HomeMy WebLinkAboutRESOLUTION NO. 2016-26 Fairfax/419915-23/2016Lease/Pur—Hrg/Appry
Hearing/Approval/2016Lease Purchase
419915-23
Fairfax, Iowa
April 12, 2016
The City Council of the City of Fairfax, Iowa, met on April 12, 2016, at 6:00 o'clock
p.m., at the City Hall, Fairfax, Iowa.
The meeting was called to order by the Mayor, and the roll was called showing the
following Council Members present and absent:
Present: Beer, Daly, Kell, Volk, and Wainwright
Absent: None.
This being the time and place specified for taking action on the proposal to enter into a
Lease Purchase Agreement related to the acquisition of an excavator for the maintenance
department, the Mayor called for any written or oral objections.
Written objections were filed by the following:
None
Oral objections were made by the following:
None
Whereupon, the Mayor declared the hearing closed.
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DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Fairfax/419915-23/2016Lease/Pur—Hrg/Appry
After due consideration and discussion, Council Member Kell introduced the resolution
next hereinafter set out and moved its adoption, seconded by Council Member Daly. The Mayor
put the question upon the adoption of said resolution, and the roll being called, the following
Council Members voted:
Ayes: Beer, Daly, Kell, Volk, and Wainwright
Nays: None.
Whereupon, the Mayor declared the resolution duly adopted as hereinafter set out.
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DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Fairfax/419915-23/2016Lease/Pur—Hrg/Appry
RESOLUTION NO. 2016-26
APPROVING AND AUTHORIZING A LEASE PURCHASE
AGREEMENT
WHEREAS, the City of Fairfax (the "City"), in the County of Linn, State of Iowa, has
heretofore proposed to enter into a lease or lease-purchase agreement (the "Lease Purchase
Agreement") in the principal amount not to exceed $98,025, pursuant to the provisions of
Section 364.4 of the Code of Iowa, for the purpose of acquiring an excavator for the maintenance
department, and has published notice of the proposed action and has held a hearing thereon, and
the Council may now authorize the Lease Purchase Agreement in the amount as published;
NOW, THEREFORE, Be It Resolved by the City Council of the City of Fairfax, Iowa, as
follows:
Section 1. The City Council hereby determines to enter into the Lease Purchase
Agreement with Altorfer, Inc.,/Caterpillar Financial Services Corporation as lessor (the
"Lessor"), in substantially the form that has been placed on file with the City Clerk, providing
for a lease to the City in the principal amount of $98,025 for the purpose set forth in the
preamble hereof.
Section 2. The Lease Purchase Agreement is hereby approved, and the Mayor and
City Clerk are hereby authorized to execute the Lease Purchase Agreement on behalf of the City
and also to execute all related documents.
Section 3. It is the intention of the City that interest payable under the Lease
Purchase Agreement be and remain excluded from gross income for federal income tax purposes
pursuant to the appropriate provisions of the Internal Revenue Code of 1986, as amended, and
the Treasury Regulations in effect with respect thereto (all of the foregoing herein referred to as
the "Internal Revenue Code"). In furtherance thereof, the City covenants to comply with the
provisions of the Internal Revenue Code as they may from time to time be in effect or amended
and further covenants to comply with the applicable future laws, regulations, published rulings
and court decisions as may be necessary to insure that the interest payable under the Lease
Purchase Agreement will remain excluded from gross income for federal income tax purposes.
Any and all of the officers of the City are hereby authorized and directed to take any and all
actions as may be necessary to comply with the covenants herein contained.
The City hereby designates the Lease Purchase Agreement as a "Qualified Tax Exempt
Obligation" as that term is used in Section 265(b)(3)(B) of the Internal Revenue Code.
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DORSEY &WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Fairfax/419915-23/2016Lease/Pur—Hrg/Appry
Section 4. All resolutions or parts thereof in conflict herewith are hereby repealed to
the extent of such conflict.
Passed and approved April 12, 2016.
Burnell G. Frieden, Mayor
Attest:
'I) At),WAC Slykoi....-
Cynth. K. Stimson, City Clerk/Treasurer
On motion and vote, the meeting adjourned.
—z-e-Fz Citi -�
urnell G. Frieden, Mayor
Attest:
(?).(ii,46,1tAQ4014,"-- �`,%`' i 1,XCynt s K. Stimson, City Clerk/Treasurer 1,,t`.•''• ,�ti **. i
• i
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DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Fairfax/419915-23/2016Lease/Pur—Hrg/Appry
STATE OF IOWA
COUNTY OF LINN SS:
CITY OF FAIRFAX
I, the undersigned, City Clerk of the City of Fairfax, Iowa, do hereby certify that as such
City Clerk I have in my possession or have access to the complete corporate records of the City
and of its Council and officers and that I have carefully compared the transcript hereto attached
with the aforesaid corporate records and that the transcript hereto attached is a true, correct and
complete copy of all the corporate records in relation to the authorization and approval of a
certain Lease Purchase Agreement, and that the transcript hereto attached contains a true, correct
and complete statement of all the measures adopted and proceedings, acts and things had, done
and performed up to the present time with respect thereto.
I further certify that no appeal has been taken to the District Court from the decision of
the City Council to enter into the Lease Purchase Agreement.
WITNESS MY HAND this 13`h day of April, 2016.
Cyntiia K. Stimson, City Clerk/Treasurer
•
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DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
C T
ALTORFER INC.
uT�j�►L. 'Q�RF ER
PURCHASE AGREEMENT
Cedar Rapids Davenport East Peoria Hannibal Moberly Rock Falls Springfield Urbana
(319)365-0551 (563)324-1935 (309)694-1234 (573)221-8600 (660)263-8200 (815)625-8774 (217)529-5541 (217)359-1671
Mail payment to:P.O.Box 1347, Cedar Rapids, IA 52406
SOLD TO City of Fairfax CUSTOMER NO.
EQUIPMENT MANAGEMENT&PRODUCT LINK
PHONE M-610906
Your machine(s)has been enrolled in an Equipment Management
STREET Po Box 337 ITEM DNO. Solutions Level 3 Package.This includes Product Link installed
TBand activated,VsionLinkTM access and training,reports and
CITY Fairfax recommendations,and PartStoreTM access.
F.O.B.
STATE la ZIP CODE Cr *Note*The Product Link device contains a satellite transmitter
COUNTY Linn VIA that functions automatically without operator intervention.When
Customer electric/electronic detonators are used,this communication
INDUSTRY CODE 205 device should be deactivated within 40 feet of a blast site.If you
APPROX. SHIPPING DATE have any questions,please refer to your machine's operation
SHIP TO Cr 5-5-16 and maintenance manual.
TERMS:
®Cash Cash on Invoice To complete the registration,please provide your email address:
0 Cash on Delivery 0 Payment Plan Below EMAIL
MACHINE(MAKE, MODEL AND SERIAL NUMBER) AMOUNT
ONE NEW 2016 CAT 305.5E2 CR EXCAVATOR SN#TBD SALES PRICE $97,775
SOUND SUPRESSED CAB, HEAT,A/C CLOTH HIGHBACK SEAT, RETRACTABLE FRONT WINDOW p
COMPASS CONTROL PANEL,AM/FM RADIO, PATRTERN CHANGER
LONG STICK WITH THUMB BRACKET, ADD CAT HYDRAULIC THUMB
HYDRAULIC QUICK COUPLER,AUXILIARY STICK LINES
1-NEW CVP 16 PLATE COMPACTOR, AND H65 HAMMER,48"DC BUCKET TAX EXEMPT -0-
INCLUDES 36"AND 12"SPADE TOOTH BUCKETS, 12"AND 24"WITH NO TEEETH SMOOTH EDGE p
$250.00
I YEAR PREMIER 5 YEAR PT&HD WARRANTY NET AMOUNT DUE $98,025
PAYMENTS OVER 60 MONTHS BILL OF SALE FOR PROPERTY TAKEN IN TRADE
For value received,I/we hereby bargain and sell,grant and deliver to ALTORFER INC.
INTEREST RATE 3.2% LEASE TYPE CVO LEASE
CCAN#5 ANUAL PAYMENTS Make Model
QUOTE# 5 PAYMENTS @ Serial No. N/A
APP# $15,151 I/We hereby certify that there is no lien,claim,debt,mortgage or encumbrance of any
kind,nature or description against this property now existing,of record or otherwise,and
that same is free and clear and is my/our sole and absolute property.
SAFETY:Attachments for the above machine have been reviewed and checklist
AE070080 read by me.
PRICE ESCALATION:This order is taken and signed with the understanding that it carries
with it an escalation clause which means that price in effect at time of shipment will apply. Customer Signature $Payoff
THIS ORDER IS MADE AND ACCEPTED SUBJECT TO THE TERMS AND CONDITIONS SET FORTH ON THE REVERSE SIDE HEREOF.ANY
DIFF RENT OR ADDITIONAL TERM IN YOUR ACCEPTANCE OF THIS OFFER ARE HEREBY OBJECTED TO.
. _7r J" TITLE Metier) BANK
STOMER SIGNATURE r ADDRESS
PRINT NAME 1�1 `. :�P //l9( �v iF r(� L., INSURANCE: SELF ALTORFER
BY )r t L* .�t c \,-61 (.I T �a4 r-cek X AGENT
CUSTOMER F'lIIURASE ORDER NO. ADDRESS
DATED THIS DAY OF /'T�I f 7 ( r �Z O 6ACCEPTED THIS DAY OF
ACCEPTANCE RECOMMENDED BY I ALTORFER INC.
SALESMAN BRUCE VIETH BY
ALTORFER INC.PA 01/14
OFFICE COPY-WHITE CUSTOMER COPY-YELLOW SALESMAN COPY-PINK
1. NEW WARRANTY.New Caterpillar products are sold subject to the terms of the applicable warranty.Copies of the warranty applicable to
this purchase are attached hereto and the customer,by initialing below,acknowledges the receipt of the listed warranties.
Initials Form Date Initials Form Date
( ) Self 5070 ( ) ( ) ( )
( ) Self 5069(Century Line) ( ) ( ) ( )
2. USED WARRANTY.Dealer guarantees a used machine against mechanical failure for a period of days or service
meter hours(whichever comes first)as set out below.Dealer will pay %and the Customer %of the cost of repairs.
a. Warranty covers both parts and labor necessary to repair an inoperative machine.
b. Dealer and Customer will share the cost of such repairs(including replacement parts,labor,service expense and mileage as
required)in the proportion shown above.
c. Customer agrees to promptly report to Dealer any mechanical failures that occur during the term of this agreement,and to make
the machine available on request to Dealer during its regular daytime working hours;if the Customer desires the work done
outside of regular hours,Customer agrees to pay the difference between standard rates and overtime rates in effect at that time.
d. Warranty period begins on the date of delivery of the machine to the Customer.
e. Warranty does not cover expendable items such as glass,tires,cable,hoses,cutting edges,filters,oils,grease,electrical
equipment,batteries,etc.
f. Dealer reserves the right to inspect the machine at any time,and to refuse any claim resulting from negligence or abuse.
g. All repair work is to be performed by Dealer except as otherwise authorized by Dealer.
h. IF THE PARTICIPATION IN COST OF REPAIRS OF DEALER IS SHOWN AS"NONE,"THE MACHINE IS SOLD"AS IS"WITHOUT
WARRANTY OF ANY KIND,AND AT THE CUSTOMER'S ENTIRE RISK AND RESPONSIBILITY.
THE ABOVE WARRANTIES,IF ANY,ARE IN LIEU OF ANY OTHER WARRANTY,EXPRESS OR IMPLIED;THERE IS NO WARRANTY OF
MERCHANTABILITY;THERE IS NO WARRANTY THAT THE EQUIPMENT SHALL BE FIT FOR ANY PARTICULAR PURPOSE OR USE;NO WAR-
RANTIES EXTEND BEYOND THE DESCRIPTIONS CONTAINED HEREIN.
3. CONDITION OF TRADE-IN.If,in the opinion of the Dealer,the mechanical condition of the trade-in(if any)is substantially different when it is
turned over to the Dealer than it was when this Purchase Order was signed,the Dealer reserves the right to request that the trade-in allowance figure be
reevaluated.
4. TITLE WARRANTY.Dealer warrants full and complete title to the goods which are subject to this agreement including the warranty that(a)
the Dealer has good title to the goods;(b)the Dealer has the right to convey title to the goods;(c)the goods sold shall be free and clear of
encumbrances,security interests,liens and charges.
5. ACCEPTANCE.Goods sold pursuant to this agreement shall be inspected by the Customer upon arrival and any use of the goods for
purposes other than inspection and testing during this period shall constitute an acceptance.If the goods fail to conform to the agreement in any way,
the Customer shall notify the Dealer within five(5)days of arrival and failing such notification the goods shall be deemed to have been accepted.
6. FORCE MAJEURE.The Dealer shall not be responsible for any delay of other failure to perform caused by reason of strikes,lockouts,or
other labor difficulties or by material shortages,fires,floods,and other acts of God,accidents,embargoes,acts of war,conditions caused by a national
emergency,any rule,order or regulations of any governmental body or agency,delays of subcontractors,or by reason of any other act beyond the
reasonable control of Dealer,and Dealer's time for performance shall be extended accordingly. If delivery is delayed or interrupted for any such cause,
Dealer may store the equipment at Customer's expense and risk and if on premises controlled by Dealer,may charge therefor at a rate similar to that
charged by a public warehouse.Any such storage be deemed delivery for the purpose of this agreement.
7. This agreement shall be construed under the laws of the State of Iowa and the United States of America.The courts of such state shall have
exclusive jurisdiction over all controversies arising out of or in connection with this agreement.It is understood,however,that if any portion of this
agreement is prohibited or contrary to the laws of any County,State,Province or other political subdivision in which it is used or to which it is made
applicable,it shall,as to said County,State, Province or other political subdivision be ineffective and void to the extent of such prohibition or illegality
without invalidating any of its remaining provisions,and to this end the provisions and clauses of this agreement are declared to be severable.
8. Any taxes or import duties imposed by the laws of any County,Dominion,State,Territory,Province,Municipality or other authority,which
Dealer may be required to pay or to reimburse to others by reason of them manufacture,ownership,use or sale of any goods delivered under this agree-
ment,will be added to the price of the goods either as a separate item or included in the invoice price of the goods,as the law may require or Dealer
may determine.
9. This agreement is not subject to cancellation or to change unless requested by the Customer and accepted in writing by the Dealer. In the
event of any such cancellations,the Customer shall pay the Dealer within 30 days of such cancellation reasonable costs and all other expense incurred
by Dealer prior to receipt of the request for cancellation(including but not limited to engineering expenses and all commitments to its suppliers,
sub-contractors,and others)plus an amount equal to fifteen percent(15%)of the total of the foregoing.
10. Any payments agreed to by the Customer and not fulfilled by the Customer on the date promised,shall be subject to a late payment penalty
of 1.5%interest per month(18%per year).The minimum penalty shall be$2.00 per month.This charge will continue until the amount and interest are
paid in full.
11. Purchaser is hereby notified that Altorfer Rents has assigned to J.P.Morgan Property Exchange Inc.,acting in its capacity as a Qualified
Intermediary,its rights(including its rights with respect to all money and any trade-ins,but none of its obligations)with respect to the sale of this
equipment.Payment must be made to"JPEX as QI for Altorfer Rents"and mailed to Altorfer Rents,P.O.Box 1347,Cedar Rapids,IA 52406.
12. REMEDIES.The rights and remedies of the Dealer shall not be exclusive but shall be cumulative and in addition to any other rights and
remedies provided by any and all clauses of this Purchase Order and to all other rights and remedies in law or equity.
13. ALTORFER IS NOT LIABLE FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES FOR ANY BREACH OF WARRANTY OR DAMAG-
ES OF ANY NATURE,PERSONAL OR PROPERTY,SUFFERED OR SUSTAINED IN THE OPERATION OF THE EQUIPMENT OR RESULTING FROM
FAILURE OR INADEQUACY OF THE EQUIPMENT OR ITS COMPONENTS;AND THAT ALTORFER SHALL NOT BE DEEMED OR HELD OBLIGAT-
ED,LIABLE OR ACCOUNTABLE UPON OR UNDER ANY GUARANTEE OR WARRANTY,EXPRESS OR IMPLIED,STATUTORY BY OPERATION OF
LAW,OR OTHERWISE,IN ANY MANNER OR FORM BEYOND THE AGREEMENTS OF SUB-PARAGRAPHS 1 OR 2 THIS AGREEMENT.
14. Any action of any type by any party to this Agreement relating to this Agreement,whether such action be for breach of contract,breach of
warranty,in tort or under any other legal theory,must be commenced within two(2)years of accrual of the cause of action.
15. Customer agrees that this agreement can be filed as public notice of a lien in favor of Altorfer Inc.This filing will be made with the competent
agency as designated by law.Customer affirms that this agreement creates a lien in favor of Altorfer Inc.
16. EFFECTIVE DATE OF AGREEMENT.This agreement must be approved and signed by an authorized officer/agent of Altorfer before any of
its terms or conditions are valid.
Caterpillar Financial Services Corporation
Finance Proposal
CUSTOMER
Name: CITY OF FAIRFAX-305.5E-CVO
Address Good if:
City Acknowledged by Apr-18-16
State Funded by Apr-18-16
Zip code
County
DEALER
ALTORFER INC. Quote number 500-2857
Sales person Fax number
Dealer contact Quote date 04/13/2016
Telephone Quote time 17:31:02
FINANCE PROPOSAL
This is Caterpillar Financial Services Corporation's confirmation of the following finance proposal.This is a proposal only and is
subject to credit approval,execution of documentation,and execution and approval of the application survey.
Financing type CAT VALUE OPTION Purchase option Stated option
Number of payments 5 Annual Equipment Construction
Payments in Advance Quoted by BENSAJPO
Report created by BENSAJPO
ADR Ann. Amount Purchase
Model Code Hours Qty Financed Payment Option
New 305.5E2CR 15.00 500 1 98,025.00 15,151.10 38,010.00
Special Conditions:
305.5E2CR
Model Year-2016,Standard Environment;Major Attachments-Cab,Air Conditioning;
Blades/Buckets/Rippers-General Purpose Bucket,Thumb Hydraulic;Other Attachments
-CVP16 and a HD65 hammer
Payment
Model Insurance w/Insurance
New 305.5E2CR 1,683.39 16,834.49
The estimate for insurance is provided through Caterpillar Insurance Company(Provided by Westchester Insurance Company in
Rhode Island)and is not an offer to contract for insurance.
CONDITIONS
Insurance: The customer must provide evidence of physical damage and liability insurance in an amount and from an
insurance carrier satisfactory to CFSC. CFSC must be named on the policies,as loss payee and additional insured,
as applicable,and a certificate of insurance,in form and substance acceptable to CFSC,must be provided to
CFSC.
Taxes: All taxes are the responsibility of the customer and may or may not be included in the above payment amounts.
Under the CAT Master Tax Lease and CAT Long Term Rental Agreement,a lessee is required to indemnify the
lessor for loss of tax benefits.
Equipment: The equipment cannot be delivered until all documents are executed by CFSC. All equipment must reside in the
United States at all times.
Approval: This proposal is subject to,among other things,final pricing,credit approval and document approval by CFSC.
The terms and conditions outlined herein are not all-inclusive and are based upon information provided to date. This proposal may
be withdrawn or modified by Lessor at anytime. This proposal does not represent an offer or commitment by CFSC to enter into a
transaction or to provide financing,and does not create any obligation for CFSC. A commitment to enter into the transaction
described herein may only be extended by CFSC after this transaction has been approved by all appropriate credit and other
authorities within CFSC.
Please indicate your acceptance of this proposal by executing this proposal and returning it to my attention along with the Proposal
Fee at the address below. Please be sure to indicate which financing option you have accepted.
Caterpillar Financial Services Corporation
2120 West End Avenue,Nashville,TN 37203
(615)-341-1000
We appreciate the opportunity to provide you a proposal for this transaction.
500-2857 Caterpillar Financial Services Corporation Page 1
Caterpillar Financial Services Corporation
Finance Proposal
Proposed by: Acknowledged by:
Caterpillar Financial Services Corporation CITY OF FAIRFAX-305.5E-CVO Date
500-2857 Caterpillar Financial Services Corporation Page 2
ZIIbe ( a3 etfe
thegazette.com
INVOICE DATE ACCOUNT# ACCOUNT NAME LINES TIMES
3/29/16 2698 CITY OF FAIRFAX 1.00 x 35 Li 1
DESCRIPTION legals-Hrg Excavator Lease
PROOF OF PUBLICATION
I, James Burke, do state that I am the publisher of THE GAZETTE, a daily newspaper of general circulation in Linn and
Johnson, in Iowa. The notice, a printed copy of which is attached,was inserted and published in THE GAZETTE in the
issue(s)of 3/29/2016
The reasonable fee for publishing said notice is $16.92
By moi...._.- L=
STATE OF IOWA, 1
NOTICE OF PROPOSED PUBLIC f SS.
HEARING ON LEASE-PURCHASE Counties of Linn and Johnson
AGREEMENT IN A PRINCIPAL
AMOUNT NOT TO EXCEED 598,025
(GENERAL EQUIPMENTOLIGATION This instrument was acknowledged by James Burke
The City Council of the City of Fairfax, before me this 29th day of March,2016
Iowa,will meet on the 12th day of April,
2016, at 525 Vanderbilt Street, in the
City,at 6:00 o'clock p.m.,for the pur-
pose of holding a public hearing and
taking action to enter into a lease-
purchase agreement (the "Lease
Agreement")in a principal amount not
exceeding $98,025, for the purpose of
acquiring an excavator for the mainte-
nance department.
The Lease Agreement will constitute a
general obligation of the City and is
proposeduthbe entered into pu364nt.4 to
of AcL/ c
authority contained in Section 364.4 oflh.
-4.,
the Code of Iowa.
At that time and place,oral or written Nota Public in and for the State of Iowa
objections may be filed or made to the Notary
proposal to enter into the Lease Agree-
ment. After receiving objections, the
City may determine to enter into the
Lease Agreement, in which case, the
decision will be final unless appealed to
"the District Court within fifteen (15)
days thereafter.
By order of the City Council of the City
of Fairfax,Iowa.
Cynthia StimsonPµ�al DIANE, `S GU
City Clerk/Treasurer
COMMISSION NUMBER 7532
* " * MY COMMISSION EXPIRES:
JUNE^ 11,2017_