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HomeMy WebLinkAboutContract 47878 r� CITY SECIETAW CONTRACT 40 I CAPITAL EQUIPMENT LEASE AGREEMENT BETWEEN CITY OF FORT WORTH AND ANDRITZ SEPARATION INC. 2.OM BELT FILTER PRESS OFFICIAL RECORD CITY SECRETARY FT.WORTH, TX CAPITAL EQUIPMENT LEASE AGREEMENT This CAPITAL EQUIPMENT LEASE AGREEMENT made this 9'h day of.Tunes 2016 (hereinafter called the"Effective Date")between CITY OF FORT WORTH,Texas, a municipal corporation, located in Tarrant, Denton,Parker and Wise Counties,(hereinafter called the "Lessee"), and ANDRITZ SEPARATION INC., a Texas corporation, having its principal place of business at 1010 Commercial Blvd. S.,Arlington, TX 76001 (hereinafter called the "Lessor"). WHEREAS, Lessor has developed and acquired specialized techniques, inventions, practices,knowledge, know-how, skill,experience and other proprietary information relating to the Equipment(as hereinafter defined)that is the subject of this Contract; and WHEREAS, Lessee desires to lease certain belt press equipment("Equipment'),as set forth in the Contract Documents, in connection with Lessee's process facility(hereinafter called the"Project")at Village Creek Biosolids Processing facility,2501 Greenbelt Road,Fort Worth,TX 76118(hereinafter called the"Site"); NOW THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, the parties hereby agree as follows: 1. Contract Documents The Contract Documents, which constitute the entire agreement(hereinafter sometimes collectively referred to as the "Contract") between Lessor and Lessee,consist of: (i) This Capital Equipment Lease Agreemcnt(called the"Lease'); (ii) Attachment A—Technical Description of Scope Page 2 2. The Equipment Lessor agrees to lease to Lessee, and Lessee agrees to lease from Lessor, subject to the terms and conditions hereinafter set forth,the Equipment as more specifically described in Appendix A. Lessee agrees to give Lessor access to The Equipment for testing and technical development purposes during the Lease Term. 3. The Equipment Value and the Capital Equipment Value The present equipment value for the Equipment is $265,000 US (the"Equipment Value"). The Equipment Value includes all payroll taxes imposed with respect to the Equipment, but is exclusive of all other taxes,as provided in Article 16 below. 4. Lease Term This Lease shall begin when both parties having signed the Capital Equipment Lease Agreement("Effective Date")and shall terminate five years from the Effective Date, unless extended by written agreement signed by both Parties(hereinafter called"Termination Date"), unless otherwise terminated in a manner consistent with the terms of this Lease. 5. Purchase Price and Option to Purchase The Purchase Price of the Equipment at Termination Date shall be$14,000.00. If the Lessee is not in default under this Lease, the Lessee shall have the option to purchase the Equipment on the Termination Date for the Purchase Price. The Lessee may exercise this option by providing written notice to the Lessor of such intent as least one(1) month before the Termination Date. At the Termination Date, if the Lessee has not provided Lessor notice of its election to purchase the Equipment at the Purchase Price the option to purchase shall expire and the Lessee will dismantle,pack and ship at its own cost the Equipment Page 3 f to Lessor's site selected by the Lessor. Lessee shall pay Lessor for damage it causes to the Equipment other than for ordinary wear and tear, if any. The Parties may agree to allow for the Lessee to purchase the equipment prior to the Termination Date. If the agreed upon Purchase Price of the equipment is more than $49, 995.00 then the Lessee must obtain authority from the Fort Worth City Council. 6. Lease Payments The yearly lease payment shall be paid in advance in installments of$ 1.00 US each year,beginning date of first payment and on the first day of each succeeding month until the Termination Date. Such payment shall be made to Andritz Separation Inc., Attention: Accounts Payable, at 1010 Commercial Blvd. S., Arlington,TX 76001. 7. Site and Delivery of Equipment. The Equipment shall be located at Village Creek Biosolids Processing Facility, called the"Site",during the Lease Term, and shall not be removed from that location without the Lessor's prior written consent and instructions. Lessor shall deliver the Equipment to Lessee, DDP the Site, on or about June 9,2016. Lessor will provide Lessee written notification of equipment shipping dates and estimated delivery dates. 8. Mechanical Warranty. Lessor warrants to Lessee that the Equipment will be delivered free from defects in material and workmanship. This mechanical warranty shall commence upon Delivery of the Equipment and shall expire on the earlier to occur of thirty-six(36)months from initial operation of the Equipment and forty-two(42)months from final delivery of the Equipment(the "Mechanical Warranty Period"). If during the Mechanical Warranty Period Lessee discovers a Page 4 defect in material or workmanship and gives Lessor prompt written notice thereof, subject to Lessor's right to review and audit Lessee's maintenance and operating records, Lessor will, at its option, either deliver to Lessee, DDP the Site,a replacement part or repair the defect in place. Lessor will have no warranty obligations under this paragraph 8.1 (i)if the Equipment has not been operated and maintained in accordance with generally approved industry practice and with Lessor's specific written instructions and the defect results from such operational or maintenance failure; (ii) if the Equipment is used in connection with any mixture or substance or operating condition other than that for which it was designed and such mixture, substance or operating condition causes the defect; (iii) if the Equipment is repaired by someone other than Lessor (without Lessor's approval),but only to the extent that such repair increased the cost of repair or replacement,or was the cause, of the defect; (iv) if the Equipment has been intentionally or accidentally damaged, other than by Lessor or its personnel and such damage causes the defect; or(v)for corrosion,erosion,ordinary wear and tear or in respect of any parts which by their nature are exposed to severe wear and tear or are considered expendable and were otherwise in conformity with the relevant specifications. The Lessee shall maintain at the Lessee's cost,the Equipment in good repair and operating condition,allowing for reasonable wear and tear. Any parts for the repair of the Equipment should be from the Lessor's OEM list. THE EXPRESS WARRANTIES LESSOR MAKES IN THIS PARAGRAPH 8 ARE THE ONLY WARRANTIES IT WILI,MAKE, THERE ARE NO OTHER WARRANTIES, WHETHER STATUTORY,ORAL,EXPRESS OR IMPLIED. IN PARTICULAR, THERE ARE NO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Page 5 9. Risk of Loss and Damages The Lessee assumes all risks of loss or damage to the Equipment from any causes starting upon delivery at Site, and shall provide evidence of insurance, which may be self insurance,or other ability to reimburse Lessor satisfactory to Lessor against loss until the Equipment is returned to the Lessor or until Lessor is in receipt of payment for the Residual Value from the Lessee, and Title is transferred to the Lessee. If the Residual Value of the Equipment is more than $49,995.00,the Lessee must seek approval from the Fort Worth City Council to settle claim. 10. Title The Equipment will be deemed to be personal property of the Lessor,regardless of the manner in which it may be attached to any other property or become a fixture thereof. The Lessor shall be deemed to have retained title to the Equipment at all times, unless the Lessee elects the option to purchase the Equipment, in which case title shall transfer to Lessee only upon full payment for the Purchase Value for the Equipment. The Lessee shall immediately advise the Lessor regarding any notice of any claim, levy, lien, or legal process issued against the Equipment. Lessor warrants to Lessee that, upon such transfer of Title, if any,the Equipment will be free of any liens or encumbrances of any kind. If there are any such liens or encumbrances, Lessor will cause them to be discharged promptly after Lessor becomes aware of them or after notification from Lessee. 11. Assignment The Lessee shall not assign or sublet any interest in this Lease or the Equipment or permit the Equipment to be used by anyone other than the Lessee,Lessee's employees or Page 6 Lessor's employees without Lessor's written consent, except Lessee may permit use of the equipment by employees of any company that is controlled,controlled by, or under common control ("Affiliate")of the Lessee. Neither party shall assign any rights or obligations under this Lease without the prior consent of the other party. 12. Non-Waiver The failure of either party to enforce any provision of this Lease shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of the Lease. 13. Limitation of Liability Notwithstanding any other provision in this Lease,the following limitations of liability shall apply: In no event, whether based on contract,tort(including negligence), strict liability or otherwise, shall Lessor, its officers,directors,employees, subcontractors, suppliers or affiliated companies be liable to Lessee for loss of profits or revenue or business opportunity, loss by reason of shutdown of facilities or inability to operate any facility at full capacity,or cost of obtaining replacement power,or for any special, incidental or consequential damages of any nature. The aggregate liability of Lessor,its officers, directors, employees, subcontractors, suppliers or affiliated companies,to Lessee for any claim of any kind for any loss or damage resulting from, arising out of or connected with this Lease or from the performance or breach thereof, whether based on contract, warranty, tort(including negligence), fault, strict liability,indemnity, or otherwise, shall in no event exceed the Equipment Value,exclusive for Page 7 third party claims for bodily injury, including death, indemnified by Lessor pursuant to paragraph 24. All liability of Lessor, its officers,directors,employees, subcontractors,suppliers or affiliated companies,to Lessee arising out of this Lease shall terminate on the fifth anniversary of the date of this Lease. The provisions of this Paragraph 14 shall supersede any inconsistent provisions in any instrument forming part of this Contract. The remedies provided in this Lease are Lessee's exclusive remedies. 14. Insurance Lessee shall provide evidence of insurance,or self insurance, to the satisfaction of Lessor, sufficient to cover: a. All risk insurance against of physical loss of and damage to the Equipment for not less than the full the Equipment Value,naming Lessor as loss payee, and; b. Combined public liability and property damage insurance with limits as approved by Lessor of not less than $2,000,000. 15. Taxes Lessee shall keep the Equipment free and clear of all levies, liens and encumbrances. Lessee,or Lessor at Lessee's expense from the time Lessee takes possession of the equipment. 16. Changes Neither party shall be entitled to make changes in the Equipment or to the Contract unless Lessor and Lessee have executed a written Change Order for such change. A Change Order regarding Equipment will include an appropriate adjustment to price and delivery terms. If the age 8 change impairs or improves(or speeds up) Lessor's ability to satisfy any of its obligations to Lessee, the Change Order will include appropriate modifications to the Contract. If, after the date of this Lease, new or revised governmental requirement should require a change in the Equipment,the change will be subject to this Article 17. 17. Notices Any and all notices required or permitted to be given hereunder shall be in writing and delivered in person, sent by facsimile where receipt can be verified, or sent by certified mail, return receipt requested, postage prepaid, addressed to the respective parties as follows: To Lessor: Andritz Separation Inc. 1010 Commercial Blvd. S. Arlington, TX 76001 Attn: John Madden Fax: +1 (817)419-1901 To Lessee: City of Fort Worth Ft. Worth, TX Attn: Fax: Unless otherwise specified in the Contract, any notice required or permitted to be given under the Contract shall be deemed delivered: 1) in the case of hand delivery or courier, when delivered; 2) in the case of facsimile, twenty-four hours after transmission to the number identified above with confirmed answer back; and 3) in the case of certified mail, three working days after deposit in the United States mail with postage fully prepaid addressed to the party at the address set forth above or as changed by written notice thereof to the other party pursuant to this Article. Page 9 18. Additional Documents If Lessor shall so request, Lessee shall provide such documents as is reasonably necessary for purposes of Lessor recording or filing to protect its interests in the Equipment. 19. Set Off Neither Party nor any of its affiliates shall have any right to set off claims against the other Party or any of its affiliates for amounts owed under this Contract or otherwise. 20. Force Majeure Force Majeure Defined. For the purpose of this Contract "Force Majeure" will mean all unforeseeable events, beyond the reasonable control of either party which affect the performance of this Contract, including,without limitation,acts of God, acts or advisories of governmental or quasi-governmental authorities, laws or regulations,strikes, lockouts or other industrial disturbances, acts of public enemy, wars, insurrections,riots,epidemics,pandemics, outbreaks of infectious disease or other threats to public health, lightning,earthquakes, fires, storms, severe weather, floods, sabotage,delays in transportation, rejection of main forgings and castings, lack of available shipping by land, sea or air, lack of dock lighterage or loading or unloading facilities, inability to obtain labor or materials from usual sources,serious accidents involving the work of suppliers or sub-suppliers,thefts and explosions. Suspension of Obligations. If either Lessee or Lessor is unable to carry out its obligations under this Contract due to Force Majeure,other than the obligation to make payments due hereunder, and the party affected promptly notifies the other of such delay,then all obligations that are affected by Force Majeure will be suspended or reduced for the period of Force Majeure and for such additional time as is required to resume the performance of its obligations, and the delivery schedule will be adjusted to account for the delay. lel�Page 10 Option to Terminate. If the period of suspension or reduction of operations extends for more than four(4)consecutive months or periods of suspension or reduction total more than six (6)months in any twelve (12)month period, then either Lessee or Lessor may terminate this Contract. 21. Governing Law and Forum This Contract and the performance thereof will be governed by and construed according to the laws of the State of Texas without regard to its principles of conflicts of laws. The parties hereto irrevocably submit to the jurisdiction of the Federal District Court for the Northern District of Texas, Fort Worth Division, and waive any claims as to inconvenient forum. All unresolved disputes, other than any matter for which a party seeks injunctive relief, can be referred to final and binding arbitration under the Commercial Rules of the American Arbitration Association or to the Federal District Court for the Northern District of Texas, Fort Worth Division. 22. Intellectual Property Indemnity Lessor shall defend against any suit or proceeding brought against Lessee to the extent based on a claim that any Equipment,or any part thereof, infringes any United States device patent;provided Lessor is notified promptly in writing and given authority, information and assistance for the defense of such suit or proceeding. Lessor shall satisfy any judgment or settlement,and all of Lessee's costs in connection therewith, for damages entered against Lessee in such suit. If such judgment enjoins Lessee from using any Equipment or a part thereof, then Lessor shall,at its option: (a) obtain for Lessee the right to continue using such Equipment or part; or(b)eliminate the infringement by replacing or modifying all or part of the Equipment, Page I1 following which neither Lessee nor Lessor shall have any further claims against the other under this Contract in connection with such allegation of infringement. Lessor's obligation to defend and indemnify Lessee shall not applywhere the Equipment is used in any manner other than as specified or as approved by Lessor in writing and such misuse and/or modification or modified use is the basis for the claim of infringement. 23. Generallndemnity Lessor agrees to defend and indemnify Lessee from and against any third party claim, including claims of employees of Lessor or of any subcontractor of Lessor, for bodily injury (including death)or physical property damage("Loss")arising in connection with the goods provided by Lessor hereunder or the work performed by Lessor hereunder, but only to the extent such Loss has been caused by the negligence, willful misconduct or other legal fault("Fault") of Lessor. 24. Confidentiality In order to facilitate the Contract, it may be necessary for each of the parties to disclose to the other certain information belonging to the disclosing party relating to the disclosing party's business and products that may contain the disclosing party's trade secrets and other trade data of a confidential or proprietary nature(hereinafter referred to as"Business Information"). As used herein,the term "Confidential Information"means any and all Business Information that either party,directly or through any of its affiliates or subsidiaries or any of their respective employees, agents or advisors("the Discloser"),furnishes to the other party("the L::: Page 12 Recipient")in connection with the Contract,whether furnished before,on or after the date hereof,whether furnished orally or in writing or gathered by inspection, and regardless of whether specifically identified as"confidential", together with all analyses, compilations, studies or other documents prepared by the Discloser or any of its agents,representatives(including attorneys,accountants,consultants or financial advisors)or employees that contains or otherwise reflects such information or their review of the same. Each of the parties hereby agrees that it will maintain in confidence all Confidential Information disclosed to it by the other pursuant hereto and will exercises the same degree of care to prevent disclosure of such Confidential Information to any third party as it would use for its similar information. Each of the parties further agrees that internal dissemination of the Discloser's Confidential Information by the Recipient shall be limited to those employees of the Recipient whose duties justify their need to know such information and then only on the basis of a clear understanding by those employees of their obligation to maintain the confidentiality of such Confidential Information and to restrict the use of such Confidential Information solely to the use granted to the Recipient under this Contract. Each of the parties acknowledges that the Recipient shall not have any obligations under this Contract with respect to any Confidential Information, or part thereof: i. that is,at the time of disclosure, generally known to the trade or public; ii. that becomes at a later date generally known to the trade or public through no fault of the Recipient and then only after said later date; +age iii. that is possessed by the Recipient, as evidenced by the Recipient's written or other tangible evidence, before receipt thereof from the Discloser; iv. that is disclosed to the Recipient in good faith by a third party who has an independent right to such Confidential Information and obligation to the Discloser with respect to the same; v, that is subject to the Texas Public Information Act, Texas Government Code Chapter 552; or vi. that is independently developed by Recipient's employee(s) who neither directly nor indirectly had access to such Confidential Information. provided, that the Recipient shall give the Discloser not less than five (5) business days prior notice of any intended disclosure or use under this subparagraph 25.3, which notice shall identify that portion of the Confidential Information to be disclosed or used, the subparagraph of this subparagraph 25.3 under which the Recipient claims the right to disclose or use, and the full name and address of all persons to whom the Recipient proposes to make disclosure. In the event that the Recipient shall be compelled by applicable law or legal process to disclose any Confidential Information, such disclosure shall not constitute a breach of the Contract provided that, prior to such disclosure, (i)the Recipient provides the Discloser with prompt notice of such requirement so that the Discloser may seek an appropriate protective order or other remedy, and (ii) the Recipient consults with the Discloser with respect to possible means of narrowing the scope of the required disclosures. Page 14 The obligations of the parties hereunder shall continue(i)with respect to any Confidential Information that constitutes a trade secret under applicable law, for so long as such item shall continue to constitute a trade secret under applicable law,provided that the Discloser shall identify in writing those aspects of the Confidential Information that Discloser believes to constitute a trade secret under applicable law; and(ii)with respect to any Confidential Information that does not constitute a trade secret under applicable law,for a period of five(5) years from and after the Termination Date. Each of the parties acknowledges that nothing contained in this Contract shall be construed as creating any right or license, express or implied,to use any of the Confidential Information disclosed to it by the Discloser other than in connection with the Purpose. In addition,both parties acknowledge and agree that disclosure of Confidential Information pursuant hereto is on as "as is"basis and creates no warranties or any kind, express or implied,as to the adequacy, accuracy,completeness quality or suitability of the information disclosed. Each of the parties acknowledges that the provisions of this Section 25 are reasonably necessary to protect the confidential nature of their respective Confidential Information and that use or disclosure by it of the Confidential Information disclosed to it by the Discloser except as permitted by this Section 25 would cause immediate and irreparable harm to the Discloser for which money damages would be inadequate. Therefore,the parties agree that the Discloser shall be entitled to seek injunctive relief for the Recipient=s breach of any of its obligations hereunder. Such remedy shall not be deemed to be the exclusive remedy for such breach, but shall be in addition to all other remedies available at law or in equity. However, Lessor acknowledges and agrees that Lessee is subject to the Texas Public Information Act, Texas Government Code Chapter 552. Page 15 25. Termination; L)efault Termination for Convenience. Following Delivery, Lessee may terminate for its convenience, this Lease upon written notice to Lessor. Lessee shall promptly return the Equipment. Default. The occurrence of any of the following shall constitute a default under this Lease: i. If Lessee fails to pay any Lease Payment, the Residual Value or other amount herein provided within thirty (30)days after the same is due and payable and or approved by the Fort Worth City Council. ii. The violation of any other provision or requirement of this Lease that is not corrected within thirty (30) days after written notice of the violation is given to Lessee. iii. The insolvency of the Lessee or the subjection of any of Lessee's property to any levy, seizurc, assignmcnt, application or sale for or by any creditor or government agency. Rights on Default. In addition to any other rights afforded the Lessor by law, if the Lessee is in default under this Lease, notice to the Lessee, the Lessor may take possession during reasonable hours, of the Equipment as provided by law.All of Lessor's remedies provided by law and this Contract are cumulative, and may be exercised concurrently or separately. Bankruptcy. This lease shall be deemed an"executory contract" within the meaning of Title 18, section 365 of United States bankruptcy code. i` Page 16 26. General Lessor represents that any Equipment or parts thereof manufactured by Lessor will be produced, and when delivered to Site will be, in compliance with all applicable Federal, State and local laws applicable to their manufacture and shipment and in accordance with applicable engineering standards and engineering codes. Lessor shall not be liable for failure of the Equipment to comply with any other specifications (except those specified herein or otherwise pursuant to this Contract), standards, laws or regulations. The Contract is binding upon and enforceable against, and shall inure only to the benefit of, Lessee and Lessor and their respective legal representatives, successors and permitted assigns. The Contract Documents contain the entire and only agreement between the parties with respect to the subject matter hereof and supersede all prior oral and written understandings between Lessee and Lessor concerning the Equipment and any prior course of dealings or usage of the trade not expressly incorporated herein, including, without limitation, any proposal or part thereof presented to Lessee by Lessor that is not part of the Attachment A hereto. The Contract may be modified, supplemented or amended only by a writing signed by an authorized representative of each of the parties. 27. Security Interest Lessor shall retain a security interest and Lessee hereby grants Lessor a lien upon and security interest in the Equipment until all payments hereunder have been made in full. Lessee acknowledges that Lessor may file a UCC-1 financing statement and make take all other action it deems reasonably necessary to perfect and maintain such security interest and protect Lessor's interest in the Equipment. Page 17 IN WITNESS WHEREOF,the parties hereto have caused this Contract to be executed by their duly authorized officers as of the day and year first above written. Andritz Se ion Inc. City of Fort Wg�h � Na Name: Title: 4- lb Title: Arzsi�l'hN- b m MA� Date: �� � 1t I (/1 Date: (y " APPROVED AS TO FORM AND LEGALITY: SV,AssWmt City A 2 srA Z,i i,P 2-i2t Lt,,uoc A S � I v Nn w► C s� � o 00000o° '�a• oAs OFFICIAL RECORD CITY SECRETARY FT.WORTH,TX Page 18 APPENDIX A SCOPE OF SUPPLY Andritz Project# Amu VILLAGE CREEK 821365 2.OM SMX - BELT FILTER PRESS Quantity Description 1 2.Om SMX - BELT FILTER PRESS 1 6"VENTURI MIXER 1 FOUNDATION BEAMS 1 LOCAL CONTROL PANEL 1 SET CLIPPER SEAMED BELTS 1 O&M MANUAL l Page 19