The URL can be used to link to this page

Home My WebLink AboutCC RESO 13,048RESOLUTION NO. 13,048 RESOLUTION AUTHORIZING EXECUTION OF BUS LEASE AGREEMENT BETWEEN CITY OF NATIONAL CITY AND SAN DIEGO METROPOLITAN TRANSIT DEVELOPMENT BOARD BE IT RESOLVED by the City Council of the City of National City that the City Manager is hereby authorized and directed to execute that certain Bus Lease Agreement between the City of National City and the San Diego Metro- politan Transit Development Board for lease of buses to be used in the San Diego region by the City's transit operators. PASSED AND ADOPTED this 15th day of May, 1979. ATTEST: THIS LEASE AGREEMENT is entered into this day of , 1979, by and between the SAN DIEGO METROPOL- ITAN TRANSIT DEVELOPMENT BOARD, a public agency established under Sections 120050, et seq., of the Public Utilities Code, hereinafter "Board," and the CITY OF NATIONAL CITY, a munici- pal corporation, hereinafter "Lessee." WITNESSETH: WHEREAS, Lessee needs eight (8) transit buses on a tem- porary basis, and desires to lease same from Board; and WHEREAS, Board has contracted to obtain from American Machinery & Equipment Company of Fort Worth, Texas ("AM&E"), through McDonald Transit Association, Inc. ("McDonald"), a number of 1962 and 1963 non -air-conditioned "Flxible" transit buses, some of which will not presently be needed for Board's own service and which Board therefore can lease to Lessee; NOW, THEREFORE, in consideration of the covenants, agree- ments and conditions hereinafter set forth, the parties agree as follows: 1. EQUIPMENT TO BE LEASED Board shall lease to Lessee eight (8) of the "Flxible" transit buses which Board anticipates having in its possession on or before May 1, 1979. The buses to be leased may be se- lected by Lessee from those made available by Board. If for any reason -Board does_not obtain at least eight (8) buses from -1- from A &E (through NCDonalcj) by May 15, 1979, Board shall have no liability, or further duty, to Lessee and this lease agreement shall be automatically terminated. 2. TERM This lease.shall be for a one-year period from the date the first bus is selected by Lessee, and shall be auto- matically renewed for additional one-year periods unless either party gives written notice of non -renewal as specified in para- graph 16•below. 3. RENTAL PAYMENT In consideration therefor, Lessee shall pay to Board the sum of $100.00 per bus per month, payable in advance._ 4. DELIVERY Lessee shall take possession of buses at Beard's facility in San Diego, and shall return buses to Board at the termination of the lease. 5. RIGHT TO SUBLET Lessee may sublet the buses to its contract opera- tor without first obtaining the written approval of Board. However, in the event of such a sub -lease, Lessee shall remain responsible for complying with all requirements of this lease. 6. INSURANCE Lessee, or its contract operator, shall at its own expense, procure and maintain in effect during the term of this lease, insurance coverage in at least the following amounts: • -2- Comprehensive Public Liability and Property Damage, including Automobile Worker's Compensation (only if Lessee contracts with a contract operator) Employer's Liability (only if Lessee contracts with a contract operator) Catastrophic Loss as to Material Damage to the Buses from Fire :i&,000,0G0.O0 Combined Single Limit Statutory Requirements As Required by Law $5,000.00 Deductible Prior to selection of the first bus, Lessee, or its contract operator, shall furnish Board with a Certificate of Insurance evidencing the above coverage requirements. The Certificate shall make provisions for cross liability and contain substan- tially the following language: (1) "The San Diego Metropolitan Transit Develop- ment Board is an additional insured." (2 "Except for the standard care, custody and control exclusion, the liability assumed by the city of National City under the provisions of the hold harmless and indemnity clause con- tained in the lease agreement between the City of National City and the San Diego Metropoli- tan Transit Development Board is covered by the terms of the policy." (3) "This policy of the City of National City (or "This policy of the contract operator of the City of National -City . ."] is primary over 'any -other insurance carried by the San Diego -3- Motropolitan Transit Development Board for claims arising out of the City of National City's (and its contract operator's) possession, operation, maintenance and repair of the leased buses." (4) "The policy will not be canceled or materially changed without thirty (30).days' prior writ- ten notice to the San Diego Metropolitan Transit Development Board." 7. INDEMNITY AND HOLD HARMLESS. Lessee agrees to indemnify and hold harmless from all claims, damages, liabilities, losses and expenses on ac- count of bodily injury to or death of any person, including employees of Board, and damage to or loss of use of property, including the buses leased herein, arising out of or in any way connected with this lease agreement and Lessee's posses- sion,, operation, maintenance and repair of the leased buses; provided, however, Lessee's obligations hereunder shall not extend to claims, damages, liabilities, losses and expenses arising out of or in any way connected with the sole negli- gence of Board. 8. ' CONDITION OF EQUIPMENT The buses are provided to Lessee on an "as is" ba- sis, and Lessee, at its expense, shall be responsible for mak- ing all modifications, and installing all equipment, required for safety or other reasons-by'applicable Federal, State and local laws -arid regulations. All modifications and equipment • -4- installed by Lessca shall remain upon termination of this lease. Lessee shall return buses to Board in the same condi- tion as taken, reasonable wear and tear excepted, with no credit being given for any of Lessee's modifications or improvements. 9. MAINTENANCE AND REPAIRS Lessee at its expense shall maintain and repair all buses according to the best standards of the industry while same are in its possession. _ 10. PAINTING OF BUSES Lessee shall remove or cover any existing name and logo appearing on the buses at the time of delivery. Lessee may, if it chooses, paint the buses in its color. There shall be no mention of "MTDB".or "Metropolitan Transit Development Board" on the buses themselves. Upon termination or cancella- tion of this lease, Lessee shall remove or cover any name and logp which Lessee or its contract operator may have placed on the buses. 11. TAXES, FEES, LICENSES, PERMITS AND REGULATIONS Lessee shall, at its expense, pay any and all taxes, fees, and other charges associated with this lease and the bus operation. Lessee, through its efforts and at its ex- pense, shall obtain all required licenses and other permits, and shall comply with all applicable Federal, State and local laws and regulations relating to bus operation. 12. DEFAULT It Lessee defaults in the performance of any -5- condition or covenant in this lease any: `ails to rectify said default within fifteen (15) days after written notice thereof is given to Lessee by Board, Board may, at its op- tion, immediately terminate this lease. 13. NOTICES Any notice required or permitted .under this lease agreement may be personally served on the other party, by the. party giving notice, or may be served by certified mail, re- turn receipt requested, to the following addresses: TO BOARD: General Manager San Diego Metropolitan Transit Development Board 620 "C" Street, Fourth Floor San Diego, California 92101 TO LESSEE: City Manager City of National City 1243 National City Boulevard National City, California 92050 14. ATTORNEYS' FEES In the event of any controversy, claim, or dispute between the parties hereto, arising out of or relating to this agreement or the breach thereof, the prevailing party shall be entitled to recover from the losing party reasonable expenses, attorneys' fees and costs. 15. NOTICE Or TAXABLE PROPERTY INTEREST -The terms of this lease may result in the creation of a possessory interest. If such a -possessory interest is vested in a -`private party to this lease, the private party , -6 such 16. TE .=A TTOT' "" ..' ..r.-.r T Either Darty ma7 tcrmin a is t: _s leases' at the end of anv annual period by givina :written notice to the other party at least sixty (60) days prior to the beginning of any succeeding annual period. Lessee shall have a right of cancellation of this agreement be giving written notice to Board if funding to Lessee from the State of California is eliminated or reduced so that the undertakings in this agree- ment cannot be met, or any changes in State or Federal law or regulations. limit the ability of Lessee to operate transit service. - 17. DESTRUCTION BY FIRE OR OTHER CAUSE If, during the term- of this lease agreement or any extensions thereof, any bus shall be totally destroyed by fire or any other casualty, or partially damaged or destroyed by fire or any other casualty so that the reasonable cost of re- pair exceeds an amount determined by subtracting the fair mar- ket value of all modifications and equipment installed by Lessee (pursuant to paragraph 8 above) in that bus to date from the fair market value of that bus just prior to the cas- ualty, thcr the bus need not be repaired provided that Lessee pays Board the amount so determined. Under such circumstances, Lessee may then select another similar bus from Board's sup- ply to the extent any are available,- or it may determine to continue the lease_asto only the remaining buses. -7- rTN r ]1. is `i +- s`.v r`. t� i this c. I. F:��..E�,: 1•�F..�R_J', .i�� parties have _. Lt�:: �.;y:. lease agreement on the day, month and year first above written. CITY OF NATIONAL CITY SAN DIEGO METROPOLITAN TRANSIT DEVELOPMENT BOARD By: By: Approved as to form: Approved as 'to form: By: By: Donald F. McLean, Jr., City Attorney -8 Peterson, Gamer, Muns & Price, A Professional Corporation