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Home My Public Portal AboutContract 20190805LEASE AND AGREEMENT THIS AGREEMENT is made and entered into as of June 10th, 2019 by and between Sonoco Recycling, LLC ("Lessor'), a North Carolina limited liability company of Charlotte, North Carolina, and City of Tybee Island ("Lessee"), with a location of 403 Butler Ave. Tybee Island GA 31328 ("the Facility"). 1 For a period of one (1) year beginning September 1, 2019 through August 31, 2020, Lessor hereby leases to own one (1) Marathon 72" baler ("Equipment") for baling acceptable recyclable materials, which Equipment shall be located at the Facility at all times during the term of this Lease. Lessee shall pay to Lessor, as lease to own for said Equipment, the sum of $350 per month for a total of $4,200, for each 12 month period. This Agreement shall automatically be renewed for additional terms of one (1) year each, unless either party shall give notice in writing to the other party of ifs intention not to renew, not less than sixty (60) days prior to the expiration of the then - current term. After sixty (60) monthly payments to Lessor for a total of $21,000 and performance by Lessee of its other obligations under this Agreement, Equipment would be transferred to Lessee for the sum of $1.00. Either party may terminate this Agreement if the other party breaches the Agreement and fails to cure the breach within thirty (30) days after written notice from the terminating party specifying the breach 2. Lessee shall operate and use said Equipment solely for baling of recyclable corrugated, plastic, and UBC. Lessee shall supply to Lessor and Lessor will acquire from Lessee the entire output of acceptable recyclable material generated at the facility under the terms and conditions of this Agreement, approximately 5 tons per month of baled recyclables. Lessee agrees that all corrugated sold hereunder shall be in medium density bales and shall meet the specifications for Grade (11) Corrugated Containers, and that all plastic sold hereunder shall be baled, as those specifications are outlined in the current circular of the Institute of the Scrap Recycling Industries, Inc., "Scrap Specifications Circular." All acceptable recyclable materials sold hereunder shall be clean of contaminants. Lessee shall not co -mingle acceptable recycle materials within the same bale, unless identified and approved by Lessor. Lessee also agrees to take adequate steps to ensure that the material provided to Lessor shall not include any "Hazardous Substances." For purposes of this Agreement, Hazardous Substances shall include, but not be limited to, any hazardous or toxic substance, hazardous chemical, material, waste, or compound including known carcinogens or other chemicals known to be a risk fo human health and the environment such as petroleum products and asbestos containing materials and including those wastes, materials and substances regulated under state and federal laws including the Comprehensive Environmental Response, Compensation and Liability Act, the Resource Conservation and Recovery Act, the Federal insecticide, Fungicide, and Rodenticide Act and the Toxic Substances Control Act. 3. The purchase price (FOB City of Tybee Island dock) for baled grade (1 1) OCC Corrugated Containers sold hereunder shall be 25% of the prevailing Southeast region market price based on the PPI Pulp & Paper Week's most recent first issue of the month. Baled PET #1 and HDPE# 2 separated, hereunder shall be 50% of the Recycling Markets.net 2nd week published price. Baled Aluminum Used Beverage cans (UBC) separated, hereunder shall be 50% of the local sale price of baled UBC on the date of service. 4. Sonoco will provide enclosed drop deck trailer pickup service upon request. No payment will be made for corrugated if the Southeast region market price is $50.00 or less per ton for OCC at the time of pick up, although Lessee shall still be obligated to bale and provide all of its recyclable materials to Lessor and Lessor shall continue to provide pickup service as described herein. 5. Lessor reserves the right to inspect and reject or adjust pricing for contaminated materials, received from the Lessee and Lessor will have the option to apply a disposal fee for unacceptable material that is generated by the Lessee. 6. Sonoco will apply a fuel surcharge to all loads, based on the published Department of Energy Diesel Fuel Price for the East Coast (PADD). Page 1 of 3 HSB 5857278 v.2 7. Lessee has the option to purchase baling wire from Lessor at market price. 8. If Lessor experiences an extraordinary change in costs or benefits hereunder such as, for example, the imposition of a surcharge by a supplier to Lessor, or an increase in Lessor's fuel or other costs, or changes in market prices for materials supplied hereunder, Lessor and Lessee will discuss an appropriate price adjustment. If Lessor and Lessee do not, each acting in good faith, agree to an adjustment within ten (10) days of Lessor's written request with supporting documentation, Lessor may terminate this Agreement after thirty (30) additional days' written notice to Lessee. 9. Payment of invoices shall be net sixty (60) days and will be based on Lessor's scale weights. Remittances will be made to: City of Tybee Island P.O. Box 2749 Tybee island, GA 31328. 10. Lessee shall keep the equipment insured against all risk of loss or damage from every cause whatsoever for not less than the replacement cost (new) of the equipment without consideration for depreciation, and shall carry workers' compensation, employer's liability, and comprehensive general liability insurance. The insurance shall be in form and amount and with companies satisfactory to Lessor. Lessee must provide a certificate of the existence of liability protection under the coverage agreement and identify Lessor as certificate holder. 11. Lessee shall operate the Equipment in compliance with ail applicable laws and regulations and in conformity with the manufacturer's specifications and manuals, and at its sole cost and expense, shall service and maintain the Equipment as to keep it in good condition, appearance and working order for the purposes intended, ordinary wear and tear excepted. Lessee shall replace or repair any part or parts of the Equipment as may from time to time become worn out, lost, stolen, destroyed, damaged or unfit for use and shall replace the entire Equipment with comparable equipment if it is lost, stolen destroyed or damaged. All such replacement parts, mechanisms and devices shall be free and clear of all liens, encumbrances and rights of others, shall become the property of Lessor and shall become subject to the terms and conditions of this Agreement. 12. Lessor warrants that the Equipment will comply with the manufacturer's specifications. Otherwise LESSOR MAKES NO WARRANTIES OR REPRESENTATIONS, EXPRESS OR IMPLIED, AS TO THE EQUIPMENT, AND IN PARTICULAR, LESSOR DISCLAIMS ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Lessee acknowledges that Lessor is not the designer or manufacturer of the Equipment and will not be responsible for its installation, maintenance, repair or operation. 13. Lessor shall have the right to remove its Equipment from the premises of Lessee at the end of the term or any extension or renewal thereof, in as good a condition as at the beginning of the term, excepting only wear and tear from reasonable use. Upon expiration or termination prior to Lessee making sixty (60) monthly payments to Lessor for a total of $21,000, Lessee can pay the remaining balance to own the Equipment or shall be responsible for the reasonable and customary expenses of the removal of the Equipment. 14. Lessee consents to the filing by Lessor of a financing statement under the Uniform Commercial Code evidencing the ownership by Lessor of the Equipment, and agrees to take such steps, sign such documents and do such things at the request of Lessor as may be reasonably necessary in order to document Lessor's interest in the equipment. 15. Neither party shall be liable for failure to perform its obligations hereunder, if such failure is the result of events or conditions reasonably beyond the control of the defaulting party, including, without limitations, fire, flood, strikes, etc. 16. This Agreement shall be governed by the laws of the State of Georgia. jr-Ac102.� 17. This Agreement shall > to the benefit of and be binding upon the parties hereto and their successors and assigns. Page 2 of 3 HSB 5857278 v.2 18. The Agreement contains the entire understanding of the parties pertaining to the subject matter hereof and may not be modified, cancelled or amended, nor any of its provisions waived, unless in a writing signed by the party against whom such modification, cancellation, amendment or waiver is to be enforced. IN WITNESS WHEREOF, the parties have executed this Agreement by their duly authorized officers or representatives the day and year written above. SONOCO RECYCLING, LLC Mike Pope President and General Manager Name and Title (typed) /VP Signature OTh/ate/3ol1 Date Date CITY OF TYBEE ISLAND GA Jason Buelterman Janet LeViner Name and Title (type Mayor City Clerk 3 Bl--- _........w__ . ATTES Signatu HSS 5857278 v.2 Page 3 of 3