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R-93-04-22-9B - 4/22/1993lease a John Deere Tract Loader, and WHEREAS,Kuenstler Machinery has submitted the lowest and best bid, and WHEREAS, the City Council wishes to accept the bid of Kuenstler Machinery, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Mayor is hereby authorized and directed to execute on behalf of the City an agreement with Kuenstler Machinery to lease a John Deere Tract Loader, a copy of said agreement being attached hereto and incorporated herein for all purposes. RESOLVED this 22nd day of April, 1993. ATTEST: RSO4223B RESOLUTION NO. R- 0 4 - 0U q /3 WHEREAS, the City of Round Rock has duly advertised for bids to E LAND, City Secretary MIKE ROBINSON, Mayor City of Round Rock, Texas Kuenstler Machinery, Lessor, agrees to rent to City of Round Rock, Lessee, who agrees to rent from Lessor a John Deere 455G, the _equipment.. equipment. . • EQUIPI4ENT RENTAL AGREEMENT TERM: . The rental term shall be five (5) consecutive months beginning MAY 13, 1993 and ending OCTOBER 13, 1993 .RENTALS: Lessee shall pay to lessor rents aggregating $8,400.00, payable as follows: $1,680.00 each month beginning MAY 13, 1993 - and .a like sum on a like date each month there after until fully paid. All rents payable in advance. EQUIPMENT: As described in Specification Number 26-93 -0001, Dated . January 1993, attached hereto and hereby made a part hereof.. RENEWAL OF CONTRACT: This rental agreement additional periods of time not to exceed six original time provided both parties agree. INSURANCE: .Lessee, at its expense, shall insured, at the full value,against fire and coverage and shall. adequately insure against public liability. may be renewed for (6) renewals of the - keep said equipment.. theft with extended property damage and _ TITLE: The equipment shall remain the personal•property , and title thereto shall remain in the Lessor, except as otherwise, provided for elsewhere in this agreement. .Lessee shall keep the equipment free from any and all liens and claims, and shall do or permit no act or thing whereby Lessor's title and right may be encumbered or impaired. Upon expiration or termination hereof, the equipment shall be returned unencumbered to Lessor at Lessor's sole expense and in the same condition as when received by Lessee, reasonable wear and tear resulting from proper use excepted. OPERATION: Lessee shall cause the equipment to be operated -by competent employees, and shall pay all normal operational expenses. _ ,The equipment shall be operated only for its intended use. INSPECTION: Lessee shall, whenever requested, advise Lessor of the _. actual location of the equipment and shall allow Lessor, for the, .purpose of inspection, at all reasonable times enter upon any job, • .., building or place where the equipment is located for the purpose of .inspecting the equipment and the manner and purpose for which the equipment is being used. .LATE CHARGES: There shall not be a late charge for rental payments unless any scheduled payment remains unpaid for more than sixty (60) days. _Such late charge shall not those charges allowable by law. ..0 UCELLATION PENALTY; If Lessee cancels this agreement before the end of the fifth month of the first rental period, Lessor shall be entitled to a cancellation penalty charge of $720.00 for each month the equipment has been on rent. THIS PENALTY SHALL ONLY APPLY TO .THE FIRST RENTAL PERIOD. MAINTENANCE: The equipment shall be warranted against all defects - in material and workmanship for a period of not less than five (5) year or 5000 hours, whichever occurs first. Said periods. shall begin upon acceptance of the equipment, and shall cover 100% of all parts and labor. If the manufacturers standard warranty exceeds five (5) years or 5000 hours, then the standard warranty shall_be in.effect. - During the warranty period the Lessor will-be responsible for labor, - material,. and other costs associated with required warranty repair. It is the intent that, all warranty repair work be performed by the Lessor. With mutual consent of the Lessor and Lessee, the. Lessee may perform minor warranty repairs. The Lessee will assume the expense for lubricating oils, hydraulic - fluids, greases, filters, fuel, -antifreeze, batteries, lights, hoses, belts, cleaning and painting, and other minor items, not covered by warranty, that are normally consumed in.the day -to -day operations of the equipment. The Lessee will assume the responsibility for costs of- repairs. resulting from collision (if not caused by a failure of a warranted item), theft, vandalism, .operator negligence, and /or acts of God. It is the intent of the Lessee to maintain the equipment in the day -to day operations in accordance with the manufacturer's published recommendations. Said manufacturer's publications shall be furnished to the Lessee by the Lessor upon delivery of the equipment. CASH TRICE: The cash purchase price in lieu of rental shall be $51,918.00 with the following percentage of rentals paid applied against said purchase price. If purchased at the end of: Original term 100.00% First renewal 96.71% _Second renewal 85.48% Third renewal 88.73% Fourth renewal 92.11% Fifth renewal _ 95.62% Sixth renewal 99.11 % * * ** * * ** UNIT WILL PAYOUT THE END OF THE THIRD MONTH OF THE SIXTH RENEWAL AND BECOME THE PROPERTY OF THE CITY OF ROUND ROCK. HON- APPROPRIATION: It is understood and" agreed that the Lessee shall have the right to terminate this agreement at the end of any fiscal year if the governing .body of the Lessee does not appropriate funds sufficient to pay the rental payments coming due in the Lessee's next fiscal year, _as determined by the Lessee's budget for the fiscal year in question. The Lessee may affect such termination.by giving owner notice of termination and by paying any rental payments which are due and payable and have not been paid at or before the end of Lessee's then current fiscal year. Lessee - shall give notice of termination within a reasonable length of time after the final budget is approved. ALTERATIONS: Lessee shall not make any alterations, additions, or improvements' to the equipment_ without Lessor's prior written consent, and any permitted alteration or attachment which cannot be readily removed without damaging the equipment's originally intended function or value shall become part of the equipment. ASSIGNMENT: ..Neither Lessor or Lessee shall assign, transfer, pledge, hypothecate or grant any security interest in, or otherwise dispose of, this Rental Agreement or the equipment or any interest in this Rental Agreement or the equipment or.sublet or lend the equipment or permit the equipment. to be used by anyone other than Lessee or Lessee's employees without prior written Consent -of both parties. LESSOR:KUENSTLER MACHINERY CO./ BY: Ji , . ii TITLE DATE: • LESS7 T- 0 ROUND ROCK BY TITLE I.144 . DATE: 7 Y-93 DATE: April 20, 1993 SUBJECT: City Council Meeting, April 22, 1993 ITEM: 9B. Consider a resolution authorizing the Mayor to enter into a lease agreement with Kuenstler Machinery for a John Deere Tract Loader. STAFF RESOURCE PERSON: Jim Nuse STAFF RECOMMENDATION: The following is information for a five month rental of a trac loader. The following bidders responded: Bidder Kuenstler Machinery Manor, Texas Case Power & Equipment Austin, Texas Hertz Rental Austin, Texas Machine Cost John Deere 455G $1,680 /month for 5 months = $8,400 Case 455C $1,750 /month for 5 months = $8,750 John Deere 455G $2,280 /month for 5 months = $11,400 Funds are available in the Street Department's equipment lease budget for the rental of a trac loader. We recommend that the low bidder, Kuenstler Machinery at $1,680 per month for the 455G John Deere. The John Deere meets or exceeds all specifications and we have operated the machine on a trial basis to insure our operators are satisfied with its performance. Kuenstler machinery is a respected company in our central Texas area and we recommend doing business with them. This machine will be used on a daily basis in cleaning drainage ways or for cleanup and material moving at the Deepwood landfill site.