EXPRESS OR IMPLfED REPRESENTATIONS OR WARRANTIES WHATSOEVER, INCLUDING WITHOUT LfMITATION, THE EQUIPMENT' S MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, SUITABILITY, DESIGN, CONDITION, DURABILITY, OPERATION, QUALITY OF MATERIALS OR WORKMANSffiP, OR COMPLIANCE WITH SPECIFICATIONS OR APPLICABLE LAW. Lessee is aware of the name of the Equipment manufacturer and Lessee will contact the manufacturer for a description of Lessee's warranty rights. If the manufacturer has provided Lessor with a warranty, Lessor assigns its rights to such warranty to Lessee and Lessee may enforce all warranty rights directly against the manufacturer of the Equipment. Lessee agrees to settle any dispute regarding performance of the Equipment directly with the manufacturer of the Equipment 6. TITLE AND SECURITY INTEREST. Unless otherwise required by the laws of the state where Lessee is located, Lessee shall have title to the Equipment immediately upon delivery and shall be deemed to be the owner of the Equipment as long as Lessee is not in default under this Lease. In the event of a default, title to the Equipment shall revert to Lessor free and clear of any rights or interest Lessee may have in the Equipment. To secure all of Lessee's obligations to Lessor under this Lease Lessee hereby grants Lessor a security interest in (a) the Equipment to the extent of Lessee's interest in the Equipment, (b) anything attached, added, replaced and/or substituted to the Equipment at any time, (c) any money or property from the sale of the 2 Eq uipment, and (d) any money fro m an insurance claim if the Equipment is lost or damaged. Lessee agrees that the security interest will not be affected if this Lease is changed in any way. 7. USE, MAINTENANCE AND REPAIR. Lessee will not move the Equipment from the Equipment Location without Lessor's advance written consent. Lessee will give Lessor reasonable access to the Equipment Location so that Lessor can check the Equipment's existence, condition and proper maintenance. Lessee will use the Equipment in the manner for which it was intended, as required by all applicable manuals and instructions, and keep it eligible for any manufacturer's certification and/or standard fu ll service maintenance contract. At Lessee's own cost and expense, Lessee will keep the Equipment in good repair, condition and working order, ordinary wear and tear excepted. Lessee will not make any permanent alterations to the Equipment. 8. TAXES. Lessee agrees to pay Lessor, when invoiced, all taxes (including any sales, use and personal property taxes), fines, interest and penalties relating to this Lease and the Equipment (excluding taxes based on Lessor's net income). Lessee agrees to file any required personal property tax returns and, if Lessor asks, Lessee wi ll provide Lessor with proof of payment. Lessor does not have to contest any tax assessments. 9. INDEMNITY. Lessor is not responsible for any injuries, damages, penalties, claims or losses, inducing legal expenses, incurred by Lessee or any other person caused by the transportation, installation, manufacture, selection, purchase, lease, ownership, possession, modification, maintenance, condition, operation, use, return or disposition o f the Equipment. To the extent permitted by law, Lessee agrees to reimburse Lessor for and defend Lessor against any claims fo r such losses, damages, penalties, claims, injuries, o r expenses. This indemnity continues even after this Lease has expired, for acts or omissions that occurred during the Lease Term. 10. IDENTIFICATION. Lessee authorizes Lessor to insert or correct missing information on this Lease, including Lessee's official name, serial numbers and any other information describing the Equipment. Lessor will send Lessee copies of such changes. Lessee will attach to the Equipment any name plates or stickers Lessor provides Lessee. II. LOSS OR DAMAGE. Lessee is responsible for any loss of the Equipment from any cause at all, whether or not insured, from the time the Equipment is shipped to Lessee until it is returned to Lessor. If any item of Equipment is lost, stolen or damaged, Lessee will promptly notify Lessor of such event. Then, at Lessor's option, Lessee will either (a) repair the Equipment so that it is in good condition and working order, eligible for any manufacturer's certification, or (b) pay Lessor an amount equal to the Net Book Value (as defined in Section 14) of the lost, stolen or damaged Equipment. If Lessee has satisfied their obligations under this Section I I, Lessor will forward to Lessee any insurance proceeds which Lessor receives for lost, damaged, or destroyed Equipment. If Lessee is in default, Lessor will apply any insurance proceeds Lessor receives to reduce Lessee's obligations under Section 14 of this Lease. 12. INSURANCE. Lessee agrees to (a) keep the Equipment fully insured against loss, naming Lessor as loss payee, and (b) obtain a general public liability insurance policy covering both personal injury and property damage in amounts not less than Lessor may tell Lessee, naming Lessor as additional insured, until Lessee has met all their obligations under this Lease. Lessor is under no duty to tell Lessee if Lessee's insurance coverage is adequate. The po licies shall state that Lessor is to be notified of any proposed cancellation at least 30 days prior to the date set for cancellation. Upon Lessor's request, Lessee agrees to provide Lessor with certificates or other evidence of insurance acceptable to Lessor. If Lessee does not provide Lessor with evidence of proper insurance within ten days of Lessor's request or Lessor receives notice of po licy cancellation, Lessor may (but Lessor is not obligated to) obtain insurance on Lessor's interest in the Equipment at Lessee's expense. Lessee will pay all insurance premiums and related charges. 13. DEFAULT. Lessee will be in default under this Lease if any of the fo llowing.happens: (a) Lessor does not receive any Rent or other payment due under this Lease within ten days after its due date, (b) Lessee fai ls to perform or observe any other promise or ob ligation in this Lease and does not correct the default within ten days after Lessor send s Lessee written notice of default, (c) any representation, warranty or statement Lessee has made in this Lease shall prove to have been false or misleading in any material respect, (d) any insurance carrier cancels or threatens to cancel any insurance on the Equipment, (e) the Equipment or any part of it is abused, illegally used , misused , lost, destroyed, or damaged beyond repair, (I) a petition is fi led by or against Lessee under any bankruptcy or insolvency laws, or (g) Lessee defaults on any other agreement between it and Lessor (or Lessor's affiliates). 14. REMEDfES. Upon the occurrence of a default, Lessor may, in its sole discretion, do any or all of the following: (a) provide written notice to Lessee of default, (b) as liquidated damages for loss o f a bargain and not as a penalty, declare due and payable, the present value of (i) any and all amounts which may be then due and payable by Lessee to Lessor under this Lease, plus (ii) all Rent payments remaining through the end of the then current fiscal year, discounted at the higher of 3% or the lowest rate allowed by law (collectively, the "Net Book Value") and (c) require Lessee to immediately return the Equipment to Lessor. Lessor has the right to require Lessee to make the Equipment available to Lessor for repossession during reasonable business hours or Lessor may repossess the Equipment, so long as Lessor does not breach the peace in doing so, or Lessor may use legal process in compliance with applicable law pursuant to court order to have the Equipment repossessed. Lessee will not make any claims against Lessor or the Equipment for trespass, damage or any other reason. If Lessor takes possession of the Equipment Lessor may (a) sell or lease the Equipment at public or private sale o r lease, and/or (b) exercise such other rights as may be allowed by applicable law. Although Lessee agrees that Lessor has no obligation to sell the Equipment, if Lessor does sell the Equipment, Lessor will reduce the Net Book Value by the amounts Lessor receives. Lessee wi ll immediately pay Lessor the remaining Net Book Value. Lessee agrees (a) that Lessor only needs to give Lessee ten days' advance notice of any sale and no notice of advertising, (b) to pay all of the costs Lessor incurs to enforce Lessor's rights against Lessee, including attorney's fees, and (c) that Lessor will retain all of Lessor's rights against Lessee even if Lessor does not choose to enforce them at the time of Lessee's default. 15. LESSEE'S OPTION AT END OF LEASE. Provided Lessee is not in default, upon expiration of the Lease Term, Lessee has the option to purchase all but not less than all of the Equipment for $1.00 (plus all sales and other applicable taxes). 16. RETURN OF EQUIPMENT. If (a) default occurs, or (b) a non-appropriation o f funds occurs in accordance with Section 3, Lessee will immediately return the Equipment to any location(s) in the continental United States and aboard any carriers(s) Lessor may designate. The Equipment must be properly packed for shipment in accordance with the manufacturer's recommendations or specifications, freight prepaid and insured, maintained in accordance with Section 7, and in "Average Saleable Condition." "Average Saleable Condition" means that all of the Equipment is immediately available for use by a third party buyer, user or lessee, other than Lessee named in this Lease, without the need for any repair or refurbishment. All Equipment must be free of markings. Lessee will pay Lessor for any missing or defective parts or accessories. Lessee will continue to pay Rent until the Equipment is received and accepted by Lessor. 17. LESSEE'S REPRESENTATIONS AND WARRANTIES. Lessee hereby represents and warrants to Lessor that as of the date of this Lease, and throughout the Lease Term: (a) Lessee is the entity indicated in this Lease; (b) Lessee is a State or a full y constituted political subdivision or agency of the State in which Lessee is located; (c) Lessee is duly organized and existing under the Constitution and laws o f the State in which they are located; (d) Lessee is authorized to enter into and carry out Lessee' s obligations under this Lease, any documents relative to the acquisition of the Equipment and any other documents required to be delivered in connection with this Lease (collectively, the " Documents"); (e) the Documents have been duly authorized, executed and delivered by Lessee in accordance with all applicable laws, rules, ordinances, and regulations, the Documents are valid, legal, b inding agreements, enforceable in accordance with their terms and the person(s) signing the Documents have the authority to do so, are acting with the full authorization of Lessee's governing body, and hold the offices indicated below their signature, each of which are genuine; (I) the Equipment is essential to the immediate performance of a governmental or proprietary function by Lessee within the scope of Lessee's authority and shall be used during the Lease Term only by Lessee and only to perform such function; (g) Lessee intends to use the Equipment for the entire Lease Term and shall take all necessary 3 action to include in Lessee's annual budget any fund s required to fu lfi ll Lessee's obligations fo r each fiscal year during the Lease Term; (h) Lessee has complied fully with all applicable law governing open meetings, public bidding and appropriations required in connection with this Lease and the acquisition of the Equipment; (i) Lessee's obligations to remit Rent under this Lease constitutes a current expense and not a debt under applicable state law and no provision of this Lease constitutes a pledge of Lessee's tax or general revenues, and any provision which is so constructed by a court o f competent jurisdiction is void from the inceP.tion of this lease; U) all payments due and to become due during Lessee's current fiscal year are within the fiscal budget o f such year, and are included within an unrestricted and unencumbered appropriation currently available fo r the lease/purchase of the Equipment; (k) Lessee shall not do or cause to be done any act which shall cause, or by omission of any act allow the interest portion o f any Rent payment to become includible in Lessor's gross income for Federal income taxation purposes under the Internal Revenue Code of 1986, as amended, (the "Code"); (I) Lessee shall maintain a complete and accurate record of all assignments of this Lease in the form sufficient to comply with the book entry requirements of Section 149(a) of the Code and the regulations prescribed there under from time to time; (m) Lessee shall comply with the information reporting requirements of Section 149(e) o f the Code; such compliance shall include, but not be limited to, the execution ofiRS Form 8038-G or 8038-GC; and (n) all financial information Lessee has provided to Lessor is true and accurate and provides a good representation o f Lessee's fin ancial condition. 18. LESSEE'S PROMISES. In addition to the other provisions of this Lease, Lessee agrees that during the term of this Lease (a) Lessee will promptly notifY Lessor in writing if it moves its principal offi ce or changes its name or legal structure, (b) Lessee will provide to Lessor such financial information as may reasonably request from time to time, and (c) Lessee will take any action Lessor reasonably requests to protect Lessor's rights in the Equipment and to meet Lessee's obligations under this Lease. 19. ASSIGNMENT. LESSEE WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE, SUB-LEASE OR PART WITH POSSESSION OF THE EQUIPMENT OR FILE OR PERMIT A LIEN TO BE FlLED AGAINST THE EQUIPMENT. Lessee will not attach any of the Equipment to any real estate. Upon Lessor's reasonable request and at Lessee's cost, Lessee will obtain fro m each person having an interest in the real estate where the Equipment is located a waiver of any rights they may have in the Equipment. 20. ASSIGNMENT BY LESSOR. This Lease, and the rights of Lessor hereunder and in and to the Equipment, may be assigned and reassigned in whole or in part to o ne or more assignees by Lessor or its assigns at any time without the necessity of obtaining the consent of Lessee; provided, however, no such assignment or reassignment shall be effective unless and until Lessee shall have been given written notice o f assignment disclosing the name and address of the assignee or its agent authorized to receive payments and otherwise service this Lease on its behalf. Upon receipt of notice of assignment, Lessee agrees to record the same in records maintained for such purpose, and further, to make all payments as designated in the assignment, notwithstanding any claim, defense, setoff or counterclaim whatsoever (whether arising from a breach of this Lease or otherwise) that Lessee may from time to time have against Lessor or Lessor's assigns. Lessee agrees to execute all documents, including acknowledgments of assignment, which may reasonably be requested by Lessor or its assigns to protect their interests in the Equipment and in this Lease. 21. COLLECTION EXPENSES, OVERDUE PAYMENT, TERMINATION. Lessee agrees that Lessor can, but does not have to, take on Lessee's behalf any action which Lessee fails to take as required by this Lease, and Lessor's expenses will be in addition to that of the Rent which Lessee owes Lessor. If Lessor receives any payment from Lessee after the due date, Lessee shall pay Lessor on demand as a late charge 5% of such overdue amount, limited, however, to the maximum amount allowed by law. Upon 30 days' prior written notice by Lessee to Lessor, and so long as there is no Event of Default then existing, Lessee shall have the option to purchase all, but not less than all, of the Equipment covered by the Lease on any Rent Payment due date by paying to Lessor all Rent Payments then due (includ ing accrued interest, if any) plus the Termination Value amount set forth on the Payment Schedule to the applicable Lease for such date. Upon satisfaction by Lessee of such purchase conditions, Lessor shall release its Lien on such Equipment and Lessee shall retain its title to such Equipment "AS- IS, WHERE-IS," without representation or warranty by Lessor, express o r implied, except for a representation that such Equipment is free and clear of any Liens created by Lessor. 22. AGREED LEASE RATE FACTOR. Lessee understands that the Equipment may be purchased for cash (the "Equipment Cost") or it may be leased. By signing this Lease, Lessee acknowledges that it has chosen to lease the Equipment from Lessor fo r the Lease Term and that Lessee has agreed to pay Rent. Each payment of Rent includes a principal amount based on the Equipment Cost and a lease charge rate. If it is determined that Lessee's payments under this Lease result in an interest payment higher than allowed by applicable law, then any excess interest collected will be applied to the repayment of principal and interest will be charged at the highest rate allowed by law. In no event will Lessor charge or receive or will Lessee pay any amounts in excess of the legal amount. 23. MISCELLANEOUS. l11is Lease contains the entire agreement and supersedes any conflicting provision of any equipment purchase order or any other agreement. TLM E IS OF THE ESSENCE IN THIS LEASE. If a court finds any provision of Lease to be unenforceable, the remaining terms of this Lease shall remain in effect. THIS LEASE IS A "FINANCE LEASE" AS DEFINED I N ARTICLE 2A OF THE UNIFORM COMMERCIAL CODE. Lessee authorizes Lessor (or Lessor's agent) to (a) obtain credit reports, (b) make such other credit inquires as Lessor may deem necessary, and (c) furni sh payment h istory information to credit reporting agencies. To the extent permitted by law, Lessor may charge Lessee a fee of$250.00 to cover Lessor's documentation and investigation costs. 24. NOTICES. All of Lessee's written notices to Lessor must be sent by certified mail or recognized overnight delivery service, postage prepaid, to Lessor at Lessor's address stated in this Lease, or by facsi mile transmission to Lessor's facsimile telephone number, with oral confirmation of receipt. All of Lessor' s notices to Lessee may be sent first class mail, postage prepaid, to Lessee's address stated in this Lease. At any time after this Lease is signed, Lessee or Lessor may change an address or facsimile telephone number by giving notice to the other o f the change. 25. ANTI-MONEY LAUNDERING/INTERNATIONAL TRADE COMPLI ANCE. Lessee represents and warrants to Lessor, as of the date of this Lease, the date of each advance of proceeds under the Lease, the date of any renewal, extension or modification of this Lease, and at all times until the Lease has been term inated and all amounts thereunder have been indefeasibly paid in full, that: (a) no Covered Entity (i) is a Sanctioned Person; or (ii) does b usiness in or with, or derives any of its operating income from investments in or transactions with, any Sanctioned Country or Sanctioned Person in violation of any law, regulation, order or directive enforced by any Compliance Authority; (b) the proceeds of the Lease will not be used to fund any unlawful activity; (c) the funds used to repay the Lease are not derived from any unlawful activity; and (d) each Covered Entity is in compliance with, and no Covered Entity engages in any dealings or transactions prohibited by, any laws of the United States. As used herein: "Compliance Authority" means each and all of the (a) U.S. Treasury Department/Office of Foreign Assets Control, (b) U.S. Treasury Department/Financial Crimes Enfo rcement Network, (c) U.S. State Department/Directorate of Defense Trade Controls, (d) U.S. Commerce Department/Bureau of Industry and Security, (e) U.S. Internal Revenue Service, (f) U.S. Justice Department, and (g) U.S. Securities and Exchange Commission; "Covered Entity" means Lessee, its affil iates and subsidiaries and direct and indirect owners; "Sanctioned Country" means a country subject to a sanctions program maintained by any Compliance Authority; and "Sanctioned Person" means any individual person, group, regime, entity or thing listed or otherwise recognized as a specially designated, prohibited, sanctioned or debarred person or entity, or subject to any limitations or prohibitions (including but not limited to the blocking of property or rej ection o f transactions), under any order or directive of any Compliance Authority or otherwise subject to, or specially designated under, any sanctions program maintained by any Compliance Authority. 26. USA PATRIOT ACT NOTICE. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all fi nancial institutions to obtain, veri ty and record infonnation that identifies each lessee that opens an account. What this means: when the Lessee opens an 4 account, Lessor will ask fo r the business name, business address, taxpayer identifying number and other information that will allow the Lessor to identify Lessee, such as organizational documents. For some businesses and organizations, Lessor may also need to ask for identifying information and documentation relating to certain individuals associated with the business or organization. 27. WAIVERS. LESSOR AND LESSEE EACH AGREE TO WAIVE, AN D TOTAKE ALL REQUIRED STEPS TO WAIVE, ALL RIGHTS TO A JURY TRIAL. To the extent Lessee is permitted by applicable law, Lessee waives all rights and remedies conferred upon a lessee by Article 2A (Sections 508-522) of the Uniform Commercial Code including but not limited to Lessee's rights to: (a) cancel or repudiate this Lease; (b) reject or revoke acceptance of the Equipment; (c) recover damages from Lessor for any breach of warranty or for any other reason; (d) grant a security interest in any Equipment in Lessee's possession. To the extent Lessee is permitted by applicable law, Lessee waives any rights they now or later may have under any statute or otherwise which requires Lessor to sell or otherwise use any Equipment to reduce Lessor's damages, which requires Lessor to provide Lessee with notice of default, intent to accelerate amounts becoming due or acceleration of amounts becoming due, or which may otherwise limit or mod ify any of Lessor's rights or remedies. ANY ACTION LESSEE TAKES AGAINST LESSOR FOR ANY DEFAULT, INCLUDING BREACH OF WARRANTY OR INDEMNITY, MUST BE STARTED WITHIN ONE YEAR AFTER THE EVENT, WHICH CAUSED IT. Lessor will not be liable fo r specific perfonnance of this Lease or for any losses, damages, delay o r failure to deliver Equipment. 28. SMALL ISSUER STATEMENT. Lessee hereby certifies to Lessor and its assigns that: a) the Lessee designates the Lease as a "Qualified Tax-Exempt Obligation" fo r the purposes of Section 265(b)(3) of the Code; b) Lessee wi ll own and operate the Equipment in the perfo rmance of its public purposes; and the Equipment will not be subject to the use o r control of any other entity; c) Lessee wi ll not designate more than Ten Million Do llars ($ 10,000,000) of tax-exempt obligations during the current calendar year as "Qualified Tax-Exempt Obligation", Lessee reasonab ly expects to issue no more than Ten Million Dollars ($1 0,000,000) of tax-exempt obligations during the current calendar year; and d) For purposes of Paragraph 3 herein above, the amount of tax-exempt obligations stated as either issued or designated as " Qualified Tax-Exempt Obligations" includes tax-exempt obligations issued by all subordinate entities of Lessee, as provided in Section 265 (b) (3) (E) of the Code. 29. IMPORT ANT INFORMATION ABOUT PHONE CALLS. By providing telephone number(s) to Lessor, now or at any later time, Lessee authorizes Lessor and its affil iates and designees to contact Lessee regarding Lessee account(s) with Lessor or its affi liates, whether such accounts are Lessee individual accounts or business accounts for which Lessee is a contact, at such numbers using any means, including but not limited to placing calls using an automated dialing system to cell, VoiP or other wireless phone number, or leaving prerecorded messages or sending text messages, even if charges may be incurred for the calls or text messages. Lessee consents that any phone call with Lessor may be monitored or recorded by Lessor. IMPORTANT: READ B EFORE SIGNING. THE TERMS OF THIS LEASE SHOULD BE READ CAREFULLY B ECAUSE ONLY THOSE TERMS l N WRITING ARE ENFORCEABLE. TERMS OR ORAL PROMIS ES WHICH ARE NOT CONTAINED IN THIS WRITTEN AGREEMENT MAY NOT BE LEGALLY ENFORCED. THE TERMS OF THIS LEASE MAY O NLY BE CHANGE D BY ANOTHER WRITTEN AGREEMENT BETWEEN LESSEE AND LESSOR. LESSEE AGREES TO COMPLY WITH THE TERMS AND CONDITIONS OF THIS L EASE. LESSEE AGREES THAT THE EQUIPMENT WILL BE USED FOR BUSINESS PURPOSES ONLY AND NOT FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES. LESSEE CE RTfFIES THAT ALL THE INFORMATION GIVEN IN TIDS LEASE AND LESSEE'S APPLICATION WAS CORRECT AND COMPLETE WHEN THIS LEASE WAS SIGNED. THIS LEASE IS NOT BINDING UPON LESSOR OR EFFECTIVE UNLESS AND UNTIL LESSOR EXECUTES THIS LEASE. THIS LEASE WILL BE GOVERNED BY THE LAWS OF THE STATE OF THE LESSEE. City of Blue Springs PNC Equipment Finance. LLC ("Lessee") ("Lessor") X X Authorized Signature Print Name Print Name City Administrator TiUe: TiUe: Date 995 Dalton Ave. 1601 NERD Mize Rd Cincinnati OH 45203 Blue Springs, MO 64014 OPINION OF COUNSEL I have acted as counsel to the above-referen ced Lessee (the " Lessee") with respect to this Lease-Purchase Agreement by and between the Lessee and Lessor (the " Lease"), and in this capacity have reviewed the original o r duplicate originals of the Lease and such other documents as I have deemed relevant. Based upon the forego ing, I am of the opinion that: (A) Lessee is a state or a fu lly constituted political subdivision or agency of a state within the meaning of Section I 03 of the Internal Revenue Code of 1986, as amended; (B) the execution, delivery and performance of the Lease by Lessee has been duly authorized by all necessary action on the part of Lessee; (C) the Lease constitutes a legal, valid and binding obligation of Lessee enforceable in accordance with its terms, except as limited by laws of general application affecting the enforcement of creditors' rights, and does not constitute a debt of Lessee which is prohibited by state law; (D) the authorization, approval and execution of the Lease and all other proceedings of Lessee related to the transactions contemplated thereby have been performed in accordance with all open-meeting laws, public bidding laws, and all other applicable state laws. The undersigned certi fies that (s)he is an attorney duly authorized to practice law in the State of Missouri. The foregoing opin ions are limited to the laws of such State and federal laws of the United States. 5 E28 SCHEDULE OF PAYMENTS Lease Number 196880000 Attached to and made a patt of that certain Lease-Purchase Agreement dated as of March 29, 2016 by and between PNC Equipment Finance, LLC, as Lessor, and City of Blue Springs, as Lessee. Rent payments are payable as follows: Payment Number Date Payment Interest Principal Termination* 1 $813 .67 $175.46 $638.21 $52,825.68 2 $813.67 $173.31 $640.36 $52,166.11 3 $813.67 $171.14 $642 .53 $51,504.31 4 $813 .67 $168.97 $644.70 $50,840.26 5 $813 .67 $166.79 $646.88 $50,173.98 6 $813.67 $164.61 $649.06 $49,505.45 7 $813.67 $162.41 $651.26 $48,834.65 8 $813.67 $160.21 $653.46 $48,161.58 9 $813.67 $158.01 $655.66 $47,486.25 10 $813.67 $155.79 $657.88 $46,808.64 11 $813.67 $153.57 $660.10 $46,128.74 12 $813 .67 $151.34 $662.33 $45,446.54 13 $813.67 $149.10 $664.57 $44,762.03 14 $813.67 $146.85 $666.82 $44,075.20 15 $813.67 $144.60 $669.07 $43,386.06 16 $813.67 $142.34 $671.33 $42,694.59 17 $813 .67 $140.07 $673.60 $42,000.78 18 $813.67 $137.79 $675.88 $41,304.63 19 $813.67 $135.51 $678.16 $40,606.12 20 $813.67 $133 .22 $680.45 $39,905.26 21 $813.67 $130.92 $682.75 $39,202.03 22 $813.67 $128.61 $685.06 $38,496.41 23 $813.67 $126.30 $687.37 $37,788.42 24 $813.67 $123.97 $689.70 $37,078.03 25 $813.67 $121.64 $692.03 $36,365.24 26 $813.67 $119.30 $694.37 $35,650.04 27 $813.67 $116.96 $696.71 $34,932.43 28 $813.67 $114.60 $699.07 $34,212.39 29 $813.67 $112.24 $701.43 $33,489.91 30 $813.67 $109.87 $703.80 $32,765.00 31 $813.67 $107.49 $706.18 $32,037.64 32 $813.67 $105.11 $708.56 $31,307.82 33 $813.67 $102.71 $710.96 $30,575.53 34 $813.67 $100.31 $713.36 $29,840.77 35 $813.67 $97.90 $715.77 $29,103.53 36 $813.67 $95.48 $718.19 $28,363.79 37 $813.67 $93.05 $720.62 $27,621.55 38 $813.67 $90.62 $723.05 $26,876.81 39 $813.67 $88.18 $725.49 $26,129.56 40 $813.67 $85.72 $727.95 $25,379.77 41 $813.67 $83.26 $730.41 $24,627.44 42 $813.67 $80.80 $732 .87 $23,872.59 43 $813.67 $78.32 $735 .35 $23,115.18 44 $813.67 $75.83 $737.84 $22,355.20 45 $813.67 $73.34 $740.33 $21,592.66 46 $813.67 $70.84 $742.83 $20,827.55 47 $813.67 $68.33 $745.34 $20,059.85 48 $813.67 $65.81 $747.86 $19,289.55 49 $813.67 $63.28 $750.39 $18,516.65 so $813.67 $60.75 $752.92 $17,741.14 51 $813.67 $58.20 $755.47 $16,963.01 52 $813.67 $55.65 $758.02 $16,182.25 53 $813.67 $53.09 $760.58 $15,398.85 54 $813 .67 $50.52 $763.15 $14,612.81 55 $813.67 $47.94 $765.73 $13,824.10 56 $813.67 $45.35 $768.32 $13,032.73 57 $813.67 $42.76 $770.91 $12,238.70 58 $813.67 $40.15 $773.52 $11,441.97 59 $813.67 $37.54 $776.13 $10,642.56 60 $813.67 $34.92 $778.75 $9,840.44 61 $813.67 $32.28 $781.39 $9,035.61 62 $813.67 $29.64 $784.03 $8,228.06 63 $813.67 $26.99 $786.68 $7,417.78 64 $813.67 $24.34 $789.33 $6,604.77 65 $813.67 $21.67 $792.00 $5,789.01 66 $813.67 $18.99 $794.68 $4,970.49 67 $813.67 $16.31 $797.36 $4,149.21 68 $813.67 $13.61 $800.06 $3,325.15 69 $813.67 $10.91 $802.76 $2,498.31 70 $813.67 $8.20 $805 .47 $1,668.67 71 $813.67 $5.47 $808 .20 $836.23 72 $813.67 $2.74 $810.93 $1.00 *As provided in Section 21 of the Lease-Purchase Agreement. City of Blue Springs PNC Equipment Finance. LLC ("Lessee") ("Lessor") By: _ _ _ _ __ __ __ __ __ X Authorized Signature Eric J ohnson Title_ __ _ _ _ _ __ __ _ _ _ Print Name City Admi nistrator TiUe: 995 Dalton Ave. Cincinnati, OH 45203 1601 NERD Mize Rd Blue Springs, MO 64014 Council Meeting Date: 05/02/2016 Agenda Item #: 3c Page 1 of 2 CITY OF BLUE SPRINGS CITY COUNCIL INFORMATION FORM DATE: April 18, 2016 SUBMITTED BY: Scott Allen DEPARTMENT: Community Development Ordinance Resolution Presentation Public Hearing Agreement Discussion Rezoning Other ISSUE/REQUEST The approval of a new liquor license for OLM Enterprises, LLC dba Buckets Bar & Grill located at 1331 SW US Highway 40, Blue Springs, MO 64015 to sell intoxicating liquor by the drink on premises (weekdays) and Sunday sales. Mr. C’s Restaurant used to occupy this space. BACKGROUND/JUSTIFICATION The new Managing Agent for OLM Enterprises, LLC dba Buckets Bar & Grill is Rita Samborski located at 9718 S. Munro Rd., Lone Jack, MO 64070. FINANCIAL IMPACT Contractor: Amount of Request/Contract: Amount Budgeted: $ 125.00 Funding Source/Account #: 100.00000.410200.000 Liquor License Revenue PROJECT TIMELINE Estimated Start Date Estimated End Date 05/02/2016 06/30/2016 STAFF RECOMMENDATION All documents have been submitted to the Business Services Division. A background check has been approved by Wayne McCoy (Chief of Police) and the approvals from Norman Gurney (Codes Administrator) are on file in the Business Services Division. Staff recommends approval by City Council. OTHER BOARDS & COMMISSIONS ASSIGNED Name of Board or Commission: N/A Date: Action: ON FILE IN THE BUSINESS SERVICES DIVISION 1. Notarized Individual Property Tax Affidavit for Managing Agent, Certificate of Voter Registration for Managing Agent, Exterior photos of the premises to be used by Applicant, Drawing of the interior premises to be covered by this permit, Copy of the Current Lease, and a Photo of the Managing Agent. Rev. 2/17/16 Council Meeting Date: 05/02/2016 Agenda Item #: 3c Page 2 of 2 2. Application for a Business License. IF CONTRACT REQUIRED: E-Verify Affidavits Required? N/A Parent Company: N/A Contract Executed? N/A Affidavits Executed N/A REVIEWED BY Requesting Director: Budget: Scott Allen Christine Cates Legal: City Administrator: Nancy Yendes Eric Johnson Rev. 2/17/16 Council Meeting Date: 05/02/2016 Agenda Item #: 3d Page 1 of 3 CITY OF BLUE SPRINGS CITY COUNCIL INFORMATION FORM DATE: April 26, 2016 SUBMITTED BY: Sheryl Morgan DEPARTMENT: Administration Ordinance Resolution Presentation Public Hearing Agreement Discussion Rezoning Other ISSUE/REQUEST Pursuant to Blue Springs Home Rule Charter Section 4.4.C – Powers and Duties; Appointments, the Mayor appoints all members of committees, boards, and commissions, with the advice and consent of the majority of the Council. The slate of 2016 appointments and reappointments will be submitted to Council for approval. BACKGROUND/JUSTIFICATION The list of the Mayor’s annual appointments and reappointments for terms expiring in 2016 for approval by Council are as follows: Board of Adjustment: New Appointment: Evelyn Erickson William Washington III (Alternate Member #2) Reappointment: Frederick Manning Ron Amos (Alternate Member) Development Advisory Commission: Reappointment: Susan Culpepper (Council representative) Downtown Review Board: New Appointment: Jennifer Hauschild Reappointment: Chris Lievsay (Council representative) Kent Edmondson (Council representative) Yvonne Woods Cindy Miller Economic Development Corporation: Reappointment: Susan Culpepper (Council liaison) Historic Preservation Commission: New Appointment: Kay Burris (Historical Society representative) Reappointment: Mary Potter Chris Lievsay (Council representative) Human Relations Commission: Reappointment: Gino Bueno Jane Bowerman Kynette Campbell – appointed as Chairman Gino Bueno – appointed as Vice Chairman Industrial Development Authority: Reappointment: Susan Culpepper (Council representative) Rev. 2/17/16 Council Meeting Date: 05/02/2016 Agenda Item #: 3d Page 2 of 3 Land Bank Agency: New Appointment: Tracy Baldridge Park Commission: New Appointment: Dale Carter (Council liaison) Reappointment: Dena McLean Jennifer Splitorff Kathy Richardson Planning Commission: New Appointment: Jackie Fairbanks Chris Lievsay (Council liaison) Reappointment: Phil Bartolotta Public Art Commission: New Appointment: Kent Edmondson (Council liaison) Reappointment: Kathe White Ramon Magee Public Safety Citizen Advisory Board New Appointment: Bob Morton – appointed as Chairman Grant Bowerman – appointed as Vice-Chair Bob Morton (term expiring in 2017) Jeff Quibell (Council liaison) Natalie Beltgens (term expiring in 2017) Reappointment: Grant Bowerman Jerry Kaylor Patrick Mitchell Solid Waste Commission: New Appointment: Eli Noland Reappointment: James Barry Ron Fowler (Council liaison) Technical Review Committee: New Appointment: Peggy McCartan Gary Grist Reappointment: Bob Frost FINANCIAL IMPACT Contractor: N/A Amount of Request/Contract: Amount Budgeted: PROJECT TIMELINE Estimated Start Date Estimated End Date N/A N/A STAFF RECOMMENDATION N/A Rev. 2/17/16 Council Meeting Date: 05/02/2016 Agenda Item #: 3d Page 3 of 3 OTHER BOARDS & COMMISSIONS ASSIGNED Name of Board or Commission: N/A Date: Action: LIST OF REFERENCE DOCUMENTS ATTACHED 1. N/A IF CONTRACT REQUIRED: E-Verify Affidavits Required? N/A Parent Company: Contract Executed? Affidavits Executed REVIEWED BY Requesting Director: Budget: Sheryl Morgan Christine Cates Legal: City Administrator: Nancy Yendes Eric Johnson Rev. 2/17/16

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