Ordinance No. 3,40520610 -6
ORDINANCE NO. 3405
AN ORDINANCE ACCEPTING THE BID OF DAVIS TRUCK & EQUIP-
MENT CO., INC., FOR THE LEASE PURCHASE OF ONE MECHANICAL
STREET SWEEPER; AUTHORIZING THE MAYOR AND THE CITY
CLERK TO EXECUTE AND ATTEST TO A LEASE PURCHASE CONTRACT
WITH DAVIS TRUCK & EQUIPMENT CO., INC.; AND AUTHORIZING
THE PAYMENT BY THE CITY OF BAYTOWN OF THE SUM OF THIRTY
THOUSAND & N01100 ($30,000.00) DOLLARS AS THE FIRST
PAYMENT THEREOF.
WHEREAS, the City Council of the City of Baytown did
authorize the Purchasing Department for the City of Baytown
to advertise for bids for the purchase of one mechanical
street sweeper to be received May 27, 1982; and
WHEREAS, the City of Baytown is authorized to purchase
equipment by means of a lease purchase agreement as provided
by Texas Revised Civil Statutes, art. 2368x.2; and
WHEREAS, notice to bidders as to the time and place,
when and where the contract would be let was published pur-
suant to the provisions of Section 74 of the Charter of the
City of Baytown; and
WHEREAS, all bids were opened and publicly read at City
Hall at 9:30 a.m., Thursday, May 27, 1982, as per published
notice to bidders; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
BAYTOWN:
Section 1: That the City Council of the City of Baytown
hereby accepts the bid of Davis Truck & Equipment Co., Inc.,
for the lease purchase of one mechanical street sweeper for
the lease purchase price of SIXTY NINE THOUSAND EIGHT
HUNDRED SEVEN & 63/100 ($69,807.63) DOLLARS, and authorizes
payment of Thirty Thousand & No /100 ($30,000.00) Dollars as
the first payment thereupon.
Section 2: The Mayor and City Clerk are hereby authorized
to execute and attest to a lease purchase agreement with
Davis Truck & Equipment Co., Inc., for the purchase of one
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mechanical street sweeper, a copy of which is attached as
Exhibit "A ".
Section 3: This ordinance shall take effect immediately
from and after its passage.
INTRODUCED, READ and PASSED by the affirmative vote of
the City Council on this the 10th day of
1982.
ATTEST:
v _
� 7
c"
EILEEN P. HALL, City Clerk
June ,
or
Fl/ • /�
• •
APPROVED:
RANDALL B. 9TRONG, City At ey
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THE STATE OF TEXAS
COUNTY OF HARRIS
THIS AGREEMENT made and entered into between the CITY
OF BAYTOWN, a municipal corporation, of Harris County, Texas
hereinafter sometimes called "CITY" and sometimes called
"BUYER ", and DAVIS TRUCK & EQUIPMENT COMPANY, INC.,
hereinafter called "SELLER ",
W I T N E S S E T H
I.
SELLER has sold and delivered or will deliver to BUYER
and BUYER has purchased from SELLER the following described
equipment or vehicles:
One (1) Mechanical Street Sweeper
II.
The consideration of the foregoing sale to be paid by
BUYER to SELLER or to SELLER'S assignee is as follows, to-
wit:
When the equipment is delivered to and accepted by the
City, $30,000.00 (provided City shall have a reasonable
time for vouchering the payment and issuing warrant);
On or before one year from first payment, the remaining
$35,750.00 of such entire price together with interest
at 11.350 on said amount from the date the payment is
made of the lst part of the price as here above last
provided to the date of such final payment.
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Provided nevertheless BUYER may at its option on or before
the stated date for each payment above stipulated, and not
being in default in the making of any payment theretofore
becoming due, discharge its entire obligation under this
Agreement by surrendering and delivering to SELLER or to
SELLER'S assignee, as the case may be, all equipment referred
to in Section I in good operating order and condition,
reasonable wear and tear being excepted, by which delivery
all title thereto will pass out of CITY.
By the execution of this Agreement, BUYER represents to
SELLER that it has lawfully provided out of its current
funds and revenues for the year now current the amount
required to cover the initial payment stipulated above, but
makes known to SELLER that under provisions of the Charter
of the City of Baytown, the CITY does not have any provision
at this time for any of the further payment stipulated, but
can and by this instrument does obligate itself that it will
either make such payment on or before the respective date
stipulated or will so surrender up the equipment as above
provided.
In the event the CITY'S obligation under this Agreement
is discharged by its surrendering the equipment or if SELLER
becomes entitled to possession of such equipment or by order
of a court of competent jurisdiction, none of the monies
theretofore paid by the CITY shall be refunded or recoverable
by it; but the parties agree for themselves and for their res-
pective assigns that the amount paid by the CITY shall be the
value to the CITY of the use and enjoyment by it of the equip-
ment during its possession.
If title certificates have been furnished the CITY in
connection with any of said equipment as contemplated by num-
bered Section VI and CITY elects to surrender the equipment
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2.0610 -6d
instead of completing payment therefor, CITY further obligates
itself that at the time of such surrender, it will also surren-
der the title certificates appropriately endorsed.to permit the
handling thereof by SELLER or SELLER'S assignee and will render'
full cooperation and execute all appropriate papers to assist
SELLER or SELLER'S assignee in procuring the issuance of title
certificate and license receipt in their name or as they may
elect.
III.
It is made a part of this Agreement as if it were .fully
set forth at length or attached hereto SELLER'S bid or bids
received by the City Council for the furnishing to the City of
the equipment together with every specification and other ex-
hibit thereto attached or therein referred to. SELLER repre-
sents that the items of equipment covered by this Agreement
will be delivered to the CITY within the respective times set
forth in such bid. It is agreed that upon delivery of such
equipment to CITY it will have a reasonable time to inspect
the same and make such tests, if any, as are contemplated by
the specifications, and based upon the results of such tests,
to either accept or reject the same, depending upon whether the
equipment meets the specifications; provided, however, that
for the assurance of an assignee to whom SELLER may assign the
payments to be received by it CITY will, upon completion of its
tests and inspection and the acceptance by it of any particular
item or items of the equipment, execute an appropriate memoran-
dum to the effect that it has received such item of equipment
and has accepted the same as being in apparent compliance with
the terms of this Agreement and with the specifications on
which the same was brought but no such acceptance shall relieve
SELLER of any of its obligations with respect to such equipment
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arising from the warranties or guaranties, express or implied,
on which the same was sold.
After acceptance by the CITY of such equipment, SELLER
shall not be obligated (except to the extent contemplated by"
the specifications on which the equipment was sold) to incur
or pay any tax or charge or any expense of any kind or charac-
ter during the entire term hereof by reason of or in connection
with said equipment.
IV.
Title to said equipment is retained by SELLER, but upon
payment by the CITY of all of the amounts stipulated herein
full and complete title thereto will vest in the CITY without
the necessity of any further writing or act on the part of
SELLER. It is a condition of this Agreement that SELLER shall
have the right to take and resume possession thereof in the
event of failure of any of the following, which are express
conditions to the CITY'S right to continue in possession there-
of, to -wit:
(1) That the CITY will tke the same care of said
equipment as a reasonably prudent person would take of his
own property;
(2) That the CITY will keep said equipment in good
repair and condition, subject only to such normal wear and tear
as may not be remedied by good repair and maintenance;
(3) That if any of said equipment is lost, taken or
destroyed, or rendered unfit for further use by extraordinary
wear and tear or by fire, theft, windstorm, public disaster,
act of God, or any other casualty or cause whatsoever, the
CITY will continue to pay for the equipment as provided for in
Section II of this Agreement; and
(4) That the equipment shall be used exclusively in
the service of the CITY, and CITY will not -sell or dispose of it.
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PROVIDED CITY shall be entitled to thirty (30) days with-
in which to comply with any such condition after receipt by
it of written notice to it of non - compliance therewith, and
in any such event the CITY shall have the option within such
30 -day period of paying off and discharging the entire balance
of the purchase price to the date of such payment, whereupon
title to the equipment will be deemed to have vested fully in
the CITY.
V.
In the event of failure on the part of CITY on or before
any of the payment dates stipulated in Section II to either pay
the amount therein stipulated or to surrender possession
and title to the equipment to SELLER or to SELLER'S assignee,
SELLER or its assignee shall have the right to take and
resume possession of said equipment, SELLER or SELLER'S
assignee shall have the further right of declaring all of
the unpaid balance of said purchase price due and payable
and shall have the further right of selling the said equipment
at public or private sale at any time thereafter, with or
without notice to BUYER, and SELLER or SELLER'S assignee may
become the purchaser thereof; provided that in the event of
any such default SELLER or SELLER'S assignee shall look
solely to the said equipment or to the proceeds of the sale
thereof for the enforcement of payment of any balance hereunder,
and said equipment and the proceeds of any such sale thereof
shall be full satisfaction of the CITY'S obligations under
this instrument.
VI.
To the end that the CITY may procure registration and
licenses in its name (for which it is necessary that the
CITY exhibit to the licensing authority a manufacturer's
certificate or a title certificate in its name pursuant to
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the provisions of the Texas Motor Vehicle Title Law), SELLER
will cause to be delivered to the CITY a separate manufacturer's
certificate duly assigned to the CITY covering each item of
the foregoing equipment for which a title certificate is
required under such law, showing the City of Baytown as the
owner or last transferee or assignee of the vehicle, and
which may show a lien in favor of SELLER or SELLER'S assignee
to whom the deferred payments herein provided may have been
assigned by SELLER, which lien shall be shown in the amount
of the proportionate part of the proportionate part of the
stated purchase price which remains unpaid after the initial
payment based upon the schedule of payments provided in
Section II of this Agreement. Notwithstanding the delivery
of such certificate, it is expressly agreed that the CITY
shall not be entitled to require a release of the lien so
indicated, except upon paying the balance of the entire
purchase price of the equipment. In every respect in which
the respective rights and obligations of the CITY, or SELLER
or of SELLER'S assignee as indicated or suggested by such
certificate might appear to be different than their respective
rights or obligations as stated in this instrument, the
provisions of this instrument shall control. The CITY
further agrees in this connection that in the event of any
further assignment of the payments to be made by it hereunder
it will, upon appropriate request but without cost to it,
procure the reissuance of a title certificate to evidence
the transfer of lien to such further assignee; provided that
the original title certificate shall come and remain into
the possession of the CITY OF BAYTOWN since it is unable to
procure the issuance to it of tax exempt license plates
without having the original title certificate in it possession.
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VII.
The initial payment and all subsequent payments herein
stipulated shall be made by the CITY to SELLER: provided if
SELLER has by executing the form of assignement attached
hereto, assigned all or any of such payments to another, the
CITY will make the payments so assigned to such named assignee.
All of the unpaid payments under this contract may at any
time from time to time be assigned or reassigned in whole
but not in part, by an assignment substantially to the
effect of the form of assignment appended hereto. No assign-
ment of any of the unpaid payments under this contract will
be recognized by or be binding upon the CITY unless it be by
a written assignment, signed on behalf of the assignor and
the assignee, and an executed original thereof be delivered
to the City Manager of the City of Baytown.
VIII.
This Agreement may not be changed, varied or altered
except by instrument in writing duly executed on behalf of
CITY and by SELLER and also by SELLER'S assignee.
Failure on the part of SELLER or of SELLER'S assignee
to exercise any remedy given in the event of breach of
covenant or condition on the part of the CITY shall not
constitute a waiver of such breach nor impair the right of
SELLER or SELLER'S assignee to exercise such right or remedy
at any time thereafter while such breach or default continues;
proivded the acceptance by SELLER or SELLER'S assignee or a
payment hereunder after the -date it is due shall constitute
a waiver of delay in making of such payment.
Ix.
Every obligation of or arising from this Agreement
shall be performable in Harris County, Texas.
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x.
SELLER covenants and agrees that the CITY, making the
payments herein contemplated to be made by it and performing
all covenants and conditions on its part herein contained in
the manner and within the times herein provided, shall and
may peaceably and quietly have, hold and enjoy the possession
and use of the equipment herein referred to, and that SELLER
will defend CITY in the title and peacable possession of
said equipment. The CITY covenants and agrees that it will
not until all payments herein contemplated to be made by it
have been made suffer, commit or permit any waste of or
damage to the said equipment or to any part thereof.
IN TESTIMONY OF WHICH, this instrument in duplicate
originals of equal force has been executed on behalf of SELLER
on this the day of
ATTEST:
1
{�/ .nD_. /
EILEEN P. HALL, -City Clerk
ATTEST:
, 1982.
CITY OF BAYTOWN
B4MMETfTO.�HZITO-," )Mayor
SELLER
am
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ASSIGNMENT AND BILL OF SALE
THE STATE OF TEXAS
(i KNOW ALL MEN BY THESE.-PRESENTS:
COUNTY OF HARRIS
THAT -
(the "Assignor "), for and in consideration of the sum of TEN
DOLLARS ($10.00) cash and other good and valuable consideration
to it in hand paid by
(the "Assignee "), receipt of which is hereby
acknowledged, has BARGAINED, SOLD, TRANSFERRED, ASSIGNED and
DELIVERED, and by these presents does BARGAIN, SELL, TRANSFER,
ASSIGN AND DELIVER unto Assignee all its right, title and
interest in and to a certain conditional contract of sale, a
COPY of which is attached hereto identified as Exhibit "A ",
and all sums of money now due or to become due to the under-
signed by reason of said conditional contract of sale, the
same bearing date of execution by Assignor as Seller therein
on the day of , 19 —, and date of
execution by the City of Baytown, a municipal corporation of
Harris County, Texas, as Buyer therein on the day of
19 covering certain equipment or
vehicles which is described in said contract, reference to
which contract is here made for the description of said
equipment and vehicles as though the saine were fully set
forth in this instrument.
And for the same consideration, the Assignor does also
BARGAIN, SELL, TRANSFER, ASSIGN and CONVEY unto Assignee,
its successors and assigns, all its right, title and interest
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in said equipment or vehicles herein described, it being
understood, however, that all responsibliities and liabilities
contemplated by the Assignor's warranties or guaranties as
to such equipment or vehicles were sold to the City of
Baytown shall be or remain against the Assignor, and such
warranties or guaranties are in nowise here assumed by
Assignee.
TO HAVE AND TO HOLD the above - described conditional
contract of sale, all sums of money now due or to become due
thereon, and equipment or vehicles unto Assignee, its succes-�
sors and assigns forever.
Assignor WARRANTS that at the time of the execution
hereof it is the owner of the aforesaid conditional, contract
of sale and all sums of money due or.to become due thereon
and that the same is not subject to any claim, lien or
encumbrance, and further WARRANTS that said conditional
contract of sale is entitled only to the credit, payment and
offset of the payment due when twenty per cent (20 %) in
value of said equipment or vehicles is delivered to and
accepted by the City of Baytown, being the first payment set
forth in said conditional contract of sale and being in the
amount of
DOLLARS ( ), and that the unpaid balance due
or to become due on said conditional contract of sale is
DOLLARS
($ ), plus interest therein provided; and
Assignor further binds itself to forever WARRANT and DEFEND
the title to the said equipment and vehicles unto the said
City of Baytown and its assigns, and covenants that at the
date of said conditional contract of sale to the City of
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Baytown the same was free and clear of all liens and encumbrances
and that Assignor has good right and lawful authority to
sell and convey the same.
EXECUTED THIS THE DAY OF 19
Assignor
By
ATTEST:
ACCEPTED:
ssignee
ATTEST:
THE STATE OF TEXAS
COUNTY OF HARRIS
M
BEFORE ME, the undersigned authority, on this day
personally appeared ,
President of a
corporation, known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to
me that he executed the same for the purposes and consideration
therein expressed, in the capacity therein set forth and as
the act and deed of said Corporation.
GIVEN UNDER MY BAND AND SEAL OF OFFICE, this the
day of , 19
NOTARY PUBLIC IN, AND FOR
HARRIS COUNTY, T E X A S
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THE STATE OF TEXAS
COUNTY OF HARRIS
BEFORE ASE, the undersigned authority, on this day
personally appeared
Vice President of ,
a banking Corporation, known to me to be the person whose
name is subscribed to the foregoing instrument, and acknowledged
to me that he executed the same for the purposes and consideration.
therein expressed, and in the capacity therein set forth and
as the act and deed of said corporation.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this th.e
day of , 19
NOTARY PUBLIC IN AND FOR
HARRIS COUNTY, T E X A S
WE