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29 Move to approve a resolutionCITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: Originating Department: Presented By: Agenda Item No.: 2-29-2008 29 Council Date: Finance Gene Anderson 3-10-2008 RECOMMENDED MOTION: Move to approve a resolution declaring the 12'x24' frame building as salvage property and accepting the bid from Kenneth Marshall to acquire the salvage property and to enter into a monthly lease of the real property located at 1227 N. Main Street in Paris, Texas. POLICY ISSUE(S~: Council approval of lease document. BACKGROUND: This properry is part of Lots 6& 7 City Block 251A being numbered 1227 N. Main Street. The City acquired this property originally for ROW purposes. TxDot had plans to make N. Main and 1St Street NE one way streets beginning approximately at 12t" Street NE to downtown Paris. This project was delayed, but the City retains ownership of this property for that future purpose. The City has rented this property in the past for use as a used car lot, but it has not been rented for a number of years. This property was put up for bid by invitarion to lease city property advertised in the Paris News on February 10, 2008 and February 17, 2008. The only bid received for this property was from Mr. Kenneth Marshall. Mr. Marshall proposes to purchase the 12 ft. X 24 ft. frame storage type building for $100 and to rent the property for $50 per month on a month to month basis. There are two structures on the property. One is a dilapidated builcling full of used tires. As part of his bid, the bidder offers to tear down this structure and dispose of the material including the used tires in a legally acceptable manner. The second structure is a frame storage rype building that is also dilapidated due to the entire floor being rotted out and various other code violarions, The bidder proposes to purchase this building for $100. He intends to replace the flooring and make use of it on this site. The bidder will be providing appropriate insurance for the City's protection. He also agrees to maintain the lot i.e. mowing the grass when needed. BOARD~COMMISSION RECOMMENDATION: N/A EXHIBITS: Copy of bid and copy of lease agreement. ACTION: BUDGET INFO: ❑ Financial Report ❑ Minute Order Expense $N/A ❑ Department Report ~ Resolution Budgeted Amt. $N/A ❑ Presentation ❑ Ordinance YTD Actual $N/A ❑ Public Hearing ❑ Other Acct. Name N/A Acct. Number N/A FisC~. NoTES: City of Paris Revised 2/04/08 REVIEWED AND APPROVED BY: ~ZJ Administration 0 City Clerk ❑ Community Development ❑ EMS/IT Z Finance ❑ Fire ❑ Municipal Court 2-1(egal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities City of Paris Revised 2/04/08 DRAFT Attorney/resworWcurrent/N Main Lease Res 2008 February 14, 2008 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AWARDING A LEASE ON PROPERTY LOCATED ON PART OF LOTS 6 AND 7, CITY BLOCK 251A, BEING NUMBER 1227 N. MAIN STREET, PARIS, TEXAS; AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE ON SAID PROPERTY; DECLARING THE 12'X24' ALUMINUM SIDED STRUCTURE ON THE PROPERTY AS SALVAGE PROPERTY AND AUTHORIZING THE SALE OF THIS STRUCTURE TO KENNETH MARSHALL PURSUANT TO HIS BID PROPOSAL; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City issued an Invitation to Bid to lease the property and improvements located on part of Lots 6 and 7, City Block 251A, being number 1227 North Main Street, Paris, Texas; and, WHEREAS, the Invitation to Bid on said Lease was published in the Paris News on February 10, 2008 and February 17, 2008; and, WHEREAS, the City received only one bid to lease the Property and the proposal from Kenneth Marshall is found to be fair and reasonable and should be accepted; and, WHEREAS, pursuant to said proposal, Mr. Marshall has offered $100 to purchase the dilapidated 12'x24' aluminum sided structure on the Property and $50 per month to lease the Property from the City; and, WHEREAS, City staff has inspected the 12'x24' aluminum sided structure located on the Property and determined that it has a rotted floor among other code violations and has only salvage value and should be declared salvage property; and, WHEREAS, there is no known or anticipated municipal use for the 12'x24' structure, and it would be appropriate to declare the same as salvage property and to sell it to Mr. Marshall in connection with his bid proposal. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF 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 proposal submitted by Kenneth Marshall in response to the City's Invitation to Bid for a lease on property located on part of Lots 6 and 7, City Block 251A, located at 1227 N. Main Street, attached hereto and incorporated herein as Exhibit A be accepted as the most responsible bid providing the best value for the City of Paris. Section 3. That the 12'x24' aluminum sided structure located on the Property at 1227 N. Main Street, Paris, Texas be, and it is hereby declared salvage property, and is hereby sold to Kenneth Marshall for $100 in accordance with his bid proposal. Section 4. That the form of the Lease Agreement between the City of Paris and Kenneth Marshall for the Property at 1227 N. Main St., attached hereto as Exhibit B, be, and the same is hereby,approved. Section 5. That the City Manager be, and he is hereby, authorized and directed to execute on behalf of the City of Paris, a Lease Agreement with Kenneth Marshall, under the terms and conditions and in the form shown in Exhibit B, attached hereto, and any other documents necessary to award this bid to Mr. Marshall. Section 6. That this resolution shall be effective from and after its date of passage. PASSED AND APPROVED this l Oth day of March, 2008. Jesse James Freelen, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Kent McIlyar, City Attorney BID FORM TO: HONORABLE MAYOR & MEMBERS OF•THE CITY COUNCIL FROM: /2~-70Ne7-~f (Name of person or company bidding) /~3 1--M OAtj -7g..;20 S'v M 7)( (Address) 23 _ 7g,-5-_ number) UWe, hereby submit the following bid for the monthly lease of property located on part of Lots 6& 7, City Block 251 A, being number 1227 N. Main Street, Paris, Texas. $ --5'0 ~ per month Other considerations the bidder wishes to offer: v 0 2. 3. 4. 5. 6. EXHIBIT A PROPOSAL The building, measuring 12 feet by 24 feet, located at above address, is in bad need of repair. Needed repairs consists of ceiling repair, remove and replace floor joists and floor,bathroom walls, bathroom floor, bathroom fixtures and plumbing. z have inspected the building described above and for this reason I submit the following proposal for consideration. If the City of Paris will agree to revise LEASE AGREEMENT so as to delete SECTION 4(INSURANCE) in it's entiret~ and amend SECTION 8 so as building and or repairs to building wi 1 not become Property of LESSOR upon expiration or termination of LEASE AGREEMENT z agree to the following: 1. So as to HOLD HARMLESS the city of Paris of liabilities of owning this building I agree to purchase building and building only, for a purchase pr-ice of $100.00 (one-Hundred-Dollars and no/cents), in AS/IS--WHERE/IS CONDITION WITH NO WARRANTY EXPRESSED OR IMPLIED. 2. I ag ree to lease the remaining lot, on a monthly basis, at the rate of $50.00 (Fifty-Dollars) per month. 3. z agree to remove building and contents from lot within 60 days of receiving written request from city of Paris. 4. z a ree to tear down and haul off delapidated storage building and pile o~ used tires now on lot and in drainage ditch beside building. 5. z agree to maintain lot and weeds and grass on lot in as good or better condition as when delivered at start of lease. Kenne Marshall Dated ,Oc- Page 1 LEASE AGREEMENT THIS LEASE AGREEMENT is made this l Oth day of March, 2008, by and between the CITY OF PARIS, TEXAS, a home rule municipal corporation (hereinafter "LESSOR"), and Kenneth Marshall, 153 FM Road 2820, Sumner, Lamar County, Texas 75486 (hereinafter referred to as "LESSEE"). WITNESSETH: For and in consideration of the payment of the sum of fifty dollars ($50.00) per month, and other good and valuable consideration, payable by LESSEE to .LESSOR as follows: $50.00 on or before March 15, 2008, with a like payment on or before the 15th day of each month thereafter during the remainder of the term of this Lease, LESSOR daes hereby lease, rent, and let unto Kenneth Marshall that certain property located on part of Lots 6 and 7, City Block 251A, being number 1227 N. Main Street, Paris, Texas, more fully described on Exhibit A, attached hereto and made a part hereof (hereinafter "Leased Premises"). 1. TERM The term of this lease shall be one (1) month, beginning on the 15th day of March, 2008, and ending on the 14th day of April, 2008, at which time and on which date the lease will automatically renew for another thirty (30) day period unless on or before the Lease expiration date, LESSOR OR LESSEE gives notice to the other that they wish to terminate the Lease Agreement in accordance with Paragraph 10 herein. 2. RENT/UTILITIES LESSEE shall pay to LESSOR, at 135 ls` Street SE, Paris, Texas the agreed upon rental in advance, promptly and without neglect, default, and delay. LESSEE shall also be solely responsible EXHIBIT a for obtaining, maintaining and paying for all utility service to the Leased Premises including, but not limited to: electriciry, gas, telephone, water and sewer, and sanitation services. 3. HOLD HARMLESS LESSEE agrees to indemnify, save, keep, and hold LESSOR harmless from and against any and all demands, debts, liabilities, suits, claims, and causes of action of every kind and character whatsoever for damage or injuries to persons and/or property occurring on the Leased Premises resulting from LESSEE's, his invitees', agents', servants', or employees' use of the Leased Premises; and LESSOR shall not be liable to LESSEE, his invitees, agents, servants, employees, or visitors for premises defects or the condition of the improvements located thereon, or hereafter constructed, or any other condition of the premises being improperly constructed, maintained, or being or becoming out of repair. LESSEE hereby expressly waives any defects or hazards thereon and agrees to indemnify, save, keep and hold LESSOR harmless from all claims for any such damages or injuries. 4. INSURANCE LESSEE must, at all times during the term of this Lease Agreement, and during any extensions thereof, keep and maintain in full force and effect a policy or policies of insurance, providing at least $300,000.00 per person and $300,000.00 for any single occurrence for bodily injury or death and $100,000.00 for any single occurrence for injury to or destruction of property, indemnifying all persons for any and all damages, personal injuries, or property damages sustained in or upon the Leased Premises, or any part thereof, as the result of the negligence of LESSEE, his invitees, agents, servants, or employees, and shall pay all premiums due thereon when due. It is expressly provided that such insurance policy or policies shall be written and issued by a reputable insurance company or companies licensed by the State of Texas to sell commercial general liability insurance, with LESSOR named as an additional insured, a copy of said insurance policies or a properly executed certificate of insurance must be submitted to LESSOR upon execution of this Lease Agreement. Renewals of the certificate of insurance shall also be timely filed with the City Clerk for the City of Paris, P. O. Box 9037, Paris, TX 75461-9037, prior to the expiration of current certificate of insurance or insurance policy. All such policies shall be written so that the LESSOR will be notified of cancellation or of any restrictive amendment of the policies at least thirty (30) days prior to the effective date of such cancellation or amendment. Notice shall be by certified mail, return receipt requested, addressed to the LESSOR at the following address: City Clerk, City of Paris, P. O. Box 9037, Paris, Texas 75461-9037. 5. PROPERTY "AS IS/WHERE IS" LESSEE has inspected the Property and Leased Premises prior to entering into this Lease Agreement and accepts the Leased Premises in "as is" condition. LESSOR makes no warranty express or implied as to the condition of the Leased Premises or to appropriateness of the Leased Premises for any particular purpose. 6. LOSS OR DAMAGE LESSOR shall not be liable for any loss or damage to personal property of LESSEE or LESSEE's agents, employees, invitees or guests by theft or otherwise on Leased Premises. 7. WASTE. NUISANCE AND UNLAWFUL USE PROHIBITED LESSEE shall not commit, or suffer to be committed, any waste on the Leased Premises, nor shall LESSEE maintain, commit or permit the maintenance or commission of any nuisance on the Leased Premises or use the Lease Premises for any unlawful purpose. LESSEE shall not do or permit anything to be done in or about the Leased Premises which shall in any way conflict with any law, ordinance, rule or regulation affecting the occupancy and use of the Leased Premises which is or may hereafter be enacted or promulgated by any public authority; or suffer to be committed any waste on the Leased Premises; or allow the premises to be used for any improper, immoral, or unlawful purpose. 8. PROPERTY CONDITION LESSEE shall take good care of the Leased Premises and be responsible and make good to LESSOR on all injuries andlor damages to the same caused by LESSEE, his agents, employees, guests or invitees and will deliver same to LESSOR at the expiration or termination of this lease in as good condition as when delivered at the beginning of this Lease Agreement, usual wear and tear alone excepted; and LESSEE will, upon the expiration or termination of this lease, peaceably yield up to LESSOR all and singular the Leased Premises, including improvements or fixtures thereon, but specifically excluding the 12'x24' aluminum sided structure situated thereon which LESSOR has sold to LESSEE by separate instrument. LESSEE shall not install, construct or erect any additions, improvements or alterations to the Leased Premises without first securing the written permission for such installation from the City Manager of the City of Paris. Provided, however, the 12'x24' aluminum sided structure currently situated on the Leased Premises and which LESSOR has sold to LESSEE under separate instrument may remain on the property during the term of this Lease. Any other structures that LESSEE may construct, remodel or move on to the Leased Premises for LESSEE's use and any such other additions, improvements or alterations made to the Leased Premises by LESSEE, with permission from LESSOR, shall become the Property of LESSOR upon the expiration or termination of this Lease Agreement. 9. INSPECTION LESSOR shall have the right to enter upon and into the Leased Premises and every part thereof at all times for the purpose of inspecting and examining the condition thereof. 4 10. ASSIGNMENT OF LEASE LESSEE shall not sublease, assign or otherwise transfer any right, title or interest to any portion of the Leased Premises during the term of this Lease Agreement, or any renewal thereof, without first obtaining the prior written consent of LESSOR. 11. DEFAULT 5hould LESSEE default in or fail or refuse to keep any of the covenants, conditions, stipulations, or provisions herein contained, then the LESSOR shall, in addition to any and all rights afforded LESSOR under this lease or state law for such default, including, but not limited to, the right to seek monetary damages for injury to the property, specific performance, or other remedies, LESSOR shall have the right to terminate said lease by giving the LESSEE ten (10) days notice in writing of its intention to terminate said lease. Following termination of the Lease for default, LESSOR shall have the immediate right of possession of the Leased Premises. Any temporary structures, equipment or personal property belonging to LESSEE which remains on the Leased Premises thirty (30) days following termination of the Lease shall be deemed abandoned by LESSEE and shall become the property of LESSOR and may be sold or disposed of by LESSOR as LESSOR sees fit. 12. TERMINATION Either party may, at its option, terminate this lease by giving the other party thirty (30) days notice, in writing, of its intention to terminate. Upon termination of this Lease, LESSEE shall be allowed a reasonable period of time to vacate the Property and to remove any temporary structures or personal property owned by LESSEE from the Leased Premises. Any personal property remaining on the property following the expiration of thirty (30) days following termination of the Lease will be presumed abandoned and may be disposed of by LESSOR. 13. NOTICE Any notice required by this Lease Agreement shall be in writing and may be delivered in person or by certified mail, return receipt requested, addressed accordingly: LESSOR City Clerk City of Paris P. O. Box 9037 Paris, TX 75461-9037 LESSEE Kenneth Marshall 153 FM Road 2820 Sumner, TX 75486 The terms of this lease are binding on and the benefits herein inure to the heirs, administrators, and executors of LESSEE and the successors and assigns of LESSOR. EXECUTED ON the dates shown in acknowledgments below. By: ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Kent McIlyar, City Attorney LESSOR: CITY OF PARIS, TEXAS Kevin Carruth, City Manager LESSEE: Kenneth Marshall 6 STATE OF TEXAS COUNTY OF LAMAR BEFORE ME, the undersigned authority, on this day personally appeared KEVIN CARRUTH, City Manager of the City of Paris, known to 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 consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the l Oth day of March, 2008. Notary Public, State of Texas STATE OF TEXAS COUNTY OF LAMAR BEFORE ME, the undersigned authority, on this day personally appeared KENNETH MARSHALL, known to 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 consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the day of March, 2008. Notary Public, State of Texas . % EXI-IIIIIT "11" SITUATGD wii:hin L-lzc corporatc .limiLs of i;hc City of Paris, , County of Lamar and Sl.ate of Texas, a parl-. of thc Larkin Rati:an ~ Survey and the IZeddin I\UJJCll Survey I1786, and being a pari: of . a 5.670 acre LzacL- of land dcscribed in dcecl l:o Itay SPcnccr, rccorded in Volume GhG, 1>age G97, beec( Rccords, Lainar CounLy, Tcxas, being LoL-;; G and 7, Ci.L-y [3loclc 25111, ancl being more parl:icularl.y clcscribcd ac tollows : BLGINNING al: a brass cap (L) tor corner ai: the Southeast corner of said 5. G70 acre -tracL-, saici point bcing the NorLheast , Gorner of a L-racl: of land conveyecl Ldward R. Jenlcins by dced recordcd in Vol. 44, I'a1c lIIG, of L-he IZcal.ProperLy itccords of ~ said County and SLatc. TI-IGNCL Soul:li 70 Dc1. 17 Min. 31 Sec. West along Lhe Soui:h IIoundary Linc of said 5.670 acre traci; aiid i:hc NorL-h IIoundary Line of said Jenlcins t;ract aL 106.05 ieet passing an iron pin (s) and an el corner of proLDosccl lst Streel: -N. W. , and ai: 160. 15 :Cect passing the proposed ccnL-er line of sai.d 1sL- StreeL N.W., and conLinuincJ on a L-ol.al disLance of 208.49 feeL i:o an iron pin (s) for CO1 llCl ; TI-lCNCE aloncJ Lhc We:;Lerly Uoundary Linc of proposed lst 5i:reet N.W. as Lollows: NorL-lzcrly around a curve (R=602.96 feet, C=North 34 Deg. 10 Min. 25 Sec. LasL II5.46 ieet) t;o the right a disL-ance of 65.53 Leel: L-o ai1 iron pin (s); North 30 Deg.14 Min. 15 Sec. Lasl. a disL-ance of 62 fect to an iron pin (s); NorLherly around a curve (R=GOO.OS feet-, C=North 31 Deg. 17 Min. 42 Scc. Last 145.06 fecL) l.o the 1cLt a distance of 145.42 Lcel. to an iron pin (s) :Cor corncr in `tlzc Easl-.crly NorL-t1 . Bounclary Line of said 5.670 acre L-ract, said point be.ing in L-he Soui:h I3oundary Line of a loL conveyed D.S. Lanc by decd rccordcd in VoJ.. 296, I>acJc 317, of said Dccd Rccords; TI-(CNCL South II8 Dcg. 50 Min. 20 Sec. CasL aL 32.53 fceL passi.ng i:he ccntcr ].inc of proposcd ].st Sl:reet N.W., and continuing on a i:ol-.al distancc of 3E3.24 Lcet Lb i:he Lasterly Northeast corner of ;;aid 5.670 acre l.racl: and t-he Soul:heasL- corner of- said Lane loL-; TI-ILNCL SouLh 01 De g. 13 Min . 24 Sec. WesL along i:he Wes L bounclary Linc of NorL-h Main SL-reeL• a disl:ance of 172,40 teei: i:o the place of beginninl AJ cletermined by acl:ual suzvcy on the ground by J. M. Nelson, Registered ProLes:;ional Land Surveyo1 of Texas, 114025 on the ' 2IIth day of June, 1994. "AHIBI` A PUBLISH SUNDAY, FEBRUARY 10, 2008 SUNDAY, FEBRUARY 17, 2008 NOTICE TO BIDDERS The City of Paris will receive sealed bids at the office of the City Manager, City of Paris, 135 lst Street S. E., P. O. Box 9037, Paris, Texas 75461-9037, for the monthly lease of property located on part of Lots 6 and 7, City Block 251 A, being number 1227 N. Main Street, Paris, Texas, until Tuesday, February 26, 2008, at 3:00 p.m., at which time all bids will be publicly opened at the City of Paris City Hall building, 135 S.E. lst Street, Paris, Texas, read aloud, tabulated, and referred to the City Council for its consideration. Bid forms and other information may be obtained at the Finance Office, City Hall, 135 S.E. lst Street, Paris, Texas 75460. All bids shall be accompanied by cash or cashier's check drawn upon a national bank in an amount not less than one month's lease payment payable to the City of Paris as earnest money. The successful bidder will have his earnest money applied as the first lease payment. Unsuccessful bidders will have their earnest money returned to them. The City of Paris reserves the right to reject any or all bids, to waive any informality in bidding, and to award bids as may be advantageous to the City. All bids must be submitted on the City of Paris bid form. All parts of the bid form should be completed. CITY OF PARIS, TEXAS JANICE ELLIS, CITY CLERK