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Home My WebLink AboutPR 18895: ONE-YEAR EXTENSION OF LEASE WITH THE NEW ORLEANS REGIONAL TRANSIT AUTHORITY, 10 BUSES P.R. No. 18895 3/2/2015 DDA 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 (10) BUSES, IN AN AMOUNT NOT TO EXCEED $6,000.00. FUNDS AVAILABLE IN TRANSIT ACCOUNT NO. 401-1501-561.51-00. WHEREAS,pursuant to Resolution No. 12-306,the City Manager executed an agreement with the New Orleans Regional Transit Authority(NORTA)for the lease of ten(10)buses to be utilized by the Port Arthur Transit for its fixed-route services for a period of ninety(90)days which included an option to renew if the need arises; and, WHEREAS,since the ninety(90)day period expired, said lease has continued on a month-to- month basis; and, WHEREAS,due to ongoing litigation between the City and Daimler Chrysler,there is a need to extend the lease for an additional one(1)year period on a month-to-month basis; and, WHEREAS,the New Orleans Regional Transit Authority(NORTA)agrees to continue to lease ten(10)buses to the city at a rate of$50 per bus; and, WHEREAS,it is deemed in the best interest of the City of Port Arthur to enter into a one-year lease extension on a month-to-month basis with the New Orleans Regional Transit Authority(NORTA) for the 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: THAT,the facts and opinions in the preamble are true and correct. THAT, the City Manager is hereby authorized to execute a one year lease extension on a month- to-month basis with the New Orleans Regional Transit Authority in substantially the same form as delineated in Exhibit"A". P.R.No. 18895 3/2/2015 DDA Page 2 of 2 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 March, 2015 A.D., at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor: ; Council Members: ; • NOES: . Mayor ATTEST: City Secretary APPROVED AS TO FORM: \I C City Atto ,- o APPROVED FOR ADMINISTRATION: City Manager APPROVED AS TO AVAILABILITY OF FUNDS: ' 40 ilo ,4e0-1,d4?( - ...uvra... Finance Director Transit Director 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 on a month-to-month basis 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 the following buses from NORTA for a one (1) year, month-to- month basis: Year Make VIN# Dept. Date Rec. Mileage Psngr 2008 ORI 1VHFF3G2486704037 1501 7/3/2012 198,827 Bus#145 Psngr 2008 ORI 1VHFF3G2486704038 1501 7/3/2012 191,337 Bus#146 Psngr 2008 ORI 1VHFF3G2486704045 1501 7/3/2012 139,477 Bus#147 Psngr 2008 0R1 1VHFF3G2486704067 1501 7/3/2012 200,360 Bus#150 Psngr 2008 ORI 1VHFF3G2486704080 1501 7/3/2012 206,435 Bus#159 Psngr 2008 ORI 1VHFF3G2486704082 1501 7/3/2012 191,772 Bus#161 Psngr 2008 ORI 1VHFF3G2486704083 1501 7/3/2012 152,463 Bus#162 Psngr 2008 ORI 1VHFF3G2486704089 1501 7/3/2012 171,306 Bus#163 Psngr 2008 ORI 1 VHFF3 G2486704090 1501 7/3/2012 180,258 Bus#164 Psngr 2008 ORI 1VHFF3G2486704097 1501 7/32012 174,033 Bus#171 *Note* Mileage as of March 10, 2015. The term of this lease shall commence on the day of March 2015 and end on the day of March 2016. 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 termination 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 accepted. 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 , 2015. CITY OF PORT ARTHUR, TEXAS By: Brian McDougal, City Manager ATTEST: Sherri Bellard, City Secretary 6 SIGNED AND AGREED to on this the day of , 2015. NEW ORLEANS REGIONAL TRANSIT AUTHORITY By: Print Name: Title: ATTEST: Print Name: Title: 7 TMT Certificate of Coverage INTERGOVERNMENTAL RISK POOL TMLIRP Contract Number: 17587 Member: Company Affording Coverage: Port Arthur Texas Municipal League Intergovernmental Risk Pool(TMLIRP) Dr.Albert T Thigpen PO Box 149194 HR Director Austin,TX 78714-9194 PO Box 1089 (512)491-2300 or(800)537-6655 Port Arthur,Texas 77641-1089 Fax:(512)491-2404 Certificate Holder: New Orleans Regional Transit Authority Veolia Transportation 2817 Canal Street New Orleans, LA 70119 This is to certify that the coverages listed below have been provided to the member and are in effect at this time. Notwithstanding any requirements, terms, or conditions of any other contract or agreement with respect to which this certificate may be issued or may pertain,the coverage afforded by TMLIRP described herein is subject only to the terms,exclusions and additions of TMLIRP's coverage contracts between TMLIRP and its member(s). Coverage is continuous until canceled. General Liability Effective Date: Real&Personal Property Effective Date: Anniversary Date: Anniversary Date: Limits of Liability(Each Occurrence): Limits of Coverage: Sudden Events Involving Pollution (Each Occurrence): Deductible per Occurrence: Annual Aggregate: Mobile Equipment Effective Date: Deductible per Occurrence: Anniversary Date: Law Enforcement Liability Effective Date: Limits of Coverage: Anniversary Date: Deductible per Occurrence: Limits of Liability(Each Occurrence): Boiler&Machinery-Broad Form Effective Date: Annual Aggregate: Anniversary Date: Deductible per Occurrence: Per Accident Limit: Errors and Omissions Liability Effective Date: Deductible per Occurrence: Anniversary Date: Yes No Limits of Liability(Each Wrongful Act): Mortgagee Annual Aggregate: Loss Payee Deductible per Occurrence: Loan Number: Auto Liability Effective Date: 10/1/2014 Year/Make/Model VIN Value Anniversary Date: 10/1/2015 See attached schedule ACV Limits of Liability(Each Occurrence): $5,000,000 Deductible per Occurrence: $25,000 Auto Physical Damage Effective Date: 10/1/2014 Anniversary Date: 10/1/2015 Limits of Liability: ACV or Agreed Value as scheduled Collision Deductible: $2,500 Comprehensive Deductible: $2,500 Yes No Loss Payee: X Loan Number: DESCRIPTION: Evidence of Coverage. EL201-A Loss Payable Clause-Automobile Physical Damage endorsement attached. Cancellation: Should any of the above described coverages be canceled before the anniversary date thereof,TMLIRP will endeavor to mail 30 days written notice to the above named certificate holder,but failure to mail such notice shall impose no obligation or liability of any kind upon TMLIRP. Authorized Representative:Claudette Brunetti Date Issued: CLcA(4 � 3/25/2015 X102 t��' 2/10/2015 COVERED PARTY—OWNER, LESSOR OR LIENHOLDER LOSS PAYABLE CLAUSE-AUTOMOBILE PHYSICAL DAMAGE This endorsement forms a part of the Declarations to which attached, effective on the inception date of the coverage unless otherwise stated herein, and modifies such coverage as is afforded by the provisions of the coverage shown below: Entity Name : Port Arthur Entity ID : 7587 Effective Date : 10/1/2014 AUTOMOBILE LIABILITY It is understood that pursuant to Part IV-A., Section II, paragraph D., of the Liability Coverage Document, coverage is extended to the owner, lessor or lienholder designated below because such coverage is required by contract. However, coverage is extended only with respect to liability arising out of the operation, use, loading, unloading, or maintenance of the automobiles designated below. AUTOMOBILE PHYSICAL DAMAGE Loss or damage to the automobile(s) described in this endorsement shall be paid as interest may appear to the fund member and the loss payee named below. The interest of the loss payee shall not become invalid because of acts or omissions of the fund member. However, the Fund reserves the right to cancel this self-insurance as permitted by the Interlocal Agreement and the cancellation will terminate this agreement as to the loss payee's interest. The Fund will give the same advance notice of cancellation to the loss payee as is given to the fund member. In the event the Fund pays the loss payee the Fund shall,to the extent of payment, be subrogated to the loss payee's right of recovery. Owner/Lessor/Lienholder : New Orleans Regional Transit Authority Veolia Transportation Address : 2817 Canal Street City, State&ZIP : New Orleans,LA 70119 Designated Automobile(s) ID Year Make Model VIN 1018 2008 Orion VII Bus 1VHFF3G2486704037 1019 2008 Orion VII Bus 1VHFF3G2486704038 1020 2008 Orion VII Bus 1VHFF3G2486704045 1021 2008 Orion VII Bus 1VHFF3G2486704067 1022 2008 Orion VII Bus 1VHFF3G2486704080 1023 2008 Orion VII Bus 1VHFF3G2486704082 1024 2008 Orion VII Bus 1VHFF3G2486704083 1025 2008 Orion VII Bus 1VHFF3G2486704089 1026 2008 Orion VII Bus 1VHFF3G2486704090 1027 2008 Orion VII Bus 1VHFF3G2486704097 TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL EL201-A 06/02/06 Entity ID: 7587 Cert Holder: New Orleans Regional Transit Authority Member: Port Arthur Year/Make/Model VIN Value Loan Number Maturity Date 2008 Orion VII Bus 1VHFF3G2486704037 ACV 2008 Orion VII Bus 1VHFF3G2486704038 ACV 2008 Orion VII Bus 1VHFF3G2486704045 ACV 2008 Orion VII Bus 1VHFF3G2486704067 ACV 2008 Orion VII Bus 1VHFF3G2486704080 ACV 2008 Orion VII Bus 1VHFF3G2486704082 ACV 2008 Orion VII Bus 1VHFF3G2486704083 ACV 2008 Orion VII Bus 1VHFF3G2486704089 ACV 2008 Orion VII Bus 1VHFF3G2486704090 ACV 2008 Orion VII Bus 1VHFF3G2486704097 ACV X121 2/10/2015