HomeMy WebLinkAboutOrdinances - O-91-579 - 07/31/1991 - AUTHORIZE PURCHASE AGREEMENT MUNICIPAL CENTER FURNORDINANCE NO. 0- 91- 5 7 9
AN ORDINANCE
AN ORDINANCE AUTHORIZING AN AGREEMENT FOR
THE PURCHASE OF CITY HALL FURNITURE AND
FURNISHINGS BY THE CITY OF MCHENRY, ILLINOIS.
WHEREAS, it has been, and is, deemed advisable and necessary for the City of
McHenry, McHenry County, Illinois ("the Municipality") to provide for the purchase of City
Hall furniture and furnishings and competitive bids have been solicited by the Municipality for
that purpose; and,
WHEREAS, pursuant to the provisions of Section 11-61-3 of Article 11 of the Illinois
Municipal Code, the Municipality is authorized to purchase real and personal property for public
purposes pursuant to contracts which provide for the consideration for such purchase to be paid
in installments at stated intervals during a period not exceeding ten years; and
WHEREAS, LANDGRAF'S LTD. of 1110 Jericho Road, Aurora, Illinois ("the Seller")
has submitted the lowest responsible bid and has agreed to sell aforesaid furniture and
furnishings to the Municipality for the purchase price of Three Hundred Eighty Thousand Seven
Hundred Sixty -One Dollars ($380,761.00), payable in eight (8) semi -equal annual installments
together with simple interest on the unpaid balance at Five and nine/tenths percent (5.9 %) per
annum; and
WHEREAS, it is hereby estimated and determined that it will cost Four Hundred Thirty -
Seven Thousand Six Hundred Fifteen and 66/100 Dollars ($437,615.66) , including interest
charges, to purchase said equipment for the Municipality, and funds are not presently available
therefore;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF McHENRY, McHENRY, ILLINOIS, AS FOLLOWS:
SECTION ONE: It is hereby determined that it is advisable, necessary and in the
interests of the public that the Municipality purchase certain City Hall furniture and furnishings
and for the purpose of paying the purchase price thereof to enter into an agreement with the
Seller providing for the purchase of said equipment at a total cost of Three Hundred Eighty
Thousand Seven Hundred Sixty -One Dollars ($380,761.00) to be paid in Eight (8) equal semi-
annual installments of Forty -Seven Thousand Five Hundred Ninety -Five and thirteen/100 Dollars
($47,595.13) with simple interest on the balance remaining unpaid from time to time at Five and
Nine -Tenths percent (5.9 %) per annum.
SECTION TWO: Said agreement shall be in substantially the following form:
AGREEMENT FOR THE PURCHASE OF CITY HALL FURNITURE AND
FURNISHINGS BY THE CITY OF MCHENRY, ILLINOIS.
THIS AGREEMENT dated this day of August, 1991, between the CITY OF
MCHENRY, a municipal corporation in the County of McHenry and State of Illinois ("the
Municipality") and LANDGRAF'S LTD. a corporation ("the Seller"),
WITNESSETH:
WHEREAS, the City Council of the Municipality have determined that it is advisable,
necessary and in the interests of the public that the Municipality purchase for public purposes
certain City Hall furniture and furnishings; and
WHEREAS, Section 11-61-3 of the Illinois Municipal Code authorizes the Municipality
to purchase real and personal property for public purposes pursuant to a contract which provides
for the consideration for such purchase to be paid in installments at stated intervals during a
period not exceeding ten years; and
WHEREAS, Seller has agreed to provide the said City Hall furniture and furnishings in
accordance with specifications prepared by the City of McHenry, and to sell the said City Hall
furniture and furnishings to the Municipality on an installment basis as hereinafter provided for;
NOW, THEREFORE, in consideration of the mutual covenants and agreements
hereinafter contained and other valuable considerations, it is mutually agreed between the Seller
and the Municipality as follows:
1. Seller agrees to sell to the Municipality and the Municipality agrees to
purchase from Seller City Hall furniture and furnishings for the sum of Three Hundred Eighty
Thousand Seven Hundred Sixty One Dollars ($380,761.00) which purchase price shall be paid
in Eight (8) equal semi-annual installments of Forty -Seven Thousand Five Hundred Ninety Five
and 13/100 Dollars ($47,595.13, commencing on January 1, 1992 and concluding on July 1,
1995, together with simple interest on the balance remaining unpaid from time to time at Five
and Nine -Tenths percent (5.9 %) per annum.
Installments of interest and principal will be due on each of the following
dates and in the following amounts:
SEMI-ANNUAL
PRINCIPAL
INSTALLMENT
AMOUNT
INTEREST
TOTAL
January 1, 1992
$47,595.13
At the above
rate from date
of this agreement
July 1, 1992
47,595.13
9,828.39
57,423.52
January 1, 1993
47,595.13
8,424.34
56,019.47
July 1, 1993
47,595.13
7,020.28
54,615.41
January 1, 1994
47,595.13
5,616.22
53,211.35
July 1, 1994
47,595.13
4,212.17
51,807.30
2
January 1, 1995 47,595.13 2,808.11 50,403.24
July 1, 1995 47,595.13 1,404.06 48,999.11)
The Municipality shall have the right on the first day of any month to
prepay said purchase price, without penalty or premium, by paying the balance of the principal
amount then remaining unpaid on the date of such prepayment plus the interest accrued thereon
to the date of such prepayment; and the Municipality shall have the right on the first day of any
month to prepay any one or more installments of the principal amount of the purchase price,
without penalty or premium, by paying said installment or installments plus the interest accrued
to said prepayment date on the balance of the principal amount then unpaid. If less than all of
the principal amount shall be prepaid, then prepayments shall be applied to installments in the
inverse order of their due date.
2. The Seller agrees to convey to the Municipality good title to the aforesaid
City Hall furniture and furnishings by bill of sale, assignment, quitclaim deed or other proper
instrument of transfer, with appropriate warranties, sufficient in the opinion of the Municipality
to convey good and merchantable title to the Municipality free and clear of any and all liens or
encumbrances.
As evidence of the Seller's title to the aforesaid City Hall furniture and
furnishings the Seller shall furnish and deliver to the Municipality such evidence of the Seller's
title thereto as may be reasonably required by the Municipality to the end that the Municipality
will be assured of receiving good and merchantable title to said City Hall furniture and
furnishings, free and clear of any and all liens and encumbrances.
3. The Seller agrees that upon delivery of the said City Hall furniture and
furnishings and approval thereof by the responsible municipal official for the Municipality, to
convey to the Municipality all of its right, title and interest in and to the said equipment and to
deliver possession of the said equipment to the Municipality. The date of each conveyance and
delivery is hereunder referred to as "the closing date."
4. It is understood and agreed by and between the parties hereto that the
payments required under the terms of this agreement shall be a general obligation. of the
Municipality and that the total amount due to the Seller, including interest as herein provided,
together with all prior indebtedness of the Municipality, is within all statutory and constitutional
limitations as to the incurring of indebtedness by the Municipality.
5. The right of payment pursuant to this agreement may be assigned by the
Seller at any time after the closing date, but written notice of any such assignment shall be given
by the Seller to the Municipality. The Municipality may rely and shall be protected in acting
upon any instrument of assignment or notice thereof believed by it to be genuine, and shall have
no duty to inquire into the authority for or the validity or effectiveness of any such assignment.
It shall be a condition of any assignment by the Seller of the right of
payment hereunder that the Assignee shall immediately deposit the entire amount of the
assignment proceeds into an interest -bearing escrow account, with the amount of such deposit
being payable, from time -to -time, upon the joint direction of the Municipality and of the Seller,
3
and with the interest earned thereon to be paid, without the need for any further direction to the
Assignee, to the Municipality, contemporaneously with the payment of the final balance of said
assignment proceeds.
6. Notwithstanding any assignment of the right of payment hereunder„ Seller
shall perform all of the duties and obligations set forth in the Bidding Documents, General
Conditions, Supplementary Conditions, Plans and Specifications, Warranties and Addenda,
relating to its aforesaid competitive bid, it being understood that the transfer of the right of
payment hereunder by Seller shall not include a delegation of the Seller's aforesaid duties and
obligations.
7. All notices and demands required hereunder shall be in writing and shall
be deemed to have been given or made when delivered personally, or when mailed by registered
or certified mail, postage prepaid, addressed as follows:
If to Seller, at: Landgraf's Ltd.
1110 Jericho Road
Aurora, Illinois 60506
If to Municipality, at: City of McHenry
McHenry Municipal Center
McHenry, Illinois 60050
IN WITNESS WHEREOF, the Seller has caused this agreement to be executed by its
proper officer duly authorized to execute the same and the City has caused this agreement to be
executed by its Mayor and attested by its Clerk and the official seal of the City to be hereunto
affixed, all as of the day and year first above written.
LANDGRAF'S LTD.
Its
ATTEST:
(SEAL)
CITY OF MCHENRY,
MCHENRY COUNTY, ILLINOIS
to
ATTEST:
City Clerk
4
Mayor
SECTION THREE: From and after the effective date of this ordinance the Mayor and
Clerk of the City are hereby authorized and directed to execute the said agreement herein
provided for, and to do all things necessary and essential, including the execution of any
documents and certificates necessary to carry out the provisions of said agreement.
SECTION FOUR: This ordinance shall be in full force and effect from and after its
passage, approval and publication in the manner provided by law.
PASSED THIS 31 st DAY OF July , 1991.
AYES: Bolger, Donahue, Locke, Patterson, Serritella, Smith
NAYS: None
ABSENT: Adams, Li eder
ABSTAINED: None
APPROVED this 31st day of July 1991.
MAYOR
ATTEST:
CITY CLERK
5