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CM-2019-0390 - 12/13/2019TEXAS LPG EQUIPMENT LEASE AND SUPPLY AGREEMENT DATE: 9/11/2019 DEALER (Lessor): DIRECT PROPANE SERVICES, P.O. Box 619, Manor, Texas 78653 512-276-78(X) (Hume, Address, Zip, Tel, No.) CUSTOMER (Lessee): City of Round Rock 221 East Main Street, Round Rock, Texas 78664 Description of Real Property where Equipment to be located: 2801 North Mays, Round Rock, Texas 78664 (Public Safety Trautmg Cutter) Tank Loc: one tank n front of property and one tank adjacent to Railcar rollover burst simulation Tank #1- Serial # 3018 Tunk #2 - Serial # H5422 Tank Mfg: Trinity Steel Co. Tank Mfg: Trinity Steel Co. Year Built: 1161 Year Built: 1951 Property Owner. City of Round Rock, 221 East Main Street, Round Ruck, Texas 78661 Lease Period: From September ist, 2019 to August 31st 2020 or return of tank Size: 6,000 Gallons Size: 5,985 Gallons DEALER agrees to provide the propane storage tanks) to the location(s) described above, in consideration of a one (1) year propane service agreement. DEALER will deliver, set, valve and plumb these tank(s) up to CUSTOMER'S appliance. DEALER will coordinate the Texas Railroad Commission approval process and inspections. The tatd:s retrain the DEALERS property. CUSTOMER shall provide tank: protection by installing bollards or a fence surrounding cach tank site. CHARGES Installation Propunc Charges for propane delivered by bobtail truck will be S0.65 over the Mount Belvieu Posted Daily Ruck Average as found in the OPIS Daily Ruck Price Update. The total charges paid to the Dealer over the term of this Agreement shall not exceed Twenty -Four Thousund and No/100 Dollars (S24,000.00). Terms Net 30 (Interest may be charged on overdue payments pursuant to the terms set forth in the Texas Prompt Payment Act, Chapter 2251 of the Texas Government Code) CUS'T'OMER ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT, PARTICULARLY THE TERMS AND CONDITIONS SET FORTH HEREIN AND THAT HE UNDERSTANDS THEM AND THAT THEY CONSTITUTE THE ENTIRE AGREEMENT, UNDERSTANDING, AND REPRESENTATIONS, EXPRESS AND IMPLIED BETWEEN DEALER AND CUSTOMER WITH RESPECTTO ri-IE EQUIPMENT RELEASED HEREUNDER. AND THE LPG SERVICE TO BE PROVIDED. CUSTOMER AGREES AND UNDERSTANDS 'THAT THE EQUIPMENT, PROPANE TANKS, METERS, ETC. HEREUNDER REMAINS THE SOLE PROPERTY OF DEALER AND SHALL BE UNINSTALLED AND REMOVED BY DEALER IMMEDIATELY UPON TERMINATION OFTHE HE AGREEMENT. DISCLOSURES UNDER FEDERAL CONSUMER LEASING ACT. CUSTOMER ACKNOWLEDGES 111AT PRIOR TO SIGNING 11-11S AGREEMENT HE HAS CAREFULLY REVIEWED TT -IE LEASE SUMMARY INFORMATION SET FORTII AT THE BEGINNING OF THIS AGREEMENT, AND HAS SATISFIED MMSELF CONCERNING 11-113 -TERMS AND PROVISIONS OF THIS AGREEMENT. Dated: September 2019. Effective when fully executed. CByUSTOMER: G 1 (Signature) � ,Q �3f 'ritle�:,Ci y Massager � ,, 20 te-57 3`'Io DEALER: By.d42� - " inl (Signature) - TERMS AND CONDITIONS 1. Purpose. Tice purpose of this Tank Luse and Supply Agr.�neni (the "Agreement") is to make available to Customer one or more LP -Gas tattles, meters, pumps, and related LP -Gas equipment as descnbed above, to permit Customer to receive, store, and use LP -Gas products (Propane, Butane. etc.) sold and delivered by Dealer to Customer from time to tune as needed or desired. shall lake such actions as to cause in violation of law or hazardous topusons and property. No lennination or cancellation under the lernns of the Agreement shall be effective until Dealer shall be afforded a reasonable opportunity for removal of the tanks and other Dealer eluipment, and Customer shall remaat responsible for the rental fees and safekeLpiing of the equipment until such time. 5. Use mid Care of Equipnheht. Taxes. Customer shall use Ilse leased equipment solely for the purposes set forth herein. Customer shall exercise all reasonable care and caution in the preservation and use of the equipment, and shall comply fully, with all laws and regulations relating to the possession, use and maintenance of the equipment, including but not limited to the LP Gas Safety Rules of the Railroad Coimnission of Texas, 16 '1 AC chapter 9 (the "LP Gas Supply Rules ). Customer will not remove, deface, or obscure; any mune plate, decal, or other identilyin� marking or insignia on Ute equipment, nor any safety or operating data set forth on the equipment or on plates or tags attached thereto. Customer shall not tarnper ►with, move, nor attempt any repair or maintenance on tie equipment. Customer is fully responsible for notifying Dealer of anyrequired maintenance.. Such maintenance shall be performed by Dealer at Cusfonhces expense unless attributed to normal wear and tear. Dealer shall be responsible for all sales, use, ad valorem or other taxes, if any, imposed by any governinental authorities upon the equipment or its use during the Agreement Periods. 6. Loss and Damage. Customer shall be fully responsible for the care, preservation, security and safety of lite equipnnennt, against damage caused by lite customer, except for normal weathering, wear and tear. Customer shall lave exclusive control of the leased equipment so long as it rennains in Custoria's possession, and stall hold Dealer harmless from all claims for injury or damages, including attorney's fees, arising out of Customer's improper use of lie equipment. Such indennit y shall extend to any injury or damages, or clauns thereof; ansing loin the misconduct of customer ►villi respect to the equipment, Duticr, or any of the DealLes einployees Laid agents while acting within the scope of their employment. T Installation, Removal. Dealer shall have full authority and responsibility for initial installation of the equipment. So long as this Agrecinent is currently maintained and the leased equipment is maintained in good condition, them upon tennmatlon at Ilse end of -any lease period, the leased equipment shall be removed by the Dealer at no additional charge. Should Cuslonwr default hereunder or elect to cancel the Agreement at any time other than at the end of agmement period, the Dealer slall be entitled to the removal fee set forth above. In neither event, however, shall Dealer have any obligation for restoration or change to the premises. The installation obligations of Denner are expressly limited to the histallafion of the LP -Gas tank, or tattles, regulators, and connections to the Customer's L.P. Gas piping and distribution system. Installation or modification by Customer of the LP -Gas distribution system or conversion of appliances is expressly excluded and must be the subject of a separate agree nient if desired. 8. Substitutions. Dealer reserves the right to substitute other equipment from time to time. All costs relafenl thereto shall be bonic by healer unless such changes are made at the request of Customer or because of loss or damage to the equipment in Customer's possession. Any substitution of equipment shall be reflected by u written. inetnomndum, executed by both parties and attached to this Agreement. 9. Warranties. Dealer wamints that he or it is the new owner- of the Equipment, and that so long as Customer shall timely comply with the requirements hereunder, including the requirement for timely payment, Customer shall have quiet and peaceful possession thereof. Customer warrants that it is or they are the lessor of flic real property wherein (lie equipment is to be located; or, if not owner, Customer has secured express written consent and waiver of any claims from the o►►7ner. 10. 1]]uileees InWre.sls. Customer ackno►►ledges that Dealer, in entering into this Agreement, is not relinquishing any o%vnerslup right in the equipment, and that the equipment is and remains personal property belonging to Dealer at all tunes. Customer expressly grants unto Dealer the exclusive and irrevocable right to enter upon Customer's premises, alter checking with the Plaint Manager, for the purpose of installing, servicing, filing, repairing, mid removing, said ]easel equipment. "flus right shall exist independent of any other rights granted hereat. l f . Payments and Notices. All payments for gas used shall be mailed by fust class U.S. Mail, by ►vire transfer, or delivered in person, to Dealer at Dealer's address set forth above. All written notices shall be given by Customer to Dealer at Dealer's address set forth above. All written. notices shall be given by Dealer to Customer at Customers address set forth above. All written notices shall be deetnt d delivered ort the second business day following the day of posting by Registered or Certified Mail, postage preitttid and addressed as directed herein. Notices may also bee given in person by verbal or written communication and shall be effective upon delivery; provided, any verbal notice must also be followed immediately by written confirmation notice as provided herein. Either party may change the address at which notice shall be received by giving notice to the other panty as provided herein. Such change of address shall be effective for all purposes seven (7) days after delivery of such notice. 12 Removal of Eguui anent by Dealer. Dealer shall not remove the equipmLitt from the premises described above without the express written consent of Customer in advance. Any removal or attempted removal without such advance consent shall, at the option of Customer, constitute a default hereunder. 13. Non -Assignability. This Agreement may not be assigned nor the leased equipment transferred, leased, or subleased, without express written consent of Dealer in advance. 14. Default. In lite event Customer shall default equipment provided to Customer by the Duller in the timelypayment of rent as provided herein, or shall use the premises for the storage of LP -Gas products other than those supplied by Dealer, or shall permit the equipment to lie damaged, or shall use tie equipment in a manner deemed hazardous by Dealer or contrary to any laws, rules or regulations, including but not limited to the LP -Gas Safety Rules, or shall take any other action which would or could jeopardize Dealer's interest in the equipment, or cause Dealer to reasonably believe that such interest is in jeopardy, them, in such event, Dealer, at its option shall have the right to declare this Agreement in default. In addition to any other remedies provided herein, in the event of any unsafe default Dealer shall have the right to ewer on the premises immediately and seal or "lock oil" the lank. Reconnection after termination of service is at the sole discretion of Dealer and Customer, mid reconnection Chare may be charged at the option of Ilse Dealer. 'Ihis Agreement shall not be in default, however, if the Customer uses the leased equipment tennpomriily for the storage of LP -Gas products supplied by the other Dealers during any emergency period when Dealer is unable to supply all of Custonwes product lice 5 15. Remedies. In the event of default as described above or default un die perfonnance of any other duty or responsibility by Customer under this Agreement, Dealer and Customer, at their option, shall have (hie right to all rennedics perttutted by law and equity. for Dealer, thLse may include, but are not limited to forfeiture of the Equipment, itnmediate termination of this Agreement and the recovery of possession of the Dealers equipment, and/or action for damages. In the event the equipment is removed from the premises or otherwise rendered unavailable or unusable, as a result of equipment damage caused by the Customer, Dealer shall be entitled, in addition to any other da pages otherwise permitted by law, to nit amount crab to Ute fair market value of the equipment at the time of removal or termination. In the event Dealer prevails, Dealer shall be entified to recover all costs nhcurie'd, including costs of court, reasonable attorney's fees and other directly -related costs to which Dealer may show itself entitled. Venue for all actions shall be in the County of Dealer's place of business as set forth above. 17 Payment for LP Gas Payment for all LP Gas and equipment delivered or service provided to Customer is due upon delivery. Customer agrees to pay far all LP Gas, equipment and service ►within 30 days of consumption and Ute customer's receipt of the invoice Irohn Dealer. In the event Customer fails to make any payment due under this Agreement, Customer agrees that Dealer may assess fees ut accordance with the Texas Prompt Payment Act, Chapter 2251 of Ute Texas Goverimhent Code. The only exception to the mquirennerit of prompt payment is a written agreement to the contrary between the parties. 18. Keep Full. Dealer will deliver LP Gas to Customer on a routine route on a "keep full" basis which means Customer agrees that Dealer has the right to till Custoin&s tank(s) to capacity at the time of each routine route delivery. Dealer will use its best efforts to prevent Customer's supply of LP Gas from being exhaustcd, but shall not have any responsibility or liability for the exhaustion of Customer's LP Gas supply I` , , r , . . . . _ . .. . .. ... .. . .. .. the valve on the storage tank to the "Oft' position mid 'immediately contact Dealer or the public safety authorities (lire or police) from offsite so Owl any potential hazardous situation can be corrected. 21. Access. Customer grants Dealer full access to the premises for purposes of delivering LP Gas and for installing, maintaining, servicing, or reiioving the equipment. Customer slwll bar any expense necessary to make the equipment accessible to Dealer_ 22. Clem Area. Customer agrees to keep the area within ten (10) feet of die equipment clews and tree from any ignitable material, including weeds and long dry grass. 24. force Majeure. Customer agrees Dealer will not be held responsible for any failure to make deliveries or provide service which is prevented by adverse weather, failure of transportation facilities, shortages of supply, fire, riot, ►►ur, act of God, or any other cause beyond the reasonable control of Dealer. 25. "Customer" is a persou(s) or business requesting or receiving services from Dealer. "Services" means LP Gas delivery, equipment installation, removal and Dealer detemtined inspection and maintenance activities. 26. Dealer will Perform a safety check of the Gas System mid appliances associated with the use of LP Gas (1) prior to connection of service, (ii) prior to reconnection after a service interruption (when there has beet a LP Gas outage), or (iii) at any other time as reasonably determined by Dealer, and Customer. 27. The Gas Systen on the Premises shall remain the sole property of Dealer. The Gas System may only be used ►with LP Gas purchased from Dealer, and as described in paragraph 14. 28, Dealer shall have the right at any reasonable time without notice to Customer to inspect, repair or reiiove the Gas System, 29. Customer is obligated to inf'orn Dealer if there are any changes on the Premises (including the addition or deletion of LP Gas appliances) that may increase or decrease usage. Nohwidistanding any special programs in effect for Customer, it is expressly understood mid agreed that it shall be the responsibility of Dealer to monitor the amount of LP Gas int the Gas System tank. 30. Dealer stall not be liable for damages resulting from failure to deliver LP Gas to Customer, if beyond Dealers reasonable costs. 31. Dealer shall not be liable for damage to anyperson or property incurred as a result of storm, flood, weather conditions, and acts of God, strike, acts of war or terrorism, or any other cause beyond Dealer control or by any third party or goveriunental action. 32. Customer accepts and agrees to pay for all LP Gas delivered by Dealer at lite price (s) and Ierins established by Deafer. Furthermore, all LP Gas sales are final upon consumption by Customer. 33. All accounts are subject to credit approval. 35. Customer shall maintain it current account balance at all times. If Cuslomer's account is not paid timely, Customer agrees to pay the monthly late fee as set forth in paragraph 17 If Cuslomers account is not paid timely, any special pricing programs in effect for Customer shall terminate immediately. 37. Except for loss or damage caused directly by the negligent or deliberate acts of Dealers employees, contractors or agents, or equipment supplied and installed by Dealer, Customer assumes all risks and liabilities whatsoever related to or arising from possession or use of file LP Gas or the Gas System. Customer hereby indetiniftes and holds Dealer harmless from mid against all liabilities, claims and expenses of every kind or nature related to or arising from the use of the LP Gas. Dealer hereby indennnifies mid holds Customer harmless front mid against all liabilities, claims and expenses of every kind or nature related to or arising from the use of Ute LP Gas, for loss or damage caused by the Dealer. 39. In recognition of die on-going cost incurred by Dealer for safe operations and the comply with the laws and regulations attendant to Ute providing of &rvices. Customer agrees to pay Hazardous Material (IIAZMAT) Fees as set forth above, in the agreed pnces. Hazardous Material (HAZMAT) fees do not represent a tax or fee paid to or imposed by any governmental authority, and Dealer will retain the entirety of the fees. 40 Customer agrees to pay all applicable fees and charges as set forth above. 11L Fees & Charges are subject to change by Dealer upon 30 days prior ►written notice to Customer 41. Dealer and Customer may modify this Agreement by mutual consent and any of the terms and conditions hereof at any tune upon 30 days prior written notice. 42. The provisions of the Agreement are severable. If aiy provision of the Agreement is, for any reason, invalid or unenforceable, die remamnig provisions ol'this Agree�inett are valid and eniforceable if the basic intent of the parties is still capable of being achieved. 43. Dealers delay or failure to etforcc any provision of this Agreement will not operate uill not operate: as a waiver or estoppel of Dealers right to enforce any provision of this Agreement. a.aaJJ CERTIFICATE OF LIABILITY INSURANCE ACQR�® DATE IMMrooIYYYYI 0212812019 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(les) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION 15 WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT Marie Powell NAME: Ben Spurgin Insurance Agency PHONE (214) 871-332. FAX (214) 871-7351 AIC N Ex AIC. No): 2521 Cedar Springs A008Es5: mpowell®spurgin com INSURER(S) AFFORDING COVERAGE NAIC d Dallas TX 75201 INSURER A: ACE American Ins Company 22667 INSURED INSURER a Illinois Union Ins Co 27960 Webbervdle Propane Inc dba DBA: Direct Propane Services INSURER C; ENDURANCE AMERICAN SPECIALTY INSURANCE 41 Ti t 19126-B FM 969 INSURER D : P O Box 619 INSURER E : Manor TX 78653 INSURER F COVERAGES CERTIFICATE NUMBER: CL1922005455 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LTR TYPE OF INSURANCE IN POLICY NUMBER MMfLDI N YY ICY EX MWODfYYYY LIMITS X COMMERCIAL GENERAL LIABILrrY CLAIMS -MADE © OCCUR EACH OCCURRENCE S 1,000,000 PREMISES IEa occurrence S 100,000 MED EXP (" One Derson) S 0 A G27301381 03!01!2019 03101/2020 PERSONALS ADV INJURY S 1,000,000 GEN'LAGGREGATE LIMIT APPLIES PER X JECT EILOC POLICY E] GENERAL AGGREGATE S 2.000,000 PRODUCTS COMPIOPAGG S 2.000,000 $ OTHER AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT S 1.000 000 III,,,, X ANY AUTO BODILY INJURY IPer cetsonl S B OWNED SCHEDULED AUTOS ONLY AUTOS H08516634 03101/2019 03101%2020 BODILY INJURY (Per acudeMl s HIRED NON-OYYNED AUTOS ONLY AUTOS ONLY PROPERTY DAMAGE $ JPer amdent Underinsured motorist s 85,000 UMBRELLA UAB""•••",••'-" OCCUR "'y""'"' 4OOO,D00 EACH OCCURRENCE S C EXCESS LIAB CLAIMS -MADE EXC300DO593301 03/01/2019 03/0112020 AGGREGATE S 4 000 ON DED I X RETENTION S 10,000 S WORKERS COMPENSATIONPER OT". AND EMPLOYERS* LIABILITY YIN STATUTE ER EL EACH ACCIDENT $ ANYPROPRRNIETORIPARTNERIEXECUTtVE ❑ OFFICEEMBER EXCLUDED? NIA E L. DISEASE - EA EMPLOYEE $ (Mandatory In NH) II Yes• descnbe under II) E L DISEASE POLICY LIMIT S OF OPERATIONS below OESCRIPTK)N OF OPERATIONS I LOCATIONS r VEHICLES IACORO 101, Additional Ramarks Schedule, may be attached It mon space is required) M VLUICK """SAMPLE CERTIFICATE-- Contact Ben Spurgin Insurance 1 Fax: 214-871-7351 2521 Cedar Spring Dallas TX 75201 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS AUTHORIZED REPRESENTATIVE xz _ 1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25 (2016103) The ACORD name and logo are registered marks of ACORD City of Round Rock RO TEUNO ROCK xas Agenda Item Summary Agenda Number: Title: Consider executing a Lease and Supply Agreement with Direct Propane Services for Lease of Two (2) propane tanks at the Public Safety Training Center. Type: City Manager Item Governing Body: City Manager Approval Agenda Date: 12/13/2019 Dept Director: Robert Isbell, Fire Chief Cost: $24,000.00 Indexes: General Fund Attachments: LAF Direct Propane Services Department: Fire Department Text of legislative Fite CM -2019-0390 Direct Propane is the owner of the two (2) propane tanks at the Public Safety Training Facility that are used to supply propane to the fire props. Ownership for the tanks remains under the control of Direct Propane so that they (Direct Propane) will maintain, test, and take responsibility for the tanks and valving. As part of this lease agreement, the City is required to purchase propane from Direct Propane who has locked in a price of $0.65 per gallon for the term of the contract. Cost. $24,000 Source of Funds: General Funds City of Round Rack Page i Pdated on 12t1312019