HomeMy WebLinkAboutResolution - 2009-R0130 - Lease Agreement - Bee Equipment Sales LTD - Asphalt Paver - 04/09/2009Resolution No. 2009-RO130
April 9, 2009
Item No. 5.26
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, Buy Board Contract No.
268-07 for a Lease Agreement for an Asphalt Paver, by and between the City of Lubbock
and Bee Equipment Sales, Ltd. of Lubbock, Texas, and related documents. Said Buy
Board 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 9th
ATTEST:
ARebet.a Garza, City Secretary
VF.D AS TOCONTENT:
Loomis, Assistant City Manager
ortation & Public Works
APPROVED AS TO FORM:
Chad Weaver, Assistant City Attorney
day of April , 2009.
TOM MARTIN, MAYOR
-,^w/cedocslChadiResolutions/RES.Contract-Bee Equipment Sales
March 26, 2009
Resolution No. 2009—RO130
Bee Equipment Sales, Ltd.
P.O. Box 3906 - 2506 Slaton Rd.
Lubbock, TX 79452
Phone: 806-745-1511 Fax: 806-745-1542
EQUIPMENT LEASE AGREEMENT
Subject to the approval of the lessor at its home office, Bee Equipment Sales, Ltd., Lubbock, Lubbock County,
Texas, the lessor herein leases upon the terms and conditions hereinafter set out to
CITY OF LUBBOCK the lessee, of P.O. BOX 2000
Home Address
LUBBOCK TX 79457
City State Zip Telephone Number
the following described personal property, viz:
I) ONE (1) 2009 LEEBOY 8515 PAVER
2) SIN 851ST -54665
3) BuyBoard Contract 268-07
4) Rental Price $9,000.00
5) 2% Discount
6) INSURANCE VALUE: 139,700.00
7) CUSTOMER TO FURNISH PROOF OF INSURANCE
8)
Hours Out Hours In
will ship as soon as possible to CITY OF LUBBOCK the lessee at
LUBBOCK Job telephone no
for the FIVL (5) MONTHS
starting 514/2009 in consideration of
which lessee hereby agrees to pay the lessor at its office in Lubbock, Texas the following rental:
Rental Rate $8,820.00 Monthly_x_ Weekly_ Daily_
Freight Charges $0.00
Additional Charges $0.00 SURCHARGE: OFF-ROAD HEAVY-DUTY DIESEL EQUIPMENT
Sales Tax ( 8.25)% $0.00
Total Charges $8,820.00
FIVE
consecutive MONTHLY
rental payments of
) dollars beginning
Total of five months payments equal $44,100.00 )
Dollars on
Rental subsequent to the aforesaid minimum period shall be
dollars ($ ) per for a period of
Should lessee elect to purchase above described equipment, the purchase price shall be NIA
NIA Dollars (SNIA ) PLUS NIA ( N)A,)°/a
figured as conversion premium. Pus any additional charges as described in paragraph 2 on reverse side of this agreement
Executed in triplicate this 9TH day of APRIL 2009
CITY OF LUBBOCK Bee Equipment Sales, Ltd.
Lessee Lessor
1 have read the terns and conditions on the
reverse side of this agreement and agree thereto.
By
TOM MARTIN, Mayor
Terms and Conditions
I. This lease contemplates the continuous rental of the property at the rate of rental above agreed upon, until said property is
duly returned to lessor at its warehouse in Lubbock, Texas. But the lessee shall be liable for the full rental for the entire period even
thought the property is returned to the lessor prior to the termination of the minimum period.
2. Lessor agrees to warrant all major components for a period of 90 days other than misuse or abuse up to five percent (5%) of
the purchase option price. All cost exceeding five percent (5%) for the 90 -day warranty period and one hundred percent (100%)
of all cost after expiration ofwarranty period will be added to the purchase option price.
3. The rental price on this equipment is based on single shift operation, which is defined as five (5) ten (10) hour working days
per week not to exceed two hundred (200) hours per month, and in the event lessee puts the equipment on a double shift operation,
the rental rate hereinabove specified shall be doubled for the period of such use.
4. It is agreed that time is the essence of this contract and that all rental shall be paid promptly at the time agreed upon.
5. In case of Lessee's failure or refusal to pay on one or more installments of rent, payable hereunder or to fulfill or perform any
of the other agreements or conditions imposed on the Lessee within seven (7) days after Lessee's receipt of written notice of such
default. Lessor may, at its option (which shall be exercised within seven (7) days thereafter upon written notice thereof to Lessee),
until Lessee has cured its default prior to expiration of time limit contained in said notice, elect to either:
(a) Require Lessee to purchase said equipment at and for a purchase price equal to the sum of
ONE HUNDRED THIRTY NINE THOUSAND SEVEN HUNDRED dollars ($139,700.00
plus charges described in paragraph 2, less the sum of EIGHTY percent ( 80% )
of all rentals theretofore paid, and/or due which amount will be payable by Lessee to Lessor in cash upon
demand.All sales or use taxes, if any, which are applicable to such purchase shall be borne and paid by Lessee:or,
(b) Take possession of said equipment, including all substituted parts, accessories and equipment, with or without legal process
(Lessee hereby authorizing the peaceful entry for said purposes on any premises of the Lessee).
b. Lessee agrees, during the period covered by this lease, to protect, indemnify, reimburse, and save harmless the lessor against
any and all damage to said property.
7. Lessee agrees not to remove any of the above property from City or County into which shipped without giving immediate written
notice thereof to lessor, and further agrees not to remove any part thereof from the state into which shipped without first obtaining
written permission from the lessor.
8. Lessee agrees to pay all operation and maintenance expense until all of the above described property is returned and actually
received by the lessor, and upon the termination of this lease to return said property to the lessor in as good condition as received,
natural wear expected. Lessee further agrees to use said property only for the purposes recommended by the manufacturers thereof
and further not to load same beyond the capacity recommended by the manufacturers.
Lessee to have complete control of equipment. Equipment to be used for: Asphalt Paving
9. It is agreed that the above property shall, upon no condition, be sub -let by the lessee, nor shall lessee mortgage same or permit
any liens or claims to be filed against said property while in lessee's possession; and should, for any reason whatsoever, any lien be
filed against said property or any claim be made thereto, lessee agrees immediately, in writing, to notify the lessor thereof and to
make all necessary steps to protest said property against said claims.
10. All freight or transportation charges, both ways, loading and unloading charges are to be paid for by lessee. Return
transportation charges to be prepaid by lessee.
11. It is agreed that this lease shall continue in force and effect, unless terminated as above provided for, until all of the leased
property is returned to lessor
12. Lessee agrees to hold harmless from any claim in damages, either on behalf of lessee or any other person, form or corporation,
arising during the period covered by this lease, whether said claim results from the use of property hereby leased, or any defect in
same. The lessee shall furnish and keep effective during the entire term of this lease an insurance policy insuring the described
equipment with a contractors all risk equipment floater with a loss payable to Bee Equipment Sales, & CITY BANK
as their interests appear. Lessee shall also furnish and keep in effect during, the life of this lease, a policy of General Liability, with limits of
insurance equal to or greater than $500,000 Bodily Injury and $100,000 Property Damage. Such evidence of insurance shall be delivered
to the lessor prior to delivery of leased equipment to the Lessee.
13. The Lessee agrees to pay all assessments, taxes or public charges, which may be levied against property while in possession of the
Lessee.
14. The Lessee agrees to pay all costs of collection, including reasonable attorney's fees if this agreement is placed in the hands of an
attorney for collection.
15. It is agreed that this writing covers all the agreements between the parties hereto and that the parties shall be bound to the amendment to
this agreement attached herein as Exhibit "A" and incorporated herein by reference.
THE STATE OF TEXAS
COUNTY OF
BEFORE ME, the undersigned, a Notary Public in and for said County and State, in this day personally appeared know to me to be the
person whose name Tom Martin subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the
purposes and consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF THE OFFICE this the ` , day of j A,D., 20
"pr pGe ELISA SANChiEZ Notary public in and for County, Texas
�V
/Notary Polio, State d Texas
My ComrlllWOR irxtlires 11 .07-2011
OM
EXHIBIT A
AMENDMENT TO LEASE AGREEMENT for
Asphalt Paver
The Rental Agreement ("Agreement") entered into on the 9th day of April, 2009, by and between
the City of Lubbock (LESSEE) AND Bee Equipment Sales Ltd. (LESSOR) of Lubbock, Texas is
hereby amended as follows:
The INDEMNITY provided under BuyBoard Contract 268-07 and Terms and Conditions number 6
and 12 of the Equipment Lease Agreement, attached hereto, shall be effective only to the extent
permitted by law.
THIS AGREEMENT IS TO BE CONSTRUED UNDER TEXAS LAW WITHOUT REGARD TO
CONFLICT OF LAW RULES THAT WOULD DIRECT APPLICATION OF THE LAWS OF
ANY OTHER JURISDICTION. THE OBLIGATIONS OF THE PARTIES CREATED BY THIS
AGREEMENT ARE PERFORMABLE, AT LEAST IN PART, IN LUBBOCK COUNTY, TEXAS.
VENUE FOR ANY ACTION BROUGHT PURSUANT TO THIS AGREEMENT, OR ACTIVITY
CONTEMPLATED HEREBY, SHALL EXCLUSIVELY BE IN LUBBOCK COUNTY, TEXAS.
CITY OF LUBBOCK CONTRACTOR
�� BY
Tom Martin, Mayor Autborized Representative
ATTEST:
Rebe ca Garza, City Secretary
OVED AS
TOT:
yr
JaM4 Loomis, Transportation and Public Works
Ass' 'tant City Manager
APPR V AS TO FORM:
Assistant City Attorney
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