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Res 1171 4/12/1971RESOLUTION NO. // 7/ WHEREAS, at its special called meeting on March 26, 1971, the Board of Aldermen authorized the purchase of the bus transportation system by the City of Wichita Falls from National City Lines for $32 ,000.00 plus the inventoried and invoiced price of parts, fuels and other materials; and, WHEREAS, the City Manager has negotiated a Contract of Sale with National City Lines, Inc. and Wichita City Lines , Inc. for the purchase of such bus transportation system as directed by the Board of Aldermen. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS, THAT: The City Manager is hereby authorized to execute all contracts and other documents which may be necessary to close the purchase of the bus transportation company from National City Lines, Inc. and Wichita City Lines, Inc. PASSED AND APPROVED THIS the 12th day of April, 1971. cT5g;:AAwirtOt,gelggLkzd_ MAYOR ATTEST: City Clerk CONTRACT OF SALE THIS Contract of Sale made and entered into this the day of April, 1971, by and between the Wichita City Lines, Inc. , a Texas corporation, hereinafter referred to as "Company" , National City Lines, Inc. , a Delaware corporation, hereinafter referred to as "National" , and the City of Wichita Falls, Texas, a municipal corporation, hereinafter referred to as "City" . WITNESSETH: WHEREAS, Company, which is a subsidiary of National, owns and operates a street transportation system for the carrying of passengers for hire within the City of Wichita Falls ; and, WHEREAS, City desires to purchase such transportation system under authority of Article 1118w, Revised Civil Statutes of Texas; NOW, THEREFORE, in consideration of the mutual covenants contained herein, Company, National and City do hereby agree as follows: 1. Company shall sell to City, and City shall buy from Company, all that certain property situated in Wichita County, Texas, described as follows: Those 23 certain motor coaches and 1 Ford service truck, described in Exhibit A, which is attached hereto and incorporated herein by reference excluding the tires onthe motor coaches) . All that certain shop and office equipment described in Exhibit B, which is attached hereto and incorporated herein by reference. Those 19 certain Johnson fare boxes, together with vaults, described in Exhibit C, which is attached hereto and incorporated herein by reference. The purchase price for such property shall be the sum of Thirty-Two Thousand ($32,000) Dollars, which shall be payable to Company by City in cash at the time of the closing of this trans- action. 2 . In addition to the above property, Company agrees tosell to City, and City agrees to purchase from Company, the following described property situated in Wichita County, Texas, to-wit: The entire inventory of spare parts (excluding parts used exclusively for Model TGH 3609 GMC Coaches) , fuels, lubricants and other materials on hand located at its place of business at 706 East Scott Street in the City of Wichita Falls, Texas. The purchase price for such property shall be the invoice price which was paid by Company for such goods; provided, however, on rebuilt components and other parts for which Company has no invoices, the prices shall be agreed upon by Company and City. These spare parts, fuels, lubricants and other materials on hand shall be listed as determined by a physical inventory, and such list, together with the prices, shall be attached heret: as Exhibit D and incorporated herein by reference. This purchas price shall be payable by City to Company in cash at the date of closing. 3. Company shall assign to City all its contractual agreements with vendors covering supply of fuel, lubricants and mileage tires; City shall assume any credits earned under such contracts. Prior to the closing date of this contract, Company shall furnish to City copies of all such purchase contracts, and all payments or charges due on such contracts shall be paid up to date of closing by Company. If Company has any purchase contracts which City does not desire to assume, Company shall terminate suci, contracts. Company shall also assign to City its lease on the premises located at 706 East Scott Street in Wichita Falls, Texas , and all rentals due thereon shall be paid up to date of closing by Company. 2- 4. If requested by City, Company shall assign to City, for the remainder of their terms, all contracts of Company which provide revenue for carrying of advertising signs on the buses ; if Company has received any prepaid revenue under these contracts, Company shall pay the City that prorata part of such advertising revenues for services to be rendered after May 1, 1971. 5 . With the exception of the contracts described in paragraphs 3 and 4, City does not hereby assume, or agree to assume, and shall not acquire or take over, any liabilities or obligations of any kind or nature of Company, direct, contingent or otherwise, 6. Company agrees that it shall convey to City good and marketable title to all of the property covered by this agreement, free and clear of any and all liens, charges, encumbrances, security interests and other burdens of every kind. 7 . On the closing date of this contract, all of the property to be sold and conveyed by Company to City will be in as good condition as the same is on this date,. reasonable wear and tear alone excepted. 8. Company shall, on the closing date of this contract, execute and deliver to City valid and appropriate bills of sale, assignments, motor vehicle titles and assignments thereof, motor vehicle registration receipts, and any other necessary conveyances, in form satisfactory to counsel for City. These conveyances shall describe the property covered thereby and shall contain full cove- nants of general warranty. National does hereby bind itself to warrant and forever defend the title to all of said property unto the City against every person, firm and corporation lawfully claim- ing arrto claim such property, or any part thereof. Company shall pay any transfer taxes incurred in connection with all such 3- transfers . All ad valorem taxes and assessments with respect to the property and assets to be sold and transferred by Company to City shall be prorated to the closing date of this contract. 9. The term "closing date" as used herein shall be the 16th day of April, 1971, at 12 :01 A.M. or such earlier date as may be mutually agreed upon by Company and City. The closing place will be at the City Hall in Wichita Falls, Texas. Title to and possession of allthe property to be sold and transferred hereunder shall pass to City at the closing of the contract. 10. Company agrees that it will continue to operate the bus system up until the closing date of this contract. IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed the day and year first written above, by their officers authorized by resolutions enacted by their respective Boards of Directors and Board of Aldermen. WICHITA CITY LINES, INC. By ATTEST:Vice President Secretary NATIONAL CITY LINES , INC. By ATTEST:Vice President Secretary CITY OF WICHITA FALLS, TEXAS By ATTEST:City Manager City Clerk 4-