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 $15...
Click here for full text