CM-2020-237 - 9/4/2020TEXAS LPG EQUIPMENT
LEASE AND SUPPLY AGREEMENT
DATE: August 2020
DEALER (Lessor): DIRECT PROPANE SERVICES, P.O. Box 619, Manor, Texas 78653 512-276.78M
(Name, Address, Zip_ Tel No.)
CUSTOMER (Lessee): City of Round Rock 221 East Main Street, Round Rock, Texas 78W
Description of Real Property where Equipment to be located: 2801 North Mays, Round Rock, Texas 78664 (Public Safety Training Center)
Tank Luc: one lank a front of property and one tank adjacent to Railcar rollover bum simulation
Tank #1- Serial q 3018 Tank Mfg: Trinity Steel Co. Year Built: 1961 Size: 6,000 Gallons
Tank it2 - Serial # H5422 Tank Mfg: Trinity Steel Co. Year Built: 1954 Size: 5,985 Gallons
Property Owner. City of Round Rock, 221 East Main Street, Round Rock, Texas 78W
Lease Period: From September itt, 2020 to August 31_st 2021 or return of tank
DEALER agrees to provide the propane storage imtl:(s) to the location(s) described above, in consideration of a one (1) year propmte service
agreernent. DEALER will deliver, seL valve and plumb these tank(s) up to CUSTOMER'S appliance DEALER will coordinate ! Texas Railroad
Commission approval process and inspections The tanks remain the DEALERS property.
CUSTOMER shall provide tank protection by installing bollards or a fence surrounding each tank site
CHARGES
Installation
D R wiU co kte t don t acco In tot ns vided mane Ch e C n cp how vex f
sc ce co breae a reel to t o su o o ere r t k tonThl eC
MUD_M rM2L*i W crane aniLtbe Iftight cost to our storage verti.
Propane
Charges for propane delivered by bobtail truck will be $0.65 over the Mount Belvieu Posted Daily Rack Average as found In the OPTS Daily
Rack Price Update. The total charges paid to the Dealer over the term of this Agreement shall not exceed Twenty -Four Thousand and
No/100 Dollars ($24,000.00).
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)
CUSTOMER ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT, PARTICULARLY THE
W AND THAT HE UNDERSTANDS THEM AND THAT THEY CONS3TTITIE NTIRE AG
UNDERSTANDING, AND REPRESENTATIONS, EXPRESS AND IMPLIED BETWEEN DEALER AND CUSTOMER WITH RESPECT TO
THE 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
OF THE AGREEMENT.
CUSTOMER ACKNOWLEDGES THAT PRIOR TO SIGNING THIS
A Y Y INFORMATION SET FORTH AT THE BEGINNING OF THIS
AGREEMENT, AND HAS SATISFIED HIMSELF CONCERNING THE TERMS AND PROVISIONS OF THIS AGREEMENT
Dated 7 .2020. Effective when fully executed.
CUSTOM) R:
DEALER:
By: ,
�L By
(Signature)
('r u
Tide: City Manager
TERMS AND CONDITIONS
1. P. The purpose of this Tani. Lease and Supply Agreement (the "Agreement") is to make available to Customer one or
more LP -Gas tanks, meters, pumps and related LP -Gas equipment as described 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 time as needed or desued
2. Agreement Period The term of the Agreement covers the time period from date of installation to the end of the lease period, as
set out above
3. Rental. Customer agrees to pay Dealer for the metered propane fuel consumed as set out above on or before the thirtieth day after
receipt of invoice from Dealer.
4. Right 9f Cancellation. Dealer shall have the right to terminate this Agreement at any time upon thirty (30) days written notice,
and upon ten (10) days written notice in the event of any default hereunder. Customer shall have the right to terminate this Agreement upon ten (10)
days written notice in the event of any default by Dealer hereunder. Dealer shall have the further right to terminate this Agreement immediately and
without notice in the event Customer shall fail to pay in a timely manna any other sums for products or services agreed to be paid by Customer, or
N-2- 0 2_0 - Z,3-7
shall Lake such actions as to cause in violation of law or hazardous to pa�ons and property. No termination or cancellation under the terms of the
Agreement shall be effective until Dealer shall be afforded a reasorable opportunity for removal of the tanks and other Dealer equipment, and
Customer shall remain responsible for the rental fees and safekeepmg of the equipment until such time.
5. Use C urn . Customer shall use the leased equipment solely for the purposes set forth herein. Customer
shall exercise all reasonable care and caution in e preservation and use of the equipment, and shall comply fully with all laws and regulations
relating to the ion, use and maintenance of the equipment, including but not limited to the LP Gas Safety Rules of the Railroad Commission
of Texas, 16 ATACchapter 9 (the "LP Gas Supply Rules ), Customer will not remove, deface, or obscure any name plate, decal, or other identifying
mantdng or insignia on the equipment, nor any safety or operating data set forth on the equipment or on plates or togs attached thereto. Customer shall
not tamper with, move, nor attempt any repair or maintenance on the equipment. Customer is fully responsible for notifying Dealer of any required
maintenance. Such maintenance shall be performed by Dealer at Customer's expense unless attributed to normal wear and tear. Dealer shall be
responsible for all sales, use, ad valorem or other taxes, of any, imposed by any governmental authorities upon the equipment or its use during the
Agreement Periods.
6. Customer shall be fully responsible for the careation, security and safely of the equipment, against
damage caused byy customer, kepi for normal weutheri wear and tear. Customer 1 have exclusive control of the leased equipment so Ion
as it remains in Custtmu�spo ssession, and shall hold Dealer harmless from all claims for injury or damages, including attorney's fees, aming out of
Customer's improper use of the equipment. Such In
shall extend to any injury or damages, or claims thereof, ' i from the misconduct of
customer with respect to the equipment, Dealer, or any of the Dealers employees and agents while acting within the scope of their employment.
7. Instal do Rem vat. Defiler shall have full authority and responsibility for initial installation of the equipment. So long as this
Agreement is currently maintained and the leased equipment is maintained in ood condition, then upon termination at the end of any lease period,
the leased egwpment shall be removed by the Dealer at no additional charge. Should Customer default hereunder or elect to cancel the Agreement at
any time other than at the end of agreement period, the Dealer shall 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 Dealer are expressly limited to the installation of
the LP -Gas tamale or tmiks regulators and connections to the Customer's L.P. Gas
piping
ipinand 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 agreement if
desired.
8. Substitutions. Dealer reserves the right to substitute other equipment from time to time. All costs related thereto shall be borne
by Dealer unless sue c ges are made at the request of Customer or because of loss or damage to the equipment in Customers possession. Any
substitution of equipment shall be reflected by a written memorandum, executed by both parties and attached to this Agreement.
9. Warrmities. Dealer warrants 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 the real property wherein the equipment is to be located; or, if not owner, Cstomer has secured express
written consent and waiver of any claims from the owner,
10. Dealers Interests. Customer acknowledges that Dealer, in entering into this Agreement, is not relinquishingg any ownership rigght
in the equipment and that the equipment is and remains personal property belonging to Dealer at all times. Customer d�dpresssly grants unto Dealer
the exclusive and irrevocable right to enter upon Customers premises, elder checking with the Plant Manager, for the purpose of installing, servicing,
filing, repairing, and removing, said leased equipment This right shall exist independent of any other rights granted herein.
IL P&iy eatseat8 a All payments for gas used shall be mailed by first class U.S. Mail, by wire transfer, or delivered in
person to Dealer at Dealers a set Forth above. All written notices shall be given by Customer to Dealer at Dealers 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 deemed delivered on the
second business day following the day of posting by Registered or Certified Mail, postage prepaid and addressed as directed herein. Notices may also
be 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 party as provided herein. Such change of address shall C effective for all purposes seven (7) days after delivery of such notice
12. mow l rr t . Dealer shall not remove the equipment from the premises described above without the express
written consent of Customer m advance. Any removal or attempted removal without such advance consent shall, at the option of Customer, constitute
a default hereunder.
13. on- i This Agreement may not be assigned nor the leased equipment transferred, leased, or subleased, without
express written consent o Dealer in advance.
14. i?efault. In the event Customer shall default equipment provided to Customer by the Dealer to the timely payment of rent as
provided herein, or slinfi use the premises for the storage of LP -Gas products other than those supplied by Dealer, or shall permit the equipment to be
damaged, or stall use the 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 Dealers interest in the equipment, or cause Dealer to
reasonably believe that such interest is in jeopardy, then, 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 emer on the premises immediately
arid seal or 'lock o11" the tank. Reconnection after termination of service is at the sole discretion of Dealer and Customer, and reconnection Charrgge
may be charged at the option of the Dealer This Agreement shall not be in default, however, if the Customer uses the leased equipment temporarily
For the storage of LP -Gas products supplied by the other Dealers during any emergency period when Dealer is unable to supply all of Customers
product needs.
15. Remedies. In the event of default as described above or default in the performance of any other duty or responsibility by
Customer trade this Agreement, Dealer and Customer, at thew option, shall have the right to all remedies permitted by low and equity. For Dealer,
these may include, but are not limited to forfeiture of the Equipment, immediate 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 damages otherwise permitted by
law, to an amount equal to the fair market value of the equipment at the time of removal or termination. In the event Dealer prevails, Dealer shall be
entitled to recover all costs incurred, including costs of count, 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 Dealers place of business as set forth above.
17. Pavmem for LP Gas. Payment for all LP Gas and equipment delivered or service provided to Customer is due upon delivery.
Customer agrees to pay for all LP Gas, equipment and service within 30 days of consumption and the customer's receipt of the invoice From Dealer.
In the event Customer fails to make an ymenl due under this Agreement, Customer agrees that Dealer may assess fees in accordance with the
Texas Prompt Payment Act, Chapter 2251 dif the Texas Government Code. The only exception to the requirement of prompt payment is a written
agreement to the contrary between the parties.
18. Keen Will. 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 1111 Customer's tank(s) to capacity at the tune of each routine route delivery. Dealer will use its best efforts to prevent
Customers supply of LP Gas from being exhausted, but shall not have any responsibility or liability for the exhaustion of Customers LP Gas supply
or for any direct or indirect consequences of such exhaustion. In addition, Dealer shall not have any responsibility or liability for any interruption,
disruption or s on of Customers LP Gas supply, nor shall Dealer have any responsibility to male deliveries to Customer at any particular time.
If realer ins unn e a provide an adequate supply of fuel, the Dealer will be in default of the intended Supply Agreement.
19. Out of Gas. In the event Customer is "out of gas" through the fault of Customer. Customer will be assessed a service charge for a
leaf: test of the LP Gas system. Adequate notice of delivery will be determined to be five (5) drays before the outage. In the event the Customer
is "out of gas" through the fault of Customer, Dealer shall have the right to terminate the Agreement immediately and enter the premises and take
possession of the aforesaid equipment without thirty (30) days written notice.
20. Safely An odorant is added to LP Gas to provide a warning in the event of a leak. A hazardous situation may exist whenever the
smell of odorant is present, even if the smell is faint. If the smell of LP Gas is detected, Customer agrees to immediately evacuate the building, shut
the valve on the storage tank to the "Olt" position and immediately contact Dealer or the public safety authorities (fire or police) from otfsite so that
any potential hazardous situation can be corrected
21. A_cr.M. Customer grants Dealer full access to the premises for purposes of delivering LP Gas and for installing, maintaining,
servicing, or removing�e equipment. Customer shall bear any expense necessary to make the equipment accessible to Dealer.
22, Clean 4 Customer agrees to keep the area within ten (10) feet of the equipment clean and free from any ignitable material,
co
including weeds d long dry grans
24. Customer agrees Dealer will not be held responsible for any failure to make deliveries or provide service which
us prevented by adverse wm err, failure of trmhsportrution facilities shortages of supply, fire, riot, war, not of God or any olter cerise beyond the
reasonable control of Dealer.
25. "Customer" is a person(s) or business requesting or receiving services from Dealer. "Services" means LP Gas delivery,
equipment installation, removal and Dealer determined inspection and maintenance activities_
26. Dealer will perform a safety check of the Gas System and appliances associated with the use of LP Gas (1) prior to connection of
service, (h) prior to reconnection after a service interruption (when there has been a LP Gas outage), or (iii) at any other time as reasonably
determined by Dealer, and Customer.
27. The Gas System on the Premises shall remain the sole property of Dealer. The Gas System may only be used with LP Gas
purchased from Dealer, and us described in paragraph 14,
28. Dealer shall have the right at any reasonable time without notice to Customer to inspect, repair or remove the Gas System.
29. Customer is obligated to inform Dealer if there are any changes on the Premises (including the addition or deletion of LP Gas
appliances) that may increase or decrease usage. Notwithstanding any special programs in effect for Customer, it is expressly understood and agreed
that it shall be the responsibility of Dealer to monitor the amount of LP Gas in the Gas System tank
30. Dealer shall not be liable for damages resulting from failure to deliver LP Gas to Customer, tf beyond Dealers reasonable costs
31. Dealer shall not be liable for damage to any person 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 governmental action.
32. Customer accepts and agrees to pay for all LP Gas delivered by Dealer at the price(s) and tams established by Dealer.
Furthermore, all LP Gas sales are final upon consumption by Customer.
33. All accounts are subject to credit approval.
35. Customer shall maintain a current account balance at all tunes If Customer's account is not paid timely, Customer agrees to pay
the monthly late fee as set forth in paragraph 17 If Customers account is not paid timely, any special pricing programs in effect for Customer stall
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 the
LP Gas or the Gas System. Customer hereby indemnifies and holds Dealer harmless from and against all liabilities, claims and expanses of every
kind or nature related to or arising from the use of the LP Gas. Dealer hereby indemnifies and holds Customer harmless from and ogamst all
liabilities, claims and expenses of every kind or nature related to or ansing from the use of the LP Gas, for loss or damage caused by the Dealer
39 In recognition of the on -going cost incurred by Dealer for safe operations and the comply with the laws and regulations attendant
to the providing of Services. Customer agrees to pay Hazardous Material (HAZMAT) Fees as set forth above, in the agreed prices. 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 The 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 lams and conditions hereof at any time upon
30 days prior written notice.
42. The provisions of the Agreement are sevemble If any provision of the Agreement is, for any reason, invalid or unenforceable, the
remaining provisions of this Agreement are valid and enforceable if the basic intent of the parties is still capable of being achieved
43. Dealer's delay or failure to enforce any provision of this Agreement will not operate will not operate as a waiver or estoppel of
Dealer's right to enforce any provision of thus Agreement.
City of Round Rock
ROUND ROCK
TEXAS 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: 9/4/2020
Dept Director: Robert Isbell, Fire Chief
Cost: $24,000.00
Indexes: General Fund
Attachments:
Department: Fire Department
Text of Legislative File CM-2020-237
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
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