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Home My WebLink About1991 CON McDonald Transit - Bus Contract Extensionty of National City, California COUNCIL AGENDA STATEMENT June 18, 1991 MEETING DATE 12 AGENDA ITEM NO. ITEM TITLE RESOLUTION AUTHORIZING AMENDMENT OF CONTRACT WITH MCDONALD TRANSIT ASSOCIATES, INC. PREPARED BY EXPLANATION Bob Arthur DEPARTMENT National City Transit The contract with McDonald Transit Associates, Inc. for the operation of public bus service in National City expires June 30, 1991. The City has the option to renew the contract for an additional two years. The attached resolution authorizes an amendment to the contract to accomplish this. Additionally, the amendment updates the insurance and hold harmless provi- sions of the contract. Funding is considered separately when National City Transit's budget is reviewed along with the rest of the City's budget. The City's transit operation is funded with Transportation Development Act funds. 1 Environmental Review N/A Financial Statement This action involves TDA funds only. The City's General Fund is not involved. Account No. STAFF RECOMMENDATION Staff recommends approval. BOARD/COMMISSION RECOMMENDATION 91-132 ATTACHMENTS (Listed Below) Resolution No. * Resolution * Contract A-200 (Rev. 9/80) RESOLUTION NO. 91-132 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING EXECUTION OF AN AMENDMENT TO CONTRACT WITH MC DONALD TRANSIT ASSOCIATES, INC. TO PROVIDE PUBLIC TRANSPORTATION WITHIN THE CITY OF NATIONAL CITY BE IT RESOLVED, by the City Council of the City of National City that the Mayor is hereby authorized and directed to execute the amendment to contract between the City of National City and McDonald Transit Associates, Inc. Said amendment to contract is on file in the Office of the City Clerk. PASSED and ADOPTED this 18th day of June, 1991. George H. Waters, Mayor ATTEST: i, P1p Lore. Anne Peoples City Clerk APPROVED AS TO FORM: Geofge H.Eiser, III City Attorney AMENDMENT TO CONTRACT THIS AMENDMENT TO CONTRACT, made and entered into on this this 18th day of JUNE , 1991, by and between the CITY OF NATIONAL CITY, a municipal corporation located in San Diego County, California, hereinafter called "City", acting by and through its duly authorized Mayor, and McDONALD TRANSIT ASSOCIATES, INC., a Texas Corporation, hereinafter called "McDT", acting by and through its duly authorized President, - RECITALS A. City and McDT entered into a contract and agreement executed on the 25th day of April, 1979, for the operation of public bus transportation service in the City of National City. B. That original contract has been renewed and extended, with certain changes mutually agreed by the parties. C. The term of the current extension expires on June 30, 1991. D. The parties desire to amend Section 2 of the contract to provide for a contract term of July 1, 1991 to June 30, 1993. E. The parties further desire to amend Section 9 of the Contract to update its insurance and hold harmless provisions. NOW, THEREFORE, in consideration of the foregoing recitals and covenants and agreements of each of the parties herein set forth, the parties hereby agree as follows: I. Section 2 of the contract is amended to read as follows: "2. TERM: The term of this contract and agreement shall be for a period of twenty-four (24) months, from July 1, 1991. However, it is covenanted and agreed by and between the parties that the City shall have the option to renew and extend this contract and agreement for an additional two (2) years beyond such twenty-four (24) month term on the same terms and conditions as herein set forth. City shall have a right of cancellation of this agreement if funding to City from the Local Transit Fund RESOLUTION NO. 91-132 of the State of California is eliminated or reduced so that the undertakings in this agreement cannot be met, or any changes in State or Federal law or regulations which limits the ability of City to operate transit services as herein described." II. Section 9 of the contract is amended to read as follows: "9. INSURANCE AND HOLD HARMLESS A. HOLD HARMLESS. BTM shall indemnify, defend, and hold harmless the City, its officers, employees and volunteers, against and from any and all liability, loss, damages to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, costs or attorneys' fees, of any kind or nature, including workers' compensation claims, of or by anyone whomsoever, in any way resulting from or arising out of BTM's performance of this Con- tract. B. WORKERS' COMPENSATION. BTM shall comply with all of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the Califor- nia Government Code and all amendments thereto; and all similar state or Federal acts or laws applicable; and shall indemnify, defend and hold harmless the City and its officers, employees and volunteers from and against all claims, demands, payments, suits, actions, proceed- ings and judgments of every nature and description, including attorney's fees and costs presented, brought or recovered against the City or its officers, employees, or volunteers, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by BTM under this Contract. C. INSURANCE. BTM, at its sole cost and expense, shall purchase and maintain throughout the term of this Contract, the following insurance policies: (1) Automobile insurance covering all bodily injury and property liability incurred during the performance of this Con- tract, with a minimum coverage of $10,000,000.00 combined single limit per accident. Such automobile insurance shall include non -owned vehicles. 2 (2) Comprehensive general liability insurance, with minimum limits of $1,000,000 combined single limit per occurrence, covering all bodily injury and property damage arising out of its operation under this Contract. (3) Worker's compensation insurance covering all of its employees and volunteers. (4) The aforesaid policies shall constitute primary insurance as to the City, its officers, employees, and volunteers, so that any other policies held by the City shall not contribute to any loss under said insur- ance. Said policies shall provide for thirty (30) days prior written notice to the City of cancellation or material change. (5) Said policies, except for the worker's compensation policies, shall name the City and its officers, agents, employees and volunteers as additional insureds. (6) This Contract shall not take effect until certificate(s) or other suffi- cient proof that these insurance provisions have been complied with, are filed with and approved by the City's Risk Manager. If BTM does not keep all of such insurance policies in full force and effect at all times during the terms of this Contract, the City may elect to treat the failure to maintain the requisite insurance as a breach of this Contract and terminate the Contract as provided herein. (7) If required insurance coverage is provided on a "claims made" rather than "occurrence" form, BTM shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Contract. (8) Any aggregate insurance limits must apply solely to this Contract." III. Except as otherwise provided herein, all of the terms and conditions of the "Contract to Establish and Operate Transit Service," dated April 25, 1979, shall remain in full force and effect. 3 In witness whereof, the parties hereto have executed this Amendment to Contract on the 18th day of JUNE , 1991, as of the date and year aforesaid. ATTEST: I\ Al Lori Anne Peoples CITY OF NATIONAL CITY, CALIFORNIA George H. 'Waters City Clerk Mayor APPROVED AS TO FORM AND LEGALITY 7— fiev�' George H. Eiser, III City Attorney ATTEST: .j/6141A4 j‘# McDONALD IT ASS uis L. H 4 Passed and adopted by the Council of the City of National City, California, on June 18, 1991 by the following vote, to -wit: Ayes: Councilmen Nays: Councilmen None Absent: Councilmen None Abstain: Councilmen None AUTHENTICATED BY: Dal la, Inzunza, Van Deventer, Zarate, Waters GEORGE H. WATERS By: Mayor of the City of National City, California City clerk of the City of National ity, California Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and cor- rect copy of RESOLUTION NO. 91-132 of the City of National City, Calif., passed and adopted by the Council of said City on June 18, 1991 (Seal) By: City Clerk of the City of National City, California Deputy a