HomeMy WebLinkAboutResolution - 6519 - Contract - Abilne AG Ford New Holland - Seed Cart_Air Seeder Lease_Purchase - 09_23_1999Resolution No. 6519
Sept. 23, 1999
Item No. 36
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 contract for Seed Cart/Air
Seeder Lease/Purchase, by and between the City of Lubbock and Abilene AG Ford New
Holland of Abilene, Texas and related documents. Said contract is attached hereto and
incorporated in this resolution as if fully set forth herein and shall be included in the
minutes of the City Council.
Passed by the City Council this 23rd day of Sep ember 1999 .
Y S T N, MAYOR
ATTEST:
, City Secretary
AS TO CONTENT:
v vi �] 4�-v �
Victor Kilm Purchasing Ma
nager
anager
APPROVED AS TO FORM:
William de Haas
Competition and Contracts Manager/Attorney
gs:ccdocs/Seed Cart/Air Seeder Lease/Purchase.res
September 14, 1999
hEw HOU AND MUNICIPAL EQUIPMENT
Ra/Credit Company (FORM N
MUNICIPALITY
Name and Address (Include County and Zip Code)
CITY OF LUBBOCK
1625 13TH STREET
LUBBOCK, TX
LUBBOCK County, 7
01
Resolution No. 6519
Sept 23,999
LEASE itez #36 ACCT. NO.
DATE
09-13-1999
DEALER (HEREINAFTER CALLED "LESSOR")
Name and Address (Include County and Zip Code)
ABILENE NEW HOLLAND, INC.
1358 S. TREADAWAY
ABILENE, TX 79602
Lessor hereby agrees to lease to Municipality and Municipality hereby agrees to lease from Lessor the following
described equipment (hereinafter called the "Equipment") upon the terms and conditions hereinafter set forth:
CP11 IMLACkrr
WU
MAKE AND TYPE
MODEL
SERIAL NO.
R
ear
lexi-coil
(A) N/A HRS
N
it Drill
lir
7500
7000-096392
N/A
19
lexi-coil
(B) N/A HRS
N
CART
2320
U091651
N/A
PER
PEA
YR
HRS
Pq
PER
YR
LEASE TERMS
LEASE TERM ON MOS.)
NO. OF PMTS PNCUUDING ADVANCE?
EXCESS USE CHARGE PER HOUR
60
5
At; N/A B N/A
RENTAL PAYMENT
RENTAL TAX
TOTAL PAYMENT
ADVANCE PMTS
18 010.19
N/A
18 010.19
REMAINING (EACH)
I REMAINING
I
S 18,010.19 i 4
$ N/A
S 18 010.19
PURCHASE OPTION PRICE
SECURITY DEPOSIT
TOTAL RENTAL
S 1.00
N/A
S
TAXINCLUDING ADVANCE 94 050.95
Periodic Rentals are payable In advance. The advance rental payment Is due this date.
Subsequent payments are due commencing 09-13 2000 and
❑ Monthly on the day of each month thereafter, except for months of
❑ Quarterly on the day of each third Ord) month thereafter.
❑ Semi-annually on the day of each sixth (6th) month thereafter.
�C Annually on thel3th day of each twelfth (12th) month thereafter.
(The Additional Terms and Conditions set forth on pages 2 and 3 are a part of this Lease.)
Munic' A CIV OF L Lessor
By
MAYOR, IFIDY SITTON
ABILENE NEW HOLLAND, INC.
GUARANTY OF PAYMENTS. The undersigned guarantees performance of this lease by Lessee, Including prompt payment when due
of the sums payable by Lessee. The undersigned shall, upon demand, immediately pay any sums due under this lease. The
undersigned r y waives notice of any modifications, amendments, extensions, nonperformance, or nonpayment This guaranty shall
be direct r , and.. ontinul oblige ' n of the undersigned and the undersigneds heirs, successors, and assigns.
1625 13th Street
Signature 2. Addrlts9 .
Print Name WMY SITTON Lubbock, TX 79401
j 774 Cirky, S#ata Zip
A EST APPROV A
TO C�NT:
i�
APPROVED
AS TO FORM:
233202 1 1
5DAR
K T LLB
41111m,��
WILLIAM
DE HAAS
CITY CRETARY
��
COMP. &
CONTRACT MGR.
PROPERTY INSURANCE: Municipality is required to Insure the Equipment against loss or damage. Refer to
paragraph 3 for the insurance requirements.
Check Applicable Box
❑ By signing below Municipality requests the Lessor to try to buy the physical damage Insurance coverage
shown. Coverage will be based on the cash value of the Equipment at the time of loss but not more than the
limits of the policy. THE INSURANCE WILL NOT COVER PERSONAL. LIABILITY OR DAMAGE CAUSED TO
PROPERTY OF OTHERS.
$ N/A $ N/A
Deductible Term Premium Signature(s)
PROPERTY INSURANCE MAY BE OBTAINED FROM A PERSON OF YOUR CHOICE
Municipality represents that physical damage insurance has been placed on the Equipment through:
SELF INSURED
Name of Insurance Company Policy No. Name of Agent
Agents Phone No. Deductible
TERMS AND CONDITIONS
1, LEASE TERM. Municipality hereby acknowledges delivery and acceptance in good order of each item of Equipment listed on page
1. The term of this lease for each item of Equipment shall commence on the date hereof and shall continue for the Lease Term
specified on page 1. except as hereinafter provided.
Z RENTAL- During the Lease Term, Municipality shall pay to New Holland Credit Company, LLC thereinafter called "NHCC"), as the
assignee of the rentals corning due under this lease, the total rentals specified on page 1, together with a delinquency charge on
each periodic rental installment in default for ten days at the highest rate permitted by law or such lower amount assessed by
NHCC. The advance rental payment shall be payable upon the execution hereof and subsequent periodic rentals shall be payable in
advance on the day and at the intervals indicated on page 1. Upon the expiration or earlier termination of this lease, Municipality
shall pay to NHCC as additional rental for each hour of use of any item of the Equipment in excess of its normal usage, as
specified on page 1.
3. INSURANCE AND INDEMNITY. Municipality must insure itself and the Lessor against loss or damage to the Equipment. If the first
box under "Property Insurance" is checked, the Lessor will try to buy the coverage indicated, but will not be liable if it cannot do
so. If the second box is checked Municipality represents that it has obtained the required insurance through the insurer indicated,
and that Municipality has instructed the insurer to name New Holland Credit Company, LLC as a loss payee and/or an additional
insured on the policy.
The type and amount of insurance must be approved by the Lessor, but at all times must be in an amount no less than the amount
due under this lease, and the insurance policy must provide that Lessor will receive no less than ten days prior written notice of
cancellation, lapse or expiration of the insurance.
Municipality shall indemnify and hold harmless Lessor and NHCC and their agents, employees and successors from and against any
damage, loss, theft or destruction of the Equipment or any part thereof, and from and against any and all loss, damages. injuries,
claims, demands, costs and expenses (including legal expenses) of every kind and nature, arising out of or connected with the use,
condition (including, without limitation, all defects whether or not discoverable by Lessor or Municipality) or operation of the
Equipment. Municipality shall obtain liability insurance from a carrier acceptable to Lessor in such form and subject to such limits as
Lessor may reasonably require protecting the interests of Lessor, NHCC and Municipality against claims for damages or injuries to
persons or property caused by the use, holding or operation of the Equipment.
4. MAINTENANCE, REPAIRS AND OPERATING EXPENSES. Municipality shall maintain the Equipment in good working order and
condition, properly serviced and garaged, and shall make all necessary repairs and replacements.
5. REGISTRATION AND TAXES. Municipality shall accomplish and pay for the titling, registration and licensing of the Equipment, and
all inspections thereof required by any government authority. In addition, Municipality shall pay all taxes imposed in connection with
the use and ownership of the Equipment
6. NON APPROPRIATION. If funds are not allotted by Municipality for the next fiscal period sufficient to enable it to continue
making the rental payments set forth herein, Municipality may terminate this Agreement upon the expiration of the then current fiscal
year and promptly return the Equipment as provided herein. Municipality agrees to provide NHCC with immediate notice of its
intention to so terminate the Agreement. In the event Municipality elects to terminate this Agreement, as provided above, Municipality
agrees that it will not purchase, lease or rent other Equipment for the purpose of performing the functions or projects which were
to be performed by the leased Equipment for a period of ninety (90) days from the date of termination of this Agreement
The Municipality shall do all things within its power to obtain funds to enable it to continue making the payments set forth above.
ES ITS` OF LUBB
see's Lessee's Initials
w
Y E ]7ARNELL Lessee' a e Lessee s Initials
233202 101as windy Sitton, Mayor
CZ Y SECRETARY
NHCC COPY - PAGE 2 of 5
TERMS AND CONDITIONS (Cont'd)
i. TERMINATION.
a. By Municipality. Municipality shall have not right to terminate this lease, unless specified herein.
b. By Lessor. Lessor may terminate this lease at any time with respect to all or any item of Equipment upon the occurrence of
any of the following events of default: (i) Failure by Municipality to maintain any insurance as required hereunder (ii) Failure by
Municipality to pay any rental or other payment required hereunder; (iii) The damage, loss, theft or destruction of the Equipment
or any part thereof; (iv) Failure by Municipality to perform any other provision of this lease to be performed by Municipality; and
(v) Municipality suffering any lien, attachment or levy to become attached to the Equipment or any portion thereof. Upon such
event of default, Lessor may immediately retake the Equipment. Any such termination of this lease by Lessor for default by
Municipality shall not terminate Municipality's obligations to pay all of the rentals and other payments specified herein. Upon any
such termination of this lease by Lessor for Municipality's default Lessor may sell the Equipment or any item thereof, at public
or private sale. The amount of any sales proceeds and/or insurance proceeds (after first deducting the costs of retaking, holding,
preparing for sale and selling the Equipment, including attorneys fees and legal expenses, as permitted by law) received by
Lessor, in excess of the principal balance of the investment in the Equipment and interest thereon, shall be credited against the
amount of rentals and other payments remaining due under this lease as of the date of the sale of the Equipment, or the date
of the theft or total destruction of the Equipment The deficiency, if any, shall be paid by Municipality forthwith upon demand,
with interest thereon at the highest lawful contract rate. To the extent permitted by law, Municipality shall pay attorneys fees and
legal costs incurred by Lessor if suit is brought to collect any deficiency by an attorney who is not an employee of Lessor.
8. USE OF EQUIPMENT. The Equipment will be used only for the purpose for which it was designed and built and will be operated
out of, and, when not In use will be stored only at Municipalitys address as stated on page 1. The Equipment will not be altered
from its original condition unless specified in writing by Lessor and NHCC.
9. WARRANTIES. The Equipment is leased "As Is". There are no implied warranties, including any of merchantability or fitness for
purpose, and there are no express warranties other than those that may be set forth in a separate written agreement provided by
the manufacturer of the Equipment In no event shall Lessor be liable for special, incidental or consequential damages.
10. OPTION TO PURCHASE. Municipality has the right to purchase the Equipment provided the Municipality gives notice to Lessor, in
writing, of its intention to purchase 90 days prior to such purchase, and provided further that the Municipality's right to purchase is
conditioned on the Municipality's complete performance of all terms and conditions of this lease. The purchase price, if the option
to purchase is exercised prior to the end of the Lease Term, will equal (a) the remaining principal, plus (b) all unpaid rent, plus (c)
all accrued interest, plus (d) all default charges and late fees, plus (e) all unpaid sales and use tax, plus (f) all other assessments. If
the option to purchase is exercised at the end of the Lease Term, the purchase price will equal the Purchase Option Price stated
on page 1.
11. REPRESENTATIONS, WARRANTIES AND COVENANTS OF MUNICIPALITY.
a. Municipality is a state or a political subdivision of the state provided in the Municipality's address referenced on page 1 (the
"State") within the meaning of Internal Revenue Code (the "Code") Section 103, duly created and existing under the laws of the
State and possessing the power and authority to enter into this Agreement
b. Municipality will not use, or permit any other person to use, the Equipment in any way that would cause this Agreement to be a
private activity bond within the meaning of Code Section 141.
c. Municipality will not do or cause to be done any act which would cause, or by omission of any act permit, this lease to be an
abitrage bond within the meaning of Code Section 148 or a hedge bond within the meaning of Code Section 149(g).
d. Municipality will timely report and pay, to the extent of available funds, any amount required to be rebated to the United States
pursuant to Code Section 148(f).
e. Municipality will not do or cause to be done any act which would cause, or by omission of any act permit, this lease to be
federally guaranteed within the Code Section 149(b).
I. Municipality will comply with theinformation reporting requirements of Code Section 149(e), including limitation of the execution
and filing of any and all information statements.
g. Municipality will not do or cause to be done any act which would cause, or by omission of any act permit, interest to this lease
to be included in the gross income of the Lessor or its assignees for federal income tax purposes.
h. The undersigned is duly authorized to execute this lease on behalf of the Municipality.
12. TOTALITY OF AGREEMENT. This lease contains the entire agreement between Lessor, NHCC and the Municipality unless a change
is agreed to in writing by Lessor, NHCC and Municipality.
13. ASSIGNMENT_ Promptly upon the execution and delivery hereof, Lessor will assign all rentals and other payments due or to
become due hereunder to NHCC and will convey to NHCC a security interest in the Equipment Municipality acknowledges receipt of
notice of Lessor's intent to make such assignment and to convey such a security interest to NHCC and agrees to make all payments
due or to become due hereunder directly to NHCC without further notice. Lessor and Municipality expressly acknowledge and agree
that NHCC may assign any or all of its rights and obligations under this lease to any of its subsidiary or affiliated companies.
*S. CITY bF LUBBOCK
es Na
ARNELL Lessee's e
xsazoxETARY W1 ndy,- s tton, Mayor
NHCC COPY - PAGE 3 of 5
UA NW HO IM
,Credit Company
LIMITED POWER OF ATTORNEY
(GENERAL)
The undersigned hereby appoints New Holland Credit Company, LLC and Lexls Document Services, Inc., and their respective agents,
officers and employees, as the undersigned's agent and attorney -in -fact ("Agent"), and authorises Agent to execute on the undersigned's
behWf and file with appropriate public officials any financing statements, form UCC-1 z or other writings reasonably necessary to cause
New Holland Credit Company, LLC to obtain a first priority security interest In the following described property -
MAKE AND TYPE
MODEL
SERIAL NUMBER
Flexi-coil Air Drill
7500
7000-096392
Flexi-coil Air CART
2320
U091651
CI ALITYY DATE
CITMayor, YWindyB 1 ton FORWARD TO NHCC WITH SKID CONTRACT.
ATT T:
R-At-TH,t4, DARNE L
CITY S CRETARY
------------------------------------------------ -------
KEW CUT HERE IF MOT U31NG ACH OE91T PAYMENT EaROtLMEIfi AUMF UTATIOM.
�I hEW�✓
S/ Credit Company
ACH DEBIT PAYMENT PLAN ENROLLMENT AUTHORIZATION
UWe hereby request and authorize New Holland Credit Company, LLC (NHCC) to initiate withdrawals from the checking account with my
(our) bank referenced below by any means agreed upon between NHCC and the bank or to withdraw by electronic funds transfer from
the checking account funds payable to NHCC. This authority pertains to the schedule of payments or other amounts due as described in
the contract or lease I/we signed this date. This authorization may be canceled at any time by NHCC. I (We) may cancel by providing
NFICC written notice and such notice shall be effective five (5) days after receipt.
CITY OF
09-13-1999
If the checking account Is in a name other than yours, print that name and Social Security/TIN Number below and obtain that party's
signature.
All checking account signatories must sign If more than one signahre is required on the account.
NOTE: Please attach a voided check to ensure accurate processlinW
233813 10198
NHCC COPY - PAGE 4 of 5
IQ.N ''t��LLA�mpany
Page 1
09-13-1999
Customer Name:
Dealer Name:
CITY OF LUBBOCK
ABILENE AG FNH INC.
1625 13TH STREET
1358 S. TREADAWAY
LUBBOCK
TX 79401 ABILENE
TX 79602
806-775-2167
915-675-0602
Salesperson BW
Equipment Leased
N/U Make
Type Model Serial No
Cash Price
N F1exi-coil
Air Drill 7500 7000-096392
50,900.00
N Flexi-coil
Air CART 2320 U091651
29,000.00
Attach:
79,900.00
Trade -Ins
Make
Type Model Serial No
Net Trade -In
Gross Allowance Amt Owing
Effective Date
09-13-1999
Acquisition Amt
80,062.50
Term
60
Frequency
Annual
Chart #
121
P�T .SCHEDULE —OPTION.A. (PLUS. TAX IF APPLICABLE)
1 09-13-1999 18,010.19
2 09-13-2000 18,010.19
3 09-13-2001 18,010.19
4 09-13-2002 18,010.19
5 09-13-2003 18,010.15
6 09-13-2004 1.00
All information is subject to verification/approval by New Holland Credit Company.
Customer Name:
CITY OF LUBBOCK
1625 13TH STREET
LUBBOCK
806-775-2167
Salesperson BW
N/U Make
N Flexi-coil
N Flexi-coil
Attach:
Make
Effective Date
Acquisition Amt
Term
Frequency
Chart #
Pmt Date
1 09-13-1999
1999 Totals:
2 09-13-2000
2000 Totals:
3 09-13-2001
2001 Totals:
4 09-13-2002
2002 Totals:
5 09-13-2003
2003 Totals:
6 09-13-2004
2004 Totals:
Grand Totals:
PCredit Company
Dealer Name:
ABILENE AG FNH INC.
1358 S . TREAIDAWAY
TX 79401 ABILENE
915-675-0602
Equipment Leased
Type Model Serial No
Air Drill 7500 7000-096392
Air CART 2320 U091651
Type
09-13-1999
80,062.50
60
Annual
121 (6.25%)
Trade -Ins
Model Serial No
Gross Allowance Amt Owing
AM4IZGL. sCHDUI,E
Payment Lease Charges Principal
18,010.19 18,010.19
18,010.19 18,010.19
Page 1
09-13-1999
TX 79602
Cash Price
50, 900.00
29,000.00
79,900.00
Net Trade -In
Balance
62,052.31
18,010.19
3,878.27
14,131.92
47,920.39
18,010.19
3,878.27
14,131.92
18,010.19
2,995.02
15,015.17
32,905.22
18,010.19
2,995.02
15,015.17
18,010.19
2,056.58
15,953.61
16,951.61
18,010.19
2,056.58
15,953.61
18,010.15
1,059.48
16,950.67
0.94
18,010.15
1,059.48
16,950.67
1.00
0.06
0.94
1.00
0.06
0.94
90,051.91
9,989.41
80,062.50
All information is subject to verification/approval by New Holland Credit Company.