HomeMy WebLinkAboutPR 18203: ONE-YEAR EXTENSION FOR LEASE OF TEN BUSES (NORTA) P.R. NO.18203
2/12/14 CWR
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE A ONE -YEAR EXTENSION OF THE EXISTING
LEASE BETWEEN THE CITY OF PORT ARTHUR AND
THE NEW ORLEANS REGIONAL TRANSIT AUTHORITY
( NORTA) FOR THE LEASE OF TEN BUSES IN AN
AMOUNT NOT TO EXCEED $6,000.(ACCOUNT NO.401-
1501- 561.51 -00)
WHEREAS, pursuant to Resolution Nos. 12 -306 and 13 -095, the
City Manager executed an agreement with the New Orleans Transit
Authority (NORTA) for the lease of ten buses to be utilized by the
Port Arthur Transit for its fixed route services; and
WHEREAS, due to the ongoing litigation between the City and
Daimler Chrysler, and there is a need to extend the lease for an
additional one -year period; and
WHEREAS, due to the need to purchase buses thereafter, this
justification for a lease is requested; and
WHEREAS, the New Orleans Regional Transit Authority (NORTA)
agrees to continue to lease ten buses to the city at a rate of $50
per bus ($500 per month); and
WHEREAS, it is deemed in the best interest of the City of
Port Arthur to enter into a one -year lease extension with the
New Orleans Regional Transit Authority (NORTA) for the
s.pr18203
continuation of its fixed route transit services, in
substantially the same form as Exhibit "A ".
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PORT ARTHUR:
Section 1. That the facts and opinions in the preamble
are true and correct.
Section 2. That the City Manager is hereby authorized
to execute the one -year lease extension with the New Orleans
Transit Authority in substantially the same form as delineated
in Exhibit "A ".
Section 3. That a copy of the caption of this
Resolution shall be spread upon the Minutes of the City Council.
READ, ADOPTED, AND APPROVED, this day of
2014 AD, at a Regular Meeting of the City Council of the City of
Port Arthur, Texas by the following vote: AYES:
Mayor:
Councilmembers:
NOES:
Mayor
s.pr18203
ATTEST:
City Secretary
APPROVED AS TO FORM:
Ci tto
b e 47
APPROVED FOR ADMINISTRATION:
John A. Comeaux, P.E.,
Interim City Manager
APPROVED AS TO AVAILABILITY OF FUNDS:
Director of Finance
/
Purchasing Manager
s.prl 8203
EXHIBIT "A"
TRANSIT BUS LEASE AGREEMENT
BETWEEN THE CITY OF PORT ARTHUR AND
THE NEW ORLEANS REGIONAL TRANSIT AUTHORITY
THIS AGREEMENT is made by and between the City of Port Arthur, hereafter referred
to as "City," a home rule municipality and the New Orleans Regional Transit Authority, hereafter
referred to as "NORTA," which serves as the public transit division for the New Orleans
community; and,
WHEREAS, the City wishes to continue leasing ten (10) transit buses for use by its
Transit Division. NORTA owns ten (10) 2008 Orion VII transit buses, which are available for a
short-term lease. NORTA agrees to lease ten (10) buses to the City for a one (1) year period to
assist the City with its fixed -route transit services; and
WHEREAS, it is deemed in the best interest of the citizens of the City of Port Arthur to
enter into this agreement for the continuation of its fixed -route transit service.
NOW THEREFORE, it is hereby agreed that the CITY and NORTA, hereafter referred
to as "PARTIES" enter into this Agreement for the lease of buses for the benefit of the City's
Transit Division as follows:
1
1. TERM .
The City agrees to lease to following buses from NORTA for an initial term of one (1)
year:
Bus # Year Make Model VIN Plate Mileage As of 02126114
145 2008 Orion VII 1VHFF3G2486704031 216489 178,569
146 2008 Orion VII 1VFFF3G268704038 216488 168,709
147 2008 Orion VII 1VHFF3G23867040045 216487 135,638
150 2008 Orion VII 1V11FF302286704067 216484 185,140
159 2008 Orion VII 1V1F3G2586704080 216475 183,864
161 2008 Orion VII 1VI-H302986704082 216473 159,234
162 2008 Orion VII 1VHFF3G2086704083 216472 138,572
163 2008 Orion VII 1VHFF3G2186704089 216471 141,727
164 2008 Orion VII 1VHFF302886704090 215470 162,949
171 2008 Orion Vll 1VHFF3G2086704097 216495 142,149
The term of this lease shall commence on the day of March 2014 and end-
on the day of March 2015.
2
2. RENTAL FEE:
The City agrees to pay an initial monthly rental fee of $50.00 per month for each bus.
Therefore, the monthly rental cost for ten (10) transit buses is $500.00 per month. The initial
term of the contact is for a period of one (1) year at total cost of $6,000. Payment will be made
by the City to NORTA within five (5) days of the execution of this contract.
Should the need arise, the City may wish to extend the lease on a month to month basis.
Said extension will not exceed a total lease term of twelve (12) months. The City will provide
thirty (30) days notice to NORTA of any request for an extension beyond the initial one year
term. At that time, the parties agree to negotiate a suitable monthly rental cost.
3. MAINTENANCE AND REPAIR:
On the execution of this lease, the City will take possession of the buses listed in Section
One. The CITY has thoroughly inspected the buses and has determined that they are suitable for
use by the Port Arthur Transit Division. At its expense, the CITY shall keep and maintain the
buses in good sanitary condition and repair during the term of this lease and any extension
thereof. In particular, the City will be responsible for all maintenance and repair of the buses
while they are in the CITY'S possession. City agrees to perform all required service as
delineated in the Driver's Manual, Service Manual, Schematics, Training Modules, Parts
Manual, and Preventive Maintenance records for the 2008 Orion VII buses.
4. ALTERATIONS AND IMPROVEMENTS.
The CITY will make no alterations to the buses without the prior written consent of
NORTA. Unless otherwise provided by written agreement between CITY and NORTA, any
alterations, changes, and improvements built, constructed, or placed on the buses by CITY, with
3
the exception of fixtures removable without damage to the buses and movable personal property,
shall be the property of NORTA and remain on the buses at the expiration or temuination of this
lease.
5. INSURANCE REQUIREMENTS.
Prior to taking possession of the buses, the City will maintain at its sole cost and expense,
and cause to be kept in full force and effect at all times during the term of this lease agreement a
legally binding policy of insurance licensed to do business in State of Texas by the State
Insurance Commission. The City shall provide automobile physical damage coverage and
comprehensive coverage including flood and collision. The coverage shall in the event of loss
include the replacement cost of the buses. A copy of the aforementioned policies will be
forwarded to NORTA within five (5) days of the execution of this lease.
6. RETURN OF BUSES.
At the expiration of the lease term, City shall surrender the buses clean and in as good
condition as they were at the commencement of this lease, reasonable use and wear and damages
by the elements excepted.
7. INDEMNIFICATION.
CITY shall covenant and agree to indemnify and to save and hold harmless NORTA,
its agents, officers and employees:
any and all claims, liabilities, loses damages, costs, charges, and other expense of every kind
and character, any of which for any reason whatsoever may arise out of or will be
attributable, directly or indirectly from the City's utilization of said transit buses.
NORTA shall covenant and agree to indemnify and to save and hold harmless CITY,
4
its agents, officers and employees:
Any and all claims, liabilities, loses damages, costs, charges, and other expense of every
kind and character, any of which for any reason whatsoever may arise out of or will be
attributable, directly or indirectly from the NORTA's utilization of the buses, prior to the
CITY taking possession of said transit buses.
8. DEFAULT.
If the CITY or NORTA fail to comply with any material provision of this lease, either
Party may have the option to terminate the lease, by providing ten (10) days written notice of
such termination.
9. COMMUNICATION.
All communication related to this lease agreement should be directed to the CITY via its City
Manager or Interim City Manager, which may be contacted at the following address and phone
number:
Office of the City Manager
City of Port Arthur
P.O. Box 1089
Port Arthur, Texas 77640
(409) 983 -8101/ 983 -8102
All communication related to this lease agreement should be directed to the NORTA via its
, which may be contacted at the following address and phone number:
5
SIGNED AND AGREED to on this the day of , 2014.
CITY OF PORT ARTHUR, TEXAS
By:
John A. Comeaux, P.E.,
Interim City Manager
ATTEST:
Sherri Bellard, City Secretary
6
SIGNED AND AGREED to on this the day of , 2014.
NEW ORLEANS REGIONAL TRANSIT AUTHORITY
By:
Print Name:
Title:
ATTEST:
Print Name:
Title:
7