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HomeMy WebLinkAboutResolution - 2010-R0578 - Contract 9848 Bailey Boiler Works, Inc. Temporary Boiler Lubbock Airport - 11/15/2010Resolution No. 2010-RO578 November 15, 2010 Item No. 5.16 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock, a Lease Agreement for Nationwide Mobile Boiler Room B524 (National Board #28069) Mobile Boiler Room w/Heat Exchanger HE -6 (National Board #120996), by and between the City of Lubbock and Bailey Boiler Works, Inc., Lubbock, Texas, and related documents. Said Agreement is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council this November 15, 2010 TOM MARTIN, MAYOR ATTEST: RebecGarza, City Secretary APPROVED AS TO CONTENT: - IL I- a'LZP"t (") —0 James Loomis, Executive Director, Airport APPROVED AS TO FORM: gs ccdocs Bailey Boiler Works lnc.res 10.29.10 Resolution No. 2010—R0578 Bailey Boiler Works, Inc. Contract No. 9848 1103 FM 1585 Lubbock, TX 79414 806-745-1993 LEASE AGREEMENT LEASE made this 15th day of November 2010, by and between BAILEY BOILER WORKS, INC. of 1103 FM 1585, Lubbock Texas, hereinafter referred to as the lessor, and City of Lubbock., hereinafter referred to as the lessee in consideration of the mutual promises herein contained, the parties hereto agree as follows: ARTICLE I. LEASE Equipment Leased The lessor hereby leases to the lessee and the lessee hereby leases and hires from the lessor, all machinery, equipment, and other property described as: Nationwide Mobile Boiler Room B524 (National Board #28069) Mobile Boiler Room w/Heat Exchanger HE -6 (National Board #120996) Please note: All shipping(return shipping), loading(reloading), unloading, installation and removal are Additional to monthly rental charges. ARTICLE 11. TERM OF LEASE The term of this lease shall be for a period of (4) months with all lease payments due as set out below. In the event that the lessee desires to extend the lease for an additional month, payment of the lease payment, as provided below, shall extend the lease for additional month if all conditions for payment are met as set out below. The lease shall be considered a month to month lease provided all requirements of this lease is met as set out in the lease agreement. ARTICLE III. RENT W130 010eIrd The monthly rent for each described items of equipment shall be as listed in Exhibit "A." The lessee shall pay said rent in advance, in the above amounts, with all payments to be make on or before the first day of each month, or succeeding month, at the office of the lessor, or to such other person or at such other place as the lessor may from time to time designate in writing. Default If the lessee with regard to any item or items of equipment fails to pay any rent or other amount herein provided within ten (10) days after the same is due and payable, or if any execution or any other writ of process shall be issued in any action of proceeding against the lessee whereby said equipment may be seized, taken or distrained, or if a proceeding in bankruptcy, receivership, or insolvency shall be instituted by or against the lessee or its property, or if the lessee shall enter into any arrangement or compensation with his creditors, or if the lessee , with regard to any item or items of equipment, fails to observed, kept, or performed by the lessee, the lessor shall, if such default shall continue five (5) days after written notice thereof, have the right to exercise any one or more of the following remedies: (1) To declare the entire amount of rent hereunder immediately due and payable as to any or all items of equipment, without notice or demand to the lessee. (2) To sue for and recover all rents and other payments then accrued or thereafter accruing, with respect to any or all items of equipment. (3) To take possession of any or all items of equipment, without demand or notice, wherever the same may be located, without any court order or other process of law. The lessee hereby waives any and all damages occasioned by such taking of possession shall not constitute a termination of this lease as to any of all items of equipment unless the lessor expressly so notifies the lessee in writing. (4) To terminate this lease as to any or all items of equipment. (5) To pursue any other remedy at law or equity. Not withstanding any said repossession, or any other action which the lessor may take, the lessee shall be and remain liable for the full performance of all obligations to be performed by the lessee under this lease. All such remedies are cumulative, and may be exercised concurrently or separately. Interest If the lessee fails to pay any part of the rent herein reserved or any other sum required by the lessee to be paid to the lessor within ten (10) days after the due date thereof, the lessee shall pay to the lessor interest on such delinquent payment form the expiration of said ten (10) days until paid at the rate of one and one-half percent (1-1/2%) per month. ARTICLE IV. USE Manner of Use The lessee shall use the equipment in a careful am proper manner and shall comply with all laws, ordinances, and regulations relating to the possession, use or maintenance of the equipment. The lessee will be responsible for a water treatment program and all costs attached to the program. The water treatment program must have prior approval of Bailey Boiler Works, Inc. and lessee agrees to pay for any appropriate repairs if equipment is damaged as a result of this water treatment program. Operation Lessee, as evidenced by his signature at the end of this agreement, affirms that he has received, and that the lessor has provided, complete instructions to the operator(s) of the equipment, the subject of this lease, concerning the safe and proper operation of the equipment. ARTICLE V. INSPECTION Lessee's Inspection The lessee shall inspect the equipment within forty-eight (48) hours after receipt thereof. Unless the lessee within said period of time gives written notice to the lessor, specifying any defect in or other proper objection to the equipment, the lessee agrees that is shall be conclusively presumed, as between the lessor and the lessee, that the lessee has fully inspected and acknowledged that the equipment is in good condition and repair, and the lessee is satisfied with and has accepted the equipment in such good condition and repair. Lessor's Inspection The lessor shall, at any and all times during business hours, have the right to enter into and on the premises where the equipment may be located for the purpose of inspecting the same or observing its use. The Lessee shall give the Lessor immediate notice of any attachment or other judicial process affecting any item of equipment and shall, whenever requested by the Lessor, advise the Lessor of the exact location of the equipment. ARTICLE VI. ALTERATIONS AND REPAIRS Page 2 of 7 Alterations Without the prior written consent of the Lessor, the Lessee shall not make any alterations, additions, or improvements to the equipment. All additions and improvements of whatsoever kind or nature made to the equipment shall belong to and become the property of the Lessor on the termination of this Lease. Repairs Lessor agrees to provide repairs and to keep the equipment in an operational condition, consistent with the use for which it was leased, in the event of equipment failure, unless the reason for the failure has been determined by the lessor as, negligence or intentional misuse or incorrect operation of the equipment on the part of the Lessee, this agent(s) or employee(s). ARTICLE VII. LOSS AND DAMAGE Risk of Loss and Damage The Lessee hereby assumes and shall bear the entire risk of loss and damage to the equipment from any and every cause. No loss or damage to the equipment or any part thereof shall impair any obligation of the Lessee under this Lease which shall continue in full force and effect. Options of Lessor In the event of loss or damage of any kind to any item of equipment, the Lessee, at the option of the Lessor, shall: (1)Place the same in good repair, condition, and working order; or (2)Replace the same with like equipment in good repair, condition, and working order. Stipulated Loss Value In the event that the equipment is determined by the Lessor to be lost, stolen, destroyed, or damaged beyond repair, the Lessee shall pay the Lessor therefore in cash the "Stipulated Loss Value" as set forth below. On such payment this Lease shall terminate with respect to such item of equipment so paid for and the Lessee thereon shall become entitled to such item of equipment as -is -where -is without warranty, express or implied, with respect to any matter whatsoever. Nationwide MBR, as described above, $525,000.00 Nationwide HX, as described above, $25,000.00 ARTICLE VIII. Surrender On the expiration or earlier termination of this Lease, with respect to any item of equipment, the Lessee shall (unless the Lessee has paid the Lessor in cash the "Stipulated Loss Value" of such item of equipment as set out above) return the same to the Lessor in good repair, condition, and working order (ordinary wear and tear resulting from proper use thereof alone expected) in the following manner as may be specified by the Lessor: (1)By delivering such item of equipment at the Lessee's cost and expense to such place as the Lessor shall specify within the city or county in which it was delivered to the Lessee or to which it was moved with written consent of the Lessor; or (2)By allowing Lessor to come onto the property of Lessee to pick up the item(s) of equipment. In such event, Lessor shall not be liable for any reconnections, repairs or damages caused by Lessee's property caused by the proper removal of the surrendered equipment. ARTICLE IX Page 3 of 7 INSURANCE AND TAXES Insurance The Lessee shall keep the equipment insured against all risks of loss or damage from every cause whatsoever for not less than the full "Stipulated Loss Value" thereof as determined by the Lessor. The Lessee shall carry public liability and property damage insurance covering the equipment. All said insurance shall be in the form and amount and with companies approved by ;the Lessor, and shall be in the joint names of the Lessor and Lessee. The Lessee shall pay the premiums therefore and shall deliver said policies, or duplicated thereof, to the Lessor. Each insurer shall agree, by endorsement on of such insurance, at the option of the Lessor, shall be applied: (1)Toward the replacement, restoration, or repair of the equipment; or (2)Toward payment of the Lessee's obligations hereunder. The Lessee hereby appoints the Lessor as the Lessee's attorney in fact to make claim for, receive payment of, and execute and endorse all documents, checks, or drafts for loss or damage under any said insurance policy. Taxes The Lessee shall keep the equipment free and clear of all levies, liens, and encumbrances and shall pay all license fees, registration fees, assessments, charges, and taxes which may nor or hereafter be imposed on the ownership, leasing, renting, sale, possessions, or use of the equipment, excluding, however, all taxes on or measured by the Lessor's income. Lessor's Payment In case of failure of the Lessee to procure or maintain said insurance or to pay said fees, assessments, charges, and taxes, as hereinbefore specified, the Lessor shall have the right, but shall not be obligated, to effect such insurance, or pay said fees, assessments, charges, and taxes, as the case may be. In that event, the cost thereof shall be repayable to the Lessor with the next installment of rent, and failure to repay the same shall carry with it the same consequences, including interest at one and one-half percent (1 %z%) per month, as failure to pay any installment of rent. WARRANTIES THE LESSOR MAKES NO WARRANTIES, EITHER EXPRESS OR IMPLIED, AS TO ANY MATTER WHATSOEVER, INCLUDING, WITHOUT LIMITATION, THE CONDITION OF THE EQUIPMENT, ITS MERCHANTABILITY, OR ITS FITNESS FOR ANY PARTICULAR PURPOSE. ARTICLE X. PERSONAL PROPERTY The equipment is, and shall at all times be and remain, personal property, notwithstanding that the equipment or any part thereof may now be, or hereafter become, in any manner affixed or attached to, or embedded in, or permanently resting on, real property or any building thereon, or attached in any manner to that which is permanent as by means of cement, plaster, nails, bolts, screws, or otherwise. ARTICLE XI. OWNERSHIP AND ASSIGNMENT Ownership The equipment is and shall at all times be and remain, the sole and exclusive property of the Lessor. The Lessee shall have no right, title, or interest therein, except as expressly set forth in the lease. Assignment Page 4 of 7 Without prior written consent of the Lessor, the Lessee shall not: (1)Assign, transfer, pledge, or hypothecate this Lease, the equipment, any part of it, or any interest in it; or (2)Sublet or lend the equipment or any part of it, or permit the equipment or any part of it to be used by anyone other than the Lessee or the Lessee's employees. Consent to any of these prohibited acts applies only in the given instance, and is not a Consent to any subsequent like act by the Lessee to any other person. ARTICLE XII. PURCHASE OPTION At any time after the execution of the Lease, of all rents theretofore due and payable have been paid in full, the Lessee shall have the right and privilege, at its option, to purchase any item(s) of equipment, the subject of this lease, at the fair market value thereof at the time of exercise of such option. Upon the exercise of this option, the Lessor will duly execute and deliver to the Lessee all documents necessary and proper to effect transfer of ownership of the equipment to the Lessee, free and clear of all encumbrances, security interests, and liens (other than encumbrances, security interest, or liens suffered or permitted by the Lessee to become effective thereon), upon payment by the Lessee in cash or certified check of the full amount of the option price and thereupon this lease shall terminate as to such equipment and no further rents shall become due in respect of the equipment so purchased by the Lessee. It is further agreed that the first 0 months rental payments will apply toward the purchase price of the equipment. ARTICLE XIII. GENERAL PROVISIONS Lessor's Expense The Lessee shall pay the Lessor all costs and expenses, including attorney's fees, incurred by the Lessor in exercising any of its rights or remedies hereunder or enforcing any of the terms, conditions, or provisions hereof if Lessor is successful in a court of law. Concurrent Remedies No right or remedy herein conferred on or reserved to the Lessor is exclusive of any other right or remedy herein or by law or equity provided or permitted; but each shall be cumulative of every other right remedy given hereunder or now or hereafter existing at law or in equity or by statute or otherwise, and may be enforced concurrently therewith or from time to time. Non waiver No covenant or condition of the Lease may be waived except by the written consent of the Lessor. Forbearance or indulgence by the Lessor in any regard whatsoever shall not constitute a waiver of the covenant or condition to be performed by the Lessee to which the same may apply, and , until complete performance by the Lessee of any covenant or condition, the Lessor shall be entitled to invoke any remedy available to the Lessor under this Lease or by law or in equity despite said forbearance or indulgence. Entire Agreement This Lease constitutes the entire agreement between the Lessor and the Lessee and supercedes any prior understandings or written or oral agreements between the parties respecting the within subject matter. It shall not be amended, altered, or changed except by a written agreement signed by the parties hereto. Notices Service of all notices under the Lease shall be sufficient if given personally or mailed to the party involved at its respective address hereinabove set forth, or at such address as such party may provide in writing from time to time. Page 5 of 7 Any such notice mailed to such address shall be effective when deposited in the United States mail, duly addressed, and with postage prepaid. Time Time is of the essence in this Lease and in each and all of its provisions. Texas Law to Apply This lease shall be construed under and in accordance with the laws of the State of Texas, and all obligations of the parties created hereunder are performable in Lubbock County, Texas or the county where the equipment is located. Parties Bound This lease shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, legal representatives, successors and assigns where permitted by this lease. Legal construction In any one or more of the provisions contained in this Lease shall for any reason be held to be invalid, illegal, or un- enforceable in any respect, such invalidity, illegality, or un -enforceability shall not affect any other provision thereof and this lease shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. IN WITNESS WHEREOF the parties hereto have executed this Lease the day anear first above written. LESSEE: City of Lubbock By: Signature By: Tom Martin, Mayor ATTEST: APPROVED AS TO FORM: Amy Si Assistant Vity 450&ey Page 6 of 7 By: Luther Bailev INC. Bailey Resolution No. 2010—RO578 Boiler Works, Inc. twb.64419-54 1103 FM 1585 Lubbock, Texas79423 24 HR: 806/745-1993 FAX: 806/745-9586 EXHIBIT A SUBJECT: Proposal for Temporary Steam Boiler Hot Water HX Installation at the Lubbock Airport. We are pleased to quote the following rental equipment, material, freight and labor to provide a rental boiler and heat exchanger, freight, installation and removal. Steam Rental Boiler: Nationwide Boiler Rental RENTAL TERMS AND CONDITIONS Rental Rate: $17,000.00/Month (Mobil boiler room and heat exchanger) Delivery: Ship November 1, 2010 Taxes: The price does not include use taxes. All rentals will be billed in accordance with local area sales tax rates unless a qualifying exemption is provided prior to shipment. Air & Operating Permits: Not included Insurance: Not included Routine Maintenance: Not included Expiration: This quotation is valid for 30 days and subject to prior rental. Terms of payment: A security deposit equal to one (1) month's rent is due with the order. Each month's rent is billed in advance and due at the beeinninp, of each rental period. Freight charges due in 7 days. Lease/Rental Agreement: All terms and conditions shall be in accordance with Nationwide Boiler's standard Lease/Rental Agreement. Lessee shall provide proof of insurance coverage for equipment. Page 1 of 3 TACLA016059E Regulated by The Texas Department of Licensing and Regulation, P. O. Box 12157, Austin, Texas 78711, 1-800-803-9202, 512463-6599 New Mexico License MM4 #16843, ASME "S", "W', "U", "PP" & NB "R" rental boiler proposal rev 2 Bailey Boiler Work% Inc. �st��1���e�i1�9�b� 1103 FM 1585 Incoming Freight: Outgoing Freight: Start -Up Service & Operator Training: Lubbock, Texas 79423 24 HR: 806/745-1993 rAA: MY "+J-YJOu Prepaid and added at cost plus 15% handling fee. Prepaid and added at cost plus 15% handling fee. See attached Service Terms and Conditions Boiler Location: The temporary boiler is 141" height x102" widthexchangerx 576" length. will set under e entire unit will have to set out from under the overhang (11'). the overhang, closer to the boiler room. The support (from the building) for the stack will be agreed upon, depending on the best application. Boiler Piping and Utilities: Thee owateriler land connect eetrical supply.existing The penetration into the water supply and return, natural gas, existing system will be, in general, at points where the old boiler connected to the system. The piping and electrical will run through the overhead doorway, at the floor level. This will allow the overhead door to be as closed as possible. The hot water will be circulated with the existing pump station. Boiler Area Barricades: To be provided by the Airport. Proposed Timeframe: ork to start around the last two weeks of October, 2010. 1. Boiler room prefab/prep w 2. Temporary boiler to be shipped November 1, 2010. 3. Test fire by November 15, 2010. Estimated Cost Schedule: ------ $68,000.00 Rental Cost (4 months) ---------------------------------------------- Freight; inbound and outbound ------------------------------------------------ -TBD* Piping, valves, stack and material ------------------------------------------ $8,260.00 Insulation for outside piping ---------------- -------------------- $1,200.00 Labor and equipment $20,300.00 ------------------------------------------------- Plus any any applicable tax. Page 2 of 3 TACLA016059E Regulated by The Texas Department of Licensing and Regulation, P. O. Box 12157, Austin, Texas 78711, 1-800-803-9202, 512-463-6599 New Mexico License MM4 # 16843, ASME "S", "H", "U", "PP" & NB "R" rental boiler proposal rev 2 Bailey Boiler Works, Inc.t�l�1�5 1103 FM 1585 Lubbock, Texas 79423 24 HR: 806/745-1993 FAX: 806/745-9586 NOTE 1: The boiler rental is paid in advance, monthly. The first month's rent and freight cost will be required with Purchase Order ($17,000.00). The rental fee will be billed monthly (30 days). NOTE 2: A Rental/Lease Agreement must be returned signed with the Purchase Order and deposit. NOTE 3: If any fuel or water regulators are required that are not mounted on the rental equipment, the cost will be additional. *NOTE 4: The boiler is located in Texas and the HX is in California. Both can be returned to the Texas location, after rental. Page 3 of 3 TACLA016059E Regulated by The Texas Department of Licensing and Regulation, P. O. Box 12157, Austin, Texas 78711, 1-800-803-9202, 512463-6599 New Mexico License MM4 #16843, ASME "S", "14", "U", "PP" & NB "V rental boiler proposal rev 2