2000-113-RES APPROVING THE LEASE PURCHASE FINANCING
RESOLUTION NO. 2000-113
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, APPROVING THE LEASE PURCHASE FINANCING
PROPOSAL FROM THE WELLS FARGO BROKERAGE SERVICES FOR
A 2000 MODEL HORIZONTAL CUTTER MILL; AUTHORIZING THE
EXECUTION OF A LEASE PURCHASE AGREEMENT; MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Paris did heretofore, on the 27th day of
September, 1999, in Ordinance No. 99-066, authorize the purchase of one new horizontal cutter
mill for use in the Sanitation Division of the Public Works Department, and thereafter did
advertise for bids for furnishing said horizontal cutter mill, which bids for same were received
until 3:00 p.m., Tuesday, the 27th day of June, 2000; and,
WHEREAS, the best bid for such purchase was made by Poston Equipment, Inc. of
Pearland, Texas, and the City Council of the City of Paris did, on July 10, 2000, award the bid
for the same; and
WHEREAS, it is further deemed appropriate that the City Manager be authorized to
execute a Lease Purchase Agreement for said equipment for a total purchase price of $225 ,000.00,
plus interest at the rate of 6.42 % and costs, through Wells Fargo Brokerage Services, LLC;
NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby in all
things approved.
Section 2. That the City Manager be, and he is hereby, authorized and directed to execute,
on behalf of the City of Paris, a Lease Purchase Agreement, upon such terms and conditions as
contained therein, and as contained in the financial proposal attached hereto as Exhibit A, at the
price of $225,000.00, plus interest at the rate of 6.42 % and costs, with Wells Fargo Brokerage
Services, LLC, financing the purchase of one 2000 Bandit Beast Horizontal Cutter Mill, for the
Sanitation Division of the Public Works Department, from Poston Equipment, Inc.
Section 3. That the City Manager, City Attorney, Finance Director, or other appropriate
City official be, and they are hereby, authorized and directed to execute any and all other
necessary documents related to the transaction approved herein.
Section 4. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED this 14th day of August, 2000.
ATTEST:
Mattie Cunningham, City Clerk
~--L-~if/~ .
Michael J. Pfiester, M or
Public Finance
June 28, 2000
Honorable Mayor aDd City Couooil Merohtors .
CAy of Paris. Texas
City Hall
Paris, Texas
r
Ladies aDd <kntlemen:
Wells Fargo Broker;age Services, U.C is pka:icd to submit 1lJ: following goverm:nclltll! kasc-
purchase lb. your cc:nWderation.
,..-:
City of Paris, Texas
Wells Fargo Brokerage Secvices, LLC or its assigncc(s)
LaMJr.
EqllipmenJlProjecJ:
Wood Grinder
ProjeCl Cosr.
$225,000.00
Anticipated Funding Date: Se~mber 1, 2000
LeMIJ T_: S yeat$
UiDe pay_Is: 60 Montbly Payments at $4,393.96
r_DllWLe lf1 r...::..",:: 6.42%
Prepaymeni OptiOn Tbll lease can be prepaid in fuU, but not in part, on any
paymcllt date: wr lIIl lIIlIOIIlIt CQwU to the "After Payment
Principal Bahmce" 115 shown OD &hibit A.
Escrow F wuling Option: If the Lessee is bot ready to fund the equipmelll purchase at
closing. the Ic:asc proceeds will be deposited into an cscroVf
lICCOunl from which parmems will be di5burscd lIS tequimd.
The baIanee in the escrow accoum, beginning at closing, would
eat11mtenlSt at a gowmmentallDOIJey uwket rale and said
iDtcrcst would be paid (or compounded) to the Lessee, If the
"draw schedule" on the escrow fund llll\de It 5:asiblc, longer
term, fixed rate Investments oould be made with. an or put of
the escrow timd..
EXHIBIT A
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Don Grill".
1jIJ003
OtIID leu, closing ~ Ol\ly Lessee's k!gal expenses.
Trusteel Not Required
Ned Le#Se'l This ia eo Jll;t 1_ tr_tion whereby insurenllil, maintCJIlIlllOC,
and IUIY applicable ~ are the responsibility of the Lessee.
All mamdilcturers' guatanteet ~ wamntiel will be passed on
to the Lessee.
IIfStua1fce: Lessor requires personal :property dallll\ge insuraxu:e equal to
the cost of the equipment and also minimum liability insurance
of a combined smgle Iimlt of S500,000. Lessor lJJ\lsI. be narned
additlona11nsnr1ld.
NOll-ApprOJ'riatibns uase: The lease payments are subject to anl1lllll approprlatlon of
funds by Lessee.
Purchue Option:
$UlO at end of 1ease term
Tar StotJ.ts:
This lease is subject to the x.- being qualified as a
governmental entity or "pOlitical subdivision" within the
tll.e6lili1g of &ction 103(6) of the Intemal Revenue Code of
1986 as amended. Lessee agrees to cooperate wid!. LcS&Or in
providlog evidence as deemed aecttilIr)' or desirable by Lessor
to SIlbstantiato Lessee's and this transalrtion's tax-exempt status,
including Lessee's providing an attOlU)"S opinion. 1t is a
conditiDn also that the transaction be "b8nIc-<l.ua1iB.ed" Ullder
the $10 million small issuer cap imposed by the Tax RefOrm
Act of1986.
c,edit Infontllltitm:
The intet'cst ratc q\lOted is effective for 10 days from this date.
ThereaftEr they llte subject to adjusttncnt according to the tax-
exempt money markct conditiOIlS. Upoll credit approval, the
applicable rate will be valid for approximatelY 30 days.
Lessor's credit committee requlret fitwlgial slatellJemS fOr the
past throe fiscal )'\lm'S /IIld the current year's operating budget.
LeGe Rote:
propD8Ql Only:
rbis is a proposal only and does Dot rcpn:sell1 a commitment to
lCMC, It is subject to approval by Lessor's ctcdit committee.
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08/28/00 WED 10:47 FAX 812 344 7412
Don Cr1aes
{lJ004
Thank you for your int~ in Weli9 Fs:rgo's taX-exempt leaso-pucchasc program. Please do
not hesitate to contact me with BDY qucstioXl$ or COllCClllS regarding this proposal If you
would. like us to proceed with our iimnalllppl'Oval aDd documentation, please so iDdicate by
exeeuting below and returning to my attention.
Si<lllere1}',
~LV.~
Don W. Gtinles, Vice Ptesldellt
WelJs FIU'f/O Public FiJuInce Division
Wells Fargo BrolteraglJ SIlt'flkes, LLC
ACCEPTANCE AND SIGNATURE
Accepted and Agreed to
,2000
Lessee: City or Paris, TCXJlI
Accepted by:
(AuthorQ;cd SigMtutc)
Title:
Wells Fargo Public Fitlll.tlce (WFPF) inc\udca departments of Wells Fqo Brokerage
Services, LLC (member NASDISIPC'Chlcago Stock Bxcbange) and Wells Fargo BalIk,
N.A., brolccrll&c and bank affillates of Wells Fargo at Compa.ny. WPPF bas el'Ilered lmo
anangements witb its affiIlatesllllder which WFPF may pay COmpellSlltioD to tbeItI of up to
2S% of its net li:e tor refemls aod ualstance in findinS, $Ollcitin8. lllId obl""""B business.
Non-deposit investment products offered by Wells Fazgo IIokerqe and bank affiliates rare
not FDIC insunld. subject to in~ dsk. and not guara~ by a bank unless otherwise
specified.
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WGOdGrio<<Iei'
Casto Fmuled ~Jb1e 60 P8)'111CllU Lewl paymetrt 0ari"B F_ A....... LIItl
5225,000.00 6.4ZI1% 11 ,.,.,...... u,3!13.~ 1S0.001 2.67,...."
U1O% Rate F.n-.OI95Z' 32.07 ~
c.......c......II: ...., 1.2000
CIoIill1! Date: Se.. 1.:lOOO
Puis, T_
TGllol~ _red ~1paI Afla-l'lly_ After PIo1mollS ""-0..
Pm\' Priaciplll TOI'JIIbJa_
DlIe PlI}'II1eutDat l"oymcal DlIe Date
Ihl..... "alae
$115,000.00 Sep 1, 2000
1 S4,393.96 51,203.75 S!,l\lll.21 ~'Ul~.19 $226,427.119 Cd 1.2000
:1 $4.,393.96 51,186.6l1 $3,207.27 S218,m,52 5223,081.$ NOlI 1. 2011O
3 54,393.96 51,169.s:l $3,%24.43 S215,31U8 5119,718.14 Dco 1, 2000
4 $4,393.96 51,152.27 $3,Z4LCi8 $112,136.40 5216,340.38 J:lIlI, 2001
5 $4~.96 51,134.93 53,25'.OJ ~.J7 5212,9<17.00 fob 1, 2001
, 54,393." 51,117.4' 53,]76.46 S205,liOO.91 S209,537.92 Mar I, 2001
7 $4,.w.J.96 $1,0t9.96 $3,m.9t $'1O:l,306.92 $2&6,113.08 Ape- 1, 2001
8 S4,393.96 $1,ll81.34 $3,311.62 5198,995.30 sm,6n.39 ))fA,l, 21101
, $4,3'196 51,00W.62 $3,329.33 5195,66!.t7 $199,11S.110 JlIlIl, 2001
10 S4,3'U6 Sl,046.81 $30347,14 5J.9;I,318013 $1",743-%1 JoIl,2001
11 S4,393.!l6 51,Gnl.91 $3,]&5.05 51111I,953..77 5192,2.54.57 ADlI,2OII1
12 54,393..96 51,010.90 S3,383.G.5 5115,510.72 Sl88,749.7JO Sop 1, 2001
13 54,393M S'Jn.80 $3,401.t5 511l2,169.S1 $1~ Oct I, 2001
14 54,393.116 $974.61 53,419.35 5178,150.22 $181,69l,53 No. 1, 2101
15 $4,3'3.96 $9S6.31 53,437.64 5115,31%.51 517$.131.89 Dee I, 2001
16 54,3'-l.96 Sm.92 53,456.13 5171,S56.54 $174,567.llZ Je 1, 2GCn
17 54,393,96 5'19..43 53,470&.52 5168,382.01 51711,981.24 F.b 1, 2001
18 54,393.96 $900.84 53,4;3.11 SI~ $167,a'78.07 M... 1, 2002
l' $4,3'3..96 S832.16 53,511.10 $Ul,m.IO 5163,1SU4 AF I, 2Ot2
20 $4,393.96 $843.37 S3,S3O.S9 S157,846.!ll 5160,111.66 May 1, 2Ot2
11 54.3'3.96 S844A 53,54'.4$ 5154,297.03 51S6,4Q1.27 In I, 20cn
22 $4,393..'6 $ll:15.A9 53,568.47 SISG,7l8.!6 5151,79'7.98 JuI 1, 2001
23 54,3J.l.9S S806A0 53,587.5G 5H7,14l.00 $\49,UO.71 A"C1, 2082
2A $4.393..911 $'1&7.20 53.606.75 5143,534.2$ 5145,40'-39 Sq, 1, 2082
25 $4,393.9lI S'/GI.91 53,6Z6.05 513',9Oll.10 $141,&84.94 Ocll, :lGt2
26 54,39J.96 5748.51 53,64/1.45 5l31i,211'.l. 75 5\31,946.2'7 Nov I, :lGtZ
27 54,393.'16 S719.o\ ~95 $131,5cn .80 5134,190.31 Dee I, 2011
28 $4,393.96 57119.40 $3,684..56 $l.28,9J3.:u $l3O,41639 .18. I, :MltJ
29 54,393.96 5689.69 53,704.27 5U5,2Ol197 $126,616.2\ Fob I. 2Oe3
30 54,393..911 5669.87 53,724.119 SU1,484.8S $112,817.90 MIIr 1, 1Gt3
31 $4,393.96 S649.94 53.744.01 5117,740.87 5118,ll9\.!111 Apr 1, 2G03
31- $1,393.96 5629.'1 53,764.04 5113,976.83 S115,148.36 May 1. 2003
33 $4,393.9li S609.18 53,1'84.18 5110,l92.65 5111,286,96 3....1,2003
34 54,393.96 ~.s3 S3,804.43 5106,38831 5107,.wI.71 JIII1.1I03
35 $4,3'3..96 5569.18 S3,81'" 78 $100,563.44 $183,51G.$1 All 1,2103
36 54,393.9lI $548.71 S3,846.l4 :m, 7111,20 59t,695.Z!l Sell 1,1103
37 $01,393.96 S528.14 S3,8Il5Jll S94.852.38 595,66L96 Oct I, 2003
38 54.3'3.!16 SS07.'" 53,886.S0 S90,!l65.89 591,710.44 N<w 1. 2103
39 $4,3!13.96 $486,67 $3,9Q'7.29 S87,858M S87,740.GS Dee I, 2103
40 $4,)9334 S465. 76 53,928.19 S83,13G.4O SlI3,751.49 .J.D 1,2804
41 $4,393.96 S444. 75 ~.21 $'I9,181.U irI9,746.8' Fcb 1.2004
41 S4,.w.J.96 $423.62 53,970.34 $7S,111.86 S'/5,72D.76 Mar 1.2004
43 S~ $4QZ.3S 53,991.58 S7l,219.28 $71,617.01 iIJ't 1, 2004
44 S4,393.!I6 S3t1l.V1 S4,0U.t3 561,2Oll.34 W,614.56 )fa,I'~1
.. \lJ>aMll~~ ,,2tOO $4,034.40 612fiii'i:U 1M ~\ow..,. T'!I!" A'
: ~.
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WClCd a.......l'
CosII.....'-d "').....t Rate
$:ns,ooo.00 U2ll%
hrlt, T_
60 P.".....u IAftI Pa1JllCllt
11 per year $4,393.%
"4:10% ... 'ctr-.119519
C~: t 2000
D-Ate: 1 2iOOO
C1GsIq rea
o
talooa
_A
Aoe......Llh
'Z.671U'"
32.07 -or
08/28/00 WED 10:4& FAX 512 344 7412
Don Grlac&
ToluI P_...l -.. l'riDeipol .uIer ....,..,.. oUR. P.,.mettt ...,- Doe
hlt Due PlI)'IIltSltl1ue Pa)'Inot n.. l'rlllc4W T.....ldio. Date
Bar.ulCe ValDo
46 $4,39M6 5337.97 S4,OS5.99 559,11535 ~ .lid 1,2004
47 $4,393.96 S31f.27 54,077.69 S5S,03U7 $55,314.1.2 ADa 1. 2004
.cs $4,393.96 5294045 $4,099.50 $!lO,93&.76 SSI,175.99 Sep I, 2004
49 S4,39336 $:m.$2 94,12U3 ~,817.33 S47,OIL'n Od 1, 2004
SO 54,393.96 ~47 54,143A8 542,673.84 S4Z,84l.2! NlIY 1, 1.004
51 54.3'3.96 5228.31 54,165.65 $38,5OU9 $38,646.42 Dee 1,2004
52 54.3'3.96 S2Q6.11 S4,181.94 S34,31O.:l.S S34,431.1O ,10 1. 200S
53 54,393.96 5113.61 S4,:l.11.34 SJt,t09.tl S30,196.A9 Fob I, 2005
54 54,393.96 St61.09 14,232.87 525,877.04 S:l.5,P41.U MAr I, 2005
SS $4,3~3.96 5138.44 54,255,51 S21,OL53 S21,6a21 Ap. I, 2005
" $4,393.96 sn!l.c18 S4,27S.23 517.343.24 SI7,17....47 M.,. 1, 200S
57 $4,393.96 $91.79 S4,301.17 5l3,141.07 513,060.87 3..1,2OM
sa $4,393.96 S69. 7. S4,3:l.4.18 sa, 7t 7.89 SIl,'n7.3:l. hi I, ZOOS
59 ~= 546.64 54,347.32 54,370.57 54,373.73 A.u1I1,:I1lCl5
60 S23.38 ",MoST (SO.OO' S1.09 s.;; I, 2005
C:\DoaIDoa\lparia Ix 'P"1lP ~~
6I18IOt 10:46 AM NOMlISt h._It! Se~ be.
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AC.O.B.D~ CERTIFICATE F LIABILITY INSURAN( I O..TEIMYiDD,.....,
. . 06/26/00
PROCUCEIlI THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
Saginaw Bay Underwriters ON~Y AND CONFERS NO RIGHTS UPON THE CERTIFICATE
1258 S. Washington HOlDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
Al.TER THE COVERAGE AFFORCED BY THE POLICIES BELOW.
P.O. Box 1928
saginaw MI- 48605 INSURERS AFFORCING COVERAGE
,
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INSURED IN3U"=." TIG Insurance
smoracy L.L.c./Bandit Industries, Inc. INSURER B;.Amer1can Internat~onal companies
6750 W. Millbrook Rd. INSUF1EA c:
Remus, MI 49340-9600 INSURER 0:
, INSURER E:
COVERAGES
THE POUClESOF INSUP.A\lCE USTEO saa"" HAVE BEEI'Il ISSUED TO THE INSURED NNJlED ABtNE FOR THE POUCY PERlOO INDICATED. NOTWITHSTANDING
~y AECUIFEMENT, TEFM OR ~DmON OF ~y CONTRACT OR OTHER OOCUMENT WITH FESPECT TO WHICH THIS CERTIFiCATE MAY BE ISSUED ~
MAY PERTAIN, THE INSUIW'lCE ..afFORDED 8'1 THE pQJees DESCA8ED HEAEN IS SJB..ECT TO ALL THE TEPMS, EXCLUSO\IS AND ~DmONS OF SJCH
POUClES. AGGREGATE dlillTS SHOtIN MAY HAVE. BEEN REDUCED BY p~o ClAJMS.
i~1: TYPEOFINSUfIIANCE 'l POllCYNlJhlBER -'~l"~I~~~
A ~NEmLIulLlty IXSR38822783 T04/07/00
X CO~MEACIAl3ENEFlAlLIA8111TY I I
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1 gpUCY 1 1 ~~g.;: \ I LOC
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-
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04/07 10lT ....CHOCCC....CE '5 000 000
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04/07/01 Ij....CHOCCJ..:NC' 1,10.000.00
_ AGO"''': .10.000 00
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OTHER
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o-~~:,~S~SE-EA.~~PI.O~EE $ ______
le,l. OISEASE -POLICY LI MX-
I
DESCRIP1'ION OF OPERATiOlolS/LOCATIONS{Vet4:CLE1/ElCLUS'ONS ADDEO BY ENDORS EMEHTfSP'ECI.AL PROVISIONS
Coverage afforded by this policy shall solely apply to the following
Products:
Beast Recycler Model 3680
Megabyte Shear
(See Attached Descriptions)
CERTIFICATE HOLDER ! I AD0lT10NALINSUREO iNSURER LmE=t
CANCELLATION
City of Paris
paris, TX 75461
SHOO LOANYOF THEAIOVE D ESCfI' B ED POliCies. ECAN eEL LED B EFOPlE TH E ElPlAA 110N
DATETHEPI EOF, THE ISSUING INSURER WILL ew DEAVOR TO MAIl1.O.-. t'AV9WAITTEN
NOTICETOTH E CERliF1CATE HO:'CErI NAMED TOTHE lEFT, BUTFJulUAE TO OOSOSHAlL
IMPOSE NO OBLIGATION OFllIU:lITYOF A.)~YI(IPtO UfI'ON THEINSUAErI,ITSAQENTS OA
P1EPRESENTATIVES
AUTHORIZED AEPAESENlAT;V E
ACORC 25-S (7/97) 1 0 f 3
#48497
JID Q ACORD CORPORATION 1988
SA::;;;AlC. "a;2fl1l00 :tOa:O~ '5A3ii'OAW '3AV UN DEflWAlfEi=lS
;'''3E 2
IMPORTANT
~ the cen~cate hdder Is an ADDmONAL INSURED, the poIlC)/(les) must be ..,dorsed. A statement
on this certificate does not confer rights to the certificate nolder In lieu of such ..,dorsement(s).
~ SU8AOGAllON IS WAIVED, subject to the terms and conditions of the policy, certain poIiaes may
requre an endorsement. A statement on this ceniflCate does not confer rights to the certificate
holder In lieu of such endorsem..,t(s).
DISCLAIMER
Tlle Cenltlcate of Insurance on tne reverse side of this form does not constitute a contract between
the Issuing insurerts), authorized representative or producer, and the certifICate holder, nor does it
affirmatr"ely or negatr"ely amend, extend or alter the coverage afiorded by the policies listed thereon.
ACORD25.S(7{97l2 of 3 #48497