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Regional Transit Authority Contract_Use of VehiclesMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Contract with RTA for Transit Vehicles DATE: December 14, 2010 Dubuque Itiffrd AII-Amedca City 11111 f 2007 Economic Development Director Dave Heiar is recommending City Council approval of a contract with the Regional Transit Authority (RTA) for two transit vehicles to be used in Keyline (The Jule). concur with the recommendation and respectfully request Mayor and City Council approval. MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David Heiar, Economic Development Director Michael C. Van Milligen Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: David Heiar, Economic Development Director DATE: December 14, 2010 SUBJECT: Contract with RTA for Transit Vehicles Dubuque krarl Allamescacny 1 111 2007 BACKGROUND /DISCUSSION In July 2010, the City Council committed funding to provide local match money to purchase transit vehicles through a grant awarded to the RTA. The RTA had been awarded a federal grant for 83% of the cost to purchase two Pinnacle vans however the RTA did not have the local 17% match ($26,180) to purchase the vehicles. At that time the City had not received funding from the State of Good Repair or the Clean Fuels grants to replace our transit fleet. It was agreed that in return for this investment (local match), these funds would equate to the lease payments for 4 years or 100,000 mile federal useful life. The City could continue to lease the vehicles for Keyline use, for the extended useful life at $1.00 per year. Budget Director Jenny Larson has indicated that the City has $26,180 of unbudgeted revenue in FTA funds (FY07 and FY08) that the City will receive from the Illinois DOT for the East Dubuque mini bus service we are operating. The vehicles are now ready to be delivered. RECOMMENDATION /ACTION STEP I request that the City Council approve the attached contract which formalizes the use of $26,180 in local match for the RTA to acquire two Pinnacle vans that will be used to provide transit services in the City of Dubuque. Attachment cc: Jenny Larson, Budget Director Aaron DeJong, Asst. Economic Development Director Kelley Deutmeyer, ECIA, Executive Director F: \USERS \Econ Dev \Transit \Council Memos\20101214 Council Memo Contract with RTA Transit Vehicles.doc MOTOR VEHICLE LEASE AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND THE REGIONAL TRANSIT AUTHORITY DEC 29 This Motor Vehicle Lease Agreement (the Agreement), dated for reference purposes the 20 day of December, 2010 by and between, the Regional Transit Authority hereinafter referred to as, RTA, and the City of Dubuque, hereinafter referred to as the City. In consideration of the mutual covenants, promises and representations herein, the parties agree as follows: 1. MOTOR VEHICLE LEASE AGREEMENT. RTA hereby rents to City for City's use as described in this Agreement the following described motor vehicle with all accessories incorporated there or affixed thereto (the Leased Vehicles): Pinnacle Vans Sprinter /Pinnacle VIN: WDPPF4CC2A9434999 Sprinter /Pinnacle VIN: WDPPF4CC0A9434998 2. TERM. The term of this Agreement shall be for a period of four (4) years commencing December 20, 2010 and ending at midnight December 19, 2014, subject however, to any prior termination as hereinafter provided. 3. RENT. City agrees to pay RTA a lump sum rental fee of $26,180 Dollars, the said rental amount being due on the first day of the Term. Rent is payable at the office of RTA located at 7600 Commerce Park, Dubuque, Iowa 52002. 4. MAINTENANCE AND REPAIRS. City shall pay for and furnish all maintenance and repairs to keep the Leased Vehicles in good working order and condition, including satisfying all manufacturer recommendations and specifications for maintenance, this includes, but is not limited to: oil, lubricants, tires, batteries and other operating supplies and accessories that are necessary. At the expiration of this agreement, the City may renew said lease on a continuous yearly basis at the sum of $1.00 per year. If City fails to perform any said maintenance or repairs within 14 days of the need for said maintenance or repair, RTA may, at RTA's option and without limitation, perform such maintenance or repair and City shall repay the cost for such work incurred by RTA upon demand. The Leased Vehicles shall be equipped with wheelchair securements, occupant restraints, and two -way radio equipment. It is the responsibility of City to replace these items as necessary throughout the Term. 5. REGISTRATION, LICENSE, TAXES, INSPECTION, FEES, EXPENSES. City shall pay all expenses incurred in the use and operation of the Leased Vehicles, including but not limited to, license, registration, and title fees, gasoline, oil, anti - freeze, repairs, maintenance, tires, storage, fines, inspections, assessments, sales or use taxes, if any, and all other taxes as may be imposed by law from time to time arising from City's use and operation of the Leased 121010djh Vehicles. City will reimburse and hold RTA harmless for any and all amounts RTA may pay in satisfaction, release or discharge thereof. City shall permit RTA and /or its designees to inspect the Vehicles at reasonable times, places and intervals and upon reasonable notice to City. Each Leased Vehicle shall bear Iowa Transit vehicle license plates and transit system signage, prominently displayed on the right and left side of the vehicle. 6. USE AND OPERATION. City acknowledges receipt of the Leased Vehicles, and that the same are in condition satisfactory to City's purposes. The Leased Vehicles shall not be altered, marked or additional equipment installed without the prior written consent of RTA in which case City will bear the expense thereof as well as the restoration expenses. City shall keep the Leased Vehicles free of all taxes, liens, and encumbrances and any sum of money that may be paid by RTA in release or discharge thereof, including legal costs, shall be paid on demand by RTA. City shall not use or permit the use of Leased Vehicles in violation of any federal, state, county or city laws, ordinances, rules or regulations, or contrary to the provisions of the insurance policy coverage. City, by acceptance of this Agreement, agrees to abide by the terms hereof and to indemnify RTA for any losses occurring as a result of such use in violation of said terms, laws, rules and ordinances. 7. INDEMNIFICATION AND INSURANCE. City agrees and will protect, indemnify and hold harmless RTA and its assignees and agents from and against any and all losses, damages, injuries, claims, demands and expenses occasioned by, or arising out of, the negligence of City with respect to the condition, maintenance, use or operation of the Leased Vehicles, including any accident or other occurrence causing or inflicting injury and /or damage to any person or property, happening or done, in, upon, or about the Leased Vehicles, or due directly or indirectly to City's negligence in the performance of this Agreement, or the negligence of City with respect to the condition, maintenance, use or operation of the Leased Vehicles by City or any person claiming through or under the City. It is the expressed intention of the parties hereto, both RTA and City, that the indemnity provided in this provision is indemnity by City to protect RTA from the consequences of City's own negligence, whether that negligence is the sole, or concurring cause, of any claimed loss, injury or damage. The City agrees that it will at all times provide at a minimum the following insurance coverage or equivalent coverage in the Iowa Communities Assurance Pool in which City is a member: Liability At Least $6,000,000 Uninsured /Underinsured Motorist $1,000,000.00 The City shall list the RTA on the City's coverage form as titleholder and shall provide the RTA with a certificate of the requested coverage. In the event the Leased Vehicles are involved in an accident, damaged, stolen or destroyed by fire, City shall promptly notify RTA, in writing, within 24 hours and will also comply with all terms and condition entered in the insurance policies. City agrees to cooperate with RTA, and the insurance companies in defending against any claims or actions resulting from City's operation or use of the Vehicles. The Leased Vehicles shall not be used by any person or entity, in any manner or for any purpose that would cause any insurance herein specified to be suspended, canceled, or rendered inapplicable. 8. DAMAGE TO VEHICLES. Should the leased vehicle or any part thereof be so damaged as to preclude usage for the purpose intended, or makes it economically unfeasible to repair said condition, City may terminate this agreement upon payment to RTA of the fair market value of said vehicle, prior to said damage. However, should City be indemnified in an amount less than the full amount of the insurance coverage, the City will repair or replace the Leased Vehicles or the damaged part thereof and the proceeds of the insurance recovery shall be applied to such repair or replacement. 9. TITLE. City acknowledges that this is a lease agreement to use only and that City does not in any way acquire title to the Leased Vehicles under this Agreement. Without the prior written consent of RTA, City agrees not to do any act to encumber, convert, pledge, sell, assign, re -hire, lease, lend, conceal, abandon, give up possession of, or destroy the Leased Vehicles. 10. [Intentionally Left Blank] 11. ASSIGNMENT. Without the prior written consent of RTA or any assignee of RTA, City agrees not to sublet, mortgage, pledge, sell, assign or otherwise transfer or dispose of this Agreement. In connection therewith, City agrees this Agreement and the Leased Vehicles used there under will be subjected to any rights and interest in and to said Leased Vehicles under any contract RTA has with another regarding title or interests in title. 12. DEFAULT. In any of the following default events: 1) Failure to pay rent herein provided when the same is due and payable and such default continues for a period of ten (10) days after receipt of notice thereof of City; 2) Failure to comply with any of the material terms or conditions hereof; 3) A proceeding in insolvency or receivership by or against City or its property, or in event City lessee business, makes an assignment for the benefit of creditors, or if an attachment be levied or tax lien filed against a Leased Vehicle, or 4) City fails for any reason to comply with the insurance requirements of the Agreement, then and in those events, or any of them, RTA may, at its option and without prejudice to any other rights it may have: a) take possession of Leased Vehicles and for the purpose thereof may enter the premises on which the Leased Vehicles are located and remove them without court order or other process of law(damages occasioned by such taking being expressly waived by City), and thereupon City's right to possession and use of the Leased Vehicles shall terminate; b) may but need not use the Leased Vehicles or any portion thereof for such period, rental, and to such persons or entities as RTA shall elect and shall apply the net proceeds of any such renting in payment of the rent and other obligations due from City to RTA hereunder by acceleration or otherwise; c) may but need not sell the Leased Vehicles or any part thereof at public or private sale without demand or notice of intention to sell or of sale and shall apply the net proceeds of any such disposition against the total obligations owed RTA; d) may deduct all costs and expenses in connection with such retaking, including insurance, repairs, storage, renting or sale of the Leased Vehicles from the proceeds derived from such renting or sale; e) terminate City's rights hereunder as to the Leased Vehicles. No right or remedy conferred upon or reserved to RTA by this Agreement shall be exclusive of any other right or remedy herein or by law provided; all rights and remedies conferred upon RTA by this Agreement or by law shall be cumulative and in addition to every other right and remedy to. 13. CONSTRUCTION. This Agreement shall be construed and determined in accordance with the laws of the State of Iowa. Any provision herein prohibited by law shall be ineffective to the extent of such prohibition without invalidating the remaining provisions of this Agreement. Words and phrases herein, including any acknowiedgment hereof, shall be construed as in the singular or plural number, and as [DaSCu|ine, feminine or neuter gender according to the context. 14. TIME IS OF THE ESSENCE. Time is of the essence of this Agreement. However, RTA's failure at any time to require strict performance by City of any provisions herein shall not waive or diminish RTA's right to thereafter demand strict compliance therewith or with other provisions of this Agreement and written waiver by RTA of any default hereunder shall not constitute a waiver of any other default. 15. ENTIRE AGREEMENT. This Agreement contains the whole agreement of the parties. None of the CVVeO@OtG, provisions, terms or conditions of this Agreement shall be in any manner modified, waived, abandoned or amended except by a written instrument duly signed by the parties or their assignee and delivered to RTA and City or their respective assignees. 16. BINDING. Each and every covenant and agreement herein contained shail extend to and binding upon the respective successors, heirs, administrators, executors and assigns of the parties hereto except as may be modified in paragraph 11 hereof. 17. NOTICE. Notices as provided for in this Agreement shall be given to the respective parties or their assignees at their respective addresses designated herein unless there is notification of the parties to the other, in writing, of a different address. Such notice shall be deemed to be given and received when deposited in the United States 08i|, postage prepaid, addressed as herein designated. 18. TERMINATION OF AGREEMENT. Should this agreement be terminated by default or agreement of the p@rties, there shall be no reimbursement to either party for the original purchase price or iocal match contribution. CITY OF DUBUQUE IOWA Date: REG|ONALTRANSITAUTH(JR|TY Date: ' � ^� /'