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HomeMy WebLinkAboutPR 22533: AUTHORIZING THE CITY MANAGER TO RENT A COMPACTOR FOR THE LANDFILL Ciro of urt rthu � 7rcu� www.PortArthurTx.gov INTEROFFICE MEMORANDUM Date: April 25, 2022 To: The Honorable Mayor and City Council Through: Ronald Burton, CPM, City Manager From: Flozelle C. Roberts, EIT, MEng, MBA, Director of Public Works RE: PR 22533- Authorizing the City Manager to Rent a Compactor for the Landfill Introduction: The intent of this agenda item is to authorize the City Manager to rent a compactor for the Landfill for 3 months with C & C Manufacturing, LLC of Ottumwa, Iowa, for the projected budgetary amount of$40,500.00. Background: The Landfill's compactor sustained damages during a fire on October 4, 2021. Resolution 21-452 authorized the emergency rental of a compactor until the damaged compactor could be evaluated and a path forward determined. It was then determined that the purchase of a new compactor was more feasible than the repair of the existing compactor. Therefore, Council authorized the purchase through Resolution 22-066. The new compactor has been ordered but it has not yet been received. Landfill solicited quotes and found only two companies able to rent a compactor at this time. C & C Manufacturing, LLC submitted the lowest quote. Extending the compactor rental will allow the Landfill to maintain compliance with TCEQ regulations. Budget Impact: Funds are available in the Solid Waste—Landfill's Equipment Rental Account, account number 403-50-320- 5402-00-00-000-. Recommendation: It is recommended that the City of Port Arthur City Council approves PR 22533 authorizing the City Manager to rent a compactor from C & C Manufacturing, LLC of Ottumwa, Iowa, for the Landfill. "Remember,we are here to serve the Citizens of Port Arthur" 444 4th Street X Port Arthur,Texas 77641-1089 X 409.983.8182 X FAX 409.983.8294 PR 22533 4/25/2022 jam Page 1 of 3 RESOLUTION NO. A RESOLUTION AUTHORIZING RENTAL OF A COMPACTOR FOR THE LANDFILL FROM C&C MANUFACTURING,LLC OF OTTUMWA, IOWA, FOR THE NOT-TO-EXCEED AMOUNT OF $40,500.00. FUNDING IS AVAILABLE IN THE SOLID WASTE — LANDFILL'S EQUIPMENT RENTAL ACCOUNT,ACCOUNT NUMBER 403-50-320-5402-00-00-000-. WHEREAS,pursuant to Resolution Number 21-452,the City of Port Arthur City Council authorized the emergency rental of a compactor following the fire damages sustained to the City's compactor on October 4, 2021; and, WHEREAS,pursuant to Resolution Number 22-066, the City of Port Arthur City Council authorized the purchase of a new compactor following the evaluation of the damages sustained to the City's compactor; and, WHEREAS,the purchased compactor has not yet arrived; and, WHEREAS, two quotes were received, and C & C Manufacturing, LLC of Ottumwa, Iowa, submitted the lowest quote (Exhibit A)to supply a rental compactor; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT,the facts and opinions in the preamble are true and correct; and, THAT, the City Council of the City of Port Arthur hereby authorizes the rental of a compactor for the Landfill from C & C Manufacturing, LLC of Ottumwa, Iowa, for the not-to- exceed amount of$40,500.00 as exhibited in Exhibit B; and, THAT, a copy of the caption of this Resolution be spread upon the Minutes of the City Council. PR 22533 4/25/2022 jam Page 2 of 3 READ, ADOPTED AND APPROVED this the day of , A.D. 2022 at a meeting of the City of Port Arthur, Texas by the following vote: Ayes: Mayor: Councilmembers: Noes: Thurman "Bill" Bartie Mayor Attest: Sherri Bellard, TRMC City Secretary APPROVED AS TO FORM: APPROVED FOR ADMINISTRATION: tlu ---a r)„ , I , • iii alecia T.a o, Esq. • it Ronald Burton, CPM ' City Atto City Manager PR 22533 4/25/2022 jam Page 3 of 3 APPROVED AS FOR AVAILABILITY OF FUNDS: Kandy K. Daniel Interim Fd/ I4L ector of Finance ozel .. . Robert: T, ME MBA Direc of Public irks Clifton Williams, CPPB Purchasing Manager PR 22533 Exhibit A RENTAL OF COMPACTOR FOR LANDFILL MAY 2022 HUMDINGER EQUIPMENT C&C Manufacturing LLC (OPTION 1) DESCRIPTION COST PER MONTH COST PER MONTH COMPACTOR RENTAL $13,500 $30,000 COST FOR DELIVERY & PICK UP $0 $20,000 Exhibit B Series by C&C MTFG= 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 Rental Extension — 04-22-2022 Item# Model S/N Rental Rate INS Rate Freight CHG USED ADV600 ADV600 30003 $13,500 USD per Customer to $20,000.00 LANDFILL month provide insurance Delivery freight COMPACTOR. while on site with was included in Rental Period: copy of Certificate first month rental. For insurance purposes, Extending for up to of Insurance to C&C (Paid) the value of the 3 months as Manufacturing LLC compactor is $200,000 needed (May thru Return freight will July 2022) waived due to new machine order. Note— Per attached pricing summary, the cash down payment terms allow for a discount in the rental rate in the amount of$5000 per month upon receipt of order for a new machine. This discount will be retroactive for months March and April. A credit will be applied to customer account for$10,000 and all subsequent rental payments will be invoiced at$13,500 per month as noted above, until new machine is delivered and commissioned. Job Site: In Service Date: Approx.: INS Value: F.O.B. Ship Via: Port Arthur Landfill 05-01-2022 $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 five months from inception or upon delivery of new Aljon ADV500 landfill 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 City of Port Arthur 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.