HomeMy WebLinkAboutRES 07-052 RESOLUTION NO. 07-052
WHEREAS, bids were received fora fixed ratefinancing agreementforthe purchase
of one (1) Caterpillar 826H Compactor for use at the Landfill; and,
WHEREAS, Chase Equipment Leasing, Columbus, Ohio, submitted a bid for a five
(5) year financing agreement with a fixed rate of 4.24%; and,
WHEREAS,City Council is of the opinion that the bid submitted by Chase Equipment
Leasing, Columbus, Ohio, should be accepted;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the bid submitted by Chase Equipment Leasing, Columbus, Ohio, for a five (5)year
financing agreement with a fixed rate of 4.24% for a total amount of $602,355.35 for the
purchase of one (1) Caterpillar 826H Compactor for use at the Landfill be accepted by the
City of Beaumont.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of
February, 2007.
to -IiL
Mayor Guy N. Goodson -
i
RESOLUTION NO. 07-052
WHEREAS, bidswere received for afixed ratefinancing agreementforthe purchase
of one (1) Caterpillar 826H Compactor for use at the Landfill; and,
WHEREAS, Chase Equipment Leasing, Columbus, Ohio, submitted a bid for a five
(5) year financing agreement with a fixed rate of 4.24%; and,
WHEREAS,City Council is of the opinion that the bid submitted by Chase Equipment
Leasing, Columbus, Ohio, should be accepted;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the bid submitted by Chase Equipment Leasing, Columbus, Ohio, for a five (5)year
financing agreement with a fixed rate of 4.24% for a total amount of $602,355.35 for the
purchase of one (1) Caterpillar 826H Compactor for use at the Landfill be accepted by the
City of Beaumont.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of
February, 2007.
sic,
Mayor Guy N. Goodson -
o
INTER-OFFICE MEMORANDUM
City of Beaumont,Texas
M ` L
Purchasing Division
Date: July 9, 2007
To: Tina Broussard, Interim City Clerk
From: Gretchen Feverjean,Purchasing Assistant
Subject: Lease Purchase Agreement
COMMENTS
Please find attached a copy of the fully executed agreement for a Compactor for your files.
If you need any additional information,please do not hesitate to call.
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Section III
LEASE PURCHASE AGREEMENT
BETWEEN
The City of Beaumont, as Lessee
and
Chase Equipment Leasin Inc.
THIS LEASE PURCHASE AGREEMENT (the Lease), is by and between Chase Equipment
Leasing,Anc. as Lessor,a limited liability company duly organized and existing under the laws of the State
of Texas, whose address is 1111 Polaris Parkway, Columbus 01143240 and the City of Beaumont, a
political subdivision of the State of Texas,as Lessee(the City),whose address is P.O.Box 3827,Beaumont,
Texas 77704.
WITNESSETH:
WHEREAS,the City is authorized by law to acquire such items of personal property as are needed
to carry out its governmental functions,and to acquire such personal property by entering into a lease with
the options to purchase; and
WHEREAS, the City has determined that it is necessary for it to acquire under this Lease certain
items of personal property described herein as the Property; and
WHEREAS,Lessor is willing to acquire and lease such Property to the City pursuant to this Lease;
the parties hereto recite and agree as follows:
ARTICLE I
DEFINITIONS AND EXHIBITS
Section 1.1. Definitions. The terms defined in this Section, shall for all purposes of this Lease, have the
following meanings:
Business Day: Each day on which the City is open for business.
Contractor:Each manufacturer or vendor from whom the City has ordered or contracted for the manufacture,
delivery, construction, and/or installation of the Property.
Fiscal Year: The twelve(12)month fiscal period of the City which commences on October 1 in every year
and ends on the following September 30.
Interest: The portion of any Rental Payment designated as and comprising interest as shown in the attached
Exhibit "B" as now or hereafter constituted.
Net Proceeds:Any insurance proceeds or condemnation award,paid with respect to any Property,remaining
after payment therefrom of all expenses incurred in the collection thereof.
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Non-appropriation: The failure of the City Council of the City to appropriate money for any Fiscal Year
sufficient for the continued performance of this Lease by the City with respect to any Property Group,which
may be evidenced by a budget ordinance or resolution which does not appropriate any moneys to pay the
Rental Payments due under this Lease with respect to such Property Group for a designated Fiscal Year.
Payment Date:The date upon which any Rental Payment is due and payable as provided in Exhibit "B" as
now or hereafter constituted.
Permitted Encumbrances: As of any particular time: (i)liens for taxes and assessments not then delinquent,
or which the City may,pursuant to the provisions of Section 7.3 hereof,permit to remain unpaid, (ii)this
Lease and amendments hereto, (iii) and Lessor's interest in the Property.
Principal: The portion of any Rental Payment designated as principal in the attached Exhibit "B" as now
or hereafter constituted.
Pro e : Individually or collectively as the context requires,the personal property designated by the City,
which shall be described in the attached Exhibit "A" as now or hereafter constituted.
Property Group:The Property listed on any addendum of Lease Exhibit"A," comprising a single purchase
of a group of items, equipment, construction of building, or associated products.
Purchase Option Price:With respect to the Group of Property listed on any single addendum of Exhibit"A,"
the amount designated and set forth opposite each Payment Date in the addendum of the attached Exhibit
"B" relating to such Property Group.
Rental Payment:The payment due from the City to Lessor on each Payment Date as shown on Exhibit"B."
Specifications: The bid specifications and contract documents which the City has executed.
Term of this Lease or Lease Term: The period during which this Lease is in effect as specified in Section
4.1.
Section 1.2.Exhibits.The following Exhibits are attached to and by reference made a part of this Lease:
Exhibit "A": Attached addendum comprising of a schedule describing each Property Group being leased
by the City pursuant to this Lease,including serial numbers thereof which shall be inserted when available,
each schedule comprising a number of pages numbered consecutively, each addendum containing the
description of all Property comprising a Property Group.
Exhibit"B":A schedule to be completed by Lessor as provided herein and furnished to the City as provided
in Section 3.2, comprising pages to be consecutively numbered, and each page to contain the date and
amount of each Rental Payment coming due during the Lease Term with respect to the Property Group listed
on the corresponding addendum of Exhibit"A,"the amount of such Rental payments comprising Principal
and Interest,the price at which the City may exercise its option to purchase Lessor's interest in such Property
Group in accordance with Article X, and the due date of each Rental Payment.
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Exhibit"C":A form of Certificate of Acceptance of the City indicating that the Property Group described
therein has been constructed in accordance with the Specifications,and has been accepted by the City,the
date on which Rental Payments shown in the page of Exhibit"B"relating thereto shall commence,and that
certain other requirements have been met by the City.
Exhibit"D":A form of opinion of counsel to the City as to the organization,nature,and powers of the City;
the validity,execution,and delivery of this Lease and various related documents;the absence of litigation;
and related matters.
ARTICLE II
REPRESENTATION, COVENANTS,AND WARRANTIES
Section 2.1.Representations, Covenants and Warranties of the City. The City represents, covenants,
and warrants as follows:
(a)The City is a municipal corporation and political subdivision of Texas,duly organized and existing under
the Constitution and laws of the State.
(b) The City is authorized under the Constitution and laws of Texas to enter into this Lease and the
transactions contemplated hereby, and to perform all of its obligations hereunder.
(c)The City Manager has been duly authorized to execute and deliver this Lease by the official action of the
City's governing body,the City Council.
(d)In authorizing and executing this Lease,the City has complied and/or will comply with all public bidding
laws applicable to this Lease and the acquisition of the Property by the City.
(e)The City will not pledge,mortgage, or assign this Lease, or its duties and obligations hereunder to any
other person, firm, or corporation except as provided under the terms of this Lease.
(f)The City will use the Property during the Lease Term only to perform essential governmental functions.
(g)Upon the request and direction of Lessor,the e City will take all affirmative actions legally within its power
necessary to ensure that the Interest portion of the Rental Payments does not become includible in gross
income of the recipient for federal income tax purposes under the Internal Revenue Code of 1986(the Code)
and Treasury Regulations promulgated thereunder(the Regulations).
(h)Upon delivery and installation of any Property Group,the City will provide to Lessor a completed and
executed copy of a Certificate of Acceptance relating thereto in the form attached hereto as Exhibit "C."
(i)Upon the execution of this Lease, the City will provide the Lessor an opinion of its legal counsel in the
form attached hereto as Exhibit "D."
0) Upon the request and direction of Lessor, the City will submit to the Secretary of the Treasury an
information reporting statement at the time and in the form required by the Code and Regulations, and
furnished by Lessor.
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(k) The City shall take or has taken such appropriate official action by its governing body to approve the
placement of any Property Group under the terms and conditions of this Lease.
Section 2.2.Representation.Covenants and Warranties of Lessor.
Lessor represents, covenants, and warrants as follows:
(a)Lessor is a corporation duly organized,existing and in good standing under and by virtue of the laws of
the State of Texas, or is duly qualified and in good standing as a foreign corporation authorized to transact
business in the State of Texas;has power to enter into this Lease,is possessed of full power to own and hold
personal property,and to lease the same;engages in the leasing of personal property such as the Property in
the ordinary course of business; and has duly authorized the execution and delivery of this Lease and all
addenda thereto.
(b)Neither the execution and delivery of this Lease,nor the fulfillment of or compliance with the terms and
conditions thereof,nor the consummation of the transactions contemplated thereby,conflicts with or results
in a breach of the terms, conditions, or provisions of any restriction, agreement, or instrument to which
Lessor is now a party or by which'Lessor is bound,constitutes a default under any of the foregoing,or results
in the creation or imposition of any lien, charge or encumbrance whatsoever upon any of the property or
assets of Lessor, or upon the Property except Permitted Encumbrances.
ARTICLE III
LEASE OF PROPERTY
Section 3.1. Property Delivery: Documentation Lessor shall furnish to the City completed copies of
Exhibit"A" and"B"relating to each Property Group.Upon delivery of any Property Group,the City shall
inspect such Property,and if such Property meets the City's Specifications contained in the contract relating
thereto, the City shall provide to Lessor a completed and executed copy of a Certificate of Acceptance
relating thereto in the form attached hereto as Exhibit "C." Lessor and the City shall take all actions
necessary to vest legal title to the Property Group in the City, and to perfect a security interest in favor of
Lessor or a person, firm, or corporation designated by Lessor. However, Lessor will not be shown as a
lienholder on the instrument of title.
Lessor shall pay Contractor or reimburse City for any payment it made to a Contractor for a Property Group
within three (3)business days after receipt of the following in form and substance satisfactory to Lessor.
(a) an Exhibit"A" and Exhibit "B" executed by Lessor and City;
(b) an Exhibit"C" executed by City;
(c) a motion or other evidence of official action taken by or on behalf of the City to authorize
acquisition of the property group on the terms provided in Exhibit"A".
(d) Contractor's invoice(s) and/or bill(s) of sale relating to the Property Group, and if such
invoices have been paid by City,evidence of payment thereof and, if applicable,evidence
of official intent to reimburse such payment as required by the Regulations;
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(e) as applicable,financing statements executed by City as debtor and/or the original certificate
of title or manufacturer's certificate of origin and title application if any of the Property
Group is subject to certificate of title laws;
(f) a completed and executed Form 8038-G or -GC or evidence of filing thereof with the
Secretary or Treasury; and
(g) Within(3)business days of Lessor's receipt of the documents listed above in(a)-(g)in form
and substance satisfactory to Lessor,Lessor shall make full payment to Contractor(s)or City
of all funds applicable to the accepted Property Groups by either wire transfer or overnight
delivery of a check at the direction of the Purchasing Manager.
Section 3.2.Lease. Lessor hereby leases all Property made subject to this Lease to the City, and the City
hereby leases such Property from Lessor, upon the terms and conditions set forth in this Lease.
Section 3.3.Possession and Enjoyment.Lessor hereby covenants to provide the City during the Term of
this Lease with the quiet use and enjoyment of the Property,and the City shall during the Term of this Lease
peaceably and quietly have and hold and enjoy the Property,without suit,trouble or hindrance from Lessor,
except as expressly set forth in this Lease.Lessor will,at the request of the City and at the City's costs,join
in any legal action in which the City asserts its right to such possession and enjoyment to the extent Lessor
lawfully may do so.
Section 3.4.Lessor's Access to Property.The City agrees that Lessor shall have the right at all reasonable
times to examine and inspect the Property. The City further agrees that Lessor shall have such rights of
access to the Property as may be reasonably necessary to cause the proper maintenance of the Property in
the event of failure by the City to perform its obligations hereunder.
ARTICLE IV
TERM OF LEASE
Section 4.1.Lease Term.This Lease shall be in effect for a Term commencing upon its date of execution
and ending as provided in Section 4.5.
Section 4.2. Termination by the CitL. In the sole event of Non-appropriation relating to any particular
Property Group or specific item within a Property Group,the City shall have the right to terminate this Lease
with respect to such Property Group or specific item,at the end of any Fiscal Year of the City.The City may
effect such termination by giving Lessor a written notice of termination with respect to such Property Group
and by paying to Lessor any Rental Payments and other amounts with respect to such Property Group which
are due and have not been paid at or before the end of its then current Fiscal Year.The City shall endeavor
to give notice of such termination not less than sixty(60)days prior to the end of such Fiscal Year,and shall
notify Lessor of any anticipated termination.In the event of termination of this Lease,the City shall deliver
possession of such Property Group to Lessor in accordance with Section 12.3, and shall convey to Lessor
or release its interest in such Property Group within ten(10)days after termination of this Lease with respect
to such Property Group.
Section 4.3.Intent to Continue Lease Term:Appropriations The City presently intends to continue this
Lease for its entire Term with respect to all Property Groups made subject hereto and to pay all Rental
Payments relating thereto specified in Exhibit"B." The City Manager will include in its budget request for
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each Fiscal Year the Rental Payments to become due in such Fiscal Year with respect to all Property Groups.
The City reasonably believes that moneys in an amount sufficient to make all such Rental Payments can and
will lawfully be appropriated and made available for this purpose.
Section 4.4.Effect of Termination.Upon termination of this Lease with respect to any Property Group,the
City shall not be responsible for the payment of any additional Rental Payments coming due with respect to
succeeding Fiscal Years,but if the City has not delivered possession and conveyed to Lessor or released its
interest in the Property Group within ten (10) days after the date of termination, the termination shall
nevertheless be effective,but the City shall be responsible for the payment of damages equal to the amount
of the Rental Payments thereafter coming due under the page of Exhibit"B" attributable to the number of
days after such ten(10) day period during which the City fails to take such actions and for any other loss
suffered by Lessor as a result of the City's failure to take such actions as required.
Section 4.5.Termination of Lease Term.The Term of this Lease will terminate upon the occurrence of the
first of the following events:
(a)the termination thereof by the City with respect to all Property Groups in accordance with Section 4.2;
(b) the exercise by the City of its option to purchase Lessor's interest in all Property Groups pursuant to
Article X;
(c)a default by the City with respect to all Property Groups and Lessor's election to terminate this Lease with
respect to all Property Groups pursuant to Article X;
(d)the payment by the City of all Rental Payments and all other amounts authorized or required to be paid
by the City hereunder with respect to all Property Groups.
ARTICLE V
RENTAL PAYMENTS
Section 5.1.Rental Payments.The City agrees to pay Rental Payments during the Term of this Lease,in
the amounts and on the dates specified in Exhibit "B." All Rental Payments shall be paid to Lessor at its
offices at the address specified in the first paragraph of this Lease, or to such other person(s) or entity to
which Lessor has assigned such Rental Payments as specified in Article XI,at such place as such assignee
may designate by written notice to the City.The City shall pay the Rental Payments exclusively from moneys
legally available therefor,in lawful money ofthe United States of America.Interest with respect to the Rental
Payments for any Property Group shall accrue from the date of acceptance of a Property Group. Payments
to be forwarded electronically as per instructions stated in Attachment F.
Section 5.2.Current Expense.The obligations of the City under this Lease,including its obligation to pay
the Rental Payments due with respect to the Property, in any Fiscal Year for which this Lease is in effect,
shall constitute a current expense of the City for such Fiscal Year and shall not constitute an indebtedness
of the City within the meaning of the constitution and laws of Texas.Nothing herein shall constitute a pledge
by the City of any taxes or other moneys, other than moneys lawfully appropriated from time to time by or
for the benefit of the City in the annual budget of the City and the proceeds or Net Proceeds of the Property,
to the payment of any Rental Payment or other amount coming due hereunder.
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r '
Section 5.3.Interest Component.As shown on Exhibit B,a portion of each Rental Payment is paid as and
represents the payment of Interest.
Section 5.4.Rental Payments to be Unconditional.Except as provided in Section 4.2,the obligation of
the City to make Rental Payments or any other payments required hereunder shall be absolute and
unconditional in all events.Notwithstanding any dispute between the City and Lessor or any other person,
the City shall make all Rental Payments when due and shall not withhold any Rental Payment pending final
resolution of such dispute nor shall the City assert any right of set-off or counterclaim against its obligation
to make such Rental Payments required under this Lease. The City's obligation to make Rental Payments
during the Lease Term shall not be abated through accident or unforeseen circumstances.However,nothing
herein shall be construed to release Lessor from the performance of its obligations hereunder; and if
Lessor should fail to perform any such obligation,the City may institute such legal action against Lessor as
the City may deem necessary to compel the performance of such obligations or to recover damages therefore.
ARTICLE VI
INSURANCE AND NEGLIGENCE
Section 6.1.Liability Insurance. The City is self-insured as to all liability. The self insurance program
contains a separate liability fund which presently has a balance in excess of$1,000,000.
Section 6.2. Workers' Compensation Insurance. If required by State law, and unless self-insurance is
provided by the City,as evidenced by a written certificate specifying the terms and amounts thereof delivered
to Lessor,the City shall carry worker's compensation insurance covering all employees on,in,near,or about
each Property, and upon request, shall furnish to Lessor certificates evidencing such coverage throughout
the period when the City is required to make Rental Payments with respect thereto.
Section 6.3.City's Negligence.The City assumes all risks and liabilities for loss or damage to any Property
and for injury to or death of any person or damage to any property,in any manner arising out of or incident
to any possession, use, operation, condition or storage of any Property by the City,whether such injury or
death be with respect to agents or employees of the City,and whether such property damage be to the City's
property or the property of others.
Section 6.4.Casualty Loss and Insurance.If any loss,theft,damage or destruction occurs to any Property
in whole or in part from any reason whatsoever("Casualty Loss"),the City shall immediately notify Lessor
of the same and the City shall,unless otherwise directed by Lessor,immediately repair the same. If Lessor
reasonably determines that any item of Property has suffered a Casualty Loss beyond repair ("Lost
Equipment"),then the City shall either: (i)immediately replace the Lost Equipment with similar equipment
in good repair,condition and working order free and clear of any liens(such equipment may be equipment
that was acquired by the City prior to the Casualty Loss and such equipment shall be equipment of equal
value in the opinion of Lessor to the value of the Lost Equipment immediately prior to the Casualty Loss),
in which event such replacement equipment shall automatically become part of the Property Group to which
the Lost Equipment belonged, and deliver to Lessor true and complete copies of the invoice or bill of sale
covering the replacement equipment or(ii)on earlier of 60 days after the Casualty Loss ofthe next scheduled
Rental Payment date, pay Lessor(A) all amounts owed by the City under the Lease, including the Rental
Payments due on or accrued through such date plus(B)an amount equal to the Option to Purchase Price as
of the Rental Payment date(or if the Casualty Loss payment is due between Rental Payment dates,then as
of the Rental Payment date preceding the date that the Casualty Loss payment is due) specified in Exhibit
"B". If the City is making such payment with respect to less than all of a Property Group,then Lessor will
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provide the City with the pro rate amount of the Rental Payment and Option to Purchase Price to be paid by
the City with respect to the Lost Equipment and a revised Exhibit`B".
ARTICLE VII
OTHER OBLIGATIONS OF THE CITY
Section 7.1. Use: Permits. The City shall obtain all permits and licenses necessary for the installation,
operation, possession, and use of the Property. The City shall comply with all state and federal laws
applicable to the installation,use,possession,and operation of the Property,and if compliance with any such
state and federal law requires changes or additions to be made to the property,such changes or additions shall
be made by the City at its expense.
Section 7.2.Maintenance of Property by the CiM.The City shall maintain,preserve,and keep the Property
in good repair,working order and condition,and shall make all repairs and replacements necessary to keep
the Property in the same condition and levels as recommended by original equipment manufacturer.
Section 7.3. Taxes. Other Governmental Charges and Utility Charges Except as expressly limited by
this Section,the City shall pay all taxes and other charges of any kind which are at any time lawfully assessed
or levied against the City with respect to the Property, the Rental Payments or any part thereof, which
become due during the Term of this Lease. The City shall also pay when due, all gas, water, steam,
electricity,heat,power,telephone, and other charges lawfully assessed or levied against the City incurred
in the operation,maintenance,use,occupancy,and upkeep of the Property,and all special assessments and
charges lawfully made by any governmental body for public improvements that may be secured by a lien on
the Property; provided that with respect to special assessments or other governmental charges that may
lawfully be paid in installments over a period of years, the City shall be obligated to pay only such
installments as are required to be paid during the Term of this Lease as and when the same become due.The
City shall not be required to pay any federal,state,or local income,inheritance,estate,succession,transfer,
gift, franchise, gross receipts,profit, excess profit, capital stock,corporate, or other similar tax payable by
Lessor, its successors or assigns.
The City may, at its own expense and in its own name, in good faith contest any such taxes, assessments,
utility,and other charges and,in the event of any such contest,may permit the taxes,assessments,utility or
other charges so contested to remain unpaid during the period of such contest and any appeal therefrom
unless Lessor shall notify the City that,in the opinion of Independent Counsel,by nonpayment of any such
items the interest of Lessor in the Property will be materially endangered or the Property or any part thereof
will be subject to loss or forfeiture, in which event the City shall promptly pay such taxes, assessments,
utility or other charges or provide Lessor with full security against any loss which may result from
nonpayment, in a form satisfactory to Lessor.
Section 7.4.Advances.If the City shall fail to perform any of its obligations under this Article,Lessor may,
but shall not be obligated to, take such action as may be necessary to cure such failure, including the
advancement of money,and the City shall be obligated to repay all such advances on demand,with interest
at the rate of 15%per annum or the maximum rate permitted by law,whichever is less,from the date of the
advance to the date of repayment.
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ARTICLE VIII
TULE
Section 8.1.Title.During the Term of this Lease,and so long as the City is not in default under Article XII,
legal title to the Property and any and all repairs,replacements, substitutions, and modifications to it shall
be by the City.Upon termination of this Lease resulting from Nonappropriation or default of the City, full
and unencumbered legal title to such Property Group shall pass to Lessor,and the City shall have no further
interest therein. In either of such events, the City shall execute and deliver to Lessor such documents as
Lessor may request to evidence the passage of legal title to such Property Group to Lessor and the
termination of the City's interest therein,and upon request by Lessor shall deliver possession of the Property
Group to Lessor in accordance with Section 12.3. Upon termination of this Lease with respect to any
Property Group through exercise of the City's option to purchase pursuant to Article X or through payment
by the City of all Rental Payments and other amounts relating thereto,Lessor's security or other interest in
such Property Group shall terminate,and Lessor shall execute and deliver to the City such documents as the
City may request to evidence the termination of Lessor's security or other interest in such Property Group.
Section 8.2. Security Interest. Lessor shall have and retain a security interest under the Uniform
Commercial Code in the Property, the proceeds thereof and all repairs, replacements, substitutions, and
modifications thereto or thereof made pursuant to Section 8.5, in order to secure the City's payment of all
Rental Payments due during the Term of this Lease and the performance of all other obligations herein to
be performed by the City. The City, acting through its Purchasing Agent or other designee, will join with
Lessor in executing such financing statements or other documents and will perform such acts as Lessor may
request to establish and maintain a valid security interest in the Property,however,lessor will not be shown
as a lienholder on the instrument of title. All UCC statements shall indicate that title to a Property Group
is in the City and exempt from ad valorem taxation as public property used for a public purpose under the
laws and constitution of the State of Texas.
Section 8.3. Liens. During the Term of this Lease, the City shall not, directly or indirectly, create, incur,
assume,or suffer to exist any mortgage,pledge,lien,charge,encumbrance or claim on or with respect to the
Property, other than the respective rights of Lessor and the City as herein provided and Permitted
Encumbrances. All property is exempt from local ad valorem taxation as property owned by a political
subdivision and used for public purposes.Lessor shall not pay or incur any charge,assessment,or tax on any
Property Group for which the City can claim an exemption from such charges as property y used by a political
subdivision of the State of Texas for public purposes as provided by the Constitution and laws of the State
of Texas. Except as expressly provided in Section 7.3 and this Article,the City shall promptly, at its own
expense, take such action as may be necessary to discharge or remove any such mortgage, pledge, lien,
charge, encumbrance, or claim if the same shall arise at any time.
Section 8.4.Installation of the Ci 's Property.The City may at any time in its sole discretion and at its
own expense,install other items of equipment in or upon the Property,which items shall be identified by tags
or other symbols affixed thereto as property of the City. All such items so identified shall remain the sole
property of the City, in which Lessor shall have no interest, and may be modified or removed by the City
provided that the City shall repair and restore any damage to the Property resulting from the installation,
modification, or removal of any such items. Nothing in this Lease shall prevent the City from purchasing
items to be installed pursuant to this Section under a conditional sale or lease with option to purchase
contract,or subj ect to a vendor's lien or security agreement,as security for the unpaid portion of the purchase
price thereof,provided that no such lien or security interest shall attach to any part of the Property.
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Section 8.5.Modification of Property.The City shall, at its own expense,have the right to make repairs,
replacements, substitutions and modifications to all or any of the parts of the Property. All such work and
any part or component used or installed to make a repair or as a replacement, substitution or modification,
shall thereafter comprise part of the Property and be subject to the provisions of this Lease.Such work shall
not in any way damage the Property or cause it to be used for purposes other than those authorized under the
provisions of state and federal law or those contemplated by this Lease; and the Property,upon completion
of any such work shall be of a value which is not less than the value of the Property immediately prior to the
commencement of such work.Any property for which a replacement or substitution is made pursuant to this
Section may be disposed of by the City in such manner and on such terms as are determined by the City.
The City will not permit any mechanic's or other lien to be established or remain against the Property for
labor or materials furnished in connection with any repair,replacement,substitution,or modification made
by the City pursuant to this Section;provided that if any such lien is established and the City shall first notify
Lessor of the City's intention to do so,the City may in good faith contest any lien filed or established against
the Property, and in such event may permit the items so contested to remain undischarged and unsatisfied
during the period of such contest and any appeal therefrom unless Lessor shall notify the City that, in the
opinion of Independent Counsel,by nonpayment of any such item the interest of Lessor in the Property will
be materially endangered or the Property or any part thereof will be subject to loss or forfeiture, in which
event the City shall promptly pay and cause to be satisfied and discharged all such unpaid items or provide
Lessor with full security against any such loss or forfeiture, in form satisfactory to Lessor. Lessor will
cooperate fully with the City in any such contest,upon the request and at the expense of the City.
Section 8.6. Personal Property. The Property is and shall at all times be and remain personal property
notwithstanding that the Property or any part thereof may be or hereafter become in any manner affixed or
attached to or embedded in or permanently rested upon real property or any building.
ARTICLE IX
WARRANTY
Section 9.1. Selection of Property_The Property and the Contractor have been selected by the City, and
Lessor shall have no responsibility in connection with the selection of the Property,its suitability for the use
intended by the City,the acceptance by the Contractor of the order submitted,or any delay or failure by the
Contractor to manufacture,deliver,or install the Property for use by the City.The City authorizes Lessor to
add the serial number of the Property to Exhibit "A" when available.
Section 9.2.Installation and Maintenance of Properly. shall have no obligation to install, erect,
test, inspect, service, or maintain the Property under any circumstances, but such actions shall be the
obligation of the City or the Contractor.
Section 9.3. Contractor's Warranties. Lessor hereby assigns to the City for and during the Term of this
Lease, all of its interest in all Contractor's warranties and guarantees, express or implied, issued on or
applicable to the Property,and Lessor hereby authorizes the City to obtain the customary services furnished
in connection with such warranties and guarantees at the City's expense.
Section 9.4.Patent Infringement.Lessor hereby assigns to the City for and during the Term of this Lease
all of its interest in patent indemnity protection provided by a Contractor with respect to the Property. Such
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assignment of patent indemnity protection by Lessor to the City shall constitute the entire liability of Lessor
for any patent infringement by Property furnished pursuant to this Lease.
Section 9.5.Disclaimer of Warranties.THE PROPERTY IS DELIVERED AS IS,AND LESSOR MAKES
NO WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, AS TO THE VALUE,
DESIGN,CONDITION,MERCHANTABILITY,OR FITNESS FOR ANY PARTICULAR PURPOSE OR
FITNESS FOR THE USE CONTEMPLATED BY THE CITY OF THE PROPERTY, OR ANY OTHER
REPRESENTATION OR WARRANTY WITH RESPECT TO THE PROPERTY.
ARTICLE X
OPTION TO PURCHASE
Section 10.1.When Available.The City shall have the option to purchase Lessor's interest in any Property
Group on any Payment Date relating thereto for the then applicable Purchase Option Price set forth in the
page of Exhibit "B"relating thereto,but only if the City is not in default under this Lease,and only in the
manner provided in this Article.
Section 10.2.Exercise of Option.The City shall give notice to Lessor of its intention to exercise its option
with respect to any Property Group not less than thirty (30) days prior to the Payment Date on which the
option is to be exercised and shall deposit with Lessor on the date of exercise an amount equal to all Rental
Payments and any other amounts relating to such Property Group then due or past due(including the Rental
Payment relating thereto due on the Payment Date on which the option is to be exercised)and the applicable
Purchase Option Price set forth in the page of Exhibit "B" relating thereto. The closing shall be on the
Payment Date on which the option is to be exercised.
Section 10.3. Release of Lessor's Interest. Upon execution of the purchase option with respect to any
Property Group by the City, Lessor shall convey or release to the City, all of its right,title, and/or interest
in and to the Property Group by delivering the City such documents as the City deems necessary for this
purpose.
ARTICLE XI
ASSIGNMENT, SUBLEASING,MORTGAGING, AND SELLING
Section 11.1.Assignment of Lessor.All of Lessor's right,title and/or interest in and to any Property Group,
the Rental Payments and other amounts relating thereto due hereunder, and the right to exercise all rights
under this Lease relating to such Property Group may be assigned and reassigned in whole or in part to one
or more assignees or subassignees by Lessor at any time,without the consent of the City.No such assignment
shall be effective as against the City unless and until the assignor shall have filed with the City a copy of
written notice thereof identifying the assignee.The City shall pay all Rental Payments due hereunder relating
to such Property Groups to or at the direction of Lessor or the assigned named in the most recent assignment
or notice of assignment with respect to such Property Group filed with the City.During the Lease Term,the
City shall keep a complete and accurate record of all such assignments. In the event Lessor assigns
participations in its right,title,and/or interest in and to any Property Group,the Rental Payments and other
amounts due with respect thereto,and the rights granted under this Lease relating thereto, such participants
shall be considered to be Lessor with respect to their participated shares thereof.
Section 11.2. Assignment and Subleasing by the City Neither this Lease nor the City's interest in the
Property may be assigned by the City without the written consent of Lessor.However,the Property may be
14
subleased by the City, in whole or in part, without the consent of Lessor, subject,however, to each of the
following conditions:
(i)This Lease and the obligation of the City to make Rental Payments hereunder, shall remain obligations
of the City.
(ii)The City shall,within thirty(30)days after the delivery thereof,furnish or cause to be furnished to Lessor
a true and complete copy of such sublease.
(iii)No sublease by the City shall cause the Property to be used for a purpose other than a governmental
function authorized under the provisions of the Constitution and laws of Texas.
(iv)No sublease shall cause the Interest component of the Rental Payments due with respect to the Property
to become includible in gross income of the recipient for federal income tax purposes.
Section 11.3. Restriction on Mortgage or Sale of Property by the City.Except as provided in Section
11.2,the City will not mortgage,sell,assign,transfer,or convey the Property or any portion thereof during
the Term of this Lease,without the written consent of Lessor.
ARTICLE XH
EVENTS OF DEFAULT AND REMEDIES
Section 12.1.Events of Default Defined.The following shall be"events of default"under this Lease with
respect to any Property Group and the terms"events of default"and"default"shall mean,whenever they are
used in this Lease,with respect to any Property Group, any one or more of the following events:
(i)Failure by the City to pay a Rental Payment or other payment required to be paid under this Lease with
respect to any Property Group at the time specified herein and the continuation of said failure for period of
three (3) days after telephonic or telegraphic notice given by Lessor that the payment referred to in such
notice has not been received,such telephonic or telegraphic notice to be subsequently confirmed in writing.
(ii) Failure by the City to observe and perform any covenant, condition, or agreement on its part to be
observed or performed with respect to any Property Group, other than as referred to in Clause (i) of this
Section, for a period of thirty(30)days after written notice specifying such failure. Such notice to the City
by the Lessor shall request that the default be remedied,unless Lessor shall agree in writing to an extension
of such time prior to its expiration;provided,'however,if the failure stated in the notice cannot be corrected
within the applicable period,Lessor will not unreasonably withhold its consent to an extension of such time
if corrective action is instituted by the City within the applicable period and diligently pursued until the
default is corrected.
(iii)The filing by the City of a voluntary petition in bankruptcy, or failure by the City promptly to lift any
execution,garnishment,or attachment of such consequence as would impair the ability of the City to carry
on its governmental function or adjudication of the City as a bankrupt, or assignment by the City for the
benefit of creditors,or the approval by a court of competent jurisdiction of a petition applicable to the City
in any proceedings instituted under the provisions of the Federal Bankruptcy Statute,as amended,or under
any similar acts which may hereafter be enacted.
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The provisions of this Section 12.1 and Section 12.2 are subject to the following limitation: if by reason of
force maj eure the City is unable in whole or in part to carry out its obligations under this Lease with respect
to any Property Group,other than its obligation to pay Rental Payments with respect thereto which shall be
paid when due notwithstanding the provisions of this paragraph, the City shall not be deemed in default
during the continuance of such inability. The term "force ma j eure" as used herein shall mean, without
limitation,the following: acts of God,strikes,lockouts,or other labor disturbances;acts of public enemies;
orders or restraints of any kind of the government of the United States of America or the State or their
respective departments, agencies or officials, or any civil or military authority; insurrections, riots;
landslides; earthquakes; fires; storms; droughts; floods, explosions; breakage or accident to machinery,
transmission pipes or canals;or any other causes or events not reasonably within the control of the City and
not resulting from its negligence.The City agrees,however,to remedy with all reasonable dispatch the cause
or causes preventing the City from carrying out its obligations under this Lease;provided that the settlement
of strikes,lockouts and other labor disturbances shall be entirely within the discretion ofthe City and the City
shall not be required to make settlement of strikes,lockouts,and other labor disturbances by acceding to the
demands of the opposing party or parties when such course is in the judgment of the City unfavorable to the
City.
Section 12.2.Remedies on Default.Whenever any event of default referred to in Section 12.1 hereof shall
have happened and be continuing with respect to any Property Groups, Lessor shall have the right, at its
option and without any further demand or notice,to take one or any combination of the following remedial
steps:
(i)Lessor may terminate this Lease with respect to such Property Group and declare all Rental Payments due
with respect to such Property Group during the Fiscal Year in effect.
(ii)Lessor may terminate this Lease with respect to such Property Group and repossess the Property Group,
Lessor may enter upon the City's premises where the Property Group is kept and take possession of the
Property Group.Notwithstanding the fact that Lessor has taken possession of the Property Group,the City
shall continue to be responsible for the Rental Payments due with respect thereto during the Fiscal Year then
in effect.
(iii) If Lessor terminates this Lease with respect to such Property Group and takes possession of such
Property contained therein, Lessor shall within thirty (30) days thereafter use its best efforts to sell such
Property or any portion thereof in a commercially reasonable manner at public or private sale in accordance
with applicable state laws. Lessor shall apply the proceeds of such sale to pay the following items in the
following order:(a)all costs incurred in securing possession of the Property Group;(b)all expenses incurred
in completing the sale; (c)the balance of any Rental Payments with respect to such Property Group owed
by the City during the Fiscal Year then in effect; and(d)the applicable Purchase Option Price with respect
to the Property Group due at the end of the Fiscal Year. Any Sale proceeds remaining after disbursement
pursuant to Clauses (a), (b),(c), and(d) shall be payable to the City.
Section 12.3.Return of Property.Upon the expiration or termination by the City of this Lease with respect
to any Property Group prior to the payment of all Rental Payments in accordance with Exhibit"B,"the City
shall allow lessor to remove the property group from lessee's property at lessor's cost and expense,provided,
however, that such property shall be retrievable from a central location.
Section 12.4. No Remedy Exclusive. No remedy conferred upon or reserved to Lessor by this Article is
intended to be exclusive and every such remedy shall be cumulative and shall be in addition to every other
16
remedy given under this Lease. No delay or omission to exercise any right or power accruing upon any
default shall impair any such right or power or shall be construed to be a waiver thereof but any such right
and power may be exercised from time to time and as often as may be deemed expedient by Lessor or its
assignee.
Section 12.5.Late Charge.Whenever any event of default referred to in Section 12.1, Clause (i)hereof
shall have happened and be continuing with respect to any Property Group, Lessor shall have the right, at
its option and without any further demand or notice,to require a late payment charge for each thirty(30)day
period or part thereof during which such event of default occurs equal to fifteen percent (15%) of the
delinquent amount not to exceed the maximum authorized by law and the City shall be obligated to pay the
same immediately upon receipt of Lessor's written invoice therefor;provided,however,that this Section 12.5
shall not be applicable if or to the extent that the application thereof would affect the validity of this Lease.
ARTICLE XIII
ADMINISTRATIVE PROVISIONS
Section 13.1.Notices.All notices,certificates,legal opinions,or other communications hereunder shall be
sufficiently given and shall be deemed given when delivered or deposited in the United States mail in
registered form with postage fully prepaid to the addresses specified in this Lease;provided that Lessor and
the City, by notice given hereunder, may designate different addresses to which subsequent notices,
certificates,legal opinions,or other communications will be sent.Unless otherwise changed by the City,all
notices required under this Lease and directed to the City shall be mailed to the following address:
CITY: LESSOR:
City of Beaumont Chase Equipment LeasingsInc.
P.O.Box 3827 1111 Polaris Parkway
Beaumont,Texas 77704-3827 Columbus, Ohio 43240
Kandy Daniel,Treasurer John Pelzer
Section 13.2.Financial Information.During the Term of this Lease,the City annually will provide Lessor
with current financial statements,budgets,proof of appropriation of the ensuing Fiscal Year and such other
financial information relating to the ability of the City to continue this Lease as may be reasonably requested
by Lessor or its assignee.
Section 13.3.Binding Effect.This Lease shall inure to the benefit of and shall be binding upon Lessor and
the City and their respective successors and assigns.This Lease shall not be construed to confer any rights,
duties,or interest on any party not a successor in interest or assignee of Lessor or the City nor may any such
party rely on this Lease as evidence of any duty, right, or obligation of Lessor or the City unless both the
Lessor and the City,or their successors and assigns, acknowledge such duty,right,or obligation in writing.
Section 13.4. Severability.In the event any provision of this Lease shall be held invalid or unenforceable
by any court of competent jurisdiction,such holding shall not invalidate or render unenforceable any other
provision hereof.
Section 13.5.Amendments,Changes,and Modifications This Lease may be amended or any of its terms
modified only by written document duly authorized, executed, and delivered by Lessor and the City.
17
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Section 13.6. Captions. The captions or headings in this Lease are for convenience only and in no way
define, limit, or describe the scope or intent of any provisions,Articles, Sections,or Clauses of this Lease.
Section 13.7.Further Assurances and Corrective Instruments.Lessor and the City agree that they will,
from time to time,execute,acknowledge,and deliver,or cause to be executed,acknowledged,and delivered,
such supplements hereto and such further instruments as may reasonably be required for correcting any
inadequate or incorrect description of the Property hereby leased or intended so to be, or for otherwise
carrying out the expressed intention of this Lease.The Purchasing Agent,or the designee thereof,is hereby
authorized by the City Manager to execute such addenda as attached hereto as Exhibits for each Property
Group and such other instruments,including,but not limited to,UCC statements,Bill of Sales,etc.that are
necessary to carry out the responsibilities,duties,and obligations required of the City in accordance with the
terms and conditions of this Lease.
Section 13.8 Execution in Counterparts. This Lease may be simultaneously executed in several
counterparts, each of which shall be an original and all of which shall constitute but one and the same
instrument.
Section 13.9.Applicable Law.This Lease shall be governed by and construed in accordance with the laws
of Texas. Venue of any legal action brought under this agreement will be in Jefferson County,Texas.
Section 13.10.Entire Agreement.This Lease and all addenda and exhibits,as may hereafter be executed,
constitute the entire agreement between the parties and shall supersede all previous negotiations,
commitments and contracts.
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IN WITNESS WHEREOF, Lessor has caused this Lease to be executed in its corporate name by its duly
authorized officer; and the City has caused this Lease to be executed in its name by its duly authorized City
Manager.
ATTEST:
c�A
APPROVED THIS THE / 'DAY OF !c1 ,20 07 .
CHASE EQUIPMENT LEASINGtINC.
By:
r
CITY OF BEAUMONT
By:
Kyle Hayes, City Manager
19
II
EXHIBIT"A"
PROPERTY DESCRIPTION
The following Property comprises a Property Group which is the subject to the terms and conditions of that
certain Lease Purchase
Agreement ent red into by and between the City of Beaumont and-Chase P
E ui ment
Q
Leasin c. (Lessor) dated the day of�, 20 07 .
1 Caterpillar 826H Compactor
All Property made subject of this Agreement is owned by and under the sole and exclusive use of the
City of Beaumont, a political subdivision of the State of Texas, and is used as part of the City's
governmental services in furtherance of its public purpose. The City asserts all exemptions provided
for political subdivisions of the State of Texas as authorized under the Constitution and laws of the
State of Texas against the assessment, levy, or charges for ad valorem taxation, personal property
taxation, or any other charges.
LESSOR CITY OF BEAUMONT
By: �� t
Kyle Hayes
Name: City Manager
Title:
APPROVED THIS THE"DAY OF sU-,te,20 07 .
20
»
EXHIBIT "B"
SCHEDULE OF LEASE PAYMENTS RELATING TO PROPERTY
The following schedule of Lease Payments constitutes the applicable payments for the Property Group
described on Exhibit "A" attached to that certain Lease Purchase Agreement entered by and between the
City of Beaumont and Chase Equipment Leasin ln (Lessor)dated the day of 20 07 .
INTEREST RATE: 4.24%
Payment No. Payment Amount Interest Principal Purchase Option
1 $120,471.07 $22,587.28 $97,883.79 $ 452,228.62
2 120,471.07 18,437.01 102,034.06 342,785.18
3 120,471.07 14,110.77 106,360.30 230,969.67
4 120,471.07 9,601.09 110,869.98 116,726.58
5 120,471.07 4,900.20 115,570.87 -0-
TOTAL $602,355.35 $69,636.35 $532,719.00
All property made subject of this Agreement is owned by and under the sole and exclusive use of
the City of Beaumont, a political subdivision of the State of Texas, and is used as part of the City's
governmental services in furthermore of its public purpose. The City asserts all exemptions provided
for political subdivisions of the State of Texas as authorized under the Constitution and laws of the
State of Texas against the assessment, levy, or charges for ad valorem taxation, personal property
taxation, or any other charges.
LESSOR . CITY OF BEAUMONT
By:
Kyle Hayes
Name: City Manager
Title:
APPROVED THIS THE/ DAY OF ,20 07 .
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EXHIBIT "C"
CERTIFICATE OF ACCEPTANCE
I,the undersigned,hereby certify that I am the duly qualified and acting of,the City of Beaumont, (the
City), and, with respect to the Lease Purchase Agreement dated A4teZ °l , 20 07 (the Lease),by and
between Lessor and the City that:
1. The Property described in the Lease listed on Exhibit"A,"(the Property Group)has been delivered
in accordance with the City's Specifications (as that term is defined in the Lease) and has been
accepted by the City.
2. The Rental Payments provided for on the page of Exhibit"B"to the Lease relating to such Property
Group(the Rental Payments)shall commence and be due and payable on as shown on said Exhibit
"B" in the amounts on such page of Exhibit"B" to the Lease.
3. The City has appropriated and/or taken other lawful actions necessary to provide moneys sufficient
to pay all Rental Payments required to be paid under the Lease during the current fiscal year of
Lessee, and such moneys will be applied in payment of all such Rental Payments due and payable
during such current fiscal year.
4. The City is self-insured with respect to all risks required to be covered thereby pursuant to Article
VI of the Lease.
5. The City is exempt from all personal property taxes,and is exempt from sales and/or use taxes with
respect to the Property Group and the Rental Payments.
6. During the Lease Term (as defined in the Lease) the property Group will be used by the City to
perform essential governmental functions.
7. There is no litigation, action, suit, or proceeding pending before any court, administrative agency,
arbitrator, or governmental body, that challenges the organization or existence of the City; the
authority of the City or its officers or its employees to enter into the Lease;the proper authorization,
approval,and execution of the Lease and other documents contemplated thereby;the appropriation
of moneys, or any other action taken by the City to provide moneys, sufficient to make Rental
Payments coming due under the Lease in the City's current fiscal year; or the ability of the City
otherwise to perform its obligations under the Lease and the transaction contemplated thereby.
Dated: MjgA 91 Abo
City of Be mont Concurred:
jo
B By:
atia Clark Kyle Hayes
Purchasing Manager City Manager
22
I
Legal Department
P.O. Box 3827
Beaumont, Texas 77704-3827
Qu!a
Tel. (409) 880-3715
City of Beaumont Fax (409) 880-3121
EXHIBIT "D"
OPINION OF COUNSEL
Re: Lease��- Purc ase greement dated as of the
'—day of , 20 07 ,by and between
City of Beaumont as Lessee (the City) and
Chase Equipment Leasing,Inc. as Lessor.
Gentlemen:
I have acted as counsel to the City with respect to the Lease Purchase Agreement described above(the
Lease)and various related matters,and in this capacity have reviewed a duplicate original or certified copy
of the Lease and the Exhibits attached thereto. Based upon the examination of these and such other
documents as I deem relevant, it is my opinion that:
1. The City is a municipal corporation and political subdivision of the State of Texas,duly organized,
existing and operating under the Constitution and laws of the State of Texas.
2. The City is authorized and has power under applicable law to enter into the Lease,and to carry out
its obligations thereunder and the transactions contemplated thereby.
3. The Lease has been duly authorized,approved,executed,and delivered by and on behalf of the City,
and is a valid and binding contract of the City enforceable in accordance with its terms, except to
the extent limited by state and federal laws affecting remedies and by bankruptcy,reorganization,
or other laws of general application relating to or affecting the enforcement of creditor's rights.
4. The authorization,approval,and execution of the Lease and all other proceedings of the City relating
to the transactions contemplated thereby have been performed in accordance with all applicable open
meeting,public bidding, and all other laws,rules, and regulations of the State of Texas.
5. The execution of the Lease and the appropriation of moneys to pay the Rental Payments coming due
thereunder do not result in the violation of any constitutional,statutory,or other limitation relating
to the manner, form, or amount of indebtedness which may be incurred by the City.
I
6. There is no litigation,action, suit, or proceeding pending before any court, administrative agency,
arbitrator or governmental body, that challenges the organization or existence of the City; the
authority of the City or its officers or its employees to enter into the Lease;the proper authorization,
approval and/or execution of the Lease,Exhibits thereto and other documents contemplated thereby;
the appropriation of moneys to make Rental Payments under the Lease for the current fiscal year of
23
I
i
}r�
the City; or the ability of the City otherwise to perform its obligations under the Lease and the
transactions contemplated thereby.
7. The Lease was duly and validly adopted by official action of the governing body of the City of
Beaumont on this the 20 day of February , 20 07 and such official action has not been amended
or repealed and remains in full force and effect.
Dated:
Very truly yours,
Tyron . Coop
City A orney
24
EXHIBIT "E"
CERTIFICATE OF INCUMBENCY
Lessee: City of Beaumont
Dated:
I, the undersigned Secretary/Clerk identified below, do hereby certify that I am the duly elected or
appointed and acting Secretary/Clerk of the above Lessee (the "Lessee"), a political subdivision duly
organized and existing under the laws of the State where Lessee is located,that I have the title stated below,
and that,as of the date hereof,the individuals named below are the duly elected or appointed officers of the
Lessee holding the offices set forth opposite their respective names.
Kyle Haves City Manager t ` L l/
Name Title Signature
IN WITNESS THEREOF,I have duly executed this certificate and affixed the seal of such Lessee as of
the date set forth below.
Signature of Secretary/Clerk of Lessee
Print Name: Tina Broussard
Official Title: Deputy City Clerk 7b��
Date: C)
25
RESOLUTION NO. 07-052
WHEREAS,bids were received fora fixed ratefinancing agreementforthe purchase
of one (1) Caterpillar 826H Compactor for use at the Landfill; and,
WHEREAS, Chase Equipment Leasing, Columbus, Ohio, submitted a bid for a five
(5) year financing agreement with a fixed rate of 4.24%; and,
WHEREAS,City Council is of the opinion that the bid submitted by Chase Equipment
Leasing, Columbus, Ohio, should be accepted;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the bid submitted by Chase Equipment Leasing, Columbus, Ohio, for a five (5)year
financing agreement with a fixed rate of 4.24% for a total amount of $602,355.35 for the
purchase of one (1)Caterpillar 826H Compactor for use at the Landfill be accepted by the
City of Beaumont.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of
February, 2007.
ow
Mayor Guy N. Goodson -
i