D642 White — City Clerk CITY OF SAINT PAUL
Pink — Finance Dept. No:
Canary— Dept.
OFFICE OF THE MAYO$
Date: MAY 2 1 1973
ADMINISTRATIVE ORDER
ADMINISTRATIVE ORDER,
That the proper city officials are hereby authorized
and directed to execute the attached Lease Agreement
with Thompson-Hayward Chemical company for the leasing
of railroad tank cars transporting chemicals for the
Water Department, subject to the terms and conditions
set forth in the Agreement, a copy of which is attached
hereto,
APPRO S T&FORM
Asss tant y ttorney D artment Head
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Date
Administrative Assistant to Mayor
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-THOMPSON-HAYWARD CHEMICAL COMPANY/P.O.BOX 2383, KANSAS CITY, KS.66110
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TANK CAR LEASE
• THIS IS A LEASE AGREEMENT, made and entered into this 26th day
of March , 1973 between THOMPSON-HAYWARD CHEMICAL COMPANY,
a Delaware corporation with principal office in Kansas City, Kansas
(hereinafter called LESSOR), and City of St. Paul
St. _Paul, Minnesota (hereinafter call LESSEE).
W I T N E S S E T H :
WHEREAS. LESSOR from time to time consigns CHEMICALS in its private tank cars
to LESSEE t one or more destinations; and,
WH REAS, LESSEE desires exemption from railroad demurrage charges while said
private tank are retained upon private sidings or tracks of LESSEE for temporary storage
of the chemi I shipped therein;
NOW, THEREFORE, for and in consideration of the mutual agreements hereinafter set
forth, the parties hereto agree as follows:
1. In conformity with railroad common carrier demurrage rules and regulations governing afore-
said exemption of cars of private ownership, each private tank car in which LESSOR ships
chemicals to LESSEE shall be leased to and by LESSEE.
2. Preceding delivery of leased tank car to railroad common carrier, LESSOR will evidence such lease
by appropriate identification upon the tank car and notation thereof on bill of lading or shipping
order.
3. LESSEE shall use at its risk each tank car leased hereunder solely for the temporary storage of
chemicals)loaded therein by LESSOR; further,
4. LESSEE agrees to release tank car to railroad common carrier within seven (7)consecutive calendar
days from and after the date of actual or constructive delivery thereof; this period commencing first
day following delivery of tank car to LESSEE and terminating upon date of redelivery to railroad in
accordance with LESSOR'S routing instructions.
LESSOR will be compensated, as liquidated damages, for detention in excess of agreed lease period
on the not basis of full or fractional days all tank cars remain in possession of LESSEE at all
receiving locations:
A. Detention and compensation therefor will be computed on tank cars released in a quarterly
cycle, consisting of three calendar months each, commencing January 1, 1972.
b. At e ld of the quarter year, LESSEE will be credited for each day a tank car was released
before expiration of agreed maximum period; the total credits will be deducted from total of
detei ition days and $10 per day will be charged for the remainder.
C. If the total of credits equal or exceed the total of detention days on cars released within the
particular quarter, no charge will be made for detention days, and no payment or other
allowances will be made by LESSOR should credits exceed detention days.
/Cc-.O.a 4,11MV. 8/711
5. It is understood and agreed that no portion of any allowances paid by a railroad common carrier or
carriers shall accrue to or be collected by LESSEE.
• 6. In the event that any dank car is in defective or damaged condition when it enters LESSEE'S
possession, LESSEE shall immediately give notice to LESSOR and to authorized agent of the
railroad common carrier. LESSEE shall not undertake repair of or other work on any car without
consent of LESSOR.
7. LESSEE shall be responsible for, and hereby assumes liability for, all damage to, and all loss or
destruction of, any tank car leased hereunder (including the fittings and appurtenances thereto),
occurring while in LESSEE'S possession, excepting damage, loss or destruction due to normal wear
and tear or the negligence or default of LESSOR.
8. LESSEE agrees that it has no title or interest in any tank car except as LESSEE, nor in the
appurtenances, whether attached or removed from tank car. In the event of bankruptcy of LESSEE,
or if any receiver, trustee or assignee be appointed or in any way created for LESS'EE'S property,
this Agreement shall thereupon terminate, whereupon all rights of LESSEE to the use of the tank
car shall absolutely cease and LESSOR shall have right to immediate repossession of car and
appurtenances and no right, title or interest thereto or therein (as LESSEE or other-ise) shall pass
to any assignee, receiver or trustee.
9. Unless agreed to in writing by LESSOR, this Agreement shall not be assigned by LESSEE, nor shall
any tank car leased hereunder be directed by LESSEE to any other party or to any location other
than that i set forth in the original bill of lading or shipping order without prior agreement by
LESSOR.
10. LESSEE agrees to provide to LESSOR written notification upon release of each tank car to railroad
common carrier, including date car entered possession of LESSEE by actual or constructive
delivery.
This Agreement supersedes any heretofore existing leasing agreement with respect to any tank
car shipped by LESSOR, and shall be in effect from its date until terminated by either party by giving
the other at least.ten (10)days prior notice.
EXECUTED as of the date first herein specified.
LESSOR: THOMPSO - YWARD CHEMICAL CO.
By
Manager of Transportation
(Title)
LESSEE:
FORM PPRO By:
Mayor Title
Assistant ity Attorney
Director— Dept. of Finance
and Management Services