Ordinance No. 5,356890914 -13
ORDINANCE NO. 5356
AN ORDINANCE ACCEPTING THE BID OF RECYCLING SYSTEM, INC.
FOR THE LEASE - PURCHASE OF A WASTE RECYCLER AT THE RATE
OF 8% PER ANNUM FOR A PERIOD OF FIVE YEARS; AUTHORIZING
THE PAYMENT BY THE CITY OF BAYTOWN OF THE SUM OF THREE
HUNDRED SIXTY THOUSAND TWO HUNDRED FORTY -SIX AND N01100
($360,246.00) DOLLARS; AUTHORIZING THE EXECUTION OF THE
VARIOUS DOCUMENTS NECESSARY TO COMPLETE THE LEASE -
PURCHASE; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
WHEREAS, the City Council of the City of Baytown, Texas,
did authorize the Purchasing Department for the City of Baytown
to advertise for bids for the lease- purchase of a waste recycler;
and
WHEREAS, notice to bidders as to the time and place, when
and where the contract would be let was published pursuant 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 2:00 p.m., Wednesday, September 6, 1989, as per published
notice to bidders; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That the City Council of the City of Baytown
hereby accepts the bid of Recycling System, Inc. for the lease -
purchase of a waste recycler at the rate of 8% per annum for a
period of five years for the sum of THREE HUNDRED SIXTY THOUSAND
TWO HUNDRED FORTY -SIX AND N01100 ($360,246.00) DOLLARS, and
authorizes payment thereof.
Section 2: That the Mayor and City Clerk are hereby
authorized to execute and attest the lease- purchase agreement
with Recycling System, Inc., a copy of which is attached hereto
and identified as Exhibit "A," and made a part hereof by
reference for all purposes, and that the City Manager and various
appropriate department heads are authorized to execute all
documents necessary to complete the lease transaction.
Section 3: This ordinance shall take effect immediately
from and after its passage by the City Council of the City of
Baytown.
INTRODUCED, READ, and PASSED by the affirmative vote of the
City Council of the City of Baytown, this the 14th day of
September, 1989.
C.
EMMETT 0. HUTTO, Mayor
ATTEST:
EILEEN P. HAL . City Clerk
f 1�
AO-
C:1:28:13
890914 -13a
MCATERPUAAR /WANCIAL:B VMM COIIPOIIATUM
LESSEE: City of Baytown
ADDRESS: 2401 Market
Baytown, TX 77522
CAT FIMW UL GOVERNMENTAL AGREEMENT
LESSOR: Services Corporation
ADDRESS: 901 Warrenville (toad -#304
Lisle, IL 60532 -1359
Shbod In to terms and oondlt me aM Iori h bobw and an the inverse hereof, Loam, in to 1, - an Loom's eeI W d to aqu0mwt described
hebvr (ft "Un" « "U ft'"), awen b acquire, Isaee and set the Unks to Lit wee. and Loans agrees b him and purchase the Lori h= Loam.
0aaakMIA 0FUrft Annual EWW%n W Lessee Pun* n Pride
(1) New Morbark Model 4108 Portable Waste $60,059.00 $1.00
Recycler SIN: equipped with
Caterpillar Model 3412 Engine SIN:
LimemaTerm: 60 NOW= 11 -30 , If 89
Lmoulon (U ft: 2401 Market, Baytown, Harris County, TX 77522
The 0 tilandNOry Punrrase Provision to c".n 10(m)) ❑ Purcdeee Option (Secdcn 1g(b)) I• mppac" to Bra Laaas ldmmk goal.
AddMbeW pj*W" , Exhibit No. 2 - Rental and Concluding Payments Schedule
Lessor may not assign this Lease or any interest therein, the provisions of Section 12 to the contrary notwit:hstandinc
Lessee will report this lease to the Internal Revenue Service for filing Form 8038 -G. Failure to do so will cause
the lease to lose its tax exempt status. Lessee agrees that if the appropriate form is not filed, the transaction
will be adjusted to reflect an equivalent taxable interest rate.
Nothwitbstanding Section 2 of the Lease, Lessee shall pay to Lessor rental (including the principal and interest
portion) in the amount of $ 60 059.00 for each Unit in 5 consecutive annual installments commencing on (a)
with respect to Units for which the Delivery Date is one of,the first fifteen days of a calendar month, the
fifteenth Gay of the twelfth month following the month in which the Delivery Date occurs, or (b) with respect
to Units for which the Delivery Date is subsequent to the fifteenth day of a calendar monthr the first day of
the thirteenth month following the month in which the Delivery Date occurs.
Rider No. 1 - Down Payment VD OF LEASE
Rider No. 2 - Self- Insurance for yys ca amagge
1. LEASE TERM; NON - APPROPRIATIONS: The Joseslerm br each Unifdal commence on as - DWWwyDtss- Oh is to (sir of the date on
possession
p ea)t,a Dal any°'0° Date ar or prbrrob LI e e brit ale +Lai. Bxo the bsl « mlcea ofieceil yae(aer in which
such Delivery D«M ooaxa and. thsrea}Mr, dal auti>,thatwlty be extended br woossdve
CM-Ywr pry ook,adlrh�p Losses fiscal years. 11 the
Dafiwry Data is rot on or prbr b the Utlraton Dale. Lsseea shall. M the optlon d Lnwon, "NAM Lenora obligations ta�land for such
UNL 4Vtlhin seven days blowing the Da�t d each Unit Laseae dhdi execute and deliver to Laos« a Delivery ua g Lessor's
mlandend form. ern the evert no lands « 4xhds era appreprfstad and budgeted
or we oterwiw not available In any fiscal year tor rentai
,xsyrnerxs due under tlhis Lease, Lessee oval krhmedleMy Hotly Leeson d such occurrwhr, and On Loan ahau tamhinste on the lest day of the fiscal
Yovr br hh h aPProprietons t Pene�y a�a�to�Leetee, esacapf as In the portion of renal payments herein agreed upon for
Mh'ah furhds have bean and DlotivllhMandkg to brsgo% Lasses agrees that it wlli rot cancel
the Lease under the prtWsions d Section 1 t any funds era appmpnMad b it « by t for the aogrYekion, miontion « operation d the Units « other
r>ed«mirg [uncsiona similar to the Urhls br taw terror yew fn which MrnnirhMion cows or the nest sucoseding fecal yew.
2 RENTALS; NET LEASE: Dumv the lease term, I aseee shah pay to Lessor, at the address sat bri h above or at such ether bastion as Loam
dmwmde In w WrV, renal in advenos i« each Unit in the amount Mated above, in owaisoutive montMy sgtsYme ft rep on (a) tho =
day of the month In which the Deuwry Date owuni, with moped b Units f« which dw D WVWY Dab Is one of the *0 thson dap of the miandw month,
ar (b) the firs! day of the month following the merrh in *lid the Delivery Dais 000um, with rasped to Units I« which the DM" Data is subsiquen
ID the ttlesnth day of a cliender month. An amour equal to area m" peyrnwa br au at the finale must accompany this Lease. t Lees« woopte and
samoules this Lease, said amount shat be applied b the ftist rental payment due hamurhdor. t Lessor does red exam" this Lease, said amount wW be
reamed to Lessee. Lessee stall pay to Lessor, on dw wW. a h to payrT nt dmW oquml fo the Moser d l .S% par month or the hio charge slowed
by Mw an the amount d payment red made vhAhsrh due under this Kama anti payrnwt le neoelved by Lweor. This Lone as a rnM lead, and Emcees shell
not bs orhtted b ashy atxaterrert « redhrdiarh d nn or ar+y sstDfl agrnst rent arlhMthr by reason d any tit gesert «tirlurs r9aMn6 d wry
be by Leales against Lses« « athenvviee. Except as atltmewlao trwided Irrein, t+s abligrtorhe d Lessor and (emssa hrswhdsr shay not
U�nt �emh Leweaa used tdie alhs� cases wM>wrr sinrlei d�YaMrYlra a awry llrh « otMr drm ro awry
b to oo *.ry rhotedtatendirg. bfe0�g. dry I t or future few
3 WARRANTY DISCLAMER: LESSEE ACKNOWLEDGES AND AGREES THAT (4� EACH UNIT M OF A WEE, DESIGN AND MANUFACTURE
SELECTED BY LESSEE AND IS SUITABLE FOR LESSEE'S PURPOSES AND CONTAINS ALL BAFEIY FEATURES DEEMED NECESSARY BY
LESSEE, (b LESSOR M NOT A MANUFACTURER THEREOF, ``c�� THE VENDOR IS NOT AN AGENT OF LESSOR AND LESSOR HAS N0T
MADE, AND DOES NOT HEREBY MAKE, ANY REPREBENTATION OR WARRANTY. EXPRESS OR IMPLIED, WITH RESPECT TO THE TITLE,
CONNECTION
MERCHANTABILITY, SOU ND USES OF�LESSEE DURABILITY REB�PE�CT TO E AAPPROROPRIATE CHARACTERIZATION ERIZATION�OF OR
THINS
TRANSACTION FOR TAX, ACCOLINTM OR OTHER PURPOSES. As Iong as no Evert of DMsttt (as hanhhaf er stalsrhad) has armored and is
otxThwing, Lessor assigns to Loses, to the oxW t anignAft, any wartsttlso of the vwxt« of the Units.
d. PORIWBSIOK USE AND MAWTENAnCE: Leases Mhal not (a) use apw.t, msrwtrs or.tora any ltk* improperly, coahmo y, uealsly or ah vtoMlon
Of any aPOksb1s hrw or mguilaon «1« any puPoas Oder than in the aondu.Y d Lewes's bueknass; (D) abandon sey Unit; (c) nblmass any UrA paannt
the use of t any Lkht by , or d other than abono, dlrhgs ths� a it ov rhohaaO prior w �nenga f Los w, once Ski wsign or
Survey Mtedhed hsrsb, a d+whge tt+s tocaton d usw wtssllrhbrattoa
ter -now, or �a�y «khQndy errata or sutler b
Tlvs (lrhlni aro arhd atrY rwnaie pwm«W propw� InaeparAtva d #N* uas «marew d atghdrnwt to matt. Upon prior nWbs tl Lwwa. Lwow or is
$t shail have to rohl! (but not this obrgatonj a1 aY raamarda tuna to lnaprcl Lki t and rrmkft ends nods n�isling P rsa maYrinwhos at
Ins expense and M sH times during the Mad Ism, malydmii to Units in good order, wpak and aondton and mull
Mast as /ngtertly, as sot forth In any q*kaibb apermYde gibes, saw and and patirrnam FAis k r to Untm. Lstaes Mel not
after any U r* « aft any or equbrmenl b wy Unit M such atsrMfon or addMon ward kp* rid ar%#Wly ant- I hi mion or ua or reduce
Iho valued such Unit. My aNratan or sddsi, loony Lk* shag be the d and M Wo moM rk* d Lease. AY pNts, Monsoon aid
Lessor wt Ma to" U A dal be sub0d b to aaourky krwast d Lama«1w tnrwmhdw. Loans ahss sM and in" wy M6Ma st"M by
Lessor open a pnorrrti,wt pmt on to Uf t dhatig to tam d t" Law.
BEE REVERSE ADDR ON& TERMS AND CONDITIONS OF AGREEMU
LESSEE ACKNOWLEDGES A FULLY CDMPLETED AND EXECUTED COPY OF TM AGREEMENT
TlrsLawMdrMdaad _ f <'�
City. of Bayto
BY
Two
Date
CATEIPhlAR WT ad N m veAwrela of 0 sr wn
ear. -
Ig
By -
Two
-is gle
O
EXHIMT A
CATERPILLAR FINANCIAL SERVICES CORPORATION
( Lessor)
, 1t
& PAPFUMOrrATOM AND WANUMMIft- tesses, fe; , ard-vin
subdUslon ;Zwgduly M= WW SdMV under Ow OonsIlludon wW laws d to state where to Uri wN be ba , (b
In mled. gUmasse, has to pmw
2D fro. :r. atlas II all necessary avid = scion Io =Ahxft ft SXKUNon Smoot fc) Lease consituame a
we vold wd Is =
W aw 01:6bk I of Losses- (d) ft tilabylLsweehervemulerle m ip'tromFom Irmal swesion
an ::a
purbulard 10 of to Internal ReNal CmIs of IOK as wKbd (9% = ho 4 at o1w funds avollable to
pay am 0 Mui *0 bar rd ressonaft bel"" affmb can!; di,661 to rnshe as rental Wim
dw" to wM d go Lases.
fl FmknbLwn Lasser Oor @111 ices Ism of wV nvkM -Wm try p M Inesoradowalotm
TAM: Lass lopvrpkplwor
r carne . .. gat "I a, irraehsr wa sYhp at any rim priarto.—Im- udasqusrK 10 to Liesse Sam and JrAed upon
aw " hWAVM, 111005 by L*@Kes not I m. (of w nol
g 40 or
=4 inourne No" by-! julleme dr Lessor frorn to = of any
___a,_fthVIPPPPF �--ff Is - no* It k Viand 111111111 11 "1 "I'lleal
Mw Such P14 veop" to Lessor, #w Lasase
210 =CIM loot- in or wlnww 0 by Loom
7. LM ON DANAft VINUMMM Lsompse, MM 6M ft Mk of wN pe or CIORW Clomaner" ------ Saw Unk prior
I%=fthesquarit1k)(urdIsLochunkle Is MAY cause
Lases do On Le"=w APOIN allinap k not at
Ltd =11
sqw!am, wwWNy resO. such --0-, Tv'"-W-Un-I war. out, fiosk I - I 1 -1 perably
dwmped ( "Mmanow-r, 5 by "ma4tomo-W —',orkW, by-,
'Co,TNIW Ckourre"al Losses. Ove
Lessor p"A nallow ; "PPI _111hereisnosuchaw p@y=dMIMI,=dZ
dw ASM Cesullay 0ownw", ID Low Q_wwwN d;7'p;yXZ Man due In rasped of much UrAL Ois a w" oquelID
Conclulono PROwe to star l 2 "1 on, 4 04" 0 wi a" Pww* dkwbv *0 drains Laisme term by Lessee, ID Leemar.
as rAdwend byte a" �910114 L4006. IN i5vp cam U* IqpW SO rWks for not
Am ow 11he - �w IN UrIft for
and
as
not IhuS turn i ate for Liessor del approve, lave Zn'w—m Irmemack (c) tram OV atlfer
insurance , by Lessor, (d) pwAdo#W such Nhweaaros m"n--- earrosNrd or - sr s rare" tee kdrad of Laimew uUmmA a MM Nrty
Is SO JOSS P" 90 the PWOM W* ID LOOM. UNOW WINDS ID notify Loom
WMY wNIVALsamotsprior
hereby Wwv*s**p*ftUww Is Mmey in Ilact lonsoOve oft - lot and , ." ell rimckmandalhardocurnenamand
Owderm of such ahrawhoe courage.
SAVIDMOFIDIVALT;11111111111IM11: Each of Nb foNosrkhp e1fsN ooralwtas sn'EmdofDOwArlmourdw (a) Lewes ShM fall ID ftWo any payment
ID re "Leseve comlabod &sees or In any dowim hirrishod ID Lassor in
h.!=.~ MAID fiMIMMIft (b) viny�
Mbal orders or I.-b i any other covervard, spearnat or wrarrunLy rrede W be a
Loom herembr and awh Mm shad owdnw for 19 401srolIds mmr, 111mod to LOMa-,Jd) Leameashishfall to Maken= on ft
of or when steeds;
=0 =mwhbftdW*r{*}Vw*shd boa= L�lidw agl a FbmtwwLvwwmML@svme,ffww venlofDolauft
ear dIft opftr� M" (a), 1 1, ML
=@MMM:,.b Masevarwisoarm' n br"
as hwellneft prwAftel, ad tweaport Loom M; breach
vt h_"do
Ly 1 InwMVealLowee,ow khwwtftLsmw.
Zone owamorow 1010), or Ma matt have to the cf each tarrrihdlon, (B) as dwragn br im Of to deport and root as a pawft, 2 am salual 10 to "1110" =.dl 22,r�� Pryunerrt
wIlh I ID Vaa Oft and (p wry addkrA 1 101-1
wd try Lessor by ression d to 'R
arm.--sy M, dal 'Inoftiewallhewtwforilhe Odf ;P)Gr*MvwwM*hdw Sk'snim"dim
ows, WON upm Vo F ow the Oft he I" valmomm IM", am (t4 M*" Losses in ram. Ow UnIts as
Is 9901110 IL Laser IMIN ham all A" Ovmr�t�a 0111hounIsIoNawftanEvert
01 0011INUIL LONNOW WAV, 21 he mis of any such sale or ce4emse
;;�fteet-owem� here: ==to the r*%rWMWVW by Livemw ID pry Lessor all arnoures, a
. J� creche — 1he Offlu 01= crued 4w the 0111110 of Um*Ws romp" ol said proommls; TW, b pay d bw
layrrMrd dryer purSUrttp Ssallon Y hrsal ardflauft'UpsyLawar appksft Ca"ckIftPsrr-dwNhq4p@qtIor* Unft- Arty
AAMmassivem pay we' Lessee salmowladgme Ow a" for cosh or on
400 1* it talvablaft moteller or user of ft LMft eve 0 IAN" IND All No still Ow vm , Ilves and 00 weft
M=w din rd Mr b AN ofha uematlias at low
or to OWAy; F*Wftd, hmvw4w, Lamm Well va beardIllsel to recover a vembei arnountin I ig #w Loom could haw 9OW through Lasso's
ajrN Ornaly No Mwo" In o*OV It: Leaw xv ON M" I=
I ON Ileft onts aw
nles at 0 UM I p asp NMraaLMr
�� :K Pe
V_ IAMM I 011=181*111110i a O
h
so tMp" IV
IN
Cr "PICNIMAIN w Ijgve to I i i.d 00 **A 91,IhIs-Upapm vft q; Immosoph W* or,0141simor shell r%oduly
Spaq- 9 9 1, 1, � No Into
i I ctmwwUnL m l'M,,wQLjrw
IWftMw4.i9ft=*AAQmw,Iwftj I all due nOMMOMPOIlordWer-p—.6*00mat each LAK or an howd such
slaft as Lessor "% 101410010 move^ 1 11 11 wb%essar. I it no in " - IN'
by Sedan 4. Lissome shell PW to Lawsor, an d I I A A4 cash 04 aWa 1- FM_ VAb Lk*Anb 00 OVINOM is) 0 00 tAa'r my
p4mol 1 -1 lotwUnks(proykisd tee lass has
MIbM date tombobdrom I lip IN to such Oft LOWMAMP pladow wxih,Unb foselfled sin to fats INANDI -0,
aM '' t4
Imph SOMA& of I 1= Aw and w-aft UM114radwi -0 du@JftoonnmobmvAlhfWSW8413f
M—AInd
I,, milli, IIIIZI �—I I - MqIUww49Ah*wMd*A 0114MVesim w1h
0 M, — -�*WswdhO%2*nAwQQ*aurnsquml
Pw/ Ift
0*0 M%BM a, S&dAMA tk**rUrft.
!!tore dos ad rLetRsgraohsseaxlRilNdk wrrllaM ___ISb= h.M�ItAma w1h
tasaw, such
cab IM
aasaaabry
lgIIA.p AMA,
OrAltexhGowl
unbar tvilso
p4kft 'I aIjW===4=d ft apphomble,
Jamie
OM Is bore * ySdk-;*Mw so oA • MAIA V_ Xk : ,A
vis ID now UnK shall
..-Spcft. 11 M 90 an
III tin &Asftd am womearles
--so" biler ad ww MMouw,
Issrr Mr
xtl QW-do -M- gh1lA L~4" 4a@mwftft alNwad m In-as, AXINS
M Rum of Meas or am or abfipsYpn
mommwm CO LG"W. or MA E SdAw grain or
Ob Los* am She 4 Line
when
ll
VA an Mcmd �,d wAh fm lam d tshow
0 ow Irk"
-Ed" dw
ht aatiNafif kAwsmakAftor now* nor da
ego at such Unt b an
40 no WAN" stwerse
vWlnL� an fee [
al
ahttl a
dobver. in
Mid LMONW oft ow
SL
M& by=
to
p4kft 'I aIjW===4=d ft apphomble,
Jamie
OM Is bore * ySdk-;*Mw so oA • MAIA V_ Xk : ,A
vis ID now UnK shall
..-Spcft. 11 M 90 an
III tin &Asftd am womearles
--so" biler ad ww MMouw,
Issrr Mr
xtl QW-do -M- gh1lA L~4" 4a@mwftft alNwad m In-as, AXINS
M Rum of Meas or am or abfipsYpn
mommwm CO LG"W. or MA E SdAw grain or
Ob Los* am She 4 Line
when
ll
VA an Mcmd �,d wAh fm lam d tshow
0 ow Irk"
-Ed" dw
ht aatiNafif kAwsmakAftor now* nor da
RIDER NO. 1 TO CAT FINANCIAL LEASE AGREEMENT
Dated as of , 19
BETWEEN CATERPILLAR FINANCIAL SERVICES CORPORATION
AND Citv of Baytown
DOWN PAYMENT
Notwithstanding any other provision of this Lease, a down
payment in the amount of $ 59,950.00 must accompany the
Schedule when submitted to Lessor for acceptance. If Lessor does
not accept and execute the Schedule, said down payment will be
returned to Lessee.
Initial:
(Lessee)
RIDER NO. 2 TO CAT FINANCIAL GOVERNMENTAL AGREEMENT
DATED AS OF , 19
BETWEEN CATERPILLAR FINANCIAL SERVICES CORPORATION
AND CITY OF BAYTOWN
SELF- INSURANCE FOR PHYSICAL DAMAGE
Notwithstanding the provisions of Section 7 of the Lease, Lessee may
Self- insure against physical damage to the Units to the extent it
self- insures equipment which it owns or leases that is similar in nature
to the Units provided (i) no Event of Default has occurred and is
continuing and (ii) such self - insurance program is not inconsistent with
prudent industry practice with respect to equipment similar in nature to
the Units. Lessee shall deliver to Lessor, prior to Lessor's execution
of the Lease, a self- insurance certificate, substantial+ the form of
the attachment hereto. Except as herein specifically red, the
provisions of Section 7 of the Lease shall govern Lpas� s obligation
with respect to insurance for the Units. *> p
A?- x
CNN Y
i
INITIALS:
(LESSEE)
(pxb12)
SELF INSURANCE CERTIFICATE
This is to acknowledge that City of Baytown ( "Lessee ") is under a
self- insurance program for property damage with respect to the Units
leased under Cat Financial Governmental Agreement dated as of
, 19 between Caterpillar Financial Services
Corporation ( "Lessor ") and Lessee, Lessee hereby certifies the (i) the
self - insurance program shall be primary without right of contribution
from any insurance carried by Lessor and (ii) the self - insurance program
shall guarantee payment of the interest of Lessor for any loss or damage
to the Units.
City of Baytown
(Lessee)
BY
TITLE
DATE
(pxbl4)
Exhibit No. 2 to CAT FINANCIAL GOVERNMENTAL AGREEMENT
Dated as of , 19
Between Caterpillar Financial Services Corporation
and City of Baytown
RENTAL AND CONCLUDING PAYMENTS SCHEDULE
INITIALS:
(LESSEE)
Description of
Units: (1) Nev
Norbark Model 4108
Portable Baste
Recycler
S /N:
equipped with
Caterpillar
Kodel 3412 Engine
S /N:
BEGINNING
CONCLUDING
PER
PMT
DATE
BALANCE
PAYMENT
INTEREST
PAYMENT ( *)
--------------
- --
0
- -- --
0
- - - - --
8/28/89
--------- - - - - --
239,796.00
-------------- --------------
0.00
0.00
239,796.00
1
1
8/28/90
239,796.00
60,059.00
19,184.75
198,921.75
2
2
8/28/91
198,921.75
60,059.00
15,914.63
154,777.39
3
3
8/28/92
154,777.39
60,059.00
12,382.88
107,101.27
4
4
8/28/93
107,101.27
60,059.00
8,568.58
55,610.85
5
8/28/94
55,610.85
60,060.00
4,449.15
0.00
YEAR END
-------- - - - - -- --------
300,296.00
- - - - --
60,500.00
TOTALS
300,296.00
60,500.00
( *) END OF PERIOD
a�== �aaaaasaoo �aa= :sa = =aaaaa
INITIALS:
(LESSEE)