HomeMy WebLinkAbout03191 ORD - 01/08/1952je
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JANUARY 8, 1952 _
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AN ORDINANCE
AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE
FOR AND ON BEHALF OF THE CITY A LEASE PURCHASE CONTRACT
WITH OPTION TO PURCHASE WITH H. W. LEWIS EQUIPMENT
COMPANY, COVERING ONE ALLIS - CHALMERS AD4 MOTOR GRADER
FOR USE OF THE PUBLIC WORKS DEPARTMENT ;STRM'MAJME-
NANCE•ANDX0=RUCTION. � • -'_ j FOR A- TOTAL CON-
SIDERATION OF $14,757F-12 PAYABLE OUT OF NO. 108 STREET
FUND, A COPY OF WHICH LEASE PURCHASE AGREEMENT IS AT-
TACHED HERETO AND MADE A PART HEREOF; AND DECLARING
AN EMERGENCY.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
SECTION 1. THAT THE CITY MANAGER OF THE CITY OF CORPUS CHRISTI
BE, AND HE IS HEREBY, AUTHORIZED AND DIRECTED FOR AND ON BEHALF OF THE
CITY TO EXECUTE A LEASE CONTRACT WITH OPTION TO PURCHASE WITH H. W.
LEWIS EQUIPMENT COMPANY, COVERING ONE ALLIS- CHALMERS AD4 MOTOR GRADER
FOR THE USE OF THE DEPARTMENT OF PUBLIC WORKS (STREET MAINTENANCE AND
CONSTIJUCTION' - -1), FOR A TOTAL CONSIDERATION OF $14,154.12, OF WHICH
AMOUNT $477.08 IS INTEREST ON DEFERRED PAYMENTS, $5,725.68 IS INITIAL
CASH PAYMENT OF $3,975.68 PLUS TRADE -IN VALUE OF $1,750, AND $7,951.36
IS DEFERRED PAYMENT, WHICH CONSIDERATION IS PAYABLE OUT OF NO. 108
STREET FUND, AND WHICH LEASE PURCHASE AGREEMENT IS MADE A PART HEREOF
AND A COPY OF SUCH ATTACHED HERETO.
SECTION 2. THAT THE NECESSITY OF PROVIDING FOR THE MAINTEN-
ANCE AND CONSTRUCTION OF THE STREETS IN THE CITY OF CORPUS CHRISTI
TO BENEFIT THE PUBLIC HEALTH, SAFETY AND GENERAL WELFARE,BY PROVID-
ING FOR THE AFORESAID PURCHASE IMMEDIATELY, CREATES A PUBLIC EMERGENCY
AND AN IMPERATIVE PUBLIC NECESSITY REQUIRING THE SUSPENSION OF THE
CHARTER RULE THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY
ON THE DATE OF ITS INTRODUCTION AND THAT SUCH ORDINANCE OR RESOLUTION
SHALL BE READ AT THREE SEVERAL MEETINGS OF THE CITY COUNCIL, AND THE
MAYOR, DECLARING SUCH EMERGENCY AND NECESSITY TO EXIST, HAVING REQUESTED
THE SUSPENSION OF SAID CHARTER RULE AND THAT THIS ORDINANCE BE PASSED
3►9i
FINALLY ON THE DATE OF ITS INTRODUCTION AND TAKE EFFECT AND BE IN
FULL FORCE AND EFFECT FROM AND AFTER ITS PASSAGE, IT IS ACCORDINGLY
PASSED AND APPROVED THIS THE 8TH DAY OF iJANUARY, 1952.
L "
" MAYOR
THE CITY OF CORPUS CHRISTI, TEXAS
A TESTED:
CITY SECRETARY
APPROVED AS TO LEGAL FORM:
CITY AT ORNEY
STATE OF TEXAS 0
COUNTY OF NUECES 0
This LEASE AGREEMENT made.and entered into between the CITY OF CORPUS
CHRISTI, a municipal corporation of Nueces County, Texas, hereinafter called the
CITY and H. W. Lewis Equipment Company San Antonio, Texas
hereinafter called LESSOR,
WITNESSETH:
I•
u LESSOR has leased, demised and rented, and by these presents does lease,
demise and rent to CITY for the period from the 18th dap of December , A.D.
19L1, to the 18thday of December , A.D. 153a both date inclusive, the following
equipment: ,
ONE - Allis - Chalmers AD4 Motor Grader with all -steel cab and scarifier.
4 cylinder, GM diesel 104 H.P. @ 1600 RPM; 6'speed forward,
3 reverse transmission; 5/8" x 12' moldboard. Tires - 900x24 (front),
1300x24 (rear). Wt - 23,490#. Front ground clearance - 23 5/8 ";
blade lift 17 1/2 ". Machine No. 4 -4248
List Price - Machine less cab $13,310.24
Cab extra 366.80
Complete 13
Less trade -in Equipment No. 446 Galion Model 101 Motorized Grader
Serial #M2689; Motor #23564A - 1,750.00
Net v. $11,927.04
It is distinctiy-'% d specifically understood that the equipment herein
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A
leased and rented by CITY from LESSOR shall be used exclusive]y in the service of
CITY.
II.
In consideration for the lease and rental of said equipment, CITY promises
to pay LESSOR and LESSOR agrees to accept from CITY the following rentals on or be-
fore the dates specified below:
Date Amount
Initial payment,$3,7T5.68,plus interest (8477.06)
on deferred balance from December 18 S 19510 k.hK2.2§
OR when of above equipment is
delivered to CITY
December 18 , 1952 3,975.68
i December 18 , 1953 3,975.68
It is agreed by LESSOR and CITY that such rentals shall be paid from the
current revenues of CITY for the years in which such payments Fall due.
r
It is recognized that some of the equipment will be delivered by
LESSOR to CITY upon the effective date of this lease, while some of the equip-
ment may not be delivered on such date, but LESSOR agrees and binds itself that
as to that portion of the equipment not immediately delivered to CITY that it
Will forthwith order such equipment from the manufacturer and that such will be
sent to LESSOR earmarked for the CITY.OF CORPUS CHRISTI and delivery will be
made immediately to CITY upon receipt thereof; in this connection, it is esti-
mated that total delivery hereunder can be effected within 10 days
after the execution of this agreement.
With reference to the above equipment that is delivered upon the
effective date of this agreement, the CITY accepts such equipment in the condi-
tion in which it is now in, and LESSOR shall not be obligated or required to make
any improvements, replacements or repairs of any kind or character upon or to
said equipment or any of it during the term of this lease.
With reference to the equipment which will be delivered after the
effective date of this agreement, it is agreed by and between the parties here-
to that the CITY will have a reasonable time after the delivery of such equip-
ment to determine whether to accept or reject same. LESSOR shall not be obli-
gated to incur or pay any expense of any kind or character during the entire
term of this lease by reason of or in connection with the purpose for which said
equipment was designed. CITY agrees (1) to take the same care of said equipment
as a reasonably careful person would take care of his own property, and (2) to
keep said equipment in good repair and condition during the entire term of this
lease,"subject only to normal wear and tear, by reason of its use by CITY for the
purpose for which said equipment was designed. CITY further agrees (3) that if
any of said equipment is lost, taken or destroyed by fire, theft, windstorm, public
disaster, act of Gad, or any casualty or cause whatsoever, there shall be no abate-
ment of the rent provided for herein and (4) that CITY shall promptly and at its
expense replace any of said equipment which is so taken, lost or destroyed, and
(5) if a registration of license fee is required by the State of Texas then the
CITY shall be liable for the payment of such fee and in the event such a registra-
tion or license fee is paid by the LESSOR, then the CITY shall reimburse the LESSOR
for any and all amounts paid as such license or registration fee by the LESSOR, and
(6) at the time the CITY exercises its option to purchase, as provided for herein,
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CITY agrees and obligates itself to execute all necessary and proper exemption
certificates on all Federal excise taxes paid by LESSOR and if within' 90
days after the purchase by the CITY of the equipment herein leased and rented
by CITY from LESSOR, LESSOR has not been refunded by the Federal government said
Federal' excise taxes, CITY binds and obligates._itself to pay to LESSOR the full
amount of said Federal Excise taxes, provided, however, that if after CITY has
r paid to the LESSOR the amount of said excise taxes, such taxes be refunded to
=' LESSOR, then LESSOR binds and obligates itself to pay to CITY the amount of said
Federal excise taxes so refunded by the Federal government to LESSOR and thereto-
fore paid by the CITY to LESSCR, CITY (7) still further agrees to indemnify, hold
and save LESSOR harmless from any civil or criminal suit or liability whatsoever,
arising out of or in oonneotion with the use or possession of said equipment by
CITY under this lease and for the entire term thereof.
I4.
CITY shall have the right and option to purchase sai& equipment from
LESSOR upon or before the expiration date of this lease, if CITY is not in default
in any.of its obligations under this lease. This option may be exercised by CITY'S
giving notice in writing to LESSOR not less than thirty (30) days prior to said
wt - idetb °of its intention to exercise said option, and by its payment to LESSOR in cash
Of the sum of $ 3,975.68 on or before the expiration date of this
lease. There shall be deducted, however, from such purchase price the total amount
of all rentals paid by CITY to LESSOR for the rent of said equipment as provided
herein. The option payment for the purchase of and acquisition of title to said
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equipment as so computed is $ 12,104.12 and the total consideration of
the rental and subsequent purohase by option of said equipment is the principal
sum of 4 11,927.01+ , plus interest on the deferred payments subsequent
to the date of this instrument at the rate of_ percent per annum from
that date until paid. Upon exercise of the option and payment of the purchase price
upon the terms and within the time aforesaid, LESSOR agrees promptly to execute and
deliver to CITY such instruments or evidences of title to said equipment as may be
necessary or proper to vest good title thereto in CITY.
Default on the part of CITY in paying said rent or any installment thereof,
as hereinabove provided, or default on CITY'S part in keeping or performing any of
the terms, covenants, agreements or conditions contained in this lease shall authorise
LESSOR, at its option and at any time after such default, and after thirty (30)
days' written notice to CITY, to declare this lease terminated and to repossess
said leased equipment with or without legal process, and without prc ;udioe to
any of its other legal rights, and any rentals provided for hereunder and unpaid
at the time of such default shall become, at LESSOR'S option, immediately due
and payable and shall bear interest from such date until paid at the rate of 4
percent per annum. In case CITY makes default in the performance of any of the
terms, covenants, agreements or conditions contained in this lease, and LESSOR
places the enforcement of this lease, or any part thereof, or the collection of
any rent due or to become due hereunder or the recovery of possession of said
equipment or any of it in the hands of an attorney, or files suit upon same,
CITY agrees to pay LESSOR, in addition to the rental payments provided for here-
in, a reasonable attorney's fee.
VI.
It is understood and agreed by and between the parties hereto as follows:
1. All payments of rentals, or any other payments hereunder shall be
made by CITY to the account of LESSOR, or its order, in
Frost National Bank, San Antonio', Texas.
2. This lease cannot be changed, varied or extended except by instru-
` f`, " :`.• . merit in writing signed by LESSOR and CITY, and failure to exercise the option of
forfeiting this lease in case of default on the part of CITY shall not waive the
right of forfeiture, and any right accruing to LESSOR under this lease to forfeit
same shall not be waived or defaulted except by written waiver of LESSOR, and accep-
tance of rent shall not be construed as such waiver.
3. A holding over after the termination of this lease shall not renew
or extend the same, but shall constitute CITY a tenant or possessor of said equip-
ment at sufferance.
VII.
LESSOR covenants and agrees (1) that CITY, on paying the said rent and -
performing the said covenants contained herein in the manner and within the times
herein provided, shall and may peaceable and quietly have, hold and enjoy possession
and use of said leased equipment for the term aforesaid, and (2) that it will defend
CITY in peaceable possession of said leased equipment for the full term of this
lease; CITY covenants and agrees not to suffer, commit or permit any waste of or
damage to the leased equipment or any of it during the entire term of this lease.
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The apparatus delivered to the CITY by LESSOR is warranted and guaranteed
and represented to be in fit, sound and workmanlike condition and to conform in all
respects to the manufacturer's guarantee given to LESSOR.
VIII.
It is understood and agreed by and between the parties hereto that in
the event-tin CITY at any time should exercise its option to purchase the equipment
specified herein, the CITY shall have no right to purchase only a part of said
equipment but the CITY shall be 'required and obligated to exercise its option
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rights provided in this agreement on the whole of said equipment.
IT.
In this agreement where "it" is used, "hen shall apply in the proper
instance.
IN TESTIMONY WHEREOF, the CITY OF CORPUS CHRISTI has caused this lease
agreement to be signed by its City Manager, countersigned by its City Conttoller
and attested by its City Secretary, with its corporate seal affixed thereto9 pur-
suant to the terms of an ordinance passed by the City Council, and IESSOR has
caused this agreement to be executed this day of , A.D. 19_.
h.,.y CITY OF CORPUS CHRISTI, TEXAS
'Attests4 #'
City Secretary
Approved:
Assistant City Attorney
By
City Manager
Countersigneess
Corpus Christir,, Texas
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
, Gentlemen:
For the reasons set forth in the emergency clause of the foregoing
ordinance, a public emergency and imperative necessity exist for the suspen-
sion of the Charter rule or requirement that no ordinance or resolution shall
be passed finally on the date it is introduced, and that such ordinance or
resolution shall be read at three meetings of the City Council; I, therefore,
hereby request that you suspend said Charter rule or requirement and pass this
ordinance finally on the date it is introduced, or at the present meeting of
the City Council,
Respectfully,
MAYOR
City of Corpus Christi, Texas
The Charter rule was suspended by the following vote:
Leslie Wasserman
"Jack' DeForre sC
r Sydney E. Herndon
George L. Lowman
Frank E. Williamson
The above ordinance was passed by the following vote:
Leslie Wasserman
.C�+
Jack DeForrest,
Sydney E. Herndon
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George L. Lowman
Frank E. Williamson
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JANUARY 8, 1652
2 certify to the City Council that the money required
* for the contract, agreement, obligation, or expenditure contemplated
in the above and foregoing Ordinance is in the Treasury of the City
of Corpus Christi to the credit of No308 STREET FUND
Fund from which it is proposed to be drawn, and such money is not
appropriated for any other purpose.
Director of Finance
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