HomeMy WebLinkAboutR-1996-170 Lease Agreement / Yakima Interurban Lines Association, Inc., / Electric Railway Street Car / Community & EconomicRESOLUTION NO. R-96-170
A RESOLUTION authorizing and directing the City Manager and City Clerk of
the City of Yakima to execute a lease and operating agreement
with Yakima Interurban Lines Association, Inc. for electric
railway street car operation until the end of 1999.
WHEREAS, the City owns an electric railway system, donated to the City of
Yakima by the Yakima Valley Transportation Company, over which system the
Yakima Interurban Lines Association has for many years operated railroad street
cars by agreement with the City, and
WHEREAS, Yakima Interurban Lines Association, Inc. desires to continue the street
car operation through the end of 1999 as provided by the attached agreement , and
WHEREAS, the City Council deems it to be in the best interest of the City that the
City enter into the attached agreement, accordingly, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager and City Clerk of the city of Yakima are hereby authorized and
directed to execute the attached Electric Railway Lease, Operating, And
Indemnification Agreement with Yakima Valley Interurban Lines Association, Inc.
subject to Yakima Valley Interurban Lines Association, Inc. presenting to the City
Manager proof of adequate insurance coverage in conformance with the terms of the
agreement.
ADOPTED BY THE CITY COUNCIL this flay of December , 1996.
ATTEST: ,/Lynn Buchanan, Mayor
City Clerk
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RESOLUTION AUTHORIZING 1996 YILA AGREEMENT -- Page 1
ELECTRIC RAILWAY LEASE, OPERATING, AND INDEMNIFICATION
AGREEMENT
THIS LEASE AGREEMENT, executed this day of December, 1996, by and
between the City of Yakima, hereinafter called the City, and Yakima Interurban
Lines Association. Inc., hereinafter called YILA:
WITNESSETH:
WHEREAS, the City owns an electric railway system, with some tracks outside
and some tracks inside the Yakima City boundary, consisting primarily of properties
of the former Yakima Valley Transportation Company, as those properties were
transferred and conveyed to the City by virtue of a "Bill of Donation," a "Donation
Quitclaim Deed", and also by a "YVT Blanket Assignment of Third Party
Agreements to City of Yakima"; and
WHEREAS, the City desires to operate a portion of such electric railroad system
which portion is depicted on the map (EXHIBIT A); and
WHEREAS, the City owns one electric railway trolley car and exercises the
management and control over another trolley car, owned by Yakima County, by
virtue of an agreement between the City and Yakima County dated January 29, 1974,
which trolley cars have been operated on such electric railroad system for a number
of years as a tourism promotion by agreement currently between YILA and the City ;
and
WHEREAS, inasmuch as Yakima Valley Transportation Company
transferred operation of its railroad system and conveyed it to the City, as recited
above, YILA desires to continue the operation of the electric railway cars on that
portion of such railroad system depicted on EXHIBIT A, and to promote the trolley
car rides to promote tourism for the benefit of the general public of the City and its
environs; and the City recognizes that the general public will benefit from the
continued operation of the trolley cars, and therefore the City is willing to allow
YILA to operate the trolley cars on that railroad system depicted on EXHIBIT A as
provided by this agreement,
NOW, THEREFORE, in consideration of the premises, and of the promises of the
parties hereto; and in also consideration of the benefit to inure to the general public
of the City and its environs by the continued operation of the trolley cars under by
this agreement, the parties mutually agree as follows:
1. DELIVERY OF ELECTRIC RAILROAD SYSTEM TO YILA. The City hereby
leases and delivers possession to YILA of all property owned by the City constituting
the electric railroad system including, but not limited to, the trolley cars, all
equipment acquired from Yakima Valley Transportation Company listed on the Bill
of Donation, and the track, catenary, appurtenances, and the real property of the
existing system both inside and outside the City boundary as depicted on the
attached map and legal description (EXHIBIT A) which is incorporated herein.
2. LICENSES, PERMITS, ETC. Included in the delivery to YILA is the right and
responsibility for administration of pipeline crossing licenses, property use permits,
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ELECTRIC RAILWAY LEASE, OPERATING,
AND INDEMNIFICATION AGREEMENT: PAGE 1
subleases, and similar agreements relating to the use of the property by third parties;
and YILA is hereby assigned the right to collect and retain as revenue to YILA all
fees provided by such licenses, permits, leases and similar agreements.
3. YILA ACCEPTANCE OF DELIVERY. YILA shall possess the property referred
to in Paragraph 1 above. YILA shall maintain an inventory which shall be updated
at least yearly, by identifying and making a written list of all equipment, real
property, trolleys, barns, and other property related to the maintenance and
operation of the trolley cars and the electric railroad system.
4. ELECTRIC RAILWAY SYSTEM OPERATION. YILA shall operate the electric
railway trolley cars and trolley system, and further shall administer the railroad
system and its related equipment and properties, all without cost or liability
burdening the City; and YILA shall assume, perform and otherwise be responsible
for all duties, obligations, and liabilities related to possession and operation of the
railroad system, its equipment and related properties which would be duties,
obligations, or liabilities of the City except for this agreement.
5. SYSTEM USE RESTRICTED. The use made by YILA of the railroad system and
related properties and equipment shall be limited to operation of the electric railway
trolley cars only for transport of passengers for the benefit and enjoyment of the
citizens of Yakima and as a tourist attraction and tourism promotional activity, and
to activities necessarily related to such operation or otherwise required to fulfill
obligations under this agreement. The use by YILA of the trolleys, tracks or related
property or equipment for any other purpose shall constitute grounds for the
immediate termination of this agreement by the City.
6. EQUIPMENT MAINTENANCE. Using trolley funds, YILA shall maintain in
good repair the trolley cars and all other properties and equipment constituting the
system, all without cost to or liability on the part of the City.
7. TRACK MAINTENANCE. Tracks located on any City street shall be
maintained so the tops of the rails shall be level with the surface of the street;
provided, YILA shall not be required to super elevate or depress one rail of any track
or otherwise to change the cross level of any track or tracks contrary to standard
railroad engineering practices. YILA shall maintain the surface of the streets
between the rails of the tracks and for a distance of eighteen (18) inches on the
outside of each rail in a manner satisfactory to the City's Director of Public Works.
8. PERSONNEL. Without cost or liability to the City, YILA shall provide all
personnel needed to operate and maintain the trolley cars, property and the trolley
system business, with volunteers or staff compensated, with City Council approval,
from the Trolley Fund.
9. NEWLY ACQUIRED EQUIPMENT. Any equipment acquired by YILA for use
in the trolley operation under this agreement shall remain the property of YILA
unless the equipment is attached to or incorporated in property owned by the City so
that its removal would result in substantial or irreparable damage to City property,
in which event that equipment acquired by YILA shall become City property
without payment or other consideration by the City to YILA.
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ELECTRIC RAILWAY LEASE, OPERATING,
AND INDEMNIFICATION AGREEMENT: PAGE 2
10. YILA AS INDEPENDENT CONTRACTOR. The parties intend that YILA shall
manage and operate an electric railway trolley car business, and maintain the
equipment and properties, as an independent contractor and not as an agent of the
City. YILA shall have the authority to set the amount of fares and to retain all
earned income and donations derived from the trolley business. No officer,
employee or agent of YILA shall be deemed to be an agent or representative of the
City in connection with the trolley operation. No person shall be deemed an
employee or agent of the City on the basis that such person acted as an employee of
Y1LA or otherwise acted on behalf of YILA . In promoting or operating the electric
railway trolleys, YILA shall not use the designation "City of Yakima" or "County of
Yakima" in any way which might give the appearance or impression that YILA is an
agent of or is otherwise connected with the City or County of Yakima, except as an
independent contractor; provided, that the two Brill cars to be operated pursuant to
this agreement may retain their names of "City of Yakima" and "County of
Yakima". No officer, employee or agent of YILA is authorized to make any
statement on behalf of either the City of Yakima or Yakima County.
11. TOURISM PROMOTION. To any extent determined by the City from time to
time, the City may cooperate with YILA in the promotion of the electric railway
system for the benefit and enjoyment of the citizens of Yakima and as a tourist
attraction in the greater Yakima area, but the city shall not be obligated to promote
the electric railway system as a tourist attraction in the greater Yakima area.
12. COMPLIANCE WITH LAWS. YILA shall obtain necessary permits or licenses
from the City, State or federal government, or any other governmental agency
having jurisdiction over the electric railway business by YILA; and YILA otherwise
shall operate the electric railway trolley cars, and the system and business, in
accordance with all applicable laws, rules and regulations.
13. ADDITIONAL REGULATIONS. In addition to complying with all other
applicable laws, rules and regulations, YILA agrees to comply with the following
regulations in operating the trolley cars.
(a) The speed of trolley cars and all other on-track equipment shall not exceed
ten miles per hour on 6th Avenue between Pine Street and Walnut Street, and shall
not exceed fifteen miles per hour elsewhere.
(b) The electric railway trolleys and other on-track equipment shall not be
operated so as to impede traffic north of Pine Street or south of Fruitvale Boulevard
during the following time periods on Mondays through Fridays:
1:00 a.m. to 9:00 a.m.
11:30 a.m. to 1:00 p.m.
4:30 p.m. to 6:00 p.m.
(c) All trolleys and all other on-track equipment shall obey signals at
intersecting streets, and shall be preceded by a flag person at intersections which are
protected by stop signs.
14. DEBTS AND LIENS. YILA shall not allow any lien to attach to City property.
YILA shall not allow any tax or debt to be imposed on the City as a consequence of
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ELECTRIC RAILWAY LEASE, OPERATING,
AND INDEMNIFICATION AGREEMENT: PAGE 3
YILA's possession, occupancy or use of City equipment or property. In the event any
lien, tax, or debt is incurred or arises by operation of law, YILA shall immediately
pay and satisfy such lien tax, or debt.
15. INDEMNIFICATION. YILA shall indemnify and hold the City, and/or its
officers, employees, and agents harmless from, and YILA shall defend the City,
and/or its officers, employees, and agents against any and all claims, liability, or
other obligations based on or resulting from any act or omission of YILA including
without limitation, YILA's possession, operation, or maintenance of railway
properties, trolley cars, the trolley system, or the trolley business.
16. INSURANCE REQUIREMENT. YILA shall, prior to any possession, operation,
or maintenance of railway properties, trolley cars, the trolley system, or the trolley
business under this agreement, obtain a general public liability policy insuring
against bodily injury and property damage with a combined single limit of not less
than one million dollars ($1,000,000) for each incident. The City, and its officers,
employees and agents shall be named as insured parties along with YILA. Further,
the policy shall insure the contractual undertakings of YILA under this agreement,
including the indemnification provisions of paragraph 10.B. above.
17. TRACK PROPERTY PRESERVATION. YILA may protect track property by
whatever legal means are necessary, in order to keep the complete electric railway
corridor intact and usable. YILA may acquire such additional property as it deems
necessary to provide for the trolley operation under this agreement. However, no
power of eminent domain is purported to be delegated to YILA by this agreement.
Furthermore, nothing in this agreement requires the City to exercise its power of
eminent domain for the benefit of YILA or the trolley system or business.
18. RESERVATION OF RIGHTS. The City reserves the right, as against any claim
by or detriment to YILA, to control and regulate the public streets and other railway
property over which any rail tracks traverse, and to improve its streets and street
right-of-way, and to install and maintain sewers, water mains or any other public
works. The City reserves the right to sell that portion of the railroad system
described in Exhibit A, together with all appurtenances. In the event of the
conveyance of the aforementioned portion of the railroad system, the City shall
notify YILA in writing prior to any transfer. From and after said transfer YILA shall
not perform any activity covered by this agreement on said portion of the system
without the written approval of the City.
19. TROLLEY FUND. Funds received from the salvage of abandoned portions of
the YVT system and other sources shall be used for capital improvements to the
system at the City Council's discretion based on recommendations from YILA.
20. ASSIGNABILITY. No rights under this agreement may be assigned by YILA to
any other person, corporation or association without the City's prior written
consent.
21. DEFAULT - TERMINATION
A. Notice Of Default - Termination. In the event of failure or default by YILA
in satisfying any duty or obligation under this agreement, the City may terminate
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ELECTRIC RAILWAY LEASE, OPERATING,
AND INDEMNIFICATION AGREEMENT: PAGE 4
this agreement by delivering to YILA written notice of default and intent to
terminate. Such notice shall specify the act or omission which constitutes the
default. In the event YILA fails to cure such default within forty-five (45) days from
the delivery of the notice, then this agreement shall automatically terminate.
B. Immediate Termination. The provisions of paragraph 21.A. above shall
not apply to a breach of this agreement by YILA in expanding its operations beyond
the transport of passengers, only, as a tourist attraction and promotion activity; nor
shall those provisions apply in the event YILA fails to obtain or maintain in full
force and effect the insurance policy required by this agreement. In either such
event, this agreement will terminate immediately on notice by the City to YILA.
22. NOTIFICATION Any notice by either party to the other pertaining to this
agreement or the trolley operation shall be given in writing and delivered by
certified mail or by personal service as follows:
City of Yakima Yakima Interurban Lines Association
c/o City Manager P. O. Box 649
129 North 2nd Street Yakima, Washington 98907
Yakima, Washington 98901 (509) 575-1700
(509) 575-6040
23. YILA OFFICE LOCATION. YILA shall maintain an office at the address stated
above, or at some other place within the City of Yakima, with a telephone or
telephone recording device. YILA shall immediately notify the City in writing of
any change in the name of the responsible person to receive notification under
Paragraph 21.A above, or of any change of the office address where notice is to be
given, or YILA's telephone number.
24. TERM. This agreement shall be effective when signed by an authorized
representative of each party, and shall terminate at 12:01 a.m. on January 1, 2000.
25. NO WARRANTIES. The City of Yakima makes no warranties, expressed or
implied, as to any aspect of any trolley cars, or other property, real or personal, or the
railway system.
EXECUTED AT YAKIMA, WASHINGTON, the day and year first above written.
CITY OF YAKIMA
By
Dick Zais, Yakima City Manager
ATTEST:
KAR ,City C erk
By
YAKIMA INTERURBAN LINES
ASSOCIATION, INC.
y
George Irtrtes, President
, Vice%?dent
City Contract No. 9 -1/ c' Resolution l n -/?f
lap/contracts/yila ' 96 agreement 12/13/96 12:09 PM
ELECTRIC RAILWAY LEASE, OPERATING,
AND INDEMNIFICATION AGREEMENT: PAGE 5
Hamman-Miller-Beauchamp-Deeble
POBox 1520
3633 E. Broadway
Long Beach, CA 90801-1520
AVG
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND
CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE
DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE
POUCIEE BELOW.
COMPANIES AFFORDING COVERAGE
A St Paul Fire & Marine Co
LETTER
Yakima Interurban Lines Assn.,
Inc. DBA: Yakima Electric
Railway Museum
P.O. Box 649
Yakima, WA 98902
COMPANY 8
LETTER
COMPANY `►
LETTER
COMPANY D
LETTER
COMPANY E
LETTER
.1171177.
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE USTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POUCY PERIOD
INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POUCIES. UMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
CO
LTR
TYPE OF INSURANCE
POLICY NUMBER
POLICY EFFECTIVE
DATE (MINDD/YY)
POLICY EXPIRATION
DATE (M/NOD/TY)
UNITS
A
GENERAL UA TY
X COMMERCIAL GENERAL LIABIMTY
CLAMS MADE X OCCUR.
OWNER'S 1 CONTRACTOR'S PROT
CK06101189
06/19/96
06/19/97
GENERAL AGGREGATE
2,000,000
AGG.
PERSONAL & ADV. INJURY
$ 1,000,000
$ 1,000,000
EACH OCCURRENCE
s 1,000,000
FIRE DAMAGE (Any ons firs)
$ 100,000
MED. EXPENSE (My one person
$ 5,000
AUTOMOBILE UABIUTY
ANY AUTO
ALL OWNED AUTOS
SCHEDULED AUTOS
X HIRED AUTOS
X NON -OWNED AUTOS
GARAGE LABILITY
CK06101189
06/19/96
06/19/97
COMBINED SINGLE
LIMIT
$ 1,400,000
BODILY INJURY
(Per per)
$
BODILY INJURY
(Per accident)
$
PROPERTY DAMAGE
$
EXCESS UAMITY
OTHER THAN UMBRELLA FORM
OCCURRENCE
AGGREGATE
WORKER'S COMPENSATION
AND
EMPLOYERS' IIABIUTY
STATUTORY LIMITS
EACH ACCIDENT
$
DIS UNIT
$
SEASE--EACH EMPLOYEE
t
OTHER
OESCAPTION OF OPERATIONS/L.00ATIONSNEHICLESISPECIAL ITEMS
CITY OF YAKIMA, YAKIMA COUNTY DEPT. OF ECOLOGY, THEIR AGENTS, EMPLOYEES,
AND ELECTED AND APPOINTED OFFICIALS ARE LISTED AS ADDITIONAL INSURED, PER
THE ATTACHED ENDORSEMENT.
CITY OF YAKIMA
129 N. 2nd Street
Yakima, WA 98901
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE
EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL YEMLIVAIDIS
MAIL DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE
LEFT,
AUTHORIZED REPRESENTATIVE
INSURED: Yakima Interurban Lines Assn.,
DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS - (Continued):
CHANGE OF LIMIT ENDORSEMENT - GENERAL TOTAL LIMIT APPLIES PER WORK SITE
OR PROJECT - LS INCLUDED.
STOP -GAP EMPLOYER'S LIABILITY ENDORSEMENT IS ALSO INCLUDED.
h
0
0
1
0
COPY
COMMERCIAL GENERAL LIABILITY PROTECTION
COVERAGE SUMMARY
This Coverage Summary shows the limits of
coverage that apply to your Commercial
General Liability Protection. It also lists those
endorsements, if any, that must have certain
information shown for them to apply.
SflbuI
Limits Of Coverage
General total limit
$2,000,000
Products and completed
= work total limit.
* 1C 0 0 2 CK06101189 751
rniiiiiiiiininniiiiinuiiiiiii
$1,000,000
Personal injury
each person limit.
$1,000,000
Advertising injury
each person limit
$1,000,000
Each event limit.
Premises damage limit.
Medical expenses limit.
$1,000,000
$100,000
$5,000
IMPORTANT NOTE:
Retroactive Date:
The retroactive date applies only if the
Commercial General Liability Protection -
Claims -Made insuring agreement is a part of
this policy.
However, if no date is shown above and the
claims -made agreement applies, we'll consider
the retroactive date to be the same as the
beginning date of this policy.
Named Endorsement Table
Important Note: Only endorsements that must have certain information shown for them to apply
are named in this table. The required information follows the name of each such endorsement.
Other endorsements may apply too. If so, they're listed on the Policy Forms List.
Described Person or Organization Endorsement - Add1 Prot Persons
Person or Organization
CITY OF YAKIMA, YAKIMA COUNTY, DEPT OF ECOLOGY, THEIR P E US,
EMPLOYEES, AND QED AND APPOINTED OFFICIALS
129 N. 2ND STREET
YAKIMA, WA 98901
Name of Insured Policy Number CK06101189 Effective Date , 06/19/97
YAKIMA INTERURBAN LINES ASSOC., INC. Processing Date 07/12/96
47110 Ed.4-91 Printed in U.S.A. Coverage Summary
0
J DESCRIBED PERSON OR ORGANIZATION ENIIORSEMENT — m0
ADDITIONAL PROTECTED PERSONS
0
V
8
0
z
•
• 1C002CK06101188753
IlUIIflhIIIIRIIIIlrnIIumIIlrnIu
This endorsement changes your Commercial
General Liability Protection.
How Coverage Is Changed We explain what we mean by your work in the
Products and completed work total limit
The following is added to the Who Is Protected section.
Under This Agreement section. This change
adds certain protected persons and limits their
protection. Other Terms
Described person or organization. The person or
organization shown in the Coverage Summary
as a described person or organization is a
protected person. But only for covered injury •
or damage that results from;
•premises you own, rent or tease; or
•your work.
All other terms of your policy remain the same.
43356 Ed.7-85 Printed in U.S.A. Endorsement
Pi:;Ift 1of1
STOP—GAP EMPLOYER'S LIABILITY ENDORSEMENT
This endorsement changes your Commercial
General Liability Protection.
muStFttull
How Coverage Is Changed
There are three changes which are explained
below.
1. The following is added to the Employer's
liability exclusion. This change broadens
coverage.
But we won't apply this exclusion to bodily
injury to your employees, if those employees
are reported and declared under the workers
compensation law of a state shown in the
Coverage Summary.
2. The following is added to the Intentional
bodily injury or property damage exclusion.
This change broadens coverage.
But we won't apply this exclusion to bodily
injury to your employees if:
•those employees are reported and declared
under the workers compensation law of a state
shown in the Coverage Summary; and
•you neither expected nor intended such bodily
injury.
3. The following are added to the Exclusions -
What This Agreement Won't Cover section.
This change excludes coverage.
Unlawful employment. We won't cover liability
that results from bodily injury to any employee
while employed in violation of law with your
actual knowledge or the actual knowledge of
any of your executive officers.
Vessel employees. We won't cover liability that
results from bodily injury to any employee
while employed as a master or member of the
crew of any vessel.
Aircraft employees. We won't cover liability that
results from bodily injury to any employee
while employed as a member of the flying crew
of any aircraft.
Federal laws. We won't cover liability that
results from bodily injury to any employee
while employed in work subject to any of the
following laws, or amendments to these laws:
•Longshore and Harbor Workers' Compensation
Act.
•Nonappropriated Fund Instrumentalities Act.
•Outer Continental Shelf Lands Act.
•Defense Base Act.
•Federal Coal Mine Health and Safety Act of
1969.
•Federal Employer's Liability Act.
•Migrant and Seasonal Agricultural Worker
Protection Act.
•Any other federal workers or workmen's
compensation law or other federal occupational
disease law.
Failure to comply with workers compensation law.
We won't cover liability that results from
bodily injury to any employee when your failure
to comply with the workers compensation law
in a state shown in the Coverage Summary
causes you to:
•lose your common law defenses; or
•incur a penalty.
Other Terms
All other terms of your policy remain the same.
43934 Rev.11-93 Printed in U.S.A. Endorsement
cSt.Paul Fire and Marine lns,irance Co.1993 Ail Rights Reserved Page 1 of 1
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
ITEM NO. D
FOR MEETING OF: December 17.1996
ITEM TITLE: Authorization to renew lease with the Yakima Interurban
lines Association and Indemnification Agreement 1997
SUBMITTED BY: Glenn J. Valenzuela, Director, Community & Economic
CONTACT PERSON / TELEPHONE: Glenn J. Valenzuela (575-6113)
SUMMARY EXPLANATION:
The lease with the Yakima Interurban Line Association expires at the end of
December 1996. Attached for your review is the Yakima Interurban Line
Association Operating and Indemnification Agreement for 1997. The agreement
has been modified to cover a period of three years.
Resolution Ordinances Contract Other YILA Agreement
Funding Source:
APPROVED FOR SUBMITTAL:
City Manager
STAFF RECOMMENDATION: City Council authorize the City Manager to sign
YILA Operating and Indemnification Agreement for 1997
BOARD RECOMMENDATIONS:
COUNCIL ACTION: Resolution adopted. Resolution No. R-96-170