HomeMy WebLinkAboutPR 24536: LEASELTO PURCHASE AGREEMENT OF ONE CATEPILLAR D6 36 WHA DOZER FOR THE LANDFILL FROM MUSTANG CAT City of
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www.PortArthurTx.gov
INTEROFFICE MEMORANDUM
Date: October 9, 2025
To: The Honorable Mayor and City Council
Through: Ronald Burton, City Manager
From: Flozelle C. Roberts, EIT, MEng,MBA,Public Works Directo'
RE: P.R. 24536—Lease to Purchase Agreement for one (1)2025 aterpillar D6 36
WHA Dozer for the Landfill from Mustang Cat of Houston, Texas, through the
Sourcewell Cooperative Purchasing Program
Introduction:
This agenda item requests Council's approval for the lease-to-purchase of one (1) 2025
Caterpillar D6 36 WHA dozer for the Landfill.
Background:
The Public Works Landfill Division maintains a Texas Commission on Environmental Quality
(TCEQ) permit to discard regional commercial and household waste. To maintain a permit that
is in good standing with TCEQ, the Landfill must have operational dozers onsite to move and
bury the trash.
The Division's existing Caterpillar D7R has undergone numerous repairs since 2022, including
the reconditioning of the steering system, hydraulic system, drive axle, transmission, radiator,
operator station, wiring harness, undercarriage, and vehicle body. It requires additional engine
repairs totaling $81,791.48, with no guarantee that the repairs will resolve the issue. The total
cost of completed and proposed repairs is$557,890.77.The approximate resale value of the D7R
is $35,000.00.
"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
Staff finds leasing to purchase a Caterpillar D6 WHA for $667,664.88 or a monthly lease of
$22,560.17 in lieu of expending additional funds on the existing Caterpillar D7R in the City's
best interest.
Budget Impact:
Mustang Cat of Houston, Texas, provided a competitive quote to lease-to-purchase one (1)
2025 Caterpillar D6 36 WHA dozer for$667,664.88 or a monthly lease of$22,560.17 through
the Sourcewell Cooperative Program, contract 011723-CAT. Funding is subject to the annual
approval of the City's budget, and upon such approval, shall be made available in the Solid
Waste Landfill Equipment Fund Account,403-50-320-8522-00-00-000.
Recommendation:
It is recommended that the City of Port Arthur City Council approve PR 24536, authorizing the
City Manager to enter a lease-to-purchase agreement with Mustang Cat for one (1) 2025
Caterpillar D6 36 WHA dozer for the Landfill Division from Mustang Cat of Houston, Texas,
through the Sourcewell Cooperative Purchasing Program.
"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
PR No.24536
10/09/2025 LB/FCR
Page 1 of 3
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A 24-
MONTH LEASE-TO-PURCHASE AGREEMENT FOR ONE (1) 2025 D6 36 WHA
FOR THE LANDFILL FROM MUSTANG CAT OF HOUSTON, TEXAS,
THROUGH THE SOURCEWELL COOPERATIVE PURCHASING PROGRAM
FOR$667,664.88 OR A MONTHLY LEASE OF$22,560.17. FUNDING IS SUBJECT
TO THE ANNUAL APPROVAL OF THE CITY'S BUDGET, AND UPON SUCH
APPROVAL,SHALL BE MADE AVAILABLE IN THE SOLID WASTE LANDFILL
EQUIPMENT FUND ACCOUNT,403-50-320-8522-00-00-000.
WHEREAS,the Public Works Landfill Division maintains a Texas Commission on Environmental
Quality(TCEQ)permit to discard regional commercial and household waste; and,
WHEREAS, to maintain a permit that is in good standing with TCEQ, the Landfill must have
operational dozers onsite to move and bury the trash; and,
WHEREAS, the Division's existing Caterpillar D7R has had numerous repairs over the years
totaling more than$475,000.00 to include replacement of several main parts; and,
WHEREAS, the repair of the existing Caterpillar D7R will take at least 6 weeks and cost an
additional $81,791.48, with no guarantee that the repairs will resolve the issue; and,
WHEREAS,the approximate resale value of the existing Caterpillar D7R is$35,000.00,signifying
the end of the equipment's useful life; and,
WHEREAS, Chapter 271 of the Texas Government Code allows a city, by resolution of its
governing body, to participate in cooperative purchasing programs such as the Sourcewell Cooperative
Purchasing Program as an alternative to a formal bid process; and,
WHEREAS,pursuant to Resolution Number 13-556, the City entered into an interlocal agreement
with the Sourcewell Cooperative Purchasing Program through its leasing division; and,
WHEREAS, as set forth in Exhibit A,the lease-to-purchase agreement provides a warranty term of thirty-
six (36) months, which expressly includes coverage for 6,000 hours, premier protection, parts and labor,
and further provides a twelve(12)month warranty on CAT work tools; and,
PR No.24536
10/09/2025 LB/FCR
Page 2 of 3
WHEREAS,City staff has determined that it is in the best interest of the City to enter into a twenty-
four(24)month lease-to-purchase agreement with Mustang Cat of Beaumont,Texas,in the total amount of
$667,664.88, payable in monthly installments of$22,560.17, to acquire one (1) 2025 Caterpillar D6 36
WHA dozer, pursuant to the Sourcewell Cooperative Purchasing Program under contract number 011723-
CAT, as more fully set forth in Exhibit A.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PORT ARTHUR, TEXAS:
THAT,the facts and opinions in the preamble are true and correct; and,
THAT,the City Manager of the City of Port Arthur is hereby authorized to enter a 24 month lease-
to-purchase agreement for one (1) 2025 Caterpillar D6 36 WHA dozer for $667,664.88 with monthly
payments of$22,560.17 through the Sourcewell Cooperative Purchasing Program; and,
THAT,funding is subject to the annual approval of the city's budget, and upon such approval, shall
be made available in the solid waste landfill equipment fund account, 403-50-320-8522-00-00-000,
THAT, a copy of the caption of this Resolution be spread upon the Minutes of the City Council.
READ, ADOPTED AND APPROVED this the day of , A.D. 2025 at a
meeting of the City of Port Arthur, Texas, by the following vote: Ayes:
Mayor:
Councilmembers:
Noes:
Charlotte M. Moses
Mayor
PR No.24536
10/09/2025 LB/FCR
Page 3 of 3
Attest:
Sherri Bellard, TRMC
City Secretary
APPROVED AS T •
t
.••!1
Roxann Pais Cotroneo, Esq.
City Attorney
APPROVED FOR ADMINISTRATION:
1401p7
ilik4V
Ronald Burto'P 'Yl
City Manager
A // 7,
iis..
- le C. obert E , M : `. BA, CPM
Director • bli Wo ks
APPROVED AS FOR AVAILABILITY OF FUNDS:
4OLynd o ell, C FO, MA °llf
Director of Finance
i /4 ri lAilh144:-
Clifto . . Williams,Jr.,tPPB
Purchasing Manager
P.R. No. 24536
MUSTANG cm New Machine Sales Agreement
Rental
tlIgl.
REF#Q 36973 MUSTANG MACHINERY COMPANY,LLC.D/B/A MUSTANG CAT,12800 NORTHWEST FREEWAY,HOUSTON TX
77040 I PHONE:(800)256-1001
SOLD TO 'CUSTOMER City Of Port Arthur Landfill SHIP TO City of Port Arthur Landfill
STREET ADDRESS Attn:Accounts Payable 201 H.O.Mills Blvd
P.o.Box 1089
CITY/STATE Port Arthur/TX Port Arthur/TX
POSTAL CODE 77641 77641
COUNTY/COUNTRY
PHONE NUMBER
EMAIL jorge.morales@portarthurtx.gov
CUSTOMER CONTACT EQUIPMENT Jorge Morales F.O.B.AT: COPA LF
PRODUCT
SUPPORT
INDUSTRY CODE SHIP VIA:
PRINCIPAL WORK CODE
SALES TAX EXEMPTION CUSTOMER PO
CUSTOMER NUMBER: 0588741 NUMBER(IF
APPLICABLE): NUMBER:
TERMS PAYMENT TERMS: CAT Financial Services Corp(CFSC)-24 mth Lease/Purchase Option
DESCRIPTION OF EQUIPMENT ORDERED I PURCHASED
MAKE: Caterpillar MODEL: D6 36 WHA YEAR: 2025
ID NUMBER: SERIAL NUMBER: TBA SMU:
36 WHA D6
D6 20C LGP TTT AM-N DCA3(WHA) 656-8214 $718,340.00
INCLUDES: $0.00
ENGINE COOLANT,STD(-37C) 382-5934 $0.00
CONTROL, RIPPER/WINCH 0 464-5460 $0.00
GRAB HANDLES,HD, PUSHARM 505-6705 $0.00
SEAT,HEATED&VENTILATED 560-9088 $0.00
D6 LGP TRACTOR CFG3 464-5709 $0.00
GUARD,BTM,SEALED,HD,PUSHARM 471-7279 $0.00
GUARD, FUEL TANK, FAST FILL 475-7084 $0.00
SEALS,HIGH DEBRIS 511-6789 $0.00
DOZER CTL,ARO/GRADE,PA 594-7763 $0.00
CYLINDER LINES,PUSHARM 566-3145 $0.00
LIGHT,BEACON 589-3554 $0.00
ASSIST W/ARO 594-3513 $0.00
PRECLEANER,WITH SCREEN 602-7269 $0.00
ALTERNATOR, 150 AMP, DUCTED 602-7741 $0.00
JOYSTICK,ARO/GRADE,PA 608-3257 $0.00
CTWS&MSS RECEIVER,BLE 611-7487 $0.00
CAB,HIGH DEBRIS 612-0656 $0.00
TRACK, 36"ES TRAP HDXL,CTWS 616-3023 $0.00
FAN,REVERSING 616-3576 $0.00
OIL CHANGE SYSTEM, HIGH SPEED 618-5977 $0.00
FUEL TANK, FAST FILL, READY 619-1834 $0.00
AIR CONDITIONING,QUICK DISC 619-9954 $0.00
FLOOR,CAB,QUICK ACCESS 621-2024 $0.00
PRECLEANER,CAB POWERED 621-6694 $0.00
LIGHTS,12,LED,PREMIUM PUSHARM 621-9656 $0.00
UNDERCARRIAGE,HDXL,WASTE 622-2088 $0.00
WASTE HANDLING ARR, PUSHARM 622-7130 $0.00
ENGINE,LUC,THERMAL SHIELD 622-8364 $0.00
HYDRAULICS,PUSHARM 624-0027 $0.00
CONFIG ARR 20C,LUC 624-6809 $0.00
PREMIUM CORP RADIO(12V) 627-1568 $0.00
GUARD, LIGHTS,PREMIUM,PA 628-1719 $0.00
WATER JACKET HEATER, 120V 629-6226 $0.00
STRIKER BOX 630-1397 $0.00
FINAL DRIVE,90",GRD 630-5367 $0.00
ENCLOSURE,ENGINE,PUSHARM 637-3333 $0.00
REAR CAMERA 639-5023 $0.00
REGIONAL PACKAGE-AM-N 650-8443 $0.00
FLUIDS,STD OIL 624-5032 $0.00
LANE 1 ORDER OP-9001 $0.00
CAMERA,360 REAR DETECT 639-5021 $6,000.00
6S LGP BULLDOZER,GUARDED 624-1121 $11,260.00
PROD LINK,PL243/PLE643/PLE743 619-4080 $0.00
BLADE,6S LGP,WASTE 579-6861 $22,970.00
OJ Lbr ruJr9HFVVI 00L-4Uu1 S IL,G U.UU
ROLL ON-ROLL OFF OP-2832 $450.00
SHIPPING/STORAGE PROTECTION OP-2266 $274.00
SERIALIZED TECHNICAL MEDIA KIT 421-8926 $0.00
Total Machine List Price: $772,184.00
Dealer Discount: ($177,809.52)
Make Ready: $2500.00
Freight:$1500.00
Extended Warranty: $14,027.00
Install Fire Suppression: $18,500.00
CSA—4000 Hrs(500 Hr Intervals): $35,098.00
Quote Notes:
Sourcewell Contract#011723-CAT
CSA—4000 Hrs(500 Hr Intervals)—Includes Preventive Maintenance as recommended in the Operation&Maintenance Manual up to and including the 4000
Hr service interval.
TRADE-IN EQUIPMENT TERMS OF SALE
MODEL: YEAR: SERIAL NUMBER: SUB TOTAL $665,999.4:
PAYOUT TO: AMOUNT: PAID BY: HEAVY EQUIPMENT TAX I $1,265.40
MODEL: YEAR: SERIAL NUMBER: SALES TAX $0.00
PAYOUT TO: AMOUNT: PAID BY: DOC FEE $400.00
MODEL: YEAR: SERIAL NUMBER: DIESEL SURCHARGE $0.00
PAYOUT TO: AMOUNT: PAID BY: TOTAL CASH PRICE $667,264.8:
CASH WITH ORDER $0.00
ALL TRADE-INS ARE SUBJECT TO EQUIPMENT BEING IN"AS INSPECTED CONDITION"BY
MUSTANG CAT AT TIME OF DELIVERY.CUSTOMER HEREBY STATES THE ABOVE LISTED TRADE IN ALLOWANCE $0.0.
EQUIPMENT EMISSIONS HAVE NOT BEEN ALTERED OR CHANGED.CUSTOMER HEREBY TOTAL DOWN PMT 8 TRADE IN -
SELLS THE TRADE-IN EQUIPMENT DESCRIBED ABOVE TO MUSTANG CAT AND WARRANTS IT ALLOWANCE
UNPAID BALANCE OF TRADES $0.00
TO BE FREE AND CLEAR OF ALL CLAIMS, LIENS. MORTGAGES AND SECURITY INTEREST
EXCEPT AS SHOWN ABOVE. Invoice—Downpayment
+Trade in Allowance $667,264.88
PREVENTATIVE MAINTENANCE AGREEMENT TOTAL AMOUNT TO BE $667,664.8:
FINANCED
CSAI4000 Hoursi
EQUIPMENT WARRANTY
Customer acknowledges that he has received a copy of the manufacturer's warranty and has
read and understood said warranty.All used equipment is sold as is where is and no warranty is
offered or implied except as specified herein.
WARRANTY TERM 36 Month 6000 Hourrant; PremierlPartshs/Unl&Labor CUSTOMER INITIAL.
CAT Work Tools Warranty 12 Months/Unlimited Hours
IT IS MUSTANG CAT's INTENT THAT THIS AGREEMENT REFLECTS THE FULL AND FINAL TERMS OF THIS TRANSACTION.HOWEVER,DUE TO
CHANGING CIRCUMSTANCES,MUSTANG CAT MAY NOT BE ABLE TO HONOR THE EXACT PRICING OR DELIVERY DATES HEREIN.EXAMPLES OF
THOSE CIRCUMSTANCES INCLUDE,BUT ARE NOT LIMITED TO, LIMITED PRODUCT AVAILABILITY,EXTENDED LEAD TIMES,AND SUPPLIER
PRICING CHANGES.CUSTOMER ACCEPTS AND ACKNOWLEDGES THAT IF MUSTANG CAT IS NOT ABLE TO HONOR THE TERMS OF THIS
AGREEMENT,THIS AGREEMENT WILL BE VOIDED,AND BOTH PARTIES RELEASED FROM THIS AGREEMENT'S BINDING EFFECT.VOIDING OF THIS
AGREEMENT DOES NOT PREVENT THE PARTIES FROM ENTERING INTO A NEW AGREEMENT,NOR IMPACT OTHER AGREEMENTS AMONG THE
PARTIES HERETO.
DISCLAIMER OF WARRANTIES AND WAIVER OF CLAIMS
MUSTANG CAT IS NOT A MANUFACTURER OF THE EQUIPMENT.ALTHOUGH MUSTANG CAT MAY ADMINISTER WARRANTIES ISSUED BY THE
MANUFACTURER,CUSTOMER ACKNOWLEDGES AND AGREES THAT:(1)ANY EXPRESS WARRANTIES BY THE MANUFACTURER FOR THE
EQUIPMENT ARE NOT THE RESPONSIBILITY OF MUSTANG CAT;AND(2)THE MANUFACTURER'S WARRANTY CONTAINS LIMITATIONS AND
CUSTOMER MAY INCUR CERTAIN REPAIR,TRANSPORTATION,OR OTHER CHARGES BY MUSTANG CAT WHICH ARE NOT COVERED BY THE
MANUFACTURER'S WARRANTY.ANY AND ALL IMPLIED WARRANTIES ARE EXCLUDED.
MUSTANG CAT,BY VIRTUE OF HAVING SOLD THE EQUIPMENT UNDER THIS AGREEMENT, HAS NOT MADE AND DOES NOT MAKE ANY
REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED,AS TO CONDITION,COMPLIANCE WITH SPECIFICATIONS OR REGULATIONS,QUALITY,
DURABILITY,SUITABILITY, MERCHANTABILITY, FITNESS FOR USE OR FITNESS FOR A PARTICULAR PURPOSE,OR ANY OTHER WARRANTY
WHATSOEVER,EXPRESS OR IMPLIED,WITH RESPECT TO THE EQUIPMENT.MUSTANG CAT IS NOT LIABLE FOR ANY DAMAGES(WHETHER
ORDINARY,SPECIAL OR PUNITIVE)ARISING FROM ANY FAILURE OF THE EQUIPMENT TO OPERATE OR THE FAULTY OPERATION OF THE
EQUIPMENT,OR THE INSTALLATION,OPERATION, REPAIR OR USE OF THE EQUIPMENT.
OTHER TERMS AND CONDITIONS
ADDITIONAL TERMS AND CONDITIONS SET FORTH ON THE REVERSE SIDE HEREOF OR ATTACHED HERETO(AS APPLICABLE)CONSTITUTE AN
IMPORTANT PART OF THIS AGREEMENT AND ARE INCORPORATED HEREIN VERBATIM FOR ALL PURPOSES.PLEASE REVIEW SUCH OTHER TERMS
AND CONDITIONS BEFORE SIGNING THIS AGREEMENT.
THESE TERMS AND CONDITIONS SUPERSEDE ALL OTHER TERMS AND CONDITIONS PRESENTED BY OR TO CUSTOMER UNLESS PROVIDED IN A
DOCUMENT SIGNED BY AN AUTHORIZED REPRESENTATIVE OF BOTH PARTIES AND CONTAINING REFERENCE TO THIS SALES ORDER
AGREEMENT.
THIS AGREEMENT IS SUBJECT TO THE TERMS AND CONDITIONS ATTACHED
DATE DATE
ORDER
RECEIVED
BY Jerrod Hines CUSTOMER NAME
SIGNATURE CUSTOMER SIGNATURE
TITLE Equipment Sales Rep TITLE
I CRIYlJ ANL/li VIr VI I IVIVJ
1.DEFINITION OF MUSTANG: MUSTANG and Seller are defined as Mustang Machinery Company, LLC.d/b/a MUSTANG CAT,Mustang Rental Services of
Texas,LLC.d/b/a MUSTANG RENTAL SERVICES,and their subsidiaries,affiliates and related entities.
2.AGREEMENT:This Agreement becomes binding on MUSTANG CAT only upon MUSTANG CAT's execution of this Agreement,and subject to the availability of
the equipment from the manufacturer.Customer shall inspect the equipment immediately upon its receipt,and shall be conclusively deemed to have accepted the
equipment in good and operating condition unless the customer promptly notifies MUSTANG CAT of any defects,in writing and via telephone. MUSTANG CAT shall
have the right,at its option,to either repair or replace the equipment,or terminate this Agreement,in which event the equipment shall be returned to MUSTANG
CAT.Delays in delivery shall be excused if caused by any cause beyond the reasonable control of MUSTANG CAT.
3.TITLE TO EQUIPMENT:Title to the equipment shall pass to the customer only upon MUSTANG CAT's actual receipt of funds in the total amount of the Purchase
Price and other sums due to MUSTANG CAT hereunder.
4.TAKEN IN TRADE: Customer does hereby irrevocably sell,assign,transfer and convey possession,ownership and title unto MUSTNAG CAT to the Trade-in
Equipment described above.Customer warrants that it is the sole owner of the Trade-in Equipment,has full power and authority to sell the Trade-in Equipment,and
that there is no lien or any encumbrance of any kind or nature against the Trade-in Equipment,of record or otherwise.
5.TAXES: Customer shall promptly pay all taxes,fees,transportation and other costs,assessments and all governmental charges of any kind or character,and any
penalties,fines or interest thereon relating to the equipment.
6.CUSTOMER'S WARRANTIES AND USE: In addition to the other warranties contained herein,customer warrants that(i)if customer is an entity,it is duly
organized and validly existing in good standing,and(ii)is duly authorized to execute,deliver,and perform under this Agreement. Customer further agrees and
warrants,at its cost,that:(1)the equipment shall at all times be used solely for customer's business and not for personal,family,or household use,and in
accordance with the use,and/or instructional materials,solely for the purpose for which it was intended;(2)only customer's employees(who must be skilled,trained
and certified to do so)shall use the equipment.Customer hereby further agrees and warrants that(i)any payments made pursuant to this Agreement are intended
by the customer to be a contemporaneous exchange for new value given to customer and it is a substantially contemporaneous exchange and(ii)each payment
made of a debt incurred by customer under this Agreement is in the ordinary course of business or financial affairs of customer and MUSTANG CAT,and such
payment was made in the ordinary course of business or financial affairs of customer and MUSTANG CAT,or made according to ordinary business terms.
7.SOLE AND EXCLUSIVE REMEDY: Customer further agrees that his SOLE AND EXCLUSIVE remedy,if any,against MUSTANG CAT,shall be as contained in
any express,written warranty applicable hereto. Customer acknowledges that he has received,read,understands and accepts the terms contained herein. The
customer agrees that no other remedy(including,but not limited to,claims for INCIDENTAL,CONSEQUENTIAL OR SPECIAL DAMAGES,OR ANY CAUSE,LOSS,
ACTION,CLAIM OR DAMAGE WHATSOEVER OR INJURY TO PERSON OR PROPERTY OR ANY OTHER CONSEQUENTIAL,ECONOMIC OR INCIDENTAL
LOSS)shall be available to him.
8.LOSS AND DAMAGE:Customer assumes all liability and risk of,and shall be solely responsible for,all damage and loss to the equipment from any cause
whatsoever,whether or not such loss or damage is or could have been covered by insurance.Until the equipment is paid in full,Customer shall promptly give
MUSTANG CAT written notice of any loss or damage and reimburse MUSTANG CAT for the value of the equipment if damaged or stolen. MUSTANG CAT's sole
responsibility for shipments shall be to deliver the equipment to a public carrier company.
9.SECURITY AGREEMENT: Unless the product(s)is paid for in full in cash at the time of delivery, MUSTANG CAT retains and customer hereby grants to
MUSTANG CAT a security interest in such product(s)within the meaning of the Uniform Commercial Code together with all and any substitutions,additions,or
accessions to such product(s),and in any and all proceeds from the sale,exchange or disposal thereof to secure payment of the purchase price of such
product(s). Customer,prior to or after delivery,specifically agrees to enter into and execute a financing statement,or statements,and an additional security
agreement setting forth the terms and conditions of the Agreement between the parties in relation to the security interest of MUSTANG CAT. Customer further
appoints MUSTANG CAT as its attorney-in-fact to execute any such financing statement or security agreement in the place and stead of customer. In the event
customer fails to execute any such financing statement or security agreement upon request by MUSTANG CAT,the entire balance of the purchase price shall be at
MUSTANG CAT's option become due and payable and customer shall execute any notes or other evidences of indebtedness that may be required by MUSTANG
CAT. However,any note taken herewith shall be evidence of customer's obligation to pay the unpaid time balance only and is not to be considered or construed to
be payment for the product(s).
10.EVENTS OF DEFAULT:The following are events of default by Customer:(1)failure to pay any amount due hereunder or otherwise;(2)Customer's ceasing to
do business,becoming insolvent,taking advantage of any law for the relief of debtors or filing bankruptcy,making an assignment for the benefit of creditors;(3)
when MUSTANG CAT deems itself insecure with respect to customer's performance;(4)Customer fails to perform any of customer's other obligation hereunder or
otherwise;(5)Customer's representation or warranty is false or misleading.
11.REMEDIES ON DEFAULT: In the event of any default by customer, MUSTNAG CAT is entitled to any one or more of the following remedies,without any notice
of default:(a)take possession of the equipment or any other equipment,including enter premises where its located;(b)terminate this Agreement;(c)seek specific
performance or injunction or recover damages;(d)stop delivery of the equipment or any other equipment;(e)surrender any insurance policies and receive the
unearned premiums;(f)without terminating this Agreement,MUSTANG CAT may take possession of the equipment and sell,relet or otherwise dispose of the
equipment as a secured party under UCC and deduct all expenses,costs, reasonable attorneys fees,and other charges incurred by MUSTANG CAT;(g)recover
deficiency from customer;and/or(h)perform by itself,or cause performance of,customer's obligation,at customer's cost. In no event shall MUSTANG CAT be
required to sell or relet the equipment,nor required to rebate or pay back any gain or profit as a result of leasing the equipment.MUSTANG CAT's remedies
hereunder shall not be exclusive,but shall be cumulative and in addition to all other remedies existing at law or in equity.
12.COLLECTIONS: In the event any action either to collect payment or enforce the terms and provisions of this agreement becomes necessary,CUSTOMER
agrees to pay reasonable cost of collection and attorney's fees to MUSTIANG CAT should this matter be placed in the hands of a collection agency or an attorney for
collection.
13.INDEMNITY: CUSTOMER AGREES TO INDEMNIFY, DEFEND AND HOLD HARMLESS MUSTANG CAT AND MUSTANG CAT's PARTNERS,
EMPLOYEES,AGENTS,REPRESENATIVES,SUCCESSORS AND ASSIGNS FROM ANY AND ALL CLAIM,EXPENSE,CAUSE OF ACTION,DAMAGE,
LIABILITY,COST,PENALTY,TAX,ASSESSMENT,CHARGE,PUNITIVE DAMAGE OR EXPENSE BY REASON OF ANY ACT OR OMISSION OF CUSTOMER
OR ITS EMPLOYEES,AGENTS,CONTRACTORS,SUBCONTRACTORS,AFFILIATES OR INVITEES,WHILE THE EQUIPMENT IS IN THE POSSESSION OR
UNDER THE CONTROL OF THE CUSTOMER OR ITS AGENTS.
14. INSURANCE COVERAGES:Customer shall maintain Equipment insurance and General Liability insurance,Auto Liability insurance,and Workers
Compensation and Employer's Liability Insurance,each with minimum$1,000,000 per occurrence and shall deliver to MUSTANG CAT a Certificate of Insurance
evidencing same.Such insurance obtained by customer shall be primary.
15.NOTICES:All notices hereunder shall be in writing and shall be deemed delivered if delivered personally or mailed,by certified mail,return receipt requested,to
the respective addresses of the parties set forth above or any other address designated by written notice. By signing this Agreement,customer represents that it has
read and agrees to the Terms and Conditions applicable to communications made by MUSTANG CAT to customer by Text or Email and which are found at
https://www.mustangcat.com/legal-notices/
16.MISCELLANEOUS:This Agreement may only be modified by a written agreement signed by MUSTANG CAT.If any provision of this Agreement is hereafter
held invalid or unenforceable,the remainder of the Agreement shall not be affected and the provisions are declared severable. If there is more than one customer,
the obligations of customers hereunder are joint and several.Subject to the terms hereof,this Agreement shall be binding upon and inure to the benefit of
MUSTANG CAT and customer and their respective personal representatives,successors and assigns.This Agreement shall be governed by the laws of Texas,
each party hereby irrevocably consents to submit to the exclusive jurisdiction of the courts of the state of Texas in Harris County,Texas. I agree and acknowledge
that to the extent equipment is equipped with a telematics system(e.g.,Product Link),that data concerning such equipment,including condition,and operation are
being transmitted to Caterpillar Inc.,and its affiliates.The full privacy statement applicable to the transfer of telematics information,including instructions on how to
ask questions about telematics and how to revoke your consent,is available at:https://www.caterpillar.com/en/legal-notices/data-governance-statement.html.THE
PARTIES HEREBY WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF THIS AGREEMENT OR THE
SUBJECT MATTER HEREOF.
Caterpillar Financial Services Corporation
Finance Proposal
CUSTOMER
Name:CITY OF PORT ARTHUR
Address 444 4TH ST Good if:
City PORT ARTHUR Acknowledged by Nov-6-2025
State TX Funded by Nov-6-2025
DEALER
MUSTANG MACHINERY COMPANY,LLC E300 Quote number 4947928
Sales person Hines E300,Jerrod Fax Number
Dealer contact Quote Date 07-Oct-25
Telephone _ Quote Time 08:30:04 AM
FINANCE PROPOSAL
This is Caterpillar Financial Services Corporation's confirmation of the following finance proposal.This is a proposal only and is subject to credit
approval,execution of documentation,and execution and approval of the application survey.
Finance Type Governmental Lease Quoted By Magen Mayo
Number of Payments 24 Monthly Report Created By Ivey Gibson
Payments in Arrears
Ann. Amount Fixed
Model Hours Q1L Sale Price Financed Payment Balloon Rate
New D6-20 2000 1 665,999.48 667,664.88 See Amort.Schedule 169,440.00 4.9900%
Special Conditions:
D6-20
Serial Number-,Model Year-2025,Industrial Environment;
Major Attachments-6VPAT Blade,Air Conditioning,Cab,Steel Tracks,LGP Low Ground Pressure,Waste Handling Package;
Blades/Buckets/Rippers-Ripper;
Manual Configuration and Work Tools:
Payment Structure—Asset
24 Monthly payment(s)22,560.17
1 Stub payment(s)169,440.00
Payment
Model Insurance w/Insurance
New D6-20 570.89 Amort Sch.
The estimate for insurance is provided through Caterpillar Insurance Company(Provided by Westchester Insurance Company in Rhode Island)and is
not an offer to contract for insurance.
CONDITIONS
Insurance: The customer must provide evidence of physical damage and liability insurance in an amount and from an insurance carrier
satisfactory to CFSC. CFSC must be named on the policies,as loss payee and additional insured,as applicable,and a certificate
of insurance,in form and substance acceptable to CFSC,must be provided to CFSC.
Taxes: All taxes are the responsibility of the customer and may or may not be included in the above payment amount.
Equipment: The equipment cannot be delivered until all documents are executed by CFSC. All equipment must reside in the United States
at all times.
Approval: This proposal is subject to,among other things,fmal pricing,credit approval and document approval by CFSC.
The terms and conditions outlined herein are not all-inclusive and are based upon information provided to date. This proposal may be withdrawn or
modified by Lessor at anytime. This proposal does not represent an offer or commitment by CFSC to enter into a transaction or to provide financing
and does not create any obligation for CFSC. A commitment to enter into the transaction described herein may only be extended by CFSC after this
transaction has been approved by all appropriate credit and other authorities within CFSC.
Caterpillar Financial Services Corporation
2120 West End Avenue,Nashville,TN 37203
(615)-341-1000
Caterpillar Financial Services Corporation
We appreciate the opportunity to provide you a proposal for this transaction.
Proposed by: Acknowledged by:
Caterpillar Financial Services Corporation CITY OF PORT ARTHUR Date
EXHIBIT 2
Concluding Payment Schedule to
Government Agreement
QuoteNumber...........................................................................4947928
Dated , 20_
between
Caterpillar Financial Services Corporation
and
CITY OF PORT ARTHUR
Description of Unit: D6-20 Track Type Tractor:
Number of Beginning Payment Amount Balloon Interest Interest Rate Concluding
Payments Made Balance Payment(*)
1 667,664.88 22,560.17 0.00 2,776.37 4.99 647,881.08
2 647,881.08 22,560.17 0.00 2,694.11 4.99 628,015.02
total 45,120.34 0.00 5,470.48
3 628,015.02 22,560.17 0.00 2,611.50 4.99 608,066.35
4 608,066.35 22,560.17 0.00 2,528.54 4.99 588,034.72
5 588,034.72 22,560.17 0.00 2,445.24 4.99 567,919.79
6 567,919.79 22,560.17 0.00 2,361.60 4.99 547,721.22
7 547,721.22 22,560.17 0.00 2,277.61 4.99 527,438.66
8 527,438.66 22,560.17 0.00 2,193.27 4.99 507,071.76
9 507,071.76 22,560.17 0.00 2,108.57 4.99 486,620.16
10 486,620.16 22,560.17 0.00 2,023.53 4.99 466,083.52
11 466,083.52 22,560.17 0.00 1,938.13 4.99 445,461.48
12 445,461.48 22,560.17 0.00 1,852.38 4.99 424,753.69
13 424,753.69 22,560.17 0.00 1,766.27 4.99 403,959.79
14 403,959.79 22,560.17 0.00 1,679.80 4.99 383,079.42
total 270,722.04 0.00 25,786.44
15 383,079.42 22,560.17 0.00 1,592.97 4.99 362,112.22
16 362,112.22 22,560.17 0.00 1,505.78 4.99 341,057.83
17 341,057.83 22,560.17 0.00 1,418.23 4.99 319,915.89
18 319,915.89 22,560.17 0.00 1,330.32 4.99 298,686.04
19 298,686.04 22,560.17 0.00 1,242.04 4.99 277,367.91
20 277,367.91 22,560.17 0.00 1,153.39 4.99 255,961.13
21 255,961.13 22,560.17 0.00 1,064.37 4.99 234,465.33
22 234,465.33 22,560.17 0.00 974.98 4.99 212,880.14
23 212,880.14 22,560.17 0.00 885.23 4.99 191,205.20
24 191,205.20 22,560.17 169,440.00 794.97 4.99 0.00
total 225,601.70 169,440.00 11,962.28
total 541,444.08 169,440.00 43,219.20
(*)Does not include any rent payment or other amount then due.
Initialed:
(Lessee)
4947928 Caterpillar Financial Services Corporation Page 1