Label
Law/Risk Management
Jeffrey B. Charles (x1020)
Title
Authorizing the Mayor to enter into a Heavy Equipment Warranty Settlement and Release Agreement with Best Equipment, Inc. with respect to a December 2022 city purchase and maintenance of a CAT D Dozer; authoring the deposit, appropriation and expenditure of $150,000 in settlement proceeds into the Capital Improvement Account; authorizing the appropriation and expenditure of the same for heavy equipment improvement expenditures; authorizing a amended Repair and Maintenance Agreement with Ohio Cat; and declaring and emergency
Body
SUMMARY & BACKGROUND:
On December 15, 2022, City of Toledo purchased a refurbished CAT D8 Dozer for $375,000 for use at the landfill. This purchase was approved and memorialized with City Ordinance #491-22. Since this machine was delivered it has been plagued with problems that have required it to be repaired repeatedly. Rather than continue to repair the machine via a warranty offered by the seller that City has elected to receive a one-time payment of $150,000 from the seller in exchange for all outstanding warranty obligation due. With receipt of this payment the City will no longer have a contractual relationship with Best Equipment, Inc.
Summary
NOW THEREFORE Be it ordained by the Council of the City of Toledo:
SECTION 1. That the Mayor is authorized to accept the settlement deposit of $150,000 from Best Equipment Inc., into the landfill equipment, Capital Improvement Fund Account Code 5040-24500-8CP2227LNDEQP to terminate all contractual obligations and duties between the City of Toledo and Best Equipment, Inc. as previously memorialized with City Ordinance #491-22. The Mayor is authorized to accept the funds on behalf of the city, and has the authorization to enter into an agreement under such terms as are acceptable to the Director of Law releasing the company from any future warranty obligations.
SECTION 2. That the appropriation of $150,000 is authorized from the settlement proceeds in the Capital Improvement Fund to Account Code 5040-24500-8CP2227LNDEQP and the expenditure of same is authorized for capital improvements to heavy equipment utilized by the Division of Solid Waste at the Hoffman Road Landfill.
SECTION 3. That the Mayor is authorized to enter into an amended agreement with Ohio CAT for the purpose authorized in Section 2, upon terms and conditions acceptable to the Director of Public Service and the Director of Law.
SECTION 4. That the Director of Finance is authorized to draw their warrant or warrants against the above Account Code in payment of the above-authorized obligations in an amount not to exceed $150,000 upon presentation of the proper voucher or vouchers.
SECTION 5. That this ordinance, being an emergency measure, shall be in force and effect from and after its passage. The reason for the emergency lies in the fact that this ordinance is necessary for the immediate preservation of the public peace, health, safety and property, and for the further reason that this ordinance must be immediately effective in order to secure the funds that would be necessary to complete heavy equipment capital improvements and to settle the legal claims in a timely and efficient manner.
Vote on emergency clause: yeas _____, nays _____.
Passed: _________________, as an emergency measure: yeas _____, nays _____.
Attest: ________________________ __________________________________
Clerk of Council President of Council
Approved: _____________________ __________________________________
Mayor
I hereby certify that the above is a true and correct copy of an Ordinance passed by Council ________________________.
Attest: ________________________
Clerk of Council