HomeMy WebLinkAboutPR 22217: EMERGENCY RENTAL OF COMPACTOR FOR LANDFILL tonn
City of
or! rthur
INTEROFFICE MEMORANDUM
Date: October 22, 2021
To: The Honorable Mayor and City Council
Through: Ron Burton, City Manager
From: Clifton Williams, Purchasing Manager
RE: PR 22217—Emergency Rental of Compactor for Landfill
Introduction:
The intent of this Agenda Item is to seek City Council's approval for PR 22217 authorizing the
City Manager to enter into a contract to rent a compactor for Landfill with C&C Manufacturing
LLC in the projected budgetary amount of$132,500.
Background:
Due to a recent fire of the current compactor at Landfill;the City needs a compactor to continue
with Landfill services. Since this will an Environmental Health risk and TCEQ fine may be
received by the Landfill, this is considered an emergency. Although we are not bidding this
service, two quotes were received. It's been stated that it may be around five months before a
replacement compactor will be received by the Landfill.
Budget Impact:
Account number 403-50-320-5402-00-00-000 —Equipment Rental for Landfill
Recommendation:
The intent of this Agenda Item is to seek City Council's approval for PR 22217 authorizing the
City Manager to enter into contracts with C & C Manufacturing LLC for the rental of a
compactor for the Landfill.
"Remember,we arc here to serve the Citizens of Port Arthur"
P.R.No. 22217
10/22/2021 cewj
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A
CONTRACT BETWEEN THE CITY OF PORT ARTHUR AND C&C
MANUFACTURING LLC OF OTTUMWA, IOWA FOR THE EMERGENCY
RENTAL OF A COMPACTOR FOR THE LANDFILL IN THE PROJECTED
BUDGETARY AMOUNT OF $132,500.00; FUNDING AVAILABLE IN
LANDFILL EQUIPMENT RENTAL ACCOUNT 403-50-320-5402-00-00-000
WHEREAS,the Landfill's current compactor was damaged in a recent fire; and,
WHEREAS, this unit is critical to the proper functioning and operations of the City's
Landfill; and,
WHEREAS, pursuant to Section 252.022(a)(1) this expenditure is authorized because of
a public calamity that requires the immediate appropriation of money to relieve the necessity of
the municipality's residents or to preserve the property of the municipality; and,
WHEREAS, it is further authorized pursuant to Section 252.022(a)(2) a procurement
necessary to preserve or protect the public health or safety of the municipality's residents; and,
WHEREAS, it will be a minimum of five months before a replacement compactor will
be delivered; and
WHEREAS,two quotes were received(Exhibit"A").
NOW THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PORT ARTHUR:
Section 1: THAT the facts and opinions of the preamble are true and correct.
Section 2: THAT the City Council of the City of Port Arthur hereby authorizes the
City Manager to enter into a contract with C & C Manufacturing LLC for the emergency rental
of a compactor for the Landfill, attached in substantially the same for as Exhibit"B".
P.R.No. 22217
10/22/2021 cewj
Section 3: THAT a copy of the caption of this Resolution be spread upon the
Minutes of the City Council.
READ, ADOPTED AND APPROVED THIS day of A.D.,
2021, at Regular Meeting of the City Council of the City of Port Arthur, Texas, by the Following
Vote: AYES:
Mayor:
Councilmembers:
NOES:
Thurman"Bill"Bartie
Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
Ottti-1 h'641-ZP3('
Valecia Ti no, City Attorney
APPROVED FOR ADMINISTRATION:
Ron Burton
City Manager
Flozelle Roberts
Director of Publics Works
P.R. No. 22217
10/22/2021 cewj
APPROVED AS TO AVAILABILITY OF FUNDS:
k
Kandy Daniel
Interim Director of Finance
1
Clifton illiams, C‘'PPB
Purchasing Manager
P.R.No. 22217
10/22/2021 cewj
EXHIBIT "A"
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P.R. No. 22217
10/22/2021 cewj
EXHIBIT "B"
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by C&C MFG=
C&C Manufacturing LLC
15075 Aljon Avenue, Ottumwa, Iowa 52501 USA
+1 (641) 682-4506
Equipment Rental Agreement
Lessee: Lessor:
Name: City of Port Arthur Landfill C&C Manufacturing LLC
Address: 4732 TX-73 15075 Aljon Avenue
City/State/Zip: Beaumont TX 77705 Ottumwa, IA 52501
Phone:956-356-8995 479-629-6550
Contact: Jorge Morales Contact: Greg Shockley
Purchase Order#
C&C Manufacturing LLC (C&C) hereby leases to Customer and Customer leases from C&C the Equipment
specified below upon the following terms and conditions providing a new 2013 C&C compactor is purchased.
Equipment Rented
Item# Model S/N Rental Rate INS Rate Freight CHG
USED ADV600 LANDFILL ADV600 30003 $18,500 USD Customer to $20,000.00
COMPACTOR. per month provide each way.
Rental insurance $20,000.00
For insurance purposes,the Period: while on site Delivery freight
value of the compactor is On site 22 with copy of included in
$200,000 October Certificate of first month
2021. Min. Insurance to rental.
Insurance certificate and first three months C&C
month rental including delivery rental. Manufacturing $20,000.00
freight due prior to delivery LLC freight will be
Total $38,500.00 added to final
I
invoice.
Job Site: In Service Date: Approx.: INS Value: F.O.B. Ship Via:
Port Arthur Landfill 10-22-2021 $200,000 USD Ottumwa IA Local transport
Customer acknowledges that any person(s)using the Equipment hereunder is/are knowledgeable,experienced,trained and
familiar with the operation of the Equipment and that such Equipment has been received in good,proper and safe working
condition.Customer agrees to obtain liability insurance and to keep the Equipment in safe working condition pursuant to the
terms of this Agreement.
(Initials).
This agreement contemplates customer's continued rental of the equipment beyond the minimum rental period:therefore,the terms
and conditions of this agreement shall continue beyond the minimum rental period until the termination of the agreement due to
customer's return of the equipment to C&C or any other reason is provided for by this agreement. This agreement shall automatically
terminate no later than twelve months from inception or upon delivery of new LC960-3 compactor. Customer acknowledges that C&C is
a sales organization and equipment provided pursuant to this rental agreement is for sale.Accordingly, customer grants to C&C the
right to substitute like-kind equipment during the period of this rental agreement, if said equipment is sold to others. If C&C has
conveyed to customer an option to purchase the equipment provided under this rental agreement, customer shall be given a ten day
right of first refusal to exercise this purchase option: in the event C&C elects to substitute like-kind equipment under this rental
agreement.
Customer shall make rental payments in advance upon receipt of billing notice from C&C. All rental payments shall be due to C&C no
later than the payment date indicated on the billing notices. Customer's obligation to pay rent begins when the equipment leaves C&C's
place of business and continues throughout the duration of this agreement. Customer is obligated to pay rent throughout the entire
minimum rental period even if customer returns the Equipment to C&C prior to the expiration of the minimum rental period. No rebates
or credits on customer's rental payments shall be made to customer due to weather conditions. Customer hereby waives any and all-
existing and future claims and off-sets against any rent or other payments due hereunder. The Rental Rate is based upon the use of
the Equipment for up to 250 hours per month. Hours used more than 250 will be invoiced at$100.00 per hour. In the case of
weekly or daily rentals, additional equipment use shall be charged pro-rata for each additional machine hour of use as recorded by the
service hour meter. Conversely, in the case of monthly rentals, additional equipment use will be charged one-half pro-rata. Customer
agrees to pay C&C's collection fees, attorney fees, court costs and other expenses incurred by C&C in enforcing any terms or
conditions of this agreement.
CUSTOMER HAS READ, UNDERSTANDS,AND AGREES TO THE TERMS AND CONDITIONS STATED ABOVE AND ON THE
REVERSE SIDE HEREOF. IF CUSTOMER/LESSEE IS A CORPORATION OR PARTNERSHIP, I HAVE AUTHORITY TO EXECUTE
THIS AGREEMENT ON BEHALF OF THE CORPORATION OR PARTNERSHIP.
Customer C&C Manufacturing, LLC
Lexington County Landfill Accepted By
Signed by Signed by
Title Accepted By
Date Date:
Insurance on equipment: customer agrees at its own cost and expenses to insure the equipment against loss of damage
from any cause wherever during the term of this agreement. Such insurance policies shall designate C&C as the primary
beneficiary of any proceeds, and any proceeds shall be paid directly from the insurer to C&C to be used at C&C's
discretion to recap or replace the equipment and/or to pay the obligations of customer hereunder. Customer shall remain
obligated to indemnify and reimburse C&C for any deficiency of the insurance proceeds and/or deductible amounts.
Customer shall provide C&C with copies of said insurance policies and said policies shall provide for at least ten days
written notice to C&C via certified mail prior to cancellation. If customer fails to obtain maintain or provide proof of such
insurance coverage C&C may (but need not) secure coverage at customers expense and customer's expenses are
customer shall promptly indemnify and reimburse C&C for same.
In the event C&C secures the insurance on the equipment covered under the Rental Agreement, the coverage afforded
shall be that of a typical commercial inland marine policy, subject to a $500.00 deductible with perils excluded as are
customary of this type policy. Customer acknowledges that this$500.00 deductible cost shall be borne by them and C&C
will provide upon request a copy of the applicable policy.
LIABILITY AND INSURANCE; Customer assumes all risks arising from use of equipment and understands that the
equipment can cause injury or death to customer or others if used or maintained improperly. Customer agrees to promptly
indemnify and hold harmless C&C from all claims demands or causes of action of any kind or character. Including
attorney's fees that C&C may suffer or that may be filed against C&C on account of any personal injury or death of any
person, or on account of any other damage expense loss or penalty, including attorney's fees or whatever kind of
character, sustained or incurred by any person corporation or other entity however arising, occasioned directly or
indirectly by the use, operation possessor handling maintenance repair or transportation of the Equipment during the term
of this Agreement.
Customer agrees to procure general liability insurance of the duration of this agreement providing coverage for
personal injury or death of any person occasioned directly or indirectly in any manner whatsoever, by the equipment.
Such insurance policies shall designate C&C as the primary beneficiary of any proceeds and any proceeds shall be paid
directly from the insurer to C&C. Customer shall remain obligated to promptly indemnify and hold harmless C&C for any
deficiency of the insurance proceeds in any event, and any deductible amount shall be promptly paid by Customer.
MAINTENANCE AND REPAIR OF EQUIPMENT: Customer acknowledges receipt of the equipment in proper working
condition.All daily expenses of operating equipment including daily maintenance, fuel, storing and local transporting the
equipment during the term of this agreement shall be paid by customer. Customer shall maintain the equipment in proper
working condition; by way of example, not by limitation, customer will use proper fuels, oils, filters assure proper
lubrication repair damage or loss caused by accident abuse negligence. C&C agrees to pay for all parts or components
failures not related to improper use, neglect, abuse or lack of maintenance. Customer agrees to immediately cease using
the equipment if it becomes unsafe or is in disrepair. Customer shall maintain the equipment pursuant to the
manufacturer/s service guidelines. Customer agrees that all daily maintenance work shall be done by qualified persons.
C&C will perform and incur all expense for regularly schedule preventive maintenance every 250 hours. C&C will be
responsible for fluids, filters, oil sampling and labor for preventive maintenance.
Customer assumes the entire risk of loss or damage to the equipment from any cause whatsoever and customer's
obligation to pay rent shall not be affected in any manner by damage, loss or destruction of the equipment, in whole or in
part. In event of any such damage, loss or destruction of the equipment, Customer shall repair or replace the equipment
so that the fair market value thereof shall not be diminished, and any such repaired or replaced equipment shall belong to
C&C and shall be subject to the terms and conditions of this Agreement.
Upon expiration or termination of this agreement customer shall return the equipment to C&C free of all liens and
encumbrances and in the same condition as received by customer, excepting only normal wear and tear under average
working conditions with proper maintenance and operation. Customer shall return the equipment to the location from
which it was originally received unless otherwise agreed upon by C&C. C&C shall pre-pay all transportation expenses
involved in returning the equipment. Upon the return of the equipment C&C may charge customer for any expenses
incurred in restoring the Equipment(including, but not limited to, fenders, sheet metal, attachments, and tires)to the same
condition in which it was received by customer normal wear and tear expected.
WARRANTY: The equipment rented hereon may be subject to certain warranties. The warranty applicable to the
equipment above is: NO WARRANTY EXPRESSED OR IMPLIED. Copies of said warranty statements are available from
C&C upon request. Customer agrees that each item of equipment is of a size design and capacity selected by customer.
THERE IS NO WARRANTY OF MERCHANTABILITY. THERE IS NO WARRANTY THAT THE EQUIPMENT IS FIT FOR
A PARTICULAR PURPOSE. C&C NEITHER MAKES NOR HAS MADE ANY REPRESENTATIONS OR WARRANTIES,
EXPRESS OR IMPLIED, AND UNDERTAKES NO OBLIGATION WITH RESPECT TO THE EQUIPMENT OR ITS
PERFORMANCE. No prior conversations, agreements, or representations between the parties are binding if not specified
herein. Customer hereby waives all claims to warranties, including warranties or merchantability and fitness for a
purpose. Customer agrees that C&C shall not be liable to customer for any loss, delay, damage or injury of any kind or
character resulting from possession, operation, and use defects accidental breakage, or inefficiency of the equipment.
PROPER USE OF EQUIPMENT: Customer agrees that Customer is an experienced operator of equipment and that
the Equipment shall be used solely in the conduct of the Customer's business and within the Customer's possession and
under its control; that said Equipment shall be used solely by the Customer and the Customer's employees; that said
Equipment shall be operated only by competent employees of the Customer familiar with the proper operation of such
equipment; that Customer and Customer's employees shall possess the valid forms of any and all licenses and permits
required for the operation of said Equipment; that said Equipment shall not be used, loaded or operated beyond its
normal capacity as recommended by the manufacturer; that said Equipment shall be used solely for the purpose for which
it was designed by its manufacturer; and that said equipment shall be kept in a protected area when not in use. Customer
agrees to comply with and conform to all Municipal, County, State and Federal laws relating to the use, operation,
storage, and taxation of said equipment.
DEFAULT: If customer fails to make any rental payment when due, attempts to sell or encumber any interest in the
equipment, ceases doing business as a going concern, or if any proceeding under the Bankruptcy Act, as amended, is
commenced by or against the customer, or if customer is adjudged insolvent or makes an assignment of the benefit of
creditor, or if a receiver is appointed in any proceeding action to which customer is a party with authority to take
possession or control of any item or items of the equipment or if customer fails to comply with any other provision of this
Agreement, or if any attachment, writ, execution or other process is levied against the equipment or any of customer's
property and is not released or satisfied within five (5) days thereafter. Then C&C may immediately and without notice
deem customer to be in default of and terminate this agreement upon termination, C&C may immediately and without
notice declare the entire outstanding balance of the rental payments due and payable together with all other costs and
expenses, including, but not limited to, costs of repair, maintenance, insurance and collection by suit or otherwise,
including reasonable attorney's fees
Upon termination, customer agrees to surrender possession of the equipment to C&C on demand, and customer
agrees that C&C may enter customer's premises to take possession of said equipment. If said equipment is located on
property other than that owned by customer, customer hereby designates C&C as its representative or agent for the
purposes of taking possession of said equipment. In the event of any action for possession, customer agrees to pay all
rental due, damages for any injury to the equipment, and all costs of obtaining possession.
C&C has the right to terminate this agreement with or without cause. In this unlikely event, the customer will be given
120 days written notice and may continue to rent equipment at agreed rental price for a period of 120 days from date of
notification.
The remedies provided hereunder for C&C shall be available to its successors and assigns and no remedy is exclusive
or in lieu of any other remedy, but each is cumulative and in addition to any other remedy available at law or in equity.
PENALTY FOR LATE PAYMENT: if for any reason customer fails to make payments as specified, then said payments
shall bear interest at 12 percent per annum from the time due until fully paid. The application of this penalty for late
payment shall neither waive nor diminish any other right claim or cause of action of C&C, Inc.
IMPORTANCE OF TERMS AND WAIVER: Time, and each of the terms and conditions of this agreement, is hereby
expressed declared to be of essence. C&C's delay in exercising or failure to use any right, power or remedy provided
hereunder, acceptance of any payment after the same becomes due, or failure to other wise require strict performance by
customer of any terms or conditions of this agreement shall not constitute waiver of any provision of this agreement, nor
shall such impair or diminish
C&C's right to exercise any right, power or remedy to demand strict compliances with any terms or conditions provided for
herein.
All waivers by C&C under this agreement and/or revisions of this agreement must be agreed to in writing by C&C, Inc.
OWNERSHIP: No title or right in said equipment shall pass to customer except the lease rights herein expressly
granted. Title to the equipment shall at all times vest in C&C unless transferred to customer through sale. Customer shall
not sublet, assign, or transfer this agreement without the prior written approval of C&C. Customer shall not mortgage the
equipment or permit any liens or claims to be filed against the equipment when the equipment is in customer 's
possession and shall take all necessary steps to protect the Equipment against such claims. Should a lien or claim be
filed against the Equipment for any reason, or should the Equipment be attached or levied upon then customer shall
immediately notify C&C by telephone and in writing via certified mail.
Customer shall not remove the equipment from the County and State into which it was originally shipped without prior
written approval of C&C
ASSIGNMENT: Customer agrees that C&C may assign this agreement, all rights, title and interest of C&C in and to the
equipment, and all rents due to become due to C&C hereunder, in the event of such assignment. Customer shall make
payments due hereunder unconditionally and directly to any such assignee, Customer's obligation to pay rent under this
agreement shall not, as to any assignee, be subject to any diminution or right of set off, counterclaim or recoupment
whatsoever arising out of any breach or any duty of C&C
FINANCING STATEMENTS AND RECORDING OF DOCUMENTS: C&C and customer agree that this agreement
constitutes a security agreement and is sufficient as a "financing statement: as that term is used in the Uniform
Commercial Code and that, as such, C&C may file this agreement with the appropriate Secretary of State and Recorder of
Deeds.
Customer agrees to perform any act, record any instrument, or execute, acknowledge or deliver all documents and to
pay for or reimburse C&C for the cost of filing and recording any such documents, as C&C deems necessary or desirable
to protect and preserve C&C's ownership of the Equipment.
INSPECTION BY C&C: Upon request, customer shall advise C&C of the exact location of the equipment, C&C and its
agents and employees may at all reasonable times enter into and upon the job, building, or premises where the
equipment is located, may inspect and remove the equipment without notice if, in C&C's opinion, the equipment is being
used or maintained improperly. Upon inspection, C&C may make recommendations regarding repairs and maintenance
of the equipment, which recommendations customer shall promptly implement. The foregoing rights of entry are subject
to any applicable government laws, regulation and rules concerning industrial security.
TRANSPORTATION COSTS: All freight and switching charges, demurrage, transportation charges, assembly and
disassembly charges in both directions shall be paid by C&C. Return transportation charges shall be prepaid by C&C.
FUEL: Fuel tanks are to be refilled to the same level as the unit was originally received.
CLEAN-UP: Equipment is free from mud and debris upon delivery and must be returned in the same condition or C&C
shall charge customer for clean-up costs.
NOTICE:All written notices required under this Agreement shall be addressed to each party at its address set forth.
This address may be changed by sending written notice of any such change to the other party.
Customer irrevocably appoint any attorney of record in this State to act as attorney for customer in customer's name in
the event of default by customer of any provision hereunder and upon the filing of a complaint by C&C, its successors or
assigns. Customer authorizes such attorney to enter customer's appearance in any such proceeding. To waive process
and service thereof to waive trial by jury, and to confess judgment against customer in favor of C&C or its successors or
assigns, for any rent which may be due together with interest at the rate of eighteen percent(18%) per annum plus costs
and attorney's fees.
APPLICABLE LAW: This Agreement shall be governed by the laws of Iowa.
SEVERABILITY: If any provision of this agreement shall be held by a court of competent jurisdiction to be invalid or
unenforceable, then such provision shall be deemed to be separate from the remainder of this agreement and the
remainder shall be given full force and effect so long as C&C deems the central purpose of this agreement to remain
unimpaired
EFFECTIVE DATE OF LEASE: This Agreement must be approved and signed by an authorized officer/agent of C&C
before any of its terms or conditions are valid.
