Loading...
HomeMy WebLinkAboutContract 26340 STATE OF TEXAS CONT CRErNO. COUNTY OF TARRANT AGREEMENT FOR THE DISCHARGE OF TREATED GROUNDWATER FROM LENNOX INDUSTRIES TO THE PUBLIC SEWER SYSTEM This agreement is made and entered into by and between LENNOX INDUSTRIES, Fort Worth. Texas, and the City of Fort Worth (CITY). For and in consideration of the covenants and promises contained herein, the parties hereto agree as follows: I. RECITALS 1. LENNOX INDUSTRIES, requests approval for the sewer discharge of groundwater from beneath, LENNOX INTERNATIONAL INC, located at Summit Manufacturing (Mortex), 1200 Maxine Street (Previously owned by LENNOX INDUSTRIES), Fort Worth, Texas 76117. LENNOX INDUSTRIES proposes performing analysis of the groundwater to identify characteristic pollutants known or reasonably expected to be present in the wastewater. LENNOX INDUSTRIES also proposes to treat said wastewater for such pollutants to the levels described herein prior to discharge into the sanitary sewer. 2. The proposed discharge would enter the sewerage system of CITY. II. COVENANTS 1. The CITY agrees to receive pretreated effluent from a wastewater recovery and pretreatment system operated by LENNOX INDUSTRIES, at Summit Manufacturing (Mortex), 1200 Maxine Street (Previously owned by LENNOX INDUSTRIES), Fort Worth, Texas. 2. LENNOX INDUSTRIES, agrees to install and operate a pretreatment facility for the treatment of water prior to discharge into the public sanitary sewerage system. The pretreatment system shall (at a minimum) consist of- a) £a) A facility to treat water to acceptable and safe limits prior to discharge to the sanitary sewerage system; �EC0- QD M,I Eve b) Sample points installed on influent and effluent lines for water quality monitoring; and C) A flow meter installed to totalize effluent volume in cubic feet. Effluent discharged from the pretreatment system will not exceed the following limitations: Cadmium (Cd) of 0.69 mg/L, Chromium (Cr) of 2.77 mg/L, Copper(Cu) of 3.38 mg/L, Lead (Pb) of 0.69 mg/L, Nickel (Ni) of 3.98 mg/L, Silver (Ag) of 0.43 mg/L, Zinc (Zn) of 2.61 mg/L, Cyanide (CN) of 1.2 mg/L and TTO (Total Toxic Organics) listed for CFR 433 Category of 1.5 mg/L. All discharges shall be compliant with any ordinance requirement of the CITY or requirement of the Publicly Owned Treatment Works (POTW), and any state and/or federal: laws, regulations, codes, or requirements. 3. LENNOX INDUSTRIES, agrees that the sewer discharge shall not exceed a rate of 30 gpm (gallons per minute); if an increase is desired, LENNOX INDUSTRIES, will request an increase in writing. The CITY will endeavor to respond within 30 days from date of receipt of such request. CITY reserves the right to refuse such request if, in the sole opinion of the CITY such requested increase will adversely affect the CITY's treatment plant or collection system. 4. LENNOX INDUSTRIES, agrees to discontinue discharges if the sewer lines receiving the discharge are found at any time to contain an atmosphere equal to 10% of the lower explosive limit and/or exhibit a petroleum-like nuisance odor. LENNOX INDUSTRIES, will be permitted to resume discharge if sampling and investigation show that LENNOX INDUSTRIES, treated wastewater discharge is not the source of nuisance odors and/or sewer LEL levels equal to or greater than 10%. LENNOX INDUSTRIES also agrees to discontinue discharges that violate the discharge requirements established by this Agreement and may recommence discharge only when compliance is assured. 5. LENNOX INDUSTRIES, agrees to collect and analyze samples of the influent (prior to treatment) and the effluent (discharge after treatment) and report all results to the CITY. Samples to be used for reporting purposes must, at a minimum, be collected every two months and analyzed for Cadmium, Chromium, Copper, Lead, Nickel, Silver, Zinc. Cyanide and Volatiles of the TTO group and any other pollutants identified at quantifiable levels. Samples needs to be collected annually and analyzed for Semi- Volatiles, Pesticides and, PCBs of the TTO group. Sample collection, analytical and notification procedures must conform to methods approved by the U.S. Environmental Protection Agency, listed in 40 CFR 136 and 40 CFR 403.12(o)(1)(2), (p)(1)(2)(3)(4). CITY must receive analysis results within thirty (30) days from sampling date. M EC",Ec© 2 11 01 /a EY tt Flo LENNOX INDUSTRIES, agrees that although a minimum sampling frequency is stated herein that continuous and consistent compliance is LENNOX INDUSTRIES's responsibility and LENNOX INDUSTRIES, will act accordingly to insure continuous and consistent compliance. CITY agrees insofar as permitted by law, to keep all these reports and results confidential and will endeavor to provide LENNOX INDUSTRIES, with copies of any request from a third parry for this information. 6. LENNOX INDUSTRIES Environmental Impairment Liability (EIL) commercial insurance requirement is waived based on the review of the company's financial status by the City's Risk Management Division. However, City may need to review LENNOX INDUSTRIES financial reports on an annual basis to ensure the conditions continue to warrant accepting the self-insurance alternative. 7. LENNOX INDUSTRIES, agrees to provide the CITY with access to the monitored site so that the CITY may monitor/sample at its discretion. CITY agrees, insofar as permitted by law,to keep all results of these samples confidential. 8. LENNOX INDUSTRIES, agrees to compensate the CITY for the cost-of-doing business in the following amounts: a) Monitoring Fee: A payment of $5000 for the cost of administering and monitoring the discharge during the agreement period. b) Transportation Fee: A discharge fee based on the CITY billing rates for the volume of wastewater discharged. The Monitoring Fee shall be paid to the CITY prior to the commencement of discharge. The Transportation Fee shall be paid to the CITY upon receipt of a bill for services. 9. Except as a party may otherwise direct by written notice to the other, all correspondence and reports shall be directed as follows: C +�f ' �# tb r LENNOX INDUSTRIES Mr. Sebastian Fichera, Manager Mr. Mark A. Yohman, Director Pretreatment Services Division Environmental Affairs Fort Worth Water Department Lennox Industries 920 Fournier Street P.O. Box 799900 Fort Worth, Texas 76102 Dallas, Texas 75379-9900 05MIC0 °ii UCUWD 3 CMV KCRI MEY M. INDEMNIFICATION LENNOX INDUSTRIES, covenants and agrees to, and does hereby, indemnify and hold harmless and defend the CITY, its officers, agents, and employees, from and against any and all suits or claims for damages or injuries, including death, to any and all persons or property, resulting from any negligent act of omission or commission on the part of LENNOX INDUSTRIES, its officers, agents, servants, employees or subcontractors in the performance of this Agreement, and LENNOX INDUSTRIES, does hereby assume all liability and responsibility for injuries, claims or suits for damages, to persons or property, of whatsoever kind of character, whether real or asserted, occurring during or arising out of the performance of this Agreement, as a result of any negligent act of omission or commission on the part of LENNOX INDUSTRIES, its officers, agents, servants, employees or subcontractors in the performance of this Agreement. provided, however, that LENNOX INDUSTRIES, liability shall be limited to that established in Article 6252-19, Texas Revised Civil Statues, and other applicable state statutes and constitutional provisions. IV. AMENDMENT AND TERMINATION OF AGREEMENT 1. This Agreement may be amended in writing by mutual agreement of the parties hereto. 2 LENNOX INDUSTRIES agrees to not discharge any water to the sewer system until an initial analysis of the influent and effluent waste water is performed and found to be in conformance with the effluent limits contained in this agreement. 3. This Agreement shall terminate 2 years after the execution date. If further discharge of treated water is required after the end of this Agreement, LENNOX INDUSTRIES, may request renewal of this Agreement. 4. The CITY may terminate this Agreement without notice at any time if, in its sole opinion, the discharge authorized thereunder is adversely affecting the CITY's treatment plant or collection system. In addition, this Agreement may be terminated by the CITY if and when the CITY determines that LENNOX INDUSTRIES, wastewater discharge will subject the CITY to fines, penalties, administrative orders or any enforcement action by state or federal agencies, or require CITY to perform treatment to remove toxicity, including any additional biomonitoring requirements for compliance with CITY's NPDES permit. VENUE Venue and jurisdiction of any suit, right, or cause of action arising under, or in connection with, this contract shall lie exclusively in Tarrant County, Texas. 4 Qf C�°'� EC-00Q IN WITNESS WHEREOF, the parties hereto have made and ex cuted this Agreement this " day of�,,t6Arr2 ,A.D. Aty . CITY OF FORT WORTH Attest: By: City ecretary 1-6 o Mr. Mike roomer Title: Assistant City Manager By: astian Fichera c..., Title: Manager/Pretreatment Services 10 �Q�`, k QU)4jew Fort Worth Water DepartmeiA Contract Authorization By: r. Robert Mc illon Date Title: Asst. Dir. Water/Pollution Control Fort Worth Water Department Approved as to Form and Legality: 941�;D<- Date: /o/ Mr. Gary J. teinberger Title: Asst. City Attorney LENNOX INDUSTRIES n By: Title: 'Olfr Aw- flib. /411.a,r!3- 5 OFFIL IA ffConjo CITY 81�aly .,ennox International -News Page 1 of 4 n„ ..., - ...:iii.. .... .: I .. -.. ... News Lennox International Reports Record Second Quarter Earnings; Net Income Increase 37% DALLAS, July 25 /PRNewswire/ -- Lennox International Inc. (NYSE: LII) announced record earnings for second quarter 2000 today. Total consolidated sales for second quarter 2000 increased 51% to $894 million, up from $592 million in second quarter 1999. Company-wide organic sales growth, adjusted for sales to company-owned dealers and currency fluctuations, was 7%. Outside of the U.S. and Canada, international revenues grew by 14% in the quarter, representing 13% of total corporate sales. Quarterly operating income for the consolidated company grew by 49% from $47 million in second quarter 1999 to $70 million. EBITDA in second quarter was $91 million, a 49% increase from EBITDA in the same period a year ago. Net income for the second quarter increased 37% to $32 million from $24 million in 1999 and set a new quarterly record in the company's 105-year history, despite being impacted by higher interest expenses of more than $6 million due mainly to increased borrowing to fund acquisitions. Diluted earnings per share were $0.56. The pro forma calculation, assuming a January 1 initial public offering (IPO) , shows earnings per share at $0.55 for the same quarter last year. "Lennox International had a strong performance in the second quarter, " said John Norris, chairman and CEO. "Our core businesses continue to perform soundly, and the operational improvements we are making in our acquired businesses are beginning to pay off. " Four of the company's five business segments achieved double-digit revenue growth for the quarter. North American retail, the company's newest business segment, increased its operating margins to 6.7% for the quarter. "Our progress integrating our retail operations is very encouraging, " Norris said. "For the first half of this year, our retail sales exceeded $480 million, putting us right on track to achieve our objective of $1 billion in revenues for the full year 2000." Norris also said that management believes Lennox stock is undervalued. The company continued its share repurchase program during the second quarter, entering into a forward purchase agreement for approximately 850,000 shares of stock at an average price of $11.20 per share. "Early in the third quarter, the first forward purchase contract matured and approximately 1.5 million shares were returned to Lennox treasury stock, which will have a positive impact on our earnings per share moving forward, " he said. Selling heating, ventilation, air conditioning, and refrigeration equipment in over 70 countries, Lennox International Inc. is a global leader in climate control solutions. Lennox operates in five key business segments: North American residential, North American retail, worldwide commercial refrigeration, worldwide commercial air conditioning, and worldwide heat transfer. Lennox International stock is traded on the New York Stock Exchange under the symbol "LII". Additional information is available at: http://www.pmewswire.com/cgi-bin/nucro_Stories.pl?A.../0001274705&EDATE=7u1+25,+200 8/15/00 Lennox International -News Page 2 of 4 or by contacting Bill Moltner, Director, Inves Relations, at 972-497-6670. This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from such statements. For information concerning these risks and uncertainties, see Lennox' publicly available filings with the Securities and Exchange Commission. Lennox disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. LENNOX INTERNATIONAL INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME For the Three Months and Six Months Ended June 30, 2000 and 1999 (Unaudited, in thousands, except per share data) For the For the Three Months Ended Six Months Ended June 30, June 30, 2000 1999 2000 1999 NET SALES $894,200 $591, 841 $1, 610,524 $1, 080, 900 COST OF GOODS SOLD 595, 868 405,519 1, 083, 429 743, 000 Gross Profit 298,332 186, 322 527, 095 337, 900 OPERATING EXPENSES: Selling, general and administrative 228, 608 139, 416 433, 888 271,202 Income from operations 69,724 46, 906 93,207 66, 698 INTEREST EXPENSE, net 15,242 8, 542 27, 992 15, 100 OTHER 517 (570) 746 (781) MINORITY INTEREST 31 (104) (515) (620) Income before income taxes 53, 934 39, 038 64, 984 52, 999 PROVISION FOR INCOME TAXES 21, 657 15, 467 26, 967 22,798 Net income $32,277 $23,571 $38, 017 $30,201 REPORTED EARNINGS PER SHARE(A) : Basic $0.56 $0. 65 $0.68 $0. 84 Diluted $0.56 $0. 64 $0. 68 $0.82 PRO FORMA EARNINGS PER SHARE (B) : Diluted $0.56 $0.55 $0.68 $0.74 (A) 8, 088, 490 additional shares issued in Lennox IPO August 3, 1999 (B) Pro forma EPS assumes IPO occurred January 1, each fiscal year. (Interest expense, income tax, and number of shares have been adjusted. ) For the For the Three Months ended Six Months Ended June 30, June 30, Net Sales 2000 1999 2000 1999 North American residential $353, 890 $317, 610 $645, 670 $589, 084 North American retail 288, 938 27, 041 483, 466 43,721 Commercial air conditioning 122, 938 117,595 218, 022 210, 063 Commercial refrigeration 93,508 82,577 185, 180 144, 175 Heat transfer 64,334 53,290 129, 781 103, 359 Eliminations (29, 408) (6,272) (51, 595) (9, 502) $894,200 $591, 841 $1, 610,524 $1, 080, 900 For the For the Three Months Ended Six Months Ended June 30, June 30, Income (Loss) from Operations 2000 1999 2000 1999 http://www.pmewswire.com/cgi-bin/micro_stories.pl?A.../0001274705&EDATE=Jul+25,+200 8/15/00 Lennox International - News Page 3 of 4 North American residential $42,203 $39, 032 $62, 968 $62, 988 North American retail 19,234 1,575 24, 660 2,476 Commercial air conditioning 4, 733 3,081 1, 680 1, 147 Commercial refrigeration 8,445 6, 864 15, 495 9,170 Heat transfer 4,333 4,218 9,267 7,457 Corporate and other (8, 035) (7,319) (17, 940) (15,727) Eliminations (1, 189) (545) (2, 923) (813) $69,724 $46, 906 $93,207 $66, 698 LENNOX INTERNATIONAL INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS As of June 30, 2000 and December 31, 1999 (In thousands, except share data) ASSETS June 30, December 31, 2000 1999 (unaudited) CURRENT ASSETS: Cash and cash equivalents $47,323 $29, 174 Accounts and notes receivable, net 505, 998 443, 107 Inventories 395, 056 345, 424 Deferred income taxes 36, 192 25, 367 Other assets 51, 617 44, 526 Total current assets 1,036, 186 887, 598 INVESTMENTS IN JOINT VENTURES 11, 610 12, 434 PROPERTY, PLANT AND EQUIPMENT, net 369, 965 329, 966 GOODWILL, net 653, 015 394,252 OTHER ASSETS 52,292 59,423 TOTAL ASSETS $2, 123, 068 $1, 683, 673 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Short-term debt $31, 662 $22,219 Current maturities of long-term debt 30, 815 34, 554 Accounts payable 270, 728 196, 143 Accrued expenses 228,389 200,221 Income taxes payable 32, 970 9, 859 Total current liabilities 594,564 462, 996 LONG-TERM DEBT 676, 344 520,276 DEFERRED INCOME TAXES 879 928 POSTRETIREMENT BENEFITS, OTHER THAN PENSIONS 14, 802 15, 125 OTHER LIABILITIES 75,541 72, 377 Total liabilities 1,362, 130 1,071,702 MINORITY INTEREST 2, 055 14, 075 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Preferred stock, $ . 01 par value, 25, 000, 000 shares authorized, no shares issued or outstanding --- --- Common stock, $.01 par value, 200, 000, 000 shares authorized, 59,481, 140 shares and 46, 161, 607 shares issued for 2000 and 1999, respectively 595 462 Additional paid-in capital 366, 841 215, 523 Retained earnings 436, 962 409, 851 Accumulated other comprehensive loss (29, 187) (12,706) Deferred compensation (4, 127) (2, 848) Treasury stock, at cost, 1, 156,221 and 1, 172,200 shares for 2000 and 1999 respectively (12,201) (12, 386) http://www.prnewswire.com/cgi-bin/nucro_stories.pl?A.../0001274705&EDATE=Jul+25,+200 8/15/00 -Lennox International - News Page 4 of 4 Total stockholders ' equity 758, 883 597, 896 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2, 123, 068 $1, 683, 673 SOURCE Lennox International Inc. Web site: i.-tp: - OP Company News On-Call. ht'- or fax, 800-758-5804, ext. 140632 CONTACT: Bill Moltner, Director, Investor Relations of Lennox International Inc. , 972-497-6670 http://www.pmewswire.com/cgi-bin/micro_stories.pl?A.../0001274705&EDATE=Jul+25,+200 8/15/00 LENNi7XInternational Inc. CORPORATE OFFICES HEATING AND AIR CONDITIONING P.O.BOX 799900 ESTABLISHED 1895 DALLAS,TEXAS 75379-9900 PHONE:972-497-5350 Mark A.Yohman FAX:972-497-5268 Director,Environmental Affairs mark.yohman0lennoxintl.com Direct Dial:972-497-5069 August 15, 2000 Ms. Laly Joseph City of Fort Worth Fort Worth Water Department Pretreatment Services Division 921 Fournier Street Fort Worth, TX 76102-3456 Subject: Lennox Permit Request to Discharge Treated Groundwater to the City of Fort Worth's Sewer System Dear Ms. Joseph: Per your August 7, 2000 letter, I have attached three signed copies of the"Agreement for the Discharge of Treated Groundwater from Lennox Industries to the Public Sewer System". I have attached a copy of the most recent quarterly earnings statement for Lennox. Several other detailed financial reports including the 1999 annual report are available at http://www.lennoxintemational.com. Thank you in advance for returning one signed copy of the agreement to me. Thank you again for your cooperation. Please call me at 972-497-5069 with any questions. Sincerely, Mark A. Yo an Director, Environmental Affairs Lennox International Inc. Attachments �`�1VED PST '12p1� o 'J 'OENf �� ARMSTRONG AIR CONDITIONING INC. HEATCRAFT INC LENNOX INDUSTRIES INC. BELLEVUE,OHIO GRENADA, MISSISSIPPI DALLAS,TEXAS