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First Transit Mgmt Agree amendment (3) Dii~~E ~Yk-~ MEMORANDUM .' , June 27, 2006 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: City of Dubuque Management Agreement with First Transit, Inc. City Attorney Barry Lindahl is recommending approval of an amendment to the City of Dubuque Management Agreement with First Transit, Inc. removing the requirement that the Iowa Communities Assurance Pool name First Transit as an additional insured. I concur with the recommendation and respectfully request Mayor and City Council approval. flz A (/ /I, II _ ~J [ iVl/ "tJL-- Mich'ael c. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager BAR R Y A. L I N D A CITY ATTORNEY '< MEMO To: Michael C. Van Milligen City Manager DATE: June 16, 2006 Re: City of Dubuque Management Agreement with First Transit, Inc. We had a potential issue regarding the City of Dubuque Management Agreement with First Transit, Inc. Although the underwriters for our assurance pool, the Iowa Communities Assurance Pool (ICAP), approved our agreement with First Transit, they notified us that they would charge us an additional $140,000 premium to name First Transit as an additional insured as required by Paragraph 18 of the Management Agreement. We can avoid that cost if the insurance provisions of the Management Agreement are amended as set out in the attachment, removing the requirement that ICAP name First Transit as an additional insured. First Transit has agreed to the amendment for the following reason. We provided First Transit with the indemnification provision First Transit requested in the Management Agreement in Paragraph 17 and our ICAP agreement provides coverage for that contractual liability for both auto and general liability. Under that contractual liability coverage, ICAP would be obligated to defend and indemnify First Transit for claims within the scope of the indemnification paragraph in the Management Agreement. The net effect is, as a practical matter, the same as if First Transit was named as an additional insured. I recommend that the attached resolution and First Amendment to Management Agreement be submitted to the City Council for consideration and approval. Attachment OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330. HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 583-4113/ FAX (563) 583-1040/ EMAIL balesq@cityofdubuque.or9 RESOLUTION NO. 269-06 APPROVING THE FIRST AMENDMENT TO THE MANAGEMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND FIRST TRANSIT, INC. Whereas, the City of Dubuque, Iowa (City) and First Transit, Inc. (First Transit) have entered into the Management Agreement Between the City of Dubuque, Iowa and First Transit, Inc. (the Agreement) ; and Whereas, City and First Transit now desire to amend the Agreement as set forth in the attached First Amendment. Now, therefore it is agreed by and between the parties as follows: 1. The First Amendment attached hereto is hereby approved. 2. The Mayor and City Clerk are authorized and directed to execute the First Amendment on behalf of the City of Dubuque. Passed, approved and adopted this 5th day of July, 2006. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, City Clerk FIRST AMENDMENT TO MANAGEMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND FIRST TRANSIT, INC. This First Amendment to Management Agreement between the City of Dubuque, Iowa and First Transit, Inc. is dated for reference purposes the _ day of , 2006. Whereas, the City of Dubuque, Iowa (City) and First Transit, Inc. (First Transit) have entered into Management Agreement between the City of Dubuque, Iowa and First Transit (the Agreement); and Whereas, City and First Transit now desire to amend the Agreement as set forth here. Now, therefore it is agreed by and between the parties as follows: Par. 18 of the Agreement is amended to read as follows: 18. INSURANCE A. In furtherance of its obligations under Section 17 above and not in limitation thereof, the City shall furnish and maintain, at its sole cost and expense, at all times during the term of this Agreement and any renewal or extension thereof, (i) a standard policy of automobile liability insurance having a combined single limit of not less than $5,000,000 per occurrence, for the ownership, maintenance, use or operation of the buses and other vehicles used in connection with the management and operation of the Transit System, other City operations or businesses, or in any way associated with this contract, (ii) a standard policy of general liability insurance having a combined single limit of not less than $5,000,000 per occurrence and (iii) a standard policy of workers' compensation insurance covering all employees utilized in the operation of the Transit System in accordance with applicable law, together with employer's liability coverage of not less than $1,000,000 per employee per accident and $1,000,000 per employee for disease. Each such policy (a) shall be written by an insurer reasonably acceptable to FIRST TRANSIT, and (b) shall provide that it cannot be cancelled or materially altered without thirty (30) days prior written notice to FIRST TRANSIT. The City shall provide FIRST TRANSIT with certificate evidencing compliance with the provisions of this section 18 A. B. The City shall indemnify, defend and hold FIRST TRANSIT, its agents, servants and employees harmless from and against any and all loss, liability, claims, damage, and expenses (including, without limitation, attorneys fees), resulting from or arising out of the City's failure to furnish and maintain the insurance policies required by Subsection 18 A above in accordance with the terms thereof. In the event of any such failure, FIRST TRANSIT may, at its sole option, furnish such policy or policies without prejudice to any other remedy FIRST TRANSIT may have. The cost and expense of furnishing and maintaining such policy or policies shall be deemed an operating expense of the Transit System and reimbursable to FIRST TRANSIT. FIRST TRANSIT shall during the term of this Agreement maintain insurance as set forth in the attached Insurance Schedule. CITY OF DUBUQUE, IOWA FIRST TRANSIT, INC. By: Roy D. Buol, Mayor By: Title: Attest: Jeanne F. Schneider, City Clerk Witness: EFFECT OF AMENDMENT 18. INSURANCE A. In furtherance of its obligations under Section 17-1-S(This is actually a typo in the Aareement) above and not in limitation thereof, the City shall furnish and maintain, at its sole cost and expense, at all times during the term of this Agreement and any renewal or extension thereof, (i) a standard policy of automobile liability insurance having a combined single limit of not less than $5,000,000- per- occurrence insuring FIRST TR/\NSIT, as it is dofined abovo, for the ownership, maintenance, use or operation of the buses and other vehicles used in connection with the management and operation of the Transit System, other City operations or businesses, or in any way associated with this contract, (ii) a standard policy of general liability insurance having a combined single limit of not less than $5,000,000 per occurrence insuring FIRST TRJ\NSIT, its agents, servants and employees for their aots and omissions in oOFlneotion with tho R'lanagement and operation of the Transit System pursuant to this AgroeR'lent and (iii) a standard policy of workers' compensation insurance covering all employees utilized in the operation of the Transit System in accordance with applicable law, together with employer's liability coverage of not less than $1,000,000 per employee per accident and $1,000,000 per employee for disease. Each such policy (a) shall be written by an insurer reasonably acceptable to FIRST TRANSIT, (b) shall, with the exoeption of the workers' oompensation polioy, be endorsed to namo FIRST TRANSIT, as defined aeove, as additieFlal insuroEls, (0) shall pro'/ido that the ooverage afforded thereby is primary as to FIRST TRANSIT and not exoess and (QG) shall provide that it cannot be cancelled or materially altered without thirty (30) days prior written notice to FIRST TRANSIT. The City shall provide FIRST TRANSIT with certificate evidencing compliance with the provisions of this section ~+7 A. (Typo) B. The City shall indemnify, defend and hold FIRST TRANSIT, its agents, servants and employees harmless from and against any and all loss, liability, claims, damage, and expenses (including, without limitation, attorneys fees), resulting from or arising out of the City's failure to furnish and maintain the insurance policies required by Subsection 18 A above in accordance with the terms thereof. In the event of any such failure, FIRST TRANSIT may, at its sole option, furnish such policy or policies without prejudice to any other remedy FIRST TRANSIT may have. The cost and expense of furnishing and maintaining such policy or policies shall be deemed an operating expense of the Transit System and reimbursable to FIRST TRANSIT. FIRST TRANSIT shall during the term of this Agreement maintain insurance as set forth in the attached Insurance Schedule. EFFECT OF AMENDMENT 18. INSURANCE A. In furtherance of its obligations under Section 17-W(This is actually a tyPO in the AQreementl above and not in limitation thereof, the City shall furnish and maintain, at its sole cost and expense, at all times during the term of this Agreement and any renewal or extension thereof, (i) a standard policy of automobile liability insurance having a combined single limit of not less than $5,000,000- per- occurrence insuring FIRST TR/\NSIT, m; it is defined above, for the ownership, maintenance, use or operation of the buses and other vehicles used in connection with the management and operation of the Transit System, other City operations or businesses, or in any way associated with this contract, (ii) a standard policy of general liability insurance having a combined single limit of not less than $5,000,000 per occurrence insuring FIRST TPJ\NSIT, its agents, servants and employees for their acts and omissions in oonnection 'Nith the management and operation of the Transit System pursuant to this /\!jreement and (iii) a standard policy of workers' compensation insurance covering all employees utilized in the operation of the Transit System in accordance with applicable law, together with employer's liability coverage of not less than $1,000,000 per employee per accident and $1,000,000 per employee for disease. Each such policy (a) shall be written by an insurer reasonably acceptable to FIRST TRANSIT, (b) shall, with the exception of the workers' compensation policy, be endorsed to name FIRST TRANSIT, as defined above, as additional insur-ods, (c) sh::lll provide that the co'/cr::lgc ::lff-orded thereby is primary as to FIRST TRJ\NSIT ::lnd not excess and (!?El) shall provide that it cannot be cancelled or materially altered without thirty (30) days prior written notice to FIRST TRANSIT. The City shall provide FIRST TRANSIT with certificate evidencing compliance with the provisions of this section 18.t7 A. (T vpo) B. The City shall indemnify, defend and hold FIRST TRANSIT, its agents, servants and employees harmless from and against any and all loss, liability, claims, damage, and expenses (including, without limitation, attorneys fees), resulting from or arising out of the City's failure to furnish and maintain the insurance policies required by Subsection 18 A above in accordance with the terms thereof. In the event of any such failure, FIRST TRANSIT may, at its sole option, furnish such policy or policies without prejudice to any other remedy FIRST TRANSIT may have. The cost and expense of furnishing and maintaining such policy or policies shall be deemed an operating expense of the Transit System and reimbursable to FIRST TRANSIT. FIRST TRANSIT shall during the term of this Agreement maintain insurance as set forth in the attached Insurance Schedule. OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA MEMO FROM: Jeanne Schneider City Clerk TLracelYsstecklein ~ ega ecretary To: DATE: June 26, 2006 RE: First Transit, Inc. - First Amendment Jeanne: Attached is a copy of a letter that Barry received from Attorney Mike Petrucci, as well as four (4) original amendments signed by Richard Dunning, First Transit's Senior Vice President. I would appreciate it if you would please have the Mayor sign the four attached original amendments at the July 5, 2006 City Council meeting and return one signed original back to Barry. I will then make a copy for our files and forward the original to Attorney Petrucci. Thank you for your assistance with this matter. Attachment OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 583-4113/ FAX (563) 583-1040/ EMAIL tsteckle@cityofdubuque.org Michael C. Murray, Sr. Vice President & General Counsel Michael L. Petrucci, Associate General Counsel Daniel R. Beerck, Associate General Counsel Brian K. Hamilton, Associate General Counsel, Real Estate First ,. FirstGroup America, Inc. OFFICE OF GENERAL COUNSEL Michael L Petrucci, Esq. 705 Central Avenue, Suite 300 Cincinnati, Ohio 45202 Tel 513-684-8740 (Direct) Fax 513-684-1698 June 20, 2006 Barry Lindahl City Attorney 300 Main Street, STE 330 Dubuque, IA 52001 Re: First Amendment to Management Agreement between The City of Dubuque, Iowa and First Transit, Inc. Dear Mr. Lindahl: Enclosed please find four original Amendments executed by Richard Dunning in connection to the above-referenced Agreement. Upon receipt, kindly execute same and return an original copy to my attention for First Transit's files. In the meantime, if you have any questions or comments, please do not hesitate to contact me. Sincerely, ~8iiM/ Michael L. Petrucci Associate General Counsel Enclosure MLP/mnl FIRST AMENDMENT TO MANAGEMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND FIRST TRANSIT, INC. This First Amendment to Management Agreement between the City of Dubuque, Iowa and First Transit, Inc. is dated for reference purposes the _ day of , 2006. Whereas, the City of Dubuque, Iowa (City) and First Transit, Inc. (First Transit) have entered into Management Agreement between the City of Dubuque, Iowa and First Transit (the Agreement); and Whereas, City and First Transit now desire to amend the Agreement as set forth here. Now, therefore it is agreed by and between the parties as follows: Par. 18 of the Agreement is amended to read as follows: 18. INSURANCE A. In furtherance of its obligations under Section 17 above and not in limitation thereof, the City shall furnish and maintain, at its sole cost and expense, at all times during the term of this Agreement and any renewal or extension thereof, (i) a standard policy of automobile liability insurance having a combined single limit of not less than $5,000,000 per occurrence, for the ownership, maintenance, use or operation of the buses and other vehicles used in connection with the management and operation of the Transit System, other City operations or businesses, or in any way associated with this contract, (ii) a standard policy of general liability insurance having a combined single limit of not less than $5,000,000 per occurrence and (iii) a standard policy of workers' compensation insurance covering all employees utilized in the operation of the Transit System in accordance with applicable law, together with employer's liability coverage of not less than $1,000,000 per employee per accident and $1,000,000 per employee for disease. Each such policy (a) shall be written by an insurer reasonably acceptable to FIRST TRANSIT, and (b) shall provide that it cannot be cancelled or materially altered without thirty (30) days prior written notice to FIRST TRANSIT. The City . shall provide FIRST TRANSIT with certificate evidencing compliance with the pruvisions of this section 18 A. B. The City shall indemnify, defend and hold FIRST TRANSIT, its agents, servants and employees harmless from and against any and all loss, liability, claims, damage, and expenses (including, without limitation, attorneys fees), resulting from or arising out of the City's failure to furnish and maintain the insurance policies required by Subsection 18 A above in accordance with the terms thereof. In the event of any such failure, FIRST TRANSIT may, at its sole option, furnish such policy or policies without prejudice to any other remedy FIRST TRANSIT may have. The cost and expense of furnishing and maintaining such policy or policies shall be deemed an operating expense of the Transit System and reimbursable to FIRST TRANSIT. FIRST TRANSIT shall during the term of this Agreement maintain insurance as set forth in the attached Insurance Schedule. CITY OF DUBUQUE, IOWA By: Roy D. Buol, Mayor FIRnA~SIT' INC. BY\ L- ~ Title: Sr Attest: Jeanne F. Schneider, City Clerk Witness:JJA/..tJUJ j at -.li;,m