HomeMy WebLinkAboutPR 16829: EXTEND LEASE AGREEMENT WITH PETERSEN INDUSTRIES, INC. FOR TRASH TRUCKS PUBLIC WORKS DEPARTMENT
COUNCIL ACTION MEMO
TO Stephen B. Fitzgibbons, City Manager
FROM Ross E. Blackketter, P.E., Director of Public Works
SUBJECT P.R. #16829 – Extend Lease Agreement with Petersen Industries, Inc. for
Trash Trucks
DATE 28 December 2011
RECOMMENDATION:
I recommend that the City Council approve Proposed Resolution No. 16829, approving
the lease agreement for two (2) trash trucks from Petersen Industries, Inc. for a two
(2) month period and increasing the contract amount by $22,000 to a total of $61,988.
BACKGROUND:
In Resolution 11 -443, the City Council authorized a lease agreement for two trash
trucks for a three month period, until the eight new trucks that were authorized by
Council in Resolution 11 -398 arrive. Due to unanticipated delays in the manufacturing
of the new trucks, the lease agreement needs to be extended by two months.
The rental of these trucks is at the rate of $5,500 per month per truck, plus a shipping
fee of $1,747 per truck for delivery and return of these vehicles (authorized in the initial
agreement), which are in Florida. This was a total of $39,988 for the three month
rental, with the two month extension increasing the contract by $22,000. If we decide
to return the trucks earlier, the price will be reduced at a per truck rate of $500 per
day, $2,000 per week, or $5,500 per month.
BUDGETARY /FISCAL EFFECT:
Funding is available in account 403 - 1271 - 533.51 -00.
EMPLOYEE /STAFF EFFECT:
None.
SUMMARY
I recommend that the City Council approve Proposed Resolution No. 16829, approving
the lease agreement for two (2) trash trucks from Petersen Industries, Inc. for a two
(2) month period and increasing the contract amount by $22,000 to a total of $61,988.
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Ross E. Blackketter, P.E.
Director of Public Works
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S: \engineer \documents \CAMS \Trash Trucks Lease Ext.docx
P.R. 16829
12/28/11 reb
RESOLUTION NO.
A RESOLUTION EXTENDING THE LEASE AGREEMENT WITH
PETERSEN INDUSTRIES, INC. FOR TRASH TRUCKS BY TWO (2)
MONTHS AND INCREASING THE AMOUNT BY $22,000 TO A
NEW TOTAL OF $61,988. ACCOUNT NO. 403-1271-533.51-00.
WHEREAS, in Resolution 11 -443, the City Council authorized the rental of trash trucks
from Petersen Industries, Inc. for a three (3) month period for the amount of $39,988; and,
WHEREAS, this lease agreement was to provide for the interim period in which eight
(8) newly purchased trash trucks were to be delivered as authorized by Council in Resolution
11 -389; and,
WHEREAS, a delay in the delivery of the new trucks requires that the lease agreement
be extended for a period of two additional months for the amount of $22,000, making the new
total for the lease $61,988; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR:
THAT, the City Manager of the City of Port Arthur is hereby authorized and directed to
execute on behalf of the City, a lease agreement between the City of Port Arthur and Petersen
Industries, Inc. for the rental of two (2) trash trucks at a rate of $5,500 per truck each month
for an additional two (2) month period for an amount of $22,000, increasing the total
authorization for this rental to $61,988, copy of said contract attached and made a part hereof
as Exhibit "A "; and,
THAT, if the trucks are returned within the contract period, the price of the rental will
be reduced at a per truck rate of $500 per day, $2,000 per week, or $5,500 per month; and,
THAT, funding for this rental is provided for in account number 403 - 1271 - 533.51 -00;
and,
THAT, a copy of the caption of this Resolution be spread upon the Minutes of the City
Council.
P.R. 16829
Page 2
READ, ADOPTED AND APPROVED this the day of , A.D. 2012 at
a meeting of the City of Port
Arthur, Texas by the following vote: Ayes: Mayor:
Councilmembers:
Noes:
Mayor
Attest: APPROVED AS TO FORM:
/
City Secretary City Attorney
APPROVED FOR ADMINISTRATION:
- / /g
Stephen B. Fitzgibbons Ross E. Blackketter, P.E.
City Manager Director of Public Works
APPROVED AS TO AVAILABILITY OF FUNDS:
PeLPAZALCiroe0-
Deborah Echols, CPA Shawna Tubbs, CPPB
Director of Finance Purchasing Manager
S:\engineer\Documents\Resolutions\PR16829.docx
EXHIBIT A
1
PETERSEN INDUSTRIES, INC
EQUIPMENT LEASE AGREEMENT
Read the terms of this lease before signing it as no statement, remark, agreement, understanding, oral or written, or any other representation not
contained herein will be recognized nor can same be reasonably relied on by any party to this agreement. Lessee certifies that the matter printed on
the back hereof, as well as all matter contained below, has been fully read and agreed to as part of this Lease.
12/22/2011
LESSEE: CITY OF PORT ARTHUR (Date)
Address: 201 W. H. 0. MILLS BLVD.
(Street or Avenue)
City PORT ARTHUR County of JEFFERSON State TEXAS Zip Code 77640
LESSOR: Petersen Industries, Inc., 4000 State Road 60 - W, Lake Wales, FL 33859
Lessor hereby leases to Lessee, and Lessee hereby hires and takes from Lessor the following- described personal property (hereinafter, with
all replacement parts, additions, repairs and accessories incorporated therein and/or affixed thereto, referred to as "equipment "): (Describe equipment
fully, including make, kind of unit, serial and model numbers, and any other pertinent information.)
DESCRIPTION OF EQUIPMENT : (1)TL3 LIGHTNING LOADER SERIAL # TL3- 0111- 2534/TB2253
MOUNTED ON A 2011 FRLN VIN# 1FVACXDTXBDBB3302 AND (1) LIGHTNING LOADER
SRRTAT. # TT.1 0611— M57S /TR -2297 MOUNTED ON A 2002 INTL VIN# 1HTMKAANO2H552214.
RENTAL RATES $ $500.00 /EAC$Day $ $2000 /EACI}r Week $$5500. /EACH /Month payable
upon receipt of invoice. Lessor agrees within days from the date hereof to cause said equipment to be delivered to Lessee,
f.o.b. LAKE WALES, FLORIDA 33859 •
COST FOR UNITS TO BE PICKED UP 1747.00 EACH.
TERM: This lease is for a term of ( TWO ADDITIONAL M(�ginning date: 1 / 3 / 2012
and ending date: 3 / 2 / 2012 •
DETERMINATION OF RENTAL CHARGES
The Lessee shall pay rental for the entire period on each article of equipment named under the title "Description of Equipment," at the rate stipulated
therein, and in accordance with the following:
(A) The Lessee agrees that the rates provided for in this contract are considered straight time rates based on eight (8) hours per day, five
(5) eight (8) hour days per week, or twenty-two (22) eight (8) hour days in any thirty (30) consecutive day period. Should the
machinery be used longer than the above specified hours in any specific period, the overtime rates shall be based as follows:
1/8` of the daily rate for each hour worked in excess of eight (8) hours in any one day. 1 /40 of the weekly rate each hour worked in
excess of forty (40) hours in any one weekly period. 1/176` of the monthly rate for each hour in excess of one hundred seventy -six
(176) hours worked in any thirty (30) consecutive day period.
(B) Monthly, weekly, and daily rental rates shall not be subject to any deductions for non - working time during the month, week or day,
respectively; except that such non - working time may be applied against overtime referred to under (A) above.
(C) The rental for equipment kept longer than the specified minimum period shall be invoiced on a pro -rata basis.
PLACE OF USE: Lessee shall keep the equipment at: 201 W.H.O. MILLS BLVD; PORT ARTHUR, TX 77640
(Street Address and City)
County of JEFFERSON State of TX , until Lessor in writing permits its removal, and shall be used in the conduct of Lessee's business
solely.
REPAIR AND MAINTENANCE: Lessor shall bear expense of repairs due to fair wear & tear; Lessee shall not incur for Lessor's account or
liability any expense therefor without Lessor's prior written consent. Lessee shall inspect the equipment within 48 hours after its receipt; Unless
within said time Lessee notifies Lessor, stating the details of any defects, Lessee shall conclusively be presumed to have accepted the equipment in
its AS IS CONDITION AND WITH ALL FAULTS. Thereafter, Lessee will have no right to revoke acceptance and any attempt of revocation
shall be without effect. Lessee shall solely bear the expense of all necessary maintenance and operations including, but not limited to all labor,
material, parts and similar items associated with the equipment. In addition thereto, Lessee agrees to keep the equipment in good repair and
operating condition, allowing for reasonable wear and tear. Lessee agrees to pay all necessary expenses of maintaining equipment, and to furnish the
necessary fuel and lubrication to keep it in peak operating condition.
USE: Lessee agrees that the equipment will be not be subjected to unnecessarily rough usage, and that its use shall conform to all applicable laws,
including ordinances and regulations. Lessee agrees not to allow the use of the equipment for illegal purposes. Lessee will operate the rented
equipment with reasonable care, at all times material hereto, with only competent employees and will use the equipment only for the purpose for
which the equipment was designed, specifically excluding any such use that would result in abnormal wear and tear of said equipment. The
operation and maintenance of the rented equipment shall be under the sole and exclusive control of the Lessee and all personnel operating and
maintaining the rented equipment shall be deemed agents and employees of Lessee and not Lessor.
- 1 - Lease 12/22/2011
Operation of Rental Unit.
As a condition of the rental agreement, Lessee certifies that all individuals operating the equipment have read and understand the equipment owner's
manual. Additionally, Lessee certifies those individuals who will be assigned to utilize the rental loader are trained and qualified in the precautions,
safety and operation of the rental unit. This includes the correct operation of controls, correct operating procedures, maximum lifting capacities and
all safety precautions associated operation of the rental trash loader. Lessee is aware that death or serious injury can occur from improper use of
rental loader. It is the responsibility of lessee to ensure authorized individuals are responsible to operate and maintain the rental loader with skill,
good judgment and caution. . (Initials)
CDL Class B License Required
Only individuals with a CDL Class B (33,000 GVW) driver's license are authorized to drive the described rental unit. (Initials)
( )
SUPPLYING OPERATORS: Unless otherwise mutually agreed in writing, Lessee shall supply and pay all operators employed on the equipment
during the rental period.
EQUIPMENT TO REMAIN PERSONAL PROPERTY: The equipment leased herein is and shall remain for the term of lease personal property,
notwithstanding any attachment of it or part of it to real property or improvements on such real property.
LATE CHARGES AND COLLECTION: Lessee agrees, on Lessee's failure to pay any part of the rental or other charge under this lease within
Days of the due date, to pay a late charge on the rent installment of $ plus interest at the rate of 12 % per annum until paid. If
Lessor files an action to recover possession of the lease property or any part of the equipment, or to enforce or obtain damages for breach of this
lease, Lessee agrees to pay all Lessor's costs and expenses incurred, including reasonable attorney's fees.
LEASE AS ENTIRE AGREEMENT: The Lessor may have made oral statements and /or provided advertising literature or brochures about the
equipment described in this lease. Such statements, advertisements or brochures do not constitute warranties, shall not and can not be relied upon by
the lessee and are not part of this agreement. The entire agreement is embodied in this writing, which is the full understanding of the parties and
which constitutes a final expression of the parties agreement, and is a complete and exclusive statement of the terms of that agreement. No course of
prior dealing between the parties and no usage of trade is relevant to explain this agreement nor shall such course of dealing or usage of trade except
as expressly incorporated herein, be recognized to vary or modify this agreement. In addition thereto, no understanding or agreement purporting to
modify or vary the terms of this document shall be binding unless hereafter made in writing and signed by the party to be bound.
NO WARRANTY: LESSOR, MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE EQUIPMENT LEASED AND ASSUMES NO
RESPONSIBILITY FOR ITS CONDITION. ANY WARRANTY, EXPRESS OR IMPLIED, IS HEREBY EXCLUDED AND DISCLAIMED
INCLUDING THE IMPLIED WARRANTY OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE. IN ADDITION
THERETO, LESSOR MAKES NO WARRANTY, EXPRESS OR IMPLIED AGAINST PATENT OR LATENT DEFECTS IN MATERIAL,
WORKMANSHIP OR CAPACITY OF THE EQUIPMENT, NOR WARRANTY THAT THE EQUIPMENT WILL SATISFY THE
REQUIREMENTS OF ANY LAW, RULE, SPECIFICATION OR CONTRACT WHICH PROVIDES FOR SPECIFIC MACHINERY OR
OPERATIONS, OR SPECIAL METHOD; ALL LIABILITIES ARISING THEREFROM ARE ENTIRELY ASSUMED BY LESSEE AT
LESSEE'S SOLE RISK AND SOLE EXPENSE. LESSEE HEREBY WAIVES ALL CLAIMS FOR SPECIAL, INDIRECT, OR
CONSEQUENTIAL DAMAGES INCLUDING, BUT NOT LIMITED TO PERSONAL INJURY, PROPERTY DAMAGE, DAMAGE TO OR
LOSS OF EQUIPMENT, LOST PROFITS OR REVENUE, COSTS OF RENTING REPLACEMENTS AND OTHER ADDITIONAL EXPENSES.
THE RENTAL PRICE STATED FOR THE EQUIPMENT IS A CONSIDERATION IN LIMITING LESSOR'S LIABILITY. NO ACTION,
REGARDLESS OF FORM, ARISING OUT OF THE TRANSACTIONS UNDER THIS AGREEMENT MAY BE BROUGHT BY LESSEE MORE
THAN ONE YEAR AFTER THE CAUSE OF ACTION HAS ACCRUED.
INDEMNITY: Lessee shall indemnify Lessor against, and fully hold Lessor harmless from all claims, actions, proceedings, losses, damages,
injuries, deaths, thefts, liabilities, disabilities, including attorney's fees, arising out of or connected with, or resulting from the leased equipment,
including without limitation the manufacture, selection, delivery, possession, use, operation, or return of such equipment. This provision also
includes but is not limited to all claims and suits wherein the Lessor is claimed to have been negligent in connection with the lease of said equipment
or is said to have leased defective or unreasonably dangerous equipment. Lessor shall not be liable for any damages, losses or expenses as a result of
Lessee's negligence, whether deemed active or passive and whether or not any such negligence is the sole cause of any damage, loss or expense.
SERVICE BY LESSOR: If Lessor is requested to repair or maintain the equipment, the Lessee agrees to pay Lessor's customary standard and
overtime rates for parts and repairs and any failure of Lessee to pay the Lessor is a default of this lease and Lessor shall have all remedies of default
provided for in this lease. Lessee is responsible for meeting all manufacturer warranty requirements for parts and labor to preserve the warranty.
TITLE: All said equipment including but not limited to any and all replacement parts relative thereto, shall remain personal property, and title
thereto shall remain in Lessor exclusively. Lessee shall keep the equipment free from any and all liens and claims, and shall do or permit no act
where Lessor's title or rights may be encumbered or impaired. Lessee agrees to give Lessor immediate notice of any levy or seizure attempt upon
said equipment and to indemnify Lessor against all loss and damages caused by any such action. Upon expiration or termination hereof, the
equipment shall be returned unencumbered to Lessor by Lessee at Lessee's sole expense in the same condition as received by Lessee, reasonable
wear and tear resulting from proper use thereof alone accepted. Lessee shall pay rent at the said rate until all said equipment arrives at Lessor's
premises.
UNIONS: The Lessee agrees to pay any charges for work or inspection required by labor unions. At its option, the Lessee may refuse to do any
repair work on the equipment in time of strike or any cause beyond its control or in violation of any rule that may effect the equipment. At all times
material hereto, the Lessor reserves the right to remove the equipment from any jobsite when in its opinion the equipment is in danger because of
strikes or any other condition.
- 2 - Lease 12/22/2011
INSURANCE: Lessee, at its own expense, shall keep said equipment insured, for the term of this lease and any renewals or extensions thereof, for
the full insurable value thereof, as determined by Lessor, against fire and theft with extended or combined additional coverage and against such other
risks necessary for Lessee's protection and protection of the equipment in such amounts as Lessor may specify. Lessee shall immediately after
receiving the equipment deliver to Lessor the policies or evidence of insurance with a standard long form endorsement attached thereto, showing
losses, if any, payable to Lessor, in form satisfactory to Lessor, together with receipts for the premiums thereunder; failure to deliver such evidence
or policies of insurance shall be deemed a default of this lease. Lessee shall maintain a minimum of $1,000,000.00 liability insurance naming
Petersen Industries, Inc. as additional insured.
TAXES: Lessee shall comply with and conform to all laws, ordinances and regulations relating to the ownership, possession, use or maintenance of
the equipment, and save Lessor harmless against any actual or asserted violation brought by any party against Lessor, and pay all costs and expenses
of every character, including attorney's fees, occasioned by or arising out of such asserted violation. Lessee agrees that, during the term of this lease,
in addition to the rent and all other amounts provided herein to be paid, Lessee will assume all responsibility for tangible property tax reporting,
filing, and payment for the equipment specified in this lease as provided by Florida Statutes and /or any other applicable law(s). Upon request, the
Lessee shall forthwith provide to the Lessor satisfactory proof of tangible property tax reporting, filing, and payment. Lessee shall promptly
reimburse the Lessor upon Lessor's demand for any taxes paid by the Lessor including, but not limited to, sales taxes, assessments, tangible property
tax (if not paid directly by the Lessee), and other customary governmental charges levied or assessed upon the interest of the Lessee or upon the use
of said equipment by the Lessee. Lessee agrees to reimburse the Lessor for reasonable legal fees and administrative costs incurred by the Lessor in
the resolution of any and all disputes related to the aforementioned tax requirements. If Lessee in any way defaults hereunder, Lessor shall have all
rights of default provided for in this lease, and in addition thereto Lessee shall solely bear the cost and expense, including, but not limited to all
attorney's fees, penalties and interest, of Lessor having to file and pay any and all applicable taxes as determined by Lessor.
INSPECTION: Lessee shall, whenever requested, advise Lessor of the exact location and condition of the equipment and shall give Lessor
immediate notice of any attachment or other judicial process affecting the equipment, and indemnify and save Lessor harmless from any loss or
damage caused thereby. Lessor may, for the purpose of inspection, at all reasonable times enter upon any job, building or place where the equipment
is located and may remove the equipment forthwith, without notice to Lessee, if the equipment is, in the opinion of Lessor, being used beyond its
capacity or in any manner improperly cared for or abused; any and all such actions of Lessor shall not be construed as a trespass.
NON - WAIVER: Time is of the essence. Lessor's failure at any time to require strict performance by Lessee of any of the provisions hereof shall
not waive or diminish Lessor's right thereafter to demand strict compliance therewith or with any other provision. Waiver of any default shall not
waive any other default. Lessor's rights hereunder are cumulative and not alternative.
DEFAULT: In the event of any default by Lessee hereunder in the payment of any monthly charge, or in the performance of any terms of this lease,
or if in the opinion of Lessor, the equipment is being misused or damaged in excess of ordinary wear and tear, or if Lessee becomes insolvent or
ceases to do business as going concern or a petition in bankruptcy or for reorganization is filed by Lessee, or if Lessee, without Lessor's prior consent
attempts to remove, sell, transfer, encumber, sublet, or part with the possession of said equipment or any part thereof, then this lease may be
terminated at the election of the Lessor without notice and Lessor and /or its agents may without notice or liability or legal process enter into any
premises of or under the control or jurisdiction of Lessee or any agent of Lessee where said equipment may be or by Lessor is believed to be and
repossess the equipment, including disconnecting and separating all thereof from any other property, using all force necessary and permitted by
applicable law so to do without waiving any rights to any amounts due to Lessor hereunder or any other rights of Lessor hereunder; any and all such
actions of the Lessor shall not be construed as trespass; Lessee hereby expressly waives all further rights to possession of the equipment and all
claims or injuries suffered through or loss caused by such repossession. In the event of any such default, the entire total minimum rental shall be
immediately due and payable without any demand by Lessee or notice to Lessee. Lessee agrees to pay all costs of collection including reasonable
attorney's fees required by Lessor to recover any monies due under this lease or to recover the leased equipment and Lessee hereby waives any and
all affirmative defenses and counterclaims arising out of Lessor's enforcement of this lease. Any litigation relating to this lease agreement shall be in
the Courts of Polk County exclusively. Lessee agrees to waive any and all rights to a trial by jury. Lessee further agrees to waive any and all rights
of stay imposed against Lessor by §362 of the Bankruptcy Code.
ASSIGNMENTS: Neither this lease nor Lessee's rights hereunder shall be assignable except with Lessor's prior written consent; the conditions
hereof shall bind any permitted successors and assigns of Lessee. If Lessor assigns the rents reserved herein or all or any of Lessor's other rights
hereunder, assignee's rights shall be independent of any claim of Lessee against Lessor; Lessee on receiving notice of any such assignment shall
abide thereby and make payment as may therein be directed. Following such assignment the term "Lessor" shall be deemed to include or refer to
Lessor's assignee.
SUBLEASING: The equipment hereby leased shall not be sublet without the prior written consent of the Lessor nor shall said property be moved
out of the state specified in this contract without the written consent of the Lessor.
MISCELLANEOUS: Lessee will not change or remove any insignia or lettering on the equipment and shall conspicuously identify each item of the
leased equipment by suitable lettering thereon to indicate Lessor's ownership. All transportation charges shall be borne by Lessee. All notices
relating hereto shall be by registered mail to Lessor or Lessee at its respective address above shown or at any later address last known to the sender.
If any part of this lease is contrary to, prohibited by or deemed invalid under applicable laws or regulations of any jurisdiction, such provision shall
be deemed automatically amended so as to be consistent, valid, and enforceable under applicable laws or regulations; such provision shall not nor
ever invalidate the remaining portions of this lease. This lease is executed in Florida, and all rights and liabilities under this lease shall be determined
in accordance with the law of Florida. In case of any default by Lessee hereunder, Lessor may sell the equipment or may re -lease the equipment for a
term and a rental which may be equal to, greater than, or less than the rental and term herein provided. Any proceeds of sale, received within 60 days
after repossession, or any rental payments received under a new lease made within such 60 days for the period prior to the expiration of this lease,
less Lessor's expenses of taking possession, storage, reconditioning and sale or re- leasing, shall be applied on the Lessee's obligations hereunder, and
- 3 - Lease 12/22/2011
Lessee shall remain liable for the balance of the unpaid aggregate rental set forth above as liquidated damages. Lessee's liability shall not be reduced
by reason of any failure of Lessor to sell or re -let within such 60 days.
PURCHASE OPTION: At any time after , 20 , Lessee shall have the right, at its
option, to purchase the equipment. Lessee's option to purchase may not, however, be exercised until all rentals incurred prior to that time and all
terms and conditions of this lease required of Lessee shall have been completely performed. To exercise this option, Lessee shall give Lessor written
notice of its intentions no less than 30 days prior to the expiration of the original term hereof. The purchase price shall be:
If Lessee is a corporation, this Lease is executed by authority of its Board of Directors.
(Lessee)
(Signature of Individual or Name of Corporation or Partnership)
By (Seal)
(Witnesses as to signature of Lessee) (If Corporation, have signed by President, Vice - President or
Treasurer and give official title. If Owner or Partner, state which)
ACCEPTED:
(Lessor)
By Its
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