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HomeMy WebLinkAbout51-84 RESOLUTIONRESOLUTION NO. 51-84 c A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE AGREEMENT WITH WILLIAMS FORD TRACTOR AND EQUIPMENT COMPANY FOR AIRPORT GROUNDS MAINTENANCE EQUIPMENT. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS: That the Mayor and City Clerk are hereby authorized and directed to execute a lease agreement with Williams Ford Tractor and Equipment Company for airport grounds maintenance equipment. A copy of the lease agreement authorized for execution hereby is attached hereto, marked Exhibit "A", and made a part hereof. PASSED AND APPROVED this 17thday of April, 1984. APPROVED: EQUIPMENT RENTAL AGREEMENT • • ghis AGREEMEHT, madecnd entered into at Fayettevillet,Arkansas this_i_iday of Apr i 1 19_84. by and between ,Williams Ford Tractor & Equip. Co. of Fayetteville, AR hereinafter called LESSOR, and City of F :yettevil e of Fayetteville, AR hereinafter called LESSEE: WITNESSETH: That in consideration of the payments and rentals hereinafter provided for, and of the terms and conditions hereof, the Lessor hereby agrees to lease and does lease to the Lessee, and the Lessee hereby agrees to lease from the Lessor, the following described equipment belonging to the Lessor, to wit: EQUIPMENT LEASED (Kind of Machine, Make, Model, Serial Number, Description) 1 new Ford loader 750.00 1 new Ford 5610 or 6610 tractor 3000.00 1 new Bush Hog 15' cutter 1000.00 1 new Ford 120 L & G tractor w/mower 1000.00 Total Value $ F.O.B. Lessor's place of business, or Above equipment to be used in grounds maintenance operations on Fayetteville Airport at or near Fayetteville Washington in the State of Arkansas (Town) - (County) , .,months TERM OF LEASE: The term of this lease shall be for a period of twailtitaxi twenty four (24) beginning with the 1 Apr il 1986 day of 1984 and terminating the 31 day of March Equipment delivered to Lessee: Date 19 Time a m -p m Hour meter reading or mileage Equipment returned to Lessor: Date 19 Time a.m.-p.m. Hour meter reading or mileage RENTAL RATES AND PAYMENT: The rental rates set forth in this contract do not include sales, use or occupational taxes. If and when such taxes are incurred by law, these amounts shall be added to the rental payments due under this contract. A. If this equipment is leased on a monthly basis, the Lessee agrees to pay for use of the equipment, rental as follows: $ payable with order and covering first month's rental, receipt of which is hereby acknowledged by Lessor; and commencing with the month of 19 each the balance payable in advance on the day of each month in installments of $ B. If this equipment is leased on an acreage, ton, mileage or any basis other than time, the rate shall be $ . per Rental under this lease shall be payable $ with order plus deposit of $ - receipt of .which is hereby acknowledged by Lessor, and the balance of $ becoming due and payableor upon return of equipment to Lessor's place of business. annuartar— C. II this equipment is leased on Eltipik0stiblffxemmastk, the Lessee agrees to pay a total of $ 11 500.00 in rental as follow: $ 5750.00 payable with order, receipt of which is hereby acknowledged by Lessor; and the balance payable in one installments of $ 5750.004/1/85 each due and payable on Rental payments shall be made to Lessor at Lessor's address above set forth except that, if Lessee is notified to do so by Lessor or his assignee, payments shall be made to such assignee. ADDITIONAL RENT: It is contemplated that the equipment will be operated for not more than hours in any one day; hours in any one weekr hours in any one month and Lessee agrees that he will pay additional rental at pro rata the applicable daily, weekly or monthly rate, for each hour the equipment is used in excess of such time. If equipment is leased for more than thirty (30) days, the additional rent for excess hours shall be paid on the first day of the month following such use, which rent shall be credited on the monthly installments of rent due hereunder in the inverse order of their due date. If there is an hour meter furnished, Lessee agrees to keep it connected to the equipment and in good working condition at all times, and is to be used as the conclusive basis of the number of hours of operation. PRIVILEGE OF PURCHASE OPTION: Lessee is granted an option to purchase the equipment leased hereunder for the sum of $ . This option must be exercised on or before 19 and the balance due paid in cash. Option to purchase shall not be deemed exercised until Lessee's (buyer's) written notification to that effect is received by Lessor (seller). All rentals previously received shall be credited at Y to apply on the purchase price. This lease must be in good standing before the option can be exercised, and the option is nontransferable. No alteration or modification of this Lease is valid unless in writing and signed by the parties hereto. Lessee acknowledges receipt of a signed copy hereof. ALL TERMS AND CONDITIONS STATED ON THE REVERSE HEREOF ARE A PART OF THIS CONTRACT. IN WITNESS WHEREOF, the parties hereto have on the day and year first above written hereunto set their hands and seals. BY SIGNING THIS LEASE, LESSEE AGREES TO THE TERMS AND CONDITIONS SET FORTH ON THE FACE AND REVERSE SIDE HEREOF. ANY DIFFERENT OR ADDITIONAL TERMS, WHETHER WRITTEN OR OTHERWISE, ARE HEREBY OBJECTED TO AND SHALL HAVE NO LEGAL FORCE OR APPLICA :ILITY WHATSOEVER. By al 00 MAYOR LESSEE C P PV 3 ./ . By / • / CITY CIFRK LESSOR Williams Ford Tractor & Equip. Co. Witn s ittral / 0.. ii A e: Liittinat A irs? Witness / f si let I Phone No FORM FER 528 (REV. 1981) ALL RIGHTS RESERVED BY NATIONAL FARM 8. POWER EQUIPMENT DEALERS ASSOCIATION, ST. LOUIS, MO. 63127 . Accepted and Approved 4/1 198/4— By • PRINTED IN U.S.A. !L RETURN OF EQUIPMENT: Lessee agrees, at the expiration of the term hereof or sooner termination of this lease, to return, transporta- tion costs prepaid, all of the Equipment to Lessor at the place of business of Lessor above stated in the same operating condition, order, repair and appearance as when received (ordinary wear and tear excepted) • and free of all liens and encumbrances. LOSS 011 DAMAGE: The Lessee agrees to pay the 'Lessor for all loss and damages to the equipment arising from any cause whatsoever that may occur during the life of this lease. It is agreed by. the parties hereto, that the value as hereinbefore stated is hereby accepted as the true value and shall be used in case of arbitration or adjustment. In making such adjustment it is understood that no rentals theretofore paid or due shall apply to the payment of such loss. It is further understood and agreed that in making any adjustment for loss or damages to equip- ment, Lessee shall be credited with the amount of insurance payment received by Lessor under insurance policies, if an insurance recovery is effected thereunder. Lessee, in addition to liability forlossor damage herein otherwise provided for, shall be liable for all loss and damage to said equipment caused by strikes, riot and civil corpinotion arising from any cause whatsoever. INSPECTION: Lessee shall, whenever requested, advise Lessor of the exact location of the equipment. Lessor or its representatives may, for the purpose of inspection, at all reasonable times, enter upon any job, building or place where the equipment is located and may remove the same without notice to Lessee, if the equipment is, in the opinion of the Lessor, being used beyond its capacity or in any manner improperly cared for or abused, or in the event of termination or breach of this lease. WARRANTY: LESSEE ACKNOWLEDGES THAT EACH ITEM OF EQUIPMENT IS OF 'A SIZE. DESIGN AND CAPACITY SELECTED BY LESSEE AND THAT THE SAME IS SUITABLE .FOR LESSEE'S INTENDED PURPOSES. LESSOR'S SOLE AND EXCLUSIVE WARRANTY IS AS FOLLOWS: LESSOR WARRANTS TO LESSEE THAT THE EQUIPMENT COVERED BY THIS LEASE WILL BE DELIVERED TO LESSEE FREE FROM DEFECTS IN MATERIAL AND WORKMANSHIP WHEN USED UNDER PROPER AND NOR- MAL CONDITIONS. SHOULD ANY FAILURE TO CONFORM TO THE ABOVE SOLE AND EXCLUSIVE WARRANTY APPEAR DURLNG THE TERM OF THIS LEASE, AND PROVIDED NO SUCH DEFECTS ARE IN ANY WAY ATTRIBUTABLE TO rHE FAULT OF LESSEE LESSOR WILL REPAIR OR REPLACE THE EQUIPMENT, AT LESSORS OPTION, THE FOREGOING WARRANTY SHALL NOT APPLY TO DAMAGE OR DEFECTS CAUSED BY ORDINARY WEAR AND TEAR AND IS EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES WHETHER WRITTEN, ORAL. EXPRESS OR IMPLIED (INCLUDING ANY WARRANTY ON MERCHANTABILITY OR FITNESS FOR PURPOSE). THE REMEDIES UNDER THIS WARRANTY ARE EXCLUSIVE AND LESSOR NEITHER ASSUMES NOR AUTHORIZES ANYONE ELSE TO ASSUME FOR IT ANY OTHER OBLIGATION..THE ABOVE SOLE AND EXCLUSIVE WARRANTY SHALL CONSTITUTE LESSEE'S SOLE REMEDY AND THE SOLE LIABILITY OF LESSOR UNDER ANY LEGAL THEORY OR THEORIES WHATSOEVER INCLUDING WITHOUT LIMITATION UNDER WARRANTY'TORT, FRAUD OR CONTRACT LEGAL THEORY. THE SOLE AND EXCLUSIVE WARRANTY DOES NOT INCLUDE REIMBURSEMENT FOR THE EXPENSES OF LABOR, TRANSPORTATION, INSTALLATION, REMOVAL FROM THE LINE OR ANY OTHER EXPENSES WHICH MAY BE IN- CURRED BY LESSEE. IN NO EVENT SHALL LESSOR BE LIABLE FOR ANY PENALTY OR FOR ANY SPECIAL, LIQUID- ATED, INDIRECT OR CONSEQUENTIAL DAMAGES, SUCH AS BUT NOT LIMITED TO LOST PROFITS OR REVENUES, TIME LOST OR ANY OTHER DAMAGE OR INJURY SUFFERED BY LESSEE OR ANY OTHER PERSON WHILE THE EQUIPMENT IS INOPERABLE FOR ANY REASON AND NO DEDUCTIONS SHALL BE MADE FORM RENTAL PAYMENT THEREFOR. THE RECEIPT AND ACCEPTANCE BY THE LESSEE OF THE EQUIPMENT SHALL CONSTITUTE ACKNOWLEDGEMENT THAT THE EQUIP- MENT IS IN GOOD, SAFE AND SERVICABLE CONDITION, AND FIT FOR USE, UNLESS LESSEE MAKES A CLAIM TO THE CONTRARY TO LESSOR WITHIN THREE (31 DAYS AFTER RECEIPT OF THE EQUIPMENT SUPPLIES, MAINTENANCE AND REPAIRS: Lessee shall be re- sponsible for and shall bear the expense of all fuel, lubrication, and maintenance for each item of equipment Lessor undertakes no obliga- tion with respect to repairs or replacement of parts, attachments, accessories or equipment, except pursuant to written warranty as pro- vided in the section of this lease entitled "WARRANTY". Lessee shall, at its expense, at all times during the term hereof, maintain each item of equipment in good operating order, repair and appearance and shall lubricate and practice preventative maintenance at regular intervals as suggested in manaufacturer's service manual, receipt of a copy of which is hereby acknowledged by Lessee. Lessee agrees to maintain said equipment in the same condition as when delivered to it by Lessor, usual and ordinary wear and tear excepted. Lessee agrees that in effect- ing maintenance and repairs, it will have such work performed only by qualified persons who are satisfactory to Lessor. OPERATION: Lessee agrees that the equipment shall be used solely in the conduct of Lessee's business and within Lessee's possession and under its control, that said equipment is to be used solely by the Lessee or his employees and for the purposes for which it was intended, that said equipment will be operated only by competent employees of Lessee and shall not be used beyond its normal capacity. When equipment is not in use, it will be kept in a protected area. LIABILITY AND INSURANCE Lessee shall be liable for all expenses, personal injury and property darmages„and cpims arising outeof its possession, operation or transportation oPthe equipment herein de- scribed, and shall hold Lessor and its assignitharmless therefrom. The Lessee further agrees to protectthe Lessor with full' liability insurance coverage, such insurance to cover loss, injury, death or damage occassioned or caused by or in connection with the equipment, and that such insurance shall be in an amount and issued by an insurance company satisfactory to Lessor, and shall further protect Lessor against public liability of any and every kind. All such insurance shall contain an agreement of the insuring company not to cancel the same until at least ten (10) days' notice to Lessor and its assigns. Lessee shall promptly deliver to Lessor evidence of said insurance. INSURANCE: Lessee shall keep the equipment insured against all risks of loss or damage by -fire and such other risks as are covered by endorsement commonly known as supplemental or extended coverage for not less than the market value of the equipment; and shall carry public liability and property damage insurance covering the equipment in the amounts of not less than $200,000 in respect to .bodily injury or death to any one person; not less than $500,000 in respect to any one aCcident, and not les.s than $100,000 in respectlo•property damage. All such insurance shall insure both Lessor and Lessee. The Lessee may effect such coverages under its blanket policies. All such policies shall be written by companies presently insuring the Lessee or other companies reasonably satisfactory to the Lessor and certificates showing such coverages to be in effect shall be furnished to Lessor upon request. Each insurer shall agree, by endorsement upon the certificate or certificates issued by it by independent instrument furnished to Lessor, that it will give Lessor thirty (30) days' written notice before the policy in question shall be altered or cancelled and that any proceeds shall be paid jointly to the Lessor and Lessee as their interest may appear. The proceeds of such insurance, at the option of Lessor, shall be applied (a) toward the replacement, restoration or repair of the equipment or (h) toward payment of the obiigations of Lessee hereunder. SUB -LEASING: The Lessee shall have no right to sub -lease the said equipment nor remove it from the County and State specified in this contract without the written consent of the Lessor. TITLE: Title to the equipment shall at all times be vested in the Lessor unless transferred to the Lessee through sale. The Lessee shall give Lessor immediate notice of any levy attempted upon said equipment, or if said equipment from any cause becomes liable to seizure, and to indemnify Lessor against all loss and damages caused by any such action. DEFAULT: If the Lessee shall fail to make any rental payment when due, shall attempt to sell or encumber any interest in the equipment, shall cease doing business as a going concern, shall institute or have instituted against him any proceedings under any bankruptcy or in- solvency law, shall make an assignment for the benefit of creditors or shall fail to comply with any other provision of this Lease. or if any attachment, execution.‘writ, etc, or other process is levied against the equipment or any of Lessee's property, or if for any reason Lessor deems itself unsafe, the Lessor may immediately and without notice declare the entire balance of the rental payments due And payable together with all expenses of collection by suit or otherwise, including reasonable attorneys fees. If any of the above events shall occur. Lessee agrees to surrender possession of the equipment on demand and Lessor may enter upon Lessee's premises to the full extent allowed by law and take possession thereof. TAXES: Lessee shall pay all taxes whatsoever by whomsoever payable (other than Federal or State income taxes of Lessor) on or relating to the equipment leased hereunder and the purchase, sale, rental. use or operation thereof. Lessee shall reimburse to Lessor. upon demand, as additional rent, the amount or amounts of any such costs and taxes paid by Lessor. It is the intent of this Agreement that Lessor shall receive the rent hereunder as a net return on the equipment leased hereunder. COMPLIANCE WITH LAWS: The Lessee agrees to comply with and conform to all Municipal, State and Federal laws relating to the operation of said equipment and to pay all costs and expenses of every character occasioned by or involving the use or operation of the equip- ment. ASSIGNMENT: A. Lessee agrees that Lessor may assign this Lease, and all right, title and interest of Lessor in and to the equipment, and all rents due or to become due to Lessor hereunder (of which assignment Lessee hereby waives notice) and Lessee agrees to recognize such assignment. Lessee's obligation to pay rent under this Lease shall not as to any such assignee be subject. to any diminution or right of set-off, counterclaim or recoupment whatsoever arising out of any breach of any obligalon of the Lessor hereunder or by reason of any other liability at any time owing by the Lessor to the Lessee. B. Lessee shall not assign this Lease or any rights hereunder or to the items of equipment. GENERAL: Time is of the essence of this Lease. Lessor's failure at any time to require strict performance by Lessee of any of the provisions of this Lease shall not waive or diminish Lessor's right thereafter to demand strict compliance therewith or with any other -provisions. Waiver of any default shall not waive any other default. The remedies in this Lease provided in favor of Lessor shall be available to its successors and assigns and shall not be deemed exclusive, but shall be cumulative, and shall be in addition to all other remedies in its or their favor existing at law or in equity. ti • 201.- ' Williams Ford _Tractor & °Equipment Co. Box 1346 I Fiyefteville, Arkansas 72701 • ford Tractors New Holland Equipment t lease agreement: t1 HCLIJAC Phone 4424284 • .Lessee's nbligations'to pay any amounts duefor theirear anteceding the Current year are contingent I.:Pon appropriation or Approval of fUnde for that purpose hy--the Fayetteville Board Of Directors. Therefore, Lessee may terminate this leaseagreement and it's future monetary obligations hereunder effective a0 of mthe end .of any succeeding year (the "termination date%) Ali • obligations of Lessee to make payments due after the termination date will teaSe_and all intereat'of-Letsee in the' leased equipeni: 3•• mill terminate as of the termination:date.