HomeMy WebLinkAboutResolution - 2008-R0165 - Lease Agreement - Bee Equipment Sales - Lease Of Asphalt Paver - 05/08/2008Resolution NO. 2008-ROI65
May 8, 2008
Item filo. 5.9
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock is hereby authorized and directed to
execute for and on behalf of the City of Lubbock a Lease Agreement and any associated
documents with Bee Equipment Sales of Lubbock, Texas, for lease of an asphalt paver, a
copy of which Lease Agreement and any associated documents are attached hereto and
which shall be spread upon the minutes of this Council and as spread upon the minutes of
this Council shall constitute and be a part hereof as if fully copied herein in detail.
Passed by the City Council this 8th day of May , 2008.
DAVID A. MILLER, MAYOR
ATTEST:
Reb cca Garza, City Secretary
APP ED AS TO CONTENT:
3 me oomis
A stant City Manager/Transportation and Public Works
APPROVED AS TO FORM:
Don Vandiver, Attorney -of
DDres/BeeEWuipCon08Res
May 1. 2008
Resolution No. 2008—RO165
EQUIPMENT LEASE AGREEMENT for
Asphalt Paver
This Rental Agreement ("Agreement") is entered into this 8th day of May , 2008,
by and between the City of Lubbock (LESSEE) AND Bee Equipment Sales (LESSOR) of
Asphalt Paver - Leeboy 8515 of Lubbock, Texas.
The INDEMNITY provided under Terms and Conditions number 6 and 12 of the
Equipment Lease Agreement, attached hereto, shall be effective only to the extent permited 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 PARTIERS
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 THE LUBBOCK COUNTY, TEXAS.
CITY OF LUBBOCK CONTRACTOR
BY
David A. M ller, Mayor t orized Representative
ATTEST:
Rebcca Garza, City Secretary
AS TO
W. Loomis, Transportation Public Works
:)r/Assistant City Manager
APPROVED A FO
Xs istanti orney
as-�, ,,- 1,U
Resolution No. 2008-RO165
Bee Equipment Sales, Ltd.
P.Q. 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:
1) ONE (1) 2008 LEEBOY 8515 PAVER
2) S/N 8515T-79823
3)
4)
5) INSURANCE VALUE: 139,500.00
6)
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 MINIMUM RENTAL PERIOD OF THREE (3) MONTHS
starting 611/2008 in consideration of
which lessee hereby agrees to pay the lessor at its office in Lubbock, Texas the following rental:
Rental Rate
Freight Charges
Additional Charges
Sales Tax ( 8.25)%
Total Charges
$9,000.00 Monthly_x_ Weekly_ Daily
$0.00
$0.00 SURCHARGE: OFF-ROAD HEAVY-DUTY DIESEL EQUIPMENT
$0.00
$9,000.00
THREE consecutive MONTHLY rental payments of
NINE THOUSAND ($9,004.00 ) dollars beginning
1 -Jun -08
Total of three months payments equal
Dollars on
$27,000.00
Rental subsequent to the aforesaid minimum period shall be
dollars (S
) per
Should lessee elect to purchase above described equipment, the purchase price shall be
NIA Dollars (SN/A ) PLUS N/A
NIA
for a period of
( NIA)%
figured as conversion premium. Pus any additional charges as described in paragraph 2 on reverse side of this agreement
Executed in triplicate this
CITY OF LUBBOCK
Lessee
1 ST day of
I have read the terms and conditions on the
reverse side of this agreement and agree thereto.
By
JUNE
Bee Equipment Sales, Ltd.
Lessor
Terms and Conditions
2408
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 ager expiration of warranty 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 FIVE HUNDRED dollars ($139,500.00
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).
6. 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 he used for:
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 whsle 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, Ltd & CITY BANK
as their interests appear. Lessee shall also famish 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 maybe 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 no agreement, unless especially provided for
herein, shall be binding upon either of the parties hereto.
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 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 A.D., 20
Notary public to and for County, Texas