R2013-07 AUTHORIZING CITY MANAGER TO ENTER INTO A LEASE PURCHASE NINE 2012 CHEVROLET IMPALA POLICE PURSUIT VEHICLES

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anticipated to be exempt from all taxes presently assessed and levied on personal property. In the event the use, possession or acquisition of the Property is found to be subject to taxation in any form Lessee will pay during the Lease Term, as the same respectively come due, all taxes and charges of any kind that may be lawfully assessed or levied against or with respect to the Property. In all events, Lessee shall pay all utility and other charges incurred in the operation, maintenance and use of the Property. Section 6.03 Insurance. At its own expense Lessee shall cause casualty, public liability and property damage insurance to be carried and maintained in an amount sufficient to protect the Full Insurable Value (the applicable Purchase Price (as hereinafter defined)), and to protect Lessor from liability in all events. All insurance proceeds from casualty losses shall be payable as provided in Article VII hereof. Lessee shall furnish to Lessor certificates evidencing such coverage throughout the Lease Term. Alternatively, Lessee may insure the Property under a blanket insurance policy or policies which cover not only the Property but other properties. All insurance shall name Lessee and Lessor as named insureds and loss payees as their respective interests may appear and shall provide for at least ten (10) days prior written notice by the insurance company to the Lessor in the event of cancellation or expiration. Section 6.04 Advances. In the event that Lessee shall fail to maintain the full insurance coverage required by this Agreement or shall fail to keep the Property in good repair and operating condition, Lessor may(but shall be under no obligation to) purchase the required policies of insurance and pay the premiums on the same or may make such repairs or replacements as are necessary and provide for payment thereof; and all amounts so advanced therefor by Lessor shall become additional rent as of the date of Lessor's advance for the then current year,which amounts,together with interest thereon,Lessee agrees to pay. Section 6.05 Tax-Exempt Status. Lessee and Lessor assume that Lessor can, and intend that Lessor will be able to, exclude the interest component of the Rent Payments from its Federal gross income. Lessee covenants and agrees that it will (a) rebate an amount equal to any "excess earnings" to the Federal government if required by, and in accordance with, Section 148(f) of the Code and to make the annual determination and maintain the records applicable thereto; (b) use a book-entry system to record the identity of any assignee(s) known to Lessee as to meet the requirements of Section 149(a) of the Code; (c) timely file a Form 8038-G or 8038-GC, as applicable,with the Internal Revenue Service in accordance with Section 149(e) of the Code; (d) not permit the proceeds of this Agreement to be directly or indirectly used for private business use within the meaning of Section 141 of the Code; (e) ensure that action will not be taken that will result in the obligation represented in this Agreement be treated as an "arbitrage bond" or "federally guaranteed bond"within the meaning of Section 148(a) or Section 149(b) of the Code; respectively; and (f) comply with all provisions and regulations applicable to excluding interest from Federal gross income pursuant to Section 103 of the Code. If Lessor either (a) receives a notice, in any form, from the Internal Revenue Service or (b)reasonably determines, based on an independent tax counsel selected by Lessor and approved by Lessee, which approval Lessee shall not unreasonably withhold, that Lessor may not exclude 5