HomeMy WebLinkAboutPR 20348: RATIFYING PAYMENTS TO KINLOCK EQUIPMENT & SUPPLY, INC. City of 3,
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www.PortArthurTx.gov
INTEROFFICE MEMORANDUM
Date: July 20, 2018
To: The Honorable Mayor and City Council
Through: Harvey Robinson, Interim City Manager
From: Armando Gutierrez, Jr., Director of Public Works
RE: P. R. No. 20348
Introduction:
Approval of Proposed Resolution No. 20348, which requests that the City Council ratify the
previous rental agreement costs with Kinloch Equipment & Supply, Inc. in the amount of
$21,750. Also, authorizes the City Manager to enter into a rental agreement with Kinloch
Equipment& Supply, Inc. for two additional months in the amount of$14,500.
Background:
Prior to Hurricane Harvey the Public Works Drainage division had two operable street
sweepers. At this time both units are down due to repairs caused by the flooding leaving the
division without any street sweepers. In order to continue with drainage maintenance
throughout the City, a rental street sweeper is required until the equipment is operable. The
City received a quote from Kinloch Equipment and Supply, Inc. in the amount of$7,250 per
month. The City estimated three month usage which totaled $21,750, but Drainage needed the
sweeper for two additional months which brings the total to $36,250.
Budget Impact:
Funds are provided in account no. 147-2300-901.51-00, #082617 — Emergency Management
Fund—Rent.
Recommendation:
It is recommended that City Council authorize the City Manager to approve P. R. No. 20348,
as discussed and/or outline above.
"Remember,we are here to serve the Citizens of Port Arthur"
P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743
P.R.20348
7/20/18 aw
RESOLUTION NO.
A RESOLUTION RATIFYING PAYMENTS TO KINLOCH EQUIPMENT
& SUPPLY, INC. OF PASADENA, TEXAS FOR THE RENTAL OF A
STREET SWEEPER IN THE AMOUNT OF $21,750, AND
AUTHORIZING THE CITY MANAGER TO ENTER INTO A RENTAL
AGREEMENT WITH KINLOCH EQUIPMENT & SUPPLY, INC. OF
PASADENA, TEXAS FOR TWO (2) ADDITIONAL MONTHS IN THE
AMOUNT OF $14,500. FUNDING IS AVAILABLE IN ACCOUNT NO.
147-2300-901-51.00, PROJECT NO. 082617, EMERGENCY
MANAGEMENT FUND,RENT.
WHEREAS, Hurricane Harvey caused extensive damage to the City of Port Arthur's
fleet including two street sweepers, Unit #1924 and Unit #1925, used daily by the Public Works
Drainage division; and,
WHEREAS, both units are being repaired resulting in the need for a rental street
sweeper to assist with daily drainage maintenance; and,
WHEREAS, City staff requests the City Council ratify the payments made to Kinloch
Equipment & Supply, Inc. of Pasadena, Texas, who provided a street sweeper for $7,250 per
month for three (3)months in the amount of$21,750; and,
WHEREAS, the City needs the rental for an additional two months and requests the City
Council authorize the City Manager to enter into a rental agreement with Kinloch Equipment &
Supply, Inc. for the two months in the amount of$14,500, now therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT
ARTHUR:
THAT, facts and opinions in the preamble are true and correct.
THAT, the City Council hereby ratifies the payments made to Kinloch Equipment &
Supply, Inc. of Pasadena, Texas in the total amount of$21,750 for the rental of a street sweeper.
P.R.20348
7/20/18 aw
THAT, the City Council authorizes the City Manager to enter into a rental agreement
with Kinloch Equipment & Supply, Inc. of Pasadena, Texas for the rental of a street sweeper in
the amount of$14,500, in substantially the same form as attached hereto as Exhibit"A".
THAT, funding is available in the Public Works Landfill Account No. 147-2300-901.51-
00, Project No. 082617.
THAT, a copy of the caption of this Resolution be spread upon the Minutes of the City
Council.
READ, ADOPTED, AND APPROVED on this day of , A.D. 2018 at
a meeting of the City of Port Arthur, Texas by the following vote:
AYES: Mayor:
Councilmembers:
Noes:
Mayor
ATTEST: APP7aD A TO FORM:
Sherri Bellard Valeria Tiz / DC7 (
City Secretary City Attorney
P.R.20348
7/20/18 aw
APPROVED FOR ADMINISTRATION: APPROVED AS TO AVAILABLITY
OF FJJNDS:
.,\
Harvey Robinson Andre Vasquez
Interim City Manager Director of Finance
ie
Armando Gutierrez, Jr. Cli'on Williams
Director of Public Works Purchasing Manager
P.R.20348
7/20/18 aw
Exhibit "A"
*3320 Pasadena Blvd 0763 109'1' St 0 3816 Binz Engleman Road
Pasadena, Tx 77503 Arlington, Tx 76011 San Antonio,Tx 78219
800-231-6929 800-536-5902 210-881-9344
Kinloch Equipment & Supply, Inc.
3320 Pasadena Blvd.
Pasadena, TX 77503
PHONE: (713)472-0959 FAX: (713)473-7858
Kinloch Equipment& Supply, Inc. herein sometimes known as"Company" agrees to rent to:
Company: Contact: Phone:
CITY OF PORT ARTHUR BRAD BROWN 409-549-0738
Physical Address: City/State/Zip: PO #:
201 W. HO MILLS BLVD PORT ARTHUR, TX 21280
Unit: 1011037 S/N: J3375D Hour Meter:
GL Number:
Pick-up Date: 8/15/18 Time: 8:00AM Mileage:
RENTER AGREES TO PAY 7250.00 /Per_MONTH_ FOR THE DURATION OF THE
Taxable: Yes No RENTAL
RETURNED:
Returned Date: Time:
Hour Meter: Mileage:
Total Billing Days:
TERMS AND CONDITIONS
1. The property leased by this Lease(herein"property"),the amount of the rental payments and the initial term of the lease are described in Schedule A,
attached hereto and made a part hereof.If a Security Deposit is required as security for the prompt and full payment of the rent and the complete and
timely performance of all provisions of the lease,those terms are also shown on Schedule A.
2. Lessee is entitled to the use,operation,possession and control of the leased property during the Lease term,provided Lessee is not in default of any
provision of the Lease.Lessee shall employ and have absolute control,supervision and responsibility for the operators and users of the property.
3. Lessee must use the leased property in a careful and proper manner,and never for more than hours per day.Lessee agrees that the lease property will
be used in accordance with any applicable manufacturer's manuals or instructions.Lessee agrees to reimburse Lessor in full for all damage to the
property arising from any misuse or negligent act by Lessee,its employees,or its agents.
4. Lessee shall not permit any leased property to be operated or used in violation of any applicable federal,state or local statute,ordinance,rules or
regulation relation to the possession,use of maintenance of the property.Lessee will indemnify and hold Lessor harmless from all liabilities,fines,or
penalties for any violations described herein.
5. Lessee shall,at Lessee's expense,maintain the property in good mechanical condition and running order,excepting reasonable wear and tear resulting
from the ordinary use of the property.Lessee shall provide all parts,at Lessee's expense,required to keep the leased property in good repair.Lessor has
no obligation to provide service,repairs or parts for the property.
6. Any additions or replacement of parts during the lease term shall become part of the leased property and are thus owned by the Lessor.
7. Lessor is responsible for its own income taxes and franchise taxes.All other taxes based on this lease are the responsibility of Lessee,including sales tax,
use tax and personal property tax.If any taxing authority requires Lessor to directly pay any tax which is the responsibility of Lessee,Lessee agrees to
reimburse Lessor for such tax when the next rent installment is due.
8. Lessee shall return the property to the Lessor at the end of the lease term full of fuel and cleaned inside and out or appropriate fuel and cleaning charges
will be charged to the lease.
9. Lessee assumes all risk and liability for the loss of or damage to the leased property,for the death of or injury to any person or property of another,and
for all other risks and liabilities arising from the use,operation,possession or storage of the property.Nothing in this Lease authorizes Lessee or any
other person to operate the leased property so as to impose any liability or other obligation on Lessor.
10. Lessee agrees to indemnify and hold harmless Lessor,its agents and employees from all claims,loss or damage Lessor may sustain because of:
(a) Loss of or damage to the leased property by any cause.\
(b) Injury to,or death of,any person,including but not limited to agents of employees of Lessee.
(c) Damage to any property arising from the use,possession,delivery,return,or operation of the leased property.
11. If the property becomes lost,stolen,destroyed or damaged beyond repair,Lessee shall pay Lessor in cash the Stipulated Loss Value as shown on
Schedule A.The lease will terminate when such payment is made and Lessee will then be entitled to the property on an as-is basis,without warranty by
Lessor,express or implied.
12. If the property becomes lost,stolen,destroyed or damaged,Lessee shall promptly notify Lessor and file all necessary accident reports,including those
required by interested insurance companies.Lessee shall promptly deliver to Lessor all papers,notices and documents delivered to Lessee in connection
with any claim concerning the leased property.
13. Lessee agrees to maintain insurance against loss,theft,damage or destruction of the leased property.This insurance is at the Lessee's sole cost but must
name Lessor as insured,additional insured or loss payee.This insurance must be in an amount no less that the Stipulated Loss Value shown on Schedule
A.
14. Lessee agrees to carry public liability and property damage insurance,issued by companies satisfactory to Lessor,insuring the interests of Lessor,Lessee
and their authorized agents and employees against all claims that may arise during the Lease term that are in any way connected with the ownership,
possession,operation or use of the leased property.This insurance will be at the Lessee's sole cost but must name Lessor as an insured or additional
insured.The insurance must be in an amount not less than:
$500,000,Per person
$1,000,000 Per accident
$500,000 Property damage
15. Lessee is responsible for any workers'compensation insurance that may be required under state law.
16. Lessee agrees to furnish to Lessor,no later than five days prior to the date on which the property is delivered to Lessee,a certificate evidencing the
insurance required under Articles 13 and 14,including a provision that the insurer will not cancel or materially modify the insurance except after 30 days
advance notice to Lessor.
17. Any failure on the part of the Lessee to procure,maintain or renew the re quired insurance is a default.Lessee agrees to indemnify and hold harmless
Lessor,its agents and employees,from any loss,liability or expense caused by Lessee's failure to comply with either the terms of the insurance policy or
with the terms and provisions of articles 13 through 16.
18. Lessee may not assign this Lease or any property described in it.Lessee may assign the rights and benefits of this Lease but only with Lessor's prior
written consent.
19. Lessor may declare Lessee in default by giving written notice on the occurrence of any of the following events:
(a) Failure by Lessee to make rental payments or perform any of its obligations under this Lease.
(b) Expiration or cancellation of any insurance policy required by this Lease.
(c) Lessee's assignment or involuntary transfer of any interest in this lease not authorized by Article 18 above.
(d) Institution by or against Lessee of any proceedings in bankruptcy or insolvency,or the appointment of a receiver or trustee for the goods and
chattels of the Lessee.
20. If the Lessee defaults and remains uncorrected for five days following notice of default from Lessor to Lessee,Lessor may exercise any one or more of
the following remedies:
(a) Termination of the Lease and Lessee's rights hereunder
(b) A declaration that all due but unpaid rent and all other charges under this Lease are due and payable immediately,along with interest at the rate of
1.5%per month from the date of notification of the default to date of payment.
(c) Repossession of the property without legal process,free of all rights of the Lessee in the property.By this provision,Lessee expressly authorizes
Lessor's agent to enter any premises owned or controlled by Lessee for the purpose of repossessing the property.Lessee specifically waives any
right Lessee might have arising out of the entry and repossession and releases Lessor from any claim of trespass or damage.Lessor and Lessee
further agree that Lessor shall have the remedy described in this article 20(c)in the event Lessee fails to return the property when the lease
terminates.
21. If Lessee defaults,Lessee shall reimburse Lessor for all reasonable expenses incurred by Lessor in exercising the remedies outlined in Article 20.
22. On the expiration of the lease term,or earlier termination,Lessee shall return the property to Lessor in good repair and working order by:
(a) Delivering the property at Lessee's cost and expense to a place specified by Lessor in the city of county to which it was delivered to Lessee,or
(b) Loading the property,at Lessee's cost and expense,on board a carrier Lessor designates and shipping the property to the destination designated by
Lessor.
23. All notices required to be given under this Lease must be in writing and either personally delivered or deposited in the United States mail,first class
postage prepaid,addressed to the party at the address given above.Either party may change it address by giving notice in this manner.
24. This Lease may not be amended or modified in any way without the written agreement of both parties.This Lease and the attached Schedule A
constitute the entire agreement between the parties.
25. This Lease has been executed and delivered in the State of Texas and shall be interpreted under and construed in accordance with Texas Law.Venue for
any dispute hereunder shall be in Harris County,Texas.
Executed this_15_day of AUGUST,2018.
JEFF JACKSON
LESSOR-Kinloch Equipment& Supply,Inc. Harvey Robinson, City Manager
Lessee
SCHEDULE A (Sweepers)
Customer is responsible for wear items,unit maintenance,and damages due to operator error/accident/neglect.
Sweeper(Normal Wear Items): Gutter Brooms,Dirt Shoes,Center Board Curtain,Pickup Head Curtains,Mechanical Sweeper
Gutter Brooms,Main Broom, Dirt Shoes,Center Board Curtain,Conveyor Belt Tires—Flat or Repair ie.nail in tire
Debris Hoses,Tires—Flat or Repair(Nail In Tire)
Customer also understands the equipment must be returned empty and the body must be cleaned. Excessive cleaning required to the
inside and/or outside of the unit upon return will be invoiced to the renter. The fuel tank is full upon receipt and must be filled before
returning.
1. The property to which this Schedule and Lease applies is:
J3375D
Serial Number
2. The term of this Lease commences on_15 AUG 2018 (enter either a date or a description i.e.the date the property is
delivered to the Lessee.)Unless this Lease is terminated earlier for cause or by means of a mutual,signed amendment to the
Lease,the term of this Lease expires_N/A
3. The rent for the property listed in this Schedule is_$7250/M (combined total or rent payments over the term of the
Lease).The rent is payable in monthly installments of$7250 ,commencing on the_23_day of_MAY,20_18_,and
continuing on the_23_day of each succeeding month until the total sum has been paid in full.
4. The property listed in this Schedule will be located and operated at_CITY OF PORT ARTHUR_and may not be removed from
that location without the prior written consent of Lessor.
5. The amount specified in this paragraph must be paid pursuant to Article 11 of the Lease for any property which is lost,stolen,
destroyed or damaged beyond repaired.The Stipulated Loss Value for this property is$_104,000
This Schedule A is approved and agreed to on_15 AUG ,20_18_,and is attached to,and incorporated as a integral part of the Lease
between the parties dated_15 AUG_,20_l 8_.
Executed this_15_day of AUGUST,2018.
_JEFF JACKSON
Kinloch Equipment& Supply, Inc. —Lessor Harvey Robinson, City Manager
Lessee