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HomeMy WebLinkAboutResolution - 4694A - Lease_Purchase Agreement - Safeco Credit Company Inc - Equipment - 01_12_1995Resolution No. 4694A January 12, 1995 Item #23 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a 36 Month Lease/Purchase Agree- ment for a 2 Cubic Yard Compactor and a 41 Cubic Yard Packer/Receiver, attached herewith, by and between the City of Lubbock and Safeco Credit Company, Inc., dba Safeline Leasing, and any associated documents, which Agreement shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 12th ATTEST: (-). 0, t' � F), '� , Betty M. J hnson, C-i-ty Secretary APPROVED AS TO CONTENT: Lbr,,_ *cam L >L Debra Frankhouser, Solid Waste Assistant Superintendent APPROVED AS TO FORM: ald G. Vandiver, First Assistant City Attorney DGV:da ccdocslsafeline.res February 9, 1995 day of January , 1995. 5AEELINE Resolution No. 4694A L E A S I N G . � 3136.3j-rood MUNICIPAL EQUIPMENT LEASE (TEXAS) - PURCHASE AGREEMENT Lessor: SAFECO Credit Company, Inc DBA SAFE WE L emag Lessee: CITY OF LNBBOCE, TEXAS Address: 1625 13th Slmet L WWkw 4 TX 7901 Contact Frank Espine Tetephonc (SM) 70-2491 Lessor agrees to lease to Lessee and Lessee agrees to lease from Lessor, the items of Equipment (the "Equipment) described in Exhibit A attached to this Municipal Equipment Lease - Purchase Agreement (the "Lease"), upon the following terms and conditions: Delivery and Acceptance. AL the request of Lessee, Lessor agrees to order the Equipment from the supplier but shall not be liable for specific performance of this Lease or for damages if for any reason The supplier delays or fails to fill the order. Lessorwill cause the Equipment to be delivered to Lessee at the location specified in Exhibit A (the "Equipment Location"). Lessee will pay all transportation and other costs, if any, incurred in connection with the delivery of the Equipment. Lessee will accept the equipment as soon as it has been delivered and Is operational, or In the even( that the manufacturer or vendor allows a preacceptance test period, at the end of the test period but in no event more than thirty (30) days from the dale of delivery. Lessee will evidence its acceptance of the Equipment by executing and delivering to Lessor a Delivery and Acceptance Certificate in the form provided by Lessor. 2. Term. This Lease will become effective upon the execution of the Lease by Lessor. The term of this Lease will commence on the dale of the lease and, unless it expires early as expressly provided for in this Cease, will continue until the Expiration Dale set forth in Exhibit A attached hereto (hereinafter the "Lease Term"). 3. Rent. Lessee agrees to pay to Lessor or its assignee the Rent Payments (herein so called), including the interest portion, equal to the amounts specified in Exhibit S. The Rent Payments will be payablewilhout notice or demand at the office of the Lessor (or such other place as Lessor or its assignee may from time to time designate in writing), and will commence on the First Payment Date as set forth in Exhibit A and continue on the same day of each successive Rental Period thereafter until fully paid unless the Lease expires early pursuant to Section 4 hereof. Any Rent Payments received later than ten (10) days from the due dale will bear Interest at the highest rate permitted by law, but not to exceed 18% per annum from the due date. Except as specifically provided In Section 4 hereof, the Rent Payments will be absolute and unconditional in all events and will not be subiecl to any setoff, defense, counterclaim, or recoupment for anv reason whatsoever. Lessee reasonably believes that funds can be obtained sufficient to make all Rent Payments during the Lease Term. The parties contemplate that all Rent Payments will be satisfied out of current revenues or out of some fund within the control of Lessee. It is the Lessee's intent to make the Rent Payments for the full Lease Term If funds are available therefore because the use of the Equipment is essential to Lessee's proper, efficient and economic operation. 4. Early Expiration. Lessee may terminate this Lease at the end of any fiscal period within which Rent Payments are due, provided Lessee gives Lessor no less than thirty (30) days prior written notice and peaceably surrenders possession of the Equipment to Lessor or its assignee on the last day of such fiscal period ("Early Expiration Date") at the location within the continental United States designated by Lessor, packed for shipment in accordance with manufacturer's specifications and freight prepaid and insured. Termination of the Lease pursuant to this paragraph shall be without penally or expense to Lessee except as expressly provided herein. Lessee shall remain liable for Rent Payments and other amounts due on this Lease -Purchase Agreement prior to the Early Expiration Date for which funds were appropriated or otherwise available. Notwithstanding the foregoing, Lessee agrees (1) that If this lease expires early in accordance with the preceding paragraph, Lessee shall not purchase, lease or rent equipment which performs the same function as, or functions taking the place of, those performed by the Equipment, and shall not permit such functions to be performed by Page I. of s Rev. 07/94 5ARLINE " L E A S I N G Its own employees or by any agency or entity affiliated with or hired by Lessee for the balance of the fiscal period in which such early expiration occurs or the next succeeding fiscal period thereafter, (il) that It will not during the Lease Term give priority to the application of funds to any other functionally similar equipment. 5. Limitation on Warranties. Lessee acknowledges and agrees that the Equipment is of a size, design, and capacity selected by Lessee, that Lessor is neither a manufacturer nor a vendor of such equipment, and that LESSOR HAS NOT MADE, AND DOES NOT HEREBY MAKE, ANY REPRESENTATION, WARRANTY OR COVENANT, EXPRESS OR IMPLIED, WITH RESPECT TO THE MERCHANTABILITY, CONDITION, QUALITY, DURABILITY, DESIGN, OPERATION, FITNESS FOR USE OR SUITABILITY OF THE EQUIPMENT IN ANY RESPECT WHATSOEVER OR IN CONNECTION WITH OR FOR THE PURPOSES AND USES OF LESSEE, OR ANY OTHER REPRESENTATION, WARRANTY, OR COVENANT OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, WITH RESPECT THERETO, AND LESSOR SHALL NOT BE OBLIGATED OR LIABLE FOR ACTUAL, INCIDENTAL, CONSEQUENTIAL, OR OTHER DAMAGES TO LESSEE OR ANY OTHER PERSON OR ENTITY ARISING OUT OF OR IN CONNECTION WITH THE USE OR PERFORMANCE OR MAINTENANCE OF THE EQUIPMENT. Lessor hereby assigns to Lessee during the Lease Term, so long as no Event of Default has occurred and is continuing, all manufacturer's warranties, If any, express or implied with respect to the Equipment and Lessor authorizes Lessee to obtain the customary services furnished in connection with such warranties at Lessee's expense. 6. Authority and Authorization. Lessee represents, covenants and warrants, and as requested by Lessor, will deliver an opinion of counsel to the effect that: (I) Lessee Is a fully constituted political subdivision or agency of the Slate of the Equipment Location: (11) the execution, delivery and performance by the Lessee of this lease have been duly authorized by all necessary action on the part of the Lessee; and (III) this lease constitutes a legal, valid and binding obligation of the Lessee enforceable in accordance with its terms. Lessee agrees that (i) it will do or cause to be done all things necessary to preserve and keep the Lease In full force and effect, (it) it has complied with all bidding requirements where necessary and by due notification presented this lease for approval and adoption as a valid obligation on its part, and (iii) it has sufficient appropriations or other funds available to pay all amounts due hereunder for the current fiscal period. 7. Title. Upon acceptance of the Equipment by Lessee hereunder, title to the Equipment will vest in Lessee; provided, however, that (i) In the event of early expiration of this Lease pursuant to Section 4 hereof, (11) upon occurrence of an Event of Default hereunder, and as long as such Event of Default Is continuing, or (Ili) In the event that the purchase option has not been exercised prior to the Expiration Date, title will immediately vest in Lessor or its assignee. 8. Security Interest. In order to secure all of its obligations hereunder, Lessee hereby (I) grants to Lessor a first and prior security interest In any and all right, title and interest of Lessee in the Equipment and in all additions, attachments, accessions, and substitutions hereto, and any proceeds therefrom (11) agrees that this Lease may be filed as a financing statement evidencing such security interest, and (III) agrees to execute and deliver all financing statements, certificates of title and other instruments necessary or appropriate to evidence such security interest. 9. Personal Properly, The Equipment is and will remain personal properly and will not be deemed to be affixed to or a part of the real estate on which it may be situated, notwithstanding that Equipment or any part thereof may be or hereafter become In any manner physically affixed to or attached to real estate of any building thereon. If requested by Lessor, Lessee will, at Lessee's expense, furnish a landlord or mortgagee waiver with respect to the Equipment. 10. Use; Repairs. Lessee will use the Equipment in a careful manner for the use contemplated by the manufacturer for the Equipment and shall comply with all laws, ordinances, insurance policies and regulations relating to, and will pay all costs, claims, damages, fees and charges arising out of its possession, use or maintenance. Except as maybe the responsibility of equipment warrantor. Lessee, at its expense, will keep the Equipment in good repair and furnish all parts, mechanisms and devices required therefore. If the Equipment is customarily covered by a maintenance agreement, Lessee will furnish Lessor with a maintenance agreement with a party satisfactory to Lessor. I1. Alterations. Lessee will not make any alterations, additions or improvements to the Equipment without Lessor's prior written consent unless such alterations, additions or improvements may be readily removed without damage to the Equipment. Page 2 of 5 Rev. 07/94 12. Location; Inspection. The Equipment will not be removed from or if the Equipment consists of rolling stock, its permanent base will not be changed from, the Equipment Location without Lessor's prior written consent which will not be reasonably withheld. Lessor will be entitled to enter upon the Equipment Location or elsewhere during reasonable business hours to inspect the Equipment or observe Its use and operation. 13. Liens and Taxes. Lessee shall keep the equipment free and clear of all levies, liens and encumbrances except those created under this Agreement. Lessee shall pay, when due, all charges and taxes (local, state and federal) which may now or hereafter be imposed upon the ownership, leasing, rental, sale, purchase, possession or use of the Equipment, excluding however, all taxes on or measured by Lessor's income. If Lessee fails to pay said charges, and taxes when due, Lessor shall have the right, but shall not be obligated, to pay said charges and taxes. If Lessor pays any charges or taxes for which Lessee Is responsible or liable under this Agreement, Lessee shall reimburse Lessor therefore. 14. Risk of Loss; Damage; Destruction. Lessee assumes all risk of loss of or damage to the Equipment from any cause whatsoever, and no such loss of or damage to the Equipment nor defect therein nor unfitness or obsolescence thereof shall relieve Lessee of the obligation to make Rent Payments or to perform any other obligation under this Lease. In the event of damage to any item of Equipment, Lessee will Immediately replace the same in good repair with The proceeds of any insurance recovery applied to the cost of such repair. If lessor determines that any item of Equipment Is lost, stolen, destroyed or damaged beyond repair, Lessee at the option of Lessor will: either (a) replace the same with like equipment in good repair, or (b) on the next Rent Payment dale, pay Lessor: (1) all amounts then owed by Lessee to Lessor under this Lease, Including the Rent Payment due on such date; and (b) an amount equal to the applicable Termination Payment set forth in Exhibit B. In the event that Lessee is obligated to make such payment with respect to less than all of the Equipment, Lessor will provide Lessee with pro -rats amount of the Rent Payment and the Termination Payment to be made by Lessee with respect to the Equipment which has suffered the event of loss. 15. Insurance. Lessee, will, at Its expense, maintain at all times during the Lease Term, fire and extended coverage, public liability and property damage Insurance with respect to the Equipment, In such amounts, covering such risks, and with such Insurers as shall be satisfactory to Lessor, or, with Lessor's prior written consent, may self - insure against any or all such risks. In no event will the insurance limits be less than the amount of the then applicable Termination Payment with respect to such Equipment Each insurance policy will name Lessee as an insured and lessor or Its assigns as an additional Insured and loss payee, and will contain a clause requiring the insured to give Lessor at least thirty (30) days prior written notice of any alteration In the terms of such policy or the cancellation thereof. The proceeds of any such policies will be payable to Lessee and Lessor or its assigns as their interest may appear. Upon acceptance of the Equipment and upon each Insurance renewal date, Lessee will deliver to Lessor a certificate evidencing such insurance. In the event that Lessee has been permitted to self -insure, Lessee will furnish Lessor with a letter of certificate to such effect In the event of any loss, damage, injury or accident involving the Equipment, Lessee will promptly provide Lessor with written notice thereof and make available to Lessor all information and documentation relating thereto. 16. Indemnification. Lessee shall indemnify lessor against, and hold Lessor harmless from, any and all claims, actions, proceedings, expenses, damages or liabilities, including attorney's fees and court costs, arising in connection with the Equipment, including, but not limited to, its selection, purchase, delivery and possession, use, operation, rejection or return and the recovery of claims under insurance policies thereon. 17. Purchase Option. Upon thirty (30) days prior written notice from Lessee to Lessor, and provided that there is no Event or Default, or an event which with notice or lapse of time, or both, could become an Event of Default, then existing, lessee will have the right to purchase the Equipment on the Rent Payment dates set forth in Exhibit B by paying to Lessor, on such date, the Rent Payment then due together with the Termination Payment amount set forth opposite such date. Upon satisfaction by Lessee of such purchase conditions, Lessor will transfer any and all of Its right, title and interest in the Equipment to Lessee as is, without warranty, express or implied except that Lessor wilt warrant to Lessee that the Equipment is free and clear of any liens created by lessor. 18. Assignment. Without Lessor's prior written consent, Lessee will not either (1) assign, transfer, pledge, hypothecate, grant any security Interest in or otherwise dispose of this Lease or the Equipment or any interest in this Lease or the Equipment, or (li) sublet or lend the Equipment or permit it to be used by anyone other than Lessee or Lessee's employees or Lessee's customers. lessor may assign its rights, title and interest to and to this Lease, the Equipment and any other documents executed with respect to this Cease and/or grant or assign a security interest in this Lease and the Equipment, in whole or in part Any such assignees shatl have all of the rights of Lessor under this Lease. No assignment or reassignment of any of Lessor's right, title or interest In this Lease or the Equipment shall be effective unless and until Lessee shall have received a duplicate original counterpart of the Page 3 of 5 Rev. 07/94 document by which the assignment or reassignment is made, disclosing the name and address of each such assignee. DURING THE LEASE TERM, LESSEE SHALL KEEP A COMPLETE AND ACCURATE RECORD OF ALL SUCH ASSIGNMENTS IN A FORM NECESSARY TO COMPLY WITH UNITED STATES INTERNAL REVENUE CODE, SECTION I03(1), AND THE REGULATIONS, PROPOSED OR EXISTING, FROM TIME TO TIME PROMULGATED THEREUNDER. Subject to the foregoing, this Lease inures to the benefit of and Is binding upon the successors and assigns of the parties hereto. No further action will be required by Lessor or by Lessee to evidence the assignment, but Lessee will acknowledge such assignments in writing If so requested. 19. Events of Default. The term "event of default", as used herein, means the occurrence of any one or more of the following events: (a) Lessee fails to make any Rent Payment (or any other payment) as it becomes due in accordance with the terms of this Lease, and any such failure continues for ten (10) days after the due date thereof, (b) Lessee fails to perform or observe any other covenant, condition or agreement to be performed or observed by it hereunder and such failure Is not cured within (10) days after written notice thereof by Lessor; or (c) The discovery by Lessor that any statement, representation or warranty made by Lessee to this Lease or in any writing ever delivered by Lessee pursuant hereto or In connection herewith Is false, misleading, or erroneous in any material respect. 20, Remedies. Upon the occurrence of an Event of Default, and as long as such Event of Default is continuing, Lessor may, at its option, exercise one or more of the following remedies: (a) by written notice to Lessee, declare an amount equal to all amounts then due under this Lease and all remaining Rent Payments due during the Lease Term to be immediately due and payable, whereupon the some shall become Immediately due and payable, (b) by written notice to the Lessee, request Lessee to (and Lessee agrees that it will), at Lessee's expense, promptly return the Equipment to Lessor in the manner set forth In Section 4 hereof, or Lessor, at its option, may enter upon the premises where the Equipment is located and take immediate possession and remove the same; (c) sell or lease the Equipment or sublease it for the account of Lessee, holding Lessee liable for all Rent Payments and other payments due to the effective dale of such selling, leasing or subleasing and for the difference between the purchase price, rental and other amounts paid by the purchaser, Lessee or Sublessee pursuant to such sale, lease or sublease and amounts payable by Lessee hereunder, and (d) exercise any other right, remedy or privilege which may be available to it under applicable laws of the state of the Equipment location or any other applicable law or proceed by appropriate court action to enforce the terms of this Lease as to any or all of the Equipment. In addition, Lessee will remain liable for all covenants and Indemnities under this Lease and for all legal fees and other costs and expenses, including court cost-, incurred by Lessor with respect to the enforcement of any of the remedies listed above of any other remedy available to Lessor. 21. Notices. Any and all notices required to be given under this Lease by Lessee shall he made in writing and mailed by Certified Mail, Return Receipt Requested, to Lessor at the address set forth herein or at such address as Lessor may provide in writing from time to time. Any such notice shall be deemed to have been received five days subsequent to malting. 22. Nature of Agreement. Lessor and Lessee agree that it is their intention that, for federal income tax purposes, the Interest of Lessor In the Equipment is as a secured party and the interest of Lessee Is as a debtor, and that Lessee neither has nor shall have any equity in the Equipment. It is the agreement of Lessor and Lessee that the total Rent Payments provided for hereunder constitute the purchase price of the Equipment together with Interest on the unamorlized amount thereof over the term of this Lease, that each monthly Rent Payment constitutes principal and Interest In accordance with the schedule of Rent Payments set forth in Exhibit B of this Lease, which fully amortizes The purchase price of the Equipment, together with interest, over the Lease Term, and that upon the punctual payment of the Rent Payments and other amount due and prompt performance of all other obligations under this Lease, title to the Equipment shall vest permanently in the Lessee as provided in this Lease, free and clear of any lien or security interest of Lessor therein. 23. Governing Law. This Lease shall be governed by and construed in accordance with the Laws of the State of Texas. Page 4 of 5 Rev. 07/94 24. Further Assurances. Lessee shall execute or provide, as requested by Lessor, any documents and information which are reasonably necessary with respect to the transaction contemplated by this Lease. 25. Entire Agreement. This Lease, together with the exhibits attached hereto and made a part hereof and other attachments hereto, and other documents or instruments executed by Lessee and Lessor In connection herewith, constitute the entire agreement between the parties with respect to the Lease of the Equipment, and this Lease shall not be modified, amended, altered or changed except with the written consent of Lessee and Lessor. 26. Severabilily. Any provision of this Lease found to be prohibited by Law shall be ineffective to the extent of such prohibition without Invalidating the remainder of this Lease. 27. Waiver. The waiver by Lessor of any breach by Lessee of any term, covenant or condition hereof shall not operate as a waiver of any subsequent breach hereof. Dated this �7 t h day of MARCH 199 5_. LFSSOR: SAVI3C0 CREDIT COMPANY Dll�- DRA SAFELM LEASING By: Joe Berson Title: Credit Manager LESSEE: Title: Mayor Page 5 of 5 Rev. 07/94 SAFELINF L E A S I N G EXHIBIT A Page I of I. This Exhibit A is a part of the Municipal Lease - Purchase Agreement dated 199 between SAFECO Credit Company, Inc. DBA S4FKL1WE Leads& AS LESSOR, AND Crff OF LUBBOCB, TEXAS , as LESSEE 2301 N. University Lubbock, Texas 79415 A. EQUIPMENT LOCATION: B. FIRST PAYMENT DATE: (Upon signing lease) C. EXPIRATION DATE: D. ADVANCE RENT PAYMENTS: First Rental Payment shall he paid to Lessor at the time this Lease is signed. The total amount due In advance is 470.12 I- RENTAL PERIOD: TLtri'-ak {36) Monthly installments of $ 47&12 . due on the 10 th of each month until the lease is paid in full. F. EQUIPMENT DESCRIPTION One (1) NEW IDS Durabill, Model SP250HD, 2.5 cu. yd. trash compactor, SIN 09941LO36 One (1) NEW IDS Durabill, Model RC 42, 42 cu. yd. receiver container, S/N RC 42.758 Date: Marc 7 , 1.99 5 Attest: Title: City Secretary 5AFEII9r. p7'94 L E A S I N G r SAFrLINE x L E A S I N G 1 2 3 4 5 6 7 B 4 10 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 EXHIBIT B Payment Amortization Schedule Page 1 of 2 LESSOR: SAFECO CREDIT COMPANY, INC. SAFELINE Leasing LESSEE: CITY OF LUBBOCK <--------------------- Payments --------------------- > Payment Principal Interest ---------------- ---------------- 470.12 ---------------- 470.12 0.00 470.12 384.08 86.04 470.12 386.31 83.81 470.12 388.54 81.58 470.12 390.80 79.32 470.12 393.06 77.06 470.12 395.33 74.79 470.12 397.62 72.50 470.12 399.93 70.19 470.12 402.24 67.88 470.12 404.57 65.55 470.12 406.92 63.20 ---------------- ---------------- 5,641.44 ---------------- 4,819.53 821.91 470.12 409.27 60.85 470.12 411.64 58.48 470.12 414.03 56.09 470.12 416.43 53.69 470.12 418.84 51.28 470.12 421.26 48.86 470.12 423.70 46.42 470.12 426.16 43.96 470.12 428.63 41.49 470.12 431.11 39.01 470.12 433.61 36.51 470.12 -------------------------------- 436.12 ---------------- 34.00 5,641.44 5,070.80 570.64 470.12 438.64 31.48 470.12 441.18 28.94 470.12 443.74 26.38 470.12 446.31 23.81 470.12 448.89 21.23 470.12 451.49 18.63 470.12 454.11 16.01 470.12 456.74 13.38 470.12 459.38 10.74 470.12 462.05 8.07 470.12 464.72 5.40 470.12 467.41 2.71 -------------------------------- 5,641.44 ---------------- 5,434,67 206.77 TERMINATION PAYMENT < --------------------- -Balances -------------------- > Net Balance Princ Balance Accrued Int ---------------- 14,854.88 ---------------- ---------------- 14,854.88 0.00 14,470.80 14,470.80 0,00 14,084.49 14,084.49 0.00 13,695.95 13,695.95 0.00 13,305.15 13,3C5.15 0.00 12,912.09 12,912.09 0.00 12,516.76 12,516.76 0.00 12,119.13 12,119.13 0.00 11,719.20 11,719.20 0.00 11,316.96 11,316.96 0.00 10,912.39 10,912.39 0.00 10,505.47 1C,505.47 0.00 10,096.20 10,096.20 0.00 9,684.55 9,684.55 0.00 9,270.52 9,27C.52 0.0C 8,854.10 8,854.10 0.00 8,435.26 8,435.26 0.00 8,013.99 8,013.99 0.00 7,59C.29 7,590.29 0.00 7,164.13 7,164.13 0.00 6,735.51 6,735.51 0.00 6,304.40 6,304.40 0.00 5,870.79 5,870.79 0,00 5,434.67 5,434.67 0.00 4,996.03 4,996.03 0.00 4,554.85 4,554.85 0.00 4,111.11 4,111.11 0.00 3,664.80 3,664.80 0.00 3,215.91 3,215.91 0.00 2,764.41 2,764.41 0.00 2,310.30 2,310.30 0.00 1,853.56 1,853.56 0.00 1,394.18 1,394.18 0.00 932.13 932.13 0.00 467.41 467.41 0.00 0.00 0.00 0.00 WiLINE "' L E A S I N G r SARLINE ,a L E A S I N G EXHIBIT B Payment Amortization Schedule Page 2 of 2 LESSOR: SAFECO CREDIT COMPANY, INC. DBA SAFELINE Leasing LESSEE: CITY OF LUBBOCK TERMINATION PAYMENT < --------------------- Payments --------------------- > <---------------------- Balances ------------------- > Payment Principal Interest Net Balance Princ Balance Accrued Int 0.00 0.00 0.00 0.00 0.00 0.00 -------------------- ---------------- 0.00 0.00 0.00 -------------------------------- Tozals 16,924.32 16,924.32 15,325.00 1,599.32 LESSEE'S INITIALS SAFELINE a L E A S I N G r SARLINE A L E A S I N G DELIVERY AND ACCEPTANCE To: SAFECO CREDIT COMPANY, INC. DBA SAFELINE LEASING 745 E. Mulberry, Suite 210 San Antonio, Texas 78212 The below listed items of equipment which you leased to us under Lease No. 6Z-�V-rc'0 have been delivered and any required installation completed. EQUIPMENT DESCRIPTION: One (1) NEW IDS Durabilt, Model SP250HD, 2.5 cu. yd. trash compactor; SIN 099411036 One (1) NEW IDS Durabilt, Model RC 42, 42 cu. yd. receiver container; S/N RC 42-758 Equipment Cost: $ 15,325.00 We have inspected the equipment and it fully complies with the terms of the Lease - Purchase Agreement. The equipment is in good condition and repair and we accept it. We also authorize SAFECO CREDIT COMPANY, INC. DBA SAFELINE LEASING to deduct from its payment to the vendor who is providing the equipment covered under the above referenced lease, the amount of the advance rentals due, up to the dollar amount of any deposit we have paid to the vendor. If we have not paid a deposit to the vendor, or our deposit is less than the advance rentals required by SAFECO CREDIT COMPANY, INC. DBA SAFELINE LEASING, we agree to pay the balance of the advance rentals upon acceptance of described leased equipment. You have made no warranty or representation, express or implied, of merchantability, fitness, design, condition, workmanship, its year of manufacture or otherwise regarding the equipment. You will not be responsible for, any service contracts or other agreements with third parties. DO NOT SIGN THIS LETTER UNTIL THE EQUIPMENT IS ACTUALLY RECEIVED IN GOOD ORDER AND CONDITION AND INSTALLED. THE VENDOR'S INVOICE WILL NOT BE PAID UNTIL THIS LETTER IS SIGNED AND RETURNED. THE EQUIPMENT WAS DELIVERED AND ACCEPTED ON: JAN 10, , 199 5 LESSEE: CITY OF LUBBOCK, TEXAS Title:�o� ou L J1L J ��C` Date: Rev. 7/93 SAMINE L E A S I N G Solid Waste Management City of Lubbock P.O. Box 2000 Lubbock, Texas 79457 BOB-767-24B5 Gentlemen: Municipal Lease - Purchase Agreement Dated , 199 This letter confirms that the equipment described in the above -referenced Municipal Lease - Purchase Agreement ("Lease") is essential to the function of the undersigned or to the service we provide to our citizens. Further, we have an immediate need for, and expect to make immediate use of, substantially all such equipment, which need is not temporary or expected to diminish in the foreseeable future. Such equipment will be used by us only for the purpose of performing one or more of our governmental or proprietary functions consistent with the permissible scope of our authority. Specifically, such equipment was selected by us to be used as follows: Provide waste disposal for Texas Instruments Plant. The estimated useful life of such equipment based upon manufacturer's representations and our projected needs is 14 years. Our source of funds for payments of rent due under the Lease for the current fiscal year is appropriated funds in Commercial Section Budget. We expect and anticipate adequate funds to be available for all future payments of rent after the current fiscal year for the following reasons: The lease amount will be budgeted in the following fiscal years. Very truly yours, Lessee: CITY OF LUBBOCK, TEXAS By: Date: BID 013123 CLOSE 1211304 1 Ea 2 Cubic Yard Compactor and 41 Cubic Yard Pecker/Receiver 36 M a LeasefPurchase A prebid conference was held on December 7, 1994. Advertisement Dahas: November 27 and December 4, 19W Pape 1 of 1 LEASEIPURCHASE COMPACTOR AND RECEIVER/PACKER CONTAINER (Solid Waste) INDUSTRIAL DISPOSAL SUPPLY Plano, TX =$17OM.24 NO BID: American Equipment and Trailer, Inc. Bridgeport Refuse Trucks Squdvwestem Equipment Company MaCLAIMS OF OKLAHOMA Oklahoma City, OK S20,439.00 NO RESPONSE: B S C Body Company, Inc. Big Tex Lubbock Trailer Sales Bowers Plastics Custom Built Trailer Econoline Trailers Four R Industrial Supply Gilbreath, Inc. H & H Trailer Sales Hub City Spring Service J & B Trailers Lidell Lufkin Trailer Meg Equipment Mike Watkins Company Module Truck Service R & B Bearing & Hydraulics Robertson Trailer Repair Texoma Waste Control Trailer Marketing TRC 3 Associates Triple S Trade Lot Truck Parts 6 Equipment West Tests Lee Company EID 013123 CLOSE 1211304 1 Ea 2 Cubic Yard Compactor and 41 Cubic Yard PaaksrfReosiver 36 Moo d LessawPurchaae A prebld oonference vvaa hold on December 7, 19W. Advartbertwd Oebw November 27 and December 4, 1 W4 Page 1 d 1 LEASElPt/RCHASE COMPACTOR AND RECEIVERIPACKER CONTAWER (Solid Wadley INDUSTRIAL DISPOSAL SUPPLY i17,fM2.24 NO BID: American Equipment and Trailer, Inc, Bridgeport Refuse Trucks Equipment Company McC AIN'S OF OKLAHOMA Oldshoms City, OK $20.430.00 NO RESP1] W B a C Body Company, Inc. Big Tax Lubbock Trailer Sales Bowers Plastics Custom Built Trailer Econdine Trailers Four R Industrial Supply Glibrealh, kro. H R H Trailer Sala Hub City Spring Service J & B Trailera Udell Lufkin Trailer Meg Equlpm»nt Mike Walftw Company Module Truck SwAos R 6 B 8earirg & Hydrwulica Roberlson Trailer Repair Taaoome Wets Calbol Trailer Marketing TRC 6 Assoclatrrs Triple S Trade Lot Truck Parts d Equipment WestTexas Lee Company