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HomeMy WebLinkAboutOrdinance No. 271 ORDINANCE NO. 271 AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH THE FIRM OF DORAN CHEVROLET IN THE AMOUNT OF $68,436.34 FOR FIVE POLICE PATROL CARS, ONE PUBLIC WORKS PICK-UP AND ONE ANIMAL CONTROL PICK-UP; AND A LEASE/PURCHASE AGREEMENT WITH MERCANTILE NATIONAL BANK FOR $68,436.34 FOR THE AFOREMENTIONED VEHICLES; ATTACHING THE APPROVED FORMS OF THE CONTRACTS AS EXHIBITS "A" & "B" RESPECTIVELY; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS; SECTION 1. That the City Manager of the City of The Colony, Texas, is hereby authorized to execute on behalf of the City a contract with Doran Chevrolet in the amount of $68,436.34 for five (5) police patrol cars, one (1) public works pick-up and one (1) animal control pick-up; and a twelve (12) month lease/purchase agreement with Mercantile National Bank, to be paid in full on or before September 30, 1984. The approved forms of such contracts are attached hereto as Exhibits "A" & "B", and made a part hereof for such purposes. SECTION 2. This Ordinance shall take effect immediately from and after its passage by the City Council of the City of The Colony, Texas. DULY PASSED by the City Council of the City of The Colony, Texas, on the 4th day of January , 1984· APPROVED: · VSAMPLE, Ma~y%F ~__ ATTEST: JANE~ADD, City Secretary ElL, ~,h .... }.. l 9g3-CMV-] iTEMI SIOCK N~_,~' BE R _nESCRiFI1ON QUA?; 1. ~ Police patrol Cars (specifications attached) 5 2. % ton pick-up (specifications attached) ] 3. 3/4 ton pick-up (specifications ettached) any item no{ TOIALS quote the above f.o.b. The Colony Sp~ien. cap be mase in ~ days from sunm:..~ng t~ above bid, .h. vendor azrees t~at acceptance of any er al! bid Colony, %exas ~,ithin a reasonable period of ~ime constitutes a contract. City oi The Colon), Police Cars % o~., Your Door Sedan A. Chassis with police package !. ~-,,,e=]base : ]08" or laraer 2. O,~.al. length 190" or larger ~._a Cu. Inch or larcer ~ i. 4 ~._~e] carburetor ~ 4. 5-a~ ~ H.P. ' ' ~ : 5.'Szate SAE torque at what R.P.M. 6. Single exhaust. ,. .g~,~lon. e~ecuronlc, radio noise sup~ession C. Cooling c~e~c~.} radiator available ~rom manufacturer 3 ...... udea self-adjust~n9 5 blade 20 4. Coolant recovery system 5. Anti freeze %o ninus 35~F D. Transmission 1. Automatic heavy duty with auxiliary ~r~mission/o~l cooler 2. p speed column shift '3. ~ow gear lock-out /~ /~ /,~_~ E. Wheels and tires size - }sxv 3. Largest tire size available certifiea saf~at ]00 mph {po] ice radial) F. Heavy duty suspension (springs, shock absorbers, front and rear stabi' ' ~Izer bars, etc.) G. Heavy duty upper and lower control arm assembly .~. .~ear differential sure gri'p (state ratio) ~-~--~' I. Power Steering - Hea~y Duty ~C/~.~ J. Electrical System- 12 Volt amp (80 amp hours) Heavy Duty ~C~ 1. ~;~tter~- 500 ~ ~.]{erngtor - 80 amp Heavy Duty The ffolc~s?f, Za~e 2 K. Heavy duty power bra~s front disc . L. Body Interior 1. Air Conditioned - factory installed 2. Heater/Defroster with electric rear window defroster, factory installed 3. Tinted glass, all around 4. AM push button radio 5. Full gauge instrument pane] (oil, temp, amp, fuel) ~ 6. Certified calibrated sDeed-c-me+~ with 2 3.[=H 7. ..... ~a_~c~,a] dc, me light with manua~ switch ~C~ ~. Single key locking - f]eet keyed a]ike 9. Heavy duty fron% bench seat ]0. Heavy du~y rear seat ]t. All heavy duty cloth interior with carpet on floor LC~ 12. Rear ~iew mirror,,day and night ~ 13. L.H. & R.H. side view mirrors with remote control ]~. Electric trunk opener ]5. Trunk compartment mat and light ~ 16. Cigarette lighter ~. ~lr~ng - six ]2 gau~e leads from dash to loof ~no hole) =!]~ steering wheel 19. I ~ '~= n~erml~ent windshield wipers. M. Body Exterior 1. Side Body Mo]ding 2. Door edge guards 3. Bumper guards f - ton= and rear 4. Under coating and pad N. Service ~anual for vehicle O. Exterior Paint co]or - white ~. P. Cost per unit Alternate one - Spotlights L.H. 5" (post mounted) ~J/~ Alternate two Whitewall tires (po]ice) Alternate three Exteriol_ paint solid co]or other than white ~/~ Bids must be accompanied ~y factory Prepared specifisations and literature which fully d~scribes the vehicle and accessories. ....... s~-m/V-] The mo_o.~ nv..~ , Texas S=ezifica~'ions for ~ non pick-up Specifications listed below are minimum unless stated maximum. If unable to mee~ specifications, indicate alternates. Ford should bid on F-100 series. Chevrolet should bid on C-10 series. Dodge should bid on D-100 series. GMC should bid on 1500 series. A. Chassis / 1. ~ ..... l sase _ - · B. Body 1. Fle'etside style ~/ C. Engine 1. V-8 valve in head~-~OSc{~/~ 2. 2 barrel.carburetor S~.~ .- 3. State S.~..E. H.P. ~ Sincl~ exhaust E. ~oo~ing ]. Standard radiator 2. Antifreeze to minus 35~F 3. Coolant recovery system E. Transmission F. Wheels and tires l. Quanity: 5 ~ires, 5 wheels 3. Tire size H78X15 ~/~- 4 Spare tire rack ' -~ bed of truck-/~/~.J ~/Y G. El ectrical ].~=12~volt system__ 3.~.]ternanor - ~0 ampg H. Pcwer S%eerlng Pcwe/ Brakes l. Front Disc , 3. Bummer~ K- Mirror -'exterier i. Two (below eye-level) swing lock, oainted .... n sicna]s and Emergency flashers L. Beck-up lights, = .... ' ~ ..... 1 3S. M - Service --~ defroster- (factory l. Standard 7~lr-~or~Gi~!onm~, ~e~-- instal led~ ~&O 2. Dual s~e=~ ~ngshieid wipers and washers ~. Cigarette !i~h/er 5. ~M radio ";;~ ~e~er and antenna ~'% 6. Tinted Vinyl seat ~- 8. Rubber ~]oorboard (no carpet) O. Paint colors - -~ .... ill availam~e) j~ Bids must be accompanied by factory prepared specifications and literatnre which fully describes the vehicle and accessories- '] ~B3-' C~.:V=] ?he Colony, Specifications for3~/4ton pick-up Specifications listed below are minimum un]ess stased maximum. If unable to meet specifications, indicate alternates. Ford should bid on F-250 series. Chevrolet should bid on C-20 series. Dodge should bid on D-250 series. GMC should bid on 2500 series. 1. Wheel ~se 13~" /3/.~"/~'~ E. 5ody 1. F]eets~de style C. Emc~ ne 1. V-8 valve in head 2. 2 barrel carburetor 3. State S.A.E. H.P._~3~N~ 4. Single exhaust E. Cooling ]. ~aximum Capacity Cooling System Available 2. Antifreeze to minus 35'F ~ 3. Coo]ant recovery system E. Transmission 1. 3 spee~ automatic /'/~ ~ ~-7 / // -/-/ / ,/~ F. Wheels and tires ]. Quanity: 5 tires, 5 wheels ~/ 2. Wheel ~ize ]6X7 ~~ '' 3. Tire size State size avai]abt6~- b]ackwa]]~~~ 4. Spare tire rack underneath bed of truck G. Electrical ]. 12 volt system ~ C J/ 2. Batt~ry~- 70 amp k .... 3. Alte. na~or - 60 ampi H. Power Steering 1. Front Disc J. Bumpers 1. Front and rear both painted (heavy duty szeF bumper) K. Mirror - exterior 1. Two (below eye-]eve]) swing lock, painted L. Back-up lights, Turn signs]s, and Emergency flashers M. Service Manual N. interior 1. Standard Air-conditJ~.,_..~,~, heater and defroster (factory instal]ed) 3. Seat be]ts 4. Cigarette ]igbner OF? 5. AM radio with speaker and antenna 6. Tinted glass ~/-~ 7. Vinyl seat 8. Rubber floorboard (no carpet) ~ O. Paint co]ors ]. Exterior - White ///~ 2. Interior - Brown (if avai]ab]e)~/~ ~ Bids must be accompanied by factory prepared specifications and literature which fully describes the vehicle and accessories. .......... , and such acceptar hall not be effective u[~tir actually receive, Leqsor. LEASE-PURCHASE AGREEMENT a:t Dallas, N.A. (as agent) ~ a(n) National corporation (hereinafter referred to aa "Lessor"), and City of The Colony _ Texas (hereinafter referred to as "Lessee"), authorization or performance of or expenditure of funds pursuant to this Agreement; (e) Lessee has an immediate need for, and expects to make immediate use of, substantially all the Properly, which (g) Lessee's right to terminate this Agreement as specified in Paragraph 1 hereof was not an independently bargained- v(~s) olel or t e fOrLesseeCOnsideration,is located, but [nc~Jdedbee J~lTle~/df~leil~ [~ur, pose 9f complying with the requirements of the laws of the State in which (a) Lessee may, at its own expense, install or place in or on, or attach or affix to, the Property. such equipment or 8. Liens. Lessee shell not d;re~!y or r,~ rectly create, recur, assume or suffer to ex!st any mg~rt~;ger sec~,rit~ interest, pledg-% lien, charge, encumbrance or '-'¢'- on or v,;th respect to the Property, btle the'riO, or an) inter{st :hereto, e~cept the ~espective rights of Lessor and Lessee 'mder. 9. Damage to or Destrudion of ~,ope~. Lessee shall b~ar the entire risk of ~c~¢, derange, theft, or des;ruer,on of the Prope~y from any and every cause whatsoever and no loss, damage, destruction or other event shal~ reIease Lessee from the oblige- ben to pay the full amount of the rental payments or from any other obhgation under this Agreement. (a) In the event that all or any pa~ of the Prope~ is lost, stolen, destroyed or damaged beyond repair, Lessee shall replace the same with like propeAy in good repair of like value at Lessee's sole cost and expense as soon theregfter as possib]e and any such replacement shall become subject to this Agreement. If insurance is in effect with respect to the prope~y, ~nsur~nce proceeds received by Lessor with respect to any such casual~ shall be paid to Lessee if such PropeAy is replaced by Lessee as required hereunder. (b) If Lessee fails to replace such Prope~ as required, Lessor may at its option terminate this Agreement as to that pea of the Prope~ losL stolen, destroyed or damaged beyond repair, and recover from Lessee the amount of the unpeid principal balance applicable to Prope~ lost, ~olen, de~royed or damaged beyond repair as of the last date on which a payment wgs made pursuant to Paragraph i hereof, ten.her with intere~ thereon at the rate specified in ~hibit B from such payment date to the date of such termination, and less insurance proceeds, Jf any, received and retained. If Lessee exercises its option hereunder, the princi- pal po~ion of the payments required to be made thereaffer by Lessee pursuant to Paragraph i and the subsequent Option to Purchase Values set foAh in ~hibit B shall be reduced in the propoAion which the original cash sale price of the pea of the Property lost, stolen, destroyed or damaged beyond repair bore to the aggregate original cash sale price of the PropeAy described in Exhibit A. 10. Insurance. Lessee shall either be self-insured with regard to Propa~ or shall purchase and maintain insurance with regard to Prope~. If Lessee elects to be self-insured with regard to this Agreement, it may do so only with the prior consent ct Lessor. Lessee shall indicate on each Ce~ificate of Acceptance executed ~n re;anon to this Agreement its election to be se~f nsured or company insured witi~ regard to the PropeAy listed on thst Ce~Jficate of Acceptance. Whether Lessee is self-;nsured or c~mpany insured, Lessee shall, for tne term of this Agreement, at i~ ~wn expense, provide comprehensive liability insurance ~tn respect to PrcpeAy, insudng agafr:st such risks, and such 8mounts as are cus~nm3ry for ]essees of proper~y cf a c~cr3cter s~mJlar to the Prope~. In addhion, Lessee shall, for the term of th~s Agreement, at its own expense, provioe cgsusl~ msurance with ~espect to tt]e Prope2y, insuring against customa~ risks, coverage at a~ t~mes not less than the amount of the unpa;~ principal po~ion of the payments lequired to be made pursuant to Paragraph ] as of the last preceding payment date specified in Exhibit B on which a payment was made. If insurance policies are provided w~th respect to the PropeAy, ail insurance po;icies snail be with insurers authorized to do business in the state where the Prope~y is located and shall name both Lessor and Lessee as i~sur~ds as their respective interests may appear, insurance proceeds from casua!~ losses shall be payable solely to the Lessor, subject to the provis~ons of Paragraph 9. Lessee shall, upon toqueS, deliver to Lessor evidence of the required coverages together with premium ~eceipts and each insurer shall agree to give Lessor wri~en notice of nonpayment of any premium due and ten (10) days' notice prior to cancellation or alteration of any such policy. Lessee shall also car~ and require any ether person or entity working on, in or about the Prope~ to car~ workmen's compensation insurance covering employees on, in or about the Prope~. In the event Lessee fails, for any reason, to comply with the requirements of this Parsgraph, Lessee shall indemni~ and save harmless, and, at Less~e's sole expense, defend Lessor and its agents, employees, officers and directors and the Prope~ against all risk of less not covered by insurance. 11. Indemnificatiom Lessee shall indemni~ and save harmless Lessor and its agents, employees, officers and dire~o~ hem and, at lessee's expense, defend Lessor and its agents, em¢oyees, officers and directors against all liability, obligations, losses, damages, penalties, claims, actions, costs and expenses (including but not limited to reasonable attorneys' fees~ of whatsoever kind or nature which in any way relate to or ar~se out of this Agreement or the ownership, rental, possession, operation, condition, sale or ~eturn of the PropeCy. All amounts which become due from Lessee under this Paragraph 1~ shall be credited with any amounts received by the Lessor from insurance provided by the Lessee and shall be payable by Lessee within thi~ (30) days followin~ demand therefor by Lessor and shall su~ive the termination or expiration of this Agreement. 12. No Warrant. ~CEPT FOR REPRESENTATIONS, WARRANTIES AND SERVICE AGREEMENTS RELATING TO THE PROP- ER~ MADE OR ENTERED INTO BY THE MANUFACTURERS OR SUPPLIERS OF THE PROPERTY, ALL OF WHICH ARE HEREBY ASSIGNED TO LESSEE, LESSOR HAS MADE AND MAKES NO REPRESENTATION OR WARRANt, EXPRESS OR IMPLIED, AND ~SSUMES NO OBLIGATION WITH RESPECT TO THE TITLE, MERCHANTABILITY, CONDITION, QUALI~ OR FITNESS OF THE PROP- ERTY DESCRIBED IN ~HIBIT A FOR ANY PARTICU~R PURPOSE OR THE CONFORMITY OF THE PROPER~ TO SPECIFICATIONS OR PURCHASE ORDER, ITS DESIGN, DELIVERY, INSTAL~TION OR OPERATION. All such risks shall be borne by Lessee without m any way excusing Lessee from its obligations under this Agreement and Lessor shall not be liable to Lessee for any damages on account of such risks. Ali claims or a~ions on any warran~ so assigned shall be made or prosecuted by Lessee, at i~ sole expense, upon prior wri~en notice to Lessor. Lessor may, but shall have no obligation whatsoever to, paAicipate in such claim or action on such warrant, at Lessor's expense. Any recove~ under such a warran~ shall be made payable jointly to Lessee and L~sor. 13. Option to Purchase. Provided Lessee has complied with the terms and conditions of this Agreement, Lessee shall have the option to purchase not less than ail of the PropeAy which is then subje~ to this Agreement "as is" at the payment d~te and for the Option to Purchase Values set foAh in ~hibit B or such adjusted Option to Purchase Value as may have been determined tn accordance with Paragraph 9 hereof by giving wri~en notice to Lessor not less than six~ (60) days prior to the date specified in Exhibit B for the exercise of such option; provided that upon Lessee's timely payment of all payments specified in ~hibit B and the Final Purchase Option Price, L~see shall be deemed to have properly exercised its option to purchase the Prope~ and shall be deemed to have acquir~ all of Lessor's right, title and interest in and to the Prope~, free of any lien, encumbrance or securi~ interest except such liens, encumbranc~ or securi~ interests as may be created, or pertained and not discharged, by Lessee but without other warranties. Payment of the applicable Option to Purchase Value shall occur on the applicab!e purchase date sp~ified in Exhibit B hereto at which time Lessor shall, unless not required hereunder, deliver to Lessee a quitclaim bill of sale transferring Lessor's interest in the Prope~ to Lessee free from any lien, encumbrance or security interests except such as may be create, or pertained and not discharged, by Lessee but without other warranties. Upon Lessee's actual or constructive payment of the Option to Purchase Value and Les~or's actual or constructive delive~ of a quitclaim bill of sale covering the PropeAy, this Agreement shall terminate except as to obligations or liabilities accruing hereunder prior to such termination. 14, Default and Loser's Rem~ies, (a) The occurrence of one or more of the following events shall constitute an Event of Default, whether occurring volun- tarily or involuntarily, by opnration of law or pu~uant to any order of any cou~ or governmental agenc~ (1) Lessee's failure to make any payment hereunder when due or within ten (10) days thereaffe~ (2) Lessee's failure to comply with any other covenant, condition or agreement of Lessee hereunder for a period of ten (~0) days affer n~tice thereoff (~ Any representation or warran~ made by Lessee hereunder shall be untrue in any material r~pe~ as of the date made; (4) Lessee shall make, permit or suffer any unauthorized assignment, transfer or other disposition of this ~re~ ment or any interest herein, or any pea of the Prope~ or any interest therein; or (5) Lessee becomes insolvent or admits in writing its inabili~ to pay its debts as they mature or applies for, consents to, or acquiesces in the appointment of a trustee, receiver or custodian for the Lessee or a substantia~ pea of i~ prope~ or in the absence of such application, consent or acquiescence, a trustee, receiver or custodian is appointed for Lessee or a substan- tial pa~ of its prope~ and is not discharged within si~ (60) days; or any bankruptcy, reorCanization, debt arrangement, morator- ium, or any proceeding under any bank~ptcy or insolvency law, or any dissolution or liquidation proceeding, is institut~ by or against Lessee and, if instituted against Lessee, is consent~ to or acquiesced in by Lessee or Js not dismissed within si~ (60) da~. (b) Upon the occurrence of any Event of Defau~ specified herein Lessor may at its sole discretion exercise any or all of the following remedies: (~) Enforce this ~reement by appropriate a~ion to collect amounts due or to become due hereunder, by accele- ration or othe~ise, or to ~use Lessee to pe~orm i~ other obligations hereunder in which event L~see shall ~ liable for all cos~ and expenses incurr~ by L~o~ (2) Tgk~ possess;on o¢ the Properby, without dap and or pctice and w;thout court order or any process of law, shall be liable for all costs and expenses ~rred by Lessor in Gonnecbon U,erew~th anu difference, if any, between the amounts to be paid pursuant to Paragraph i hereo ,nd the amo'unts received and to be receiveo ~' Lessor Jn connection with any such reletting; (3) Terminate this Agreement and repossess the Property, in which event Lessee shall be liable for any amounts payable hereunder through the date of such termination and all costs and expenses incurred by Lessor in connection therewith; (4) Seli the Property or any portion thereof for Lessor's account at public or private sale, for cash or credit, with- out demand on or notice to Lessee of Lessor's intention to do so, or ruler the Property for a term and a rental which may be equal to, greater than or less than the rental and term provided herein. If the proceeds from any such sale or rental payments received under a new agreement made for the periods prior to the expiration of this Agreement are less than the sum of (i) the costs of such repos- session, sale, relocation, storage, reconditioning, reietting and re-installation (including but not limited to reasonable attorneys' fees), (ii) the unpaid principal baJance derived from Exhibit B as of the last preceding payment date specified in Exhibit B and (iii) any past due amounts hereunder (plus interest on such unpaid principal balance at the rate specified in Exhibit B and interest on such past due amounts at the rate specified in Paragraph 19 hereof, prorated to the date of such sale), all of which shall be paid to Lessor, Lessor shall retain al! such proceeds and Lessee shall remain liable for any deficiency; or (5) Pursde and exercise any other remedy available at law or in equity, in which event Lessee sharl be liable for any and all costs arid expenses incurred by Lessor in connection therewith. "Costs and expenses", as that term is used in this Paragraph 14, shall mean to the extent allowed by law: (i) reasonable attorneys' fees if this Lease is referred for collection to an attorney, not a salaried employee of Lessor or the holder of this Agreement; (ii) court costs and disbursements including such costs in the event of any action necessary to secure possession of the Property;, and (iii) actual and reasonable out-of-pocket ex- penses incurred in connection with any repossession or forec!osure, including cost of storing, reconditioning and reseliing the Prop- arty, subject to the standgrds of good faith anu commerciai reasonabieness set by the applicable Uniform Commercial Code. Lessee waives all rights under git exemption lac/s. (6) U,~der no circumstance shall Lessee be liable under paragraph 14 (bi for any amount in excess o; the sum appropriated pursuant to paragraph I hereof for the previous and current fiscal years, less all amounts previously due and paid during such previous and current fiscal years from amounts so appropriated. 15. Termination. Un!ess Lessee has properly exercised its option to purchase pursuant to Paragraph 13 hereof, Lessee shall. upon the expiration of the term of this Agreement or any earlier termination hereof pursuant to Faragraph 14 hereof, delver the Property to Lessor unencumbered and in at least as good condition and repair as when delivered to Lessee, ordinary wear and tear resulting item proper use a~one excepted, by loading the Property, at Lessee's sole expense, on such carrier, or delivering the Property to such location, as Lessor shall provide or designate at or within a reasonable distance from the general location of the Property. If Lessee fails to deliver the Property to Lesser, as provided in this Paragraph 15, on or before the date of termination of this Agreement, Lessee shall pay to Lessor upon demand, for the ho~d-over period, a portion of the total payment for the applicable period as set forth in Exhibit B prorated from the date of termination of this Agreement to the date Lessee either redelivers the or conferred upon it by any law or order of any court or other governmental authority to terminate this Agreement or its obligations 16. Assignment and Sublease. (a) Withou~. ~he prior written consent of Lessor, Lessee shall not (ii assign, transfer, pledge or hypothecate or other- wise dispose of this A~reement, the Property, or any part thereof or any interest therein, (ii) subIet the Property or any par[ thereof, or (iii) permit the Property to be used for any purpose not permitted by Paragraph 5 hereof. (bi Lessor sh~ll be entitled with or without notice to, or the consent of, Lessee to sell, assign or transfer ali or any part of its right, title and interest in, to and under this Agreement (including, without limitation, rights in the Property and all pay- merits of any kind due or which are to beccme due to Lessor hereunder) and any such purchaser(s), assignee(s) or transferee(s) shall thereafter (jointly, if more than one) be deemed to be the Lessor hereunder, except that Lessor and Lessee agree and acknow- ledge that any such pulchaser(s), assignee(s) or transferee(s) will have made no representation or warranty, and therefore will assume no obligation, with respect to the title, merchantability, condition, quality or fitness of the Property for any particular put- agrees to attorn to and recognize any such purchaser(s), assignee(s) or transferee(s) (jointly, if more than one) as the Lessor(s) onably be requested, including, but not limited to, a separate acknowledgement of assignment and attornment certificate in the customary form as to any purchaser's, assignee's or transferee's right, title ~)nd~inte~est in.to anti under ~hi~'Agre~ment, the Property and the payments thereafter due and payable pursuant to this Agreement. ~C) bee AmenQment u hereto i7. Personal property. The Property is and shall at all times be and remain personal properb'. 18. Lessor's Right to Pen~orm for Lessee, If Lessee fails to make any payment or perform or comply with any of its cove- nants or obligations hereunder, Lessor may, but shall not be required to, make such payment or perform or comply with such covenants and obligaticns on behalf of Lessee and the amount of any such payment and the expenses (including but not limited to reasonable attorneys' fees) incurred by Lessor in performing or complying with such covenants and obligations, as the case may be, together with interest thereon at the highest lawful rate, shall be payable by Lessee upon demand. ]9. Interest on Default. If Lessee fails to pay any payments specified in Paragraph 1 hereof within ten (10) days after the due date thereof, Lessee shall pay to Lessor interest on such delinquent payment from the due date until paid at the highest lawful 20. Notices. Any notices to be given or to be served upon any party hereto in connection with this Agreement must be in writing and may be given by certified or registered mail, and shall be deemed to have been given and received forty-eight (48) hours offer a registered or certified letter containing such notice, postage prepaid, is deposited in the United States mail, and if given otherwise shall be deemed to have been given when delivered to and received by the party to whom it is addressed. Such notice shall be given to the parties at their respective addresses designated on the signature page of this Agreement or at such other address as either party may hereafter designate. 21. Security Interest, As security for Lessee's covenants and obligations hereunder Lessee hereby grants to Lessor, and its therefrom, and, in addition to Lessor's rights hereunder, all of the rights and benefits of a secured party under the Uniform Com- mercial Code as in effect from time to time hereafter in the state in which the Property is located or any other state which may have jurisdiction over the Property. Lessee agrees to execute, acknowledge and deliver to Lessor !n recordable form upon request financing statements or any other instruments with respect to the Property or this Agreement considered necessary or desirable by Lessor to per, oct and continue the security interest granted herein in accordance with the laws of the applicable jurisdiction, 22. Miscellaneous. (a) Lessee shall, whenever requested, advise Lessor of the exact location and condition of the Property and shall give Lessor immediate notice of any attachment or other judicial process affecting the Property, and indemnify and save Lessor harmless from any loss or damage caused thereby. Lessor may, for the purpose of inspection, at all reasonable times enter upon any job, building or place where the Property and the books and records cf the Lessee with respect thereto are located. (b) Time is of the essence. No covenant or obligations hereunder to be performed by Lessee may be waived except other occasion and shall not preclude Lessor from invoking such remedy at any later time prior to the Lessee's cure of the condition giving rise to such remedy. Lessor's rights hereunder are cumulative and not alternative. (c) rh:s /Agreement sha!l be construed and governed in accordance v,~th the laws of the State in which Lessee is located, in effect from time to time, and shall be rJerformable in Deltas Count~, Texas. (d) Th,s Agreement eonst' ~ the entire agreement be~een the pa~es ~ 5allnot be modified, waived, discharged, terminated, amended, altered or changed aay resp~t'except by a wri~en document sig: by both Lessor and Lessee. (e) Aay term or provision ~f ~his Agreement found to be prohibit~ by law or unenforceable shall be ineffective to the e~ent of such prohibition or unenforcaabili~ without, to the extent reasonably possibl~ invalidating the remainder of this ~reement. (f) Yhe Lessor hereunder shall have the right at any time or times, by notice to Lessee, to designate or appoint any person or enti~ to act as agent or t~stee for Lessor for any purposes hereunder. (g) All transpoAation charges shall be borne by Lessee. Lessee will immediately noti~ Lessor of any change occur- ring in or to the Prope~, of a change in Lessee's address, or in any fa~ or circumstance wa~ant~ or represented by Lessee to Lessor, or if ~ny ~vent of Defau]t occum. (h) Use of the neuter gender herein is for purposes of convenience only and shall be deem~ to mean and include the masculine or feminine gender whenever and wherever appropriate. (i) The captions set fo~h herein are for convenience of reference only and shall not define or iimit any of the terms or provisions hereot. O) Except as othe~ise provided herein, this Agreement shalI be binding upon and inure to the benefit of the pa~es hereto and their resF. ective heir, executor, administrator, legal representatives, successo~ and assigns, where permi~ed by this Agreement. IN WITNESS WHEREOF, the pa~ies have execut~ this Agreement as of the day of , 19 .. LESSOR: LESSEE: ~RC~TILE N.~_zON.~ BANK AT DA~T~o, N.A. CITY OF THE COLONY, TE~S [as agent) B~ B~ (Name) (Name) ~itle) ~itle) (Address of Lessor) (Address of Less~) (Ci~, Count, State, Zip C~e) (Ci~, Count, State, Zip C~e) THE STATE OF_ TE~S ) COUN~ OF ) Before me, the undersign~ au~ori~, on this day ~rsonally appeared. ~of City of the Colo~y~ TX,. known ~ 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 considerat;on therein expressed, in the capaci~ there~n stated and as the a~ and deed of sa~d corporation. Given under my hand and seal of office this day of , lg . My Commission ~plres: Nota~ P~blic in and for ~un~,. THE STA~ OFfErS ) COUN~ OE DALLAS .) Before me, the undersign~ authori~, on this day ~rsonally appeared_ of_Mercantile National Bank ., known to me to be the person whose name is subscrib~ to the fore- going instrument, and acknow]~8~ to me that he executed the same for the purposes and consideration therein expressed, in t,e capaci~ therein stated and as the a~ and deed of said corporation. Given under my hand and seal of office this day of , 19 . My Commission ~p~res: Nota~ Public In and for ~u~, OPINION OF COUNSEL The undersign~ aRomey has a~ed as I~al counsel for the Les~ identified in the foregoing lease-purcha~ agreeme.t~ and has reviewed such leas+purchase agreement, al~ other relevant documents, applicable Constit~lonal provisions, statutes, o~di- nances, and regulations; and R is the opinion of the undersigned that the Lessee is a ~ate, an agen~ of a state, or a politicat sub- division of a state, that Lessee has full power and authori~ to enter into the Lease-Purchase Agreemen~ that the Lease-Purchase ~reement has been duly a~horized, exec~ed and deliver~ by Lessee, and is a valid and binding obligation of Lessee enforceable in accordance wRh its te~s, assuming due a~hodzation, execution and de]ive~ by ~e Lessor nam~ herein, subj~ to only bank- ruptcy, reorganization and other similar laws or equitable principles of general appli~tion aff~ng the enforceabili~ of creditors' rights. (~am~) ~ '~ r-5o5o (~e~. 5-81) ~Uorney for [es$~ ADDENDUM TO LEASE-PURCHASE AGREEMENT · In addition to those provisions specified in the Lease-Pur- chase Agreement dated , 19 (the "Agreement"), between ~e~ca~tile National Bank at Dall~'Lessor~r~ and Citv of The Colony, Texas Lessee ), the parties further agree as follows: "23. Consolidation. It is contemplated by the parties that the items of Property listed on Exhibit A to the Agreement may be delivered individually or in groups and that each item of Proper- ty shall become subject to the Agreement upon Lessee's acceptance thereof. It is further contemplated that the installments due with respect to each item of Property shall be set forth on a separate Exhibit B which shall be attached to and shall become a part of the Agreement. The right of Lessee to terminate the Agreement pursuant to Paragraph 1 thereof shall apply only to the items of Property as a whole, notwithstanding that the amount owed may be set forth in more than one Exhibit B. IN WITNESS WHEREOF, the parties have executed this Addendum as of the __ day of , 19__. LESSOR: LESSEE: MERCANTILE NATIONAL BANK AT DALLAS, N.A. CITY OF THE COLONY, TEXAS (as agent) By: By: Title: Title: AMENDMENT A TO LEASE-PURCHASE AGREEMENT This amendment is attached to and a part of the Lease-PurchaseAgreement dated ['~esso~"] and 19____,byand.,be.tween Mer_ca_ntile Nation_al Bank at Dallas, N.A. fas ~nt) ' City of The CoLony, Texas ["Lessee"}. Paragraph 4 of the Agreement is amended to read as follows: (~) Lessee will execute or provide, as requested by Lessor, such other documents and infor- mation as are reasonably necessary with respect to the transaction contemplated by this Agree- ment, to include, but without limitation, t,be record relating to the Agreement as may be re- quired for examination by the Attorney General of the State of Texas pursuant to Art. 2368A.2, V.T.C.S.A. AMENDMENT B TO LEASE-PURCHASE AGREEMENT This amendment is attached to and a part of the Lease.Purchase Agreement dated , 19 .... by andbetween Mercantile National Bank at Dallas, N,A. (as agent ["LessoC'] and City of The Colony, Texas ["Lessee"]. Paragraph 16 of the Agreement is amended to read as follows: (c) N°twit hstanding any other provision of t his Agreement, no sale. assignment or transfer of all or any pad of Lessors rights in or under this Agreement the Property, or any payments or other sums to become due hereunder shall be effective unless (i) made pursuant to a writing setting forth the inter- est being sold, assig ned or transferred and the name and address of t he seller, assig nor or transferor or each purchaser, assignee or transferee and (ii) (a) a copy of such writing shall have been received by the Lessor or (b) if required in this Agreement, a copy of such writing sha~l have been received by a nominee acting on behalf of Lessor. If set forth in such writing, any such sale, assignment or tra nsfe r, upon becoming effective, may be deemed to have occurred on a date prior to its becoming effective in accordance with the preceding sentence. The Lessor or nominee, as the case may be. shall maintain a file containing such sales, assignments or transfers and shall keep a record thereof. Neither the Lessor nor the nominee shall have any liability under the preceding sentence, or pursuant to any agree- merit covering the obligations described therein, except for willful misconduct or gross negligence. BY making °r accepting any such sale, assignment or transfer, each seller, assignor or transferor and each purchaser, assignee or transferee agrees to keep permanently in its ~ecords a copy of the re!ated writing making such sale, assignment or transfer. EXHIBIT A DESCRIPTION OF PROPERTY Make Model Serial Numbers De$criptio.: Five (5) Police Cars Two (2) Pick-ups Chevrolet Original Cash Sale Price: F-5050-! (]-80) EXHIBIT B 'PAYMENT SCHEDULE - SAMPLE Term of Lease: One Year (12 monthly payments) L~ssee's Fiscal Year End: 9/30 Payment Principal Interest Portion Total Option to Date Portion (at 11.00 %) Payment Purchase Value* 6,048.52 per month *Actual and complete Exhibit B's will be forwarded upon completion of each funding -- *After payment of amount otherwise due on date indicated. F-5050-2 (1-80) EXHIBIT B PAYMENT SCHEDULE Term of Lease: 18 Months (18 monthly pay~.ents) Lessee's Fiscal Year End: 9/30 Payment Principal Interest Portion Total Option to Date Portion (at !0.50 %) Payment Purchase Value* 4,125.86 (per month) *Actual and complete Exhibit B's w~ll be forwarded upon completion of each funding == *After payment of amount otherwise due on date indicated. F-5050-2 (1.80)