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02/07/2012 04O Purchase Lease Agreement with Clallam Transit for Two Busses; Transit Services to Ellensburg 1 1, ri BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. I For Meeting of February 7, 2012 - ITEM TITLE: Resolution regarding Interlocal Agreement with Clallam Transit System for Leasing of Buses SUBMITTED BY: Michael Morales, Interim City Manager CONTACT Maria Mayhue, Purchasing Senior Buyer - 575 -6094 PERSON /TELEPHONE: SUMMARY EXPLANATION: Staff respectfully requests approval of an Interlocal Agreement authorizing the City of Yakima to lease buses from Clallam Transit System. City of Yakima Equipment Rental Division on behalf of Yakima Transit has requested that this agreement be administered in order to lease buses from Clallam Transit System, for a nominal amount and on a temporary basis, with the intent to procure. The two buses being requested are to fill the current need for large capacity buses for the Yakima /Ellensburg commuter run. Operations began with 15 and 19 passenger vans. Demand response has been overwhelming, requiring larger capacity buses. Buses of this type cost approximately $400,000 - 500,000 each new. We purchased two older used MCI buses from Grant Transit in Moses Lake for $5,000 each. Two additional are required, have been located at Clallam Transit, and are surplus to their needs. The purchase from Clallam includes all of the spare parts they have on hand. It is common practice for Transit agencies to transfer surplus equipment to other Transit agencies in the state of Washington at very low rates since, for the most part, this type of equipment has been funded by federal funds. Finally, the grant for the two year program did not include funding of equipment. We are filling the gap by purchasing old surplus buses from wherever we can locate them. Our assumption is that, if the program is successful, funding for equipment would be available through future grants. Please refer to attached Interlocal Agreement for terms. Resolution X Ordinance Other (specify) Contract: X Mail to: Contract Term: March 15, 2012 Amount: $1 00 per bus Expiration Date: March 15, 2012 Insurance Required? No Funding Source: Phone: APPROVED FOR City Manager SUBMITTAL: STAFF RECOMMENDATION: Adopt a Resolution to authorize and execute an Interlocal Agreement with Clallam Transit System BOARD /COMMISSION RECOMMENDATION: ATTACHMENTS: Click to download I] Resolution I] Interlocal Agreement RESOLUTION NO. R -2012 A RESOLUTION authorizing the execution of an Interlocal Agreement with Clallam Transit System for state general purchase -lease of 2 transit buses from Clallam Transit to meet present needs of the City's transit services to Ellensburg. THIS INTERLOCAL AGREEMENT is entered into by and between the City of Yakima, a municipal corporation of the State of Washington, and Clallam Transit System, a municipal corporation of the State of Washington, under the authority and in conformance with RCW 39.34, the Interlocal Cooperation Act. WHEREAS, the City of Yakima and Clallam Transit System desire to enter into an Interlocal Agreement for leasing of buses; and the City Council of the City of Yakima deems it to be in the best interests of the City that such an arrangement be carried out according to the provisions, terms and conditions of the attached agreement document and that it is in the best interests of the City that the attached agreement document be executed, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: Section 1. The City Manager and City Clerk of the City of Yakima are hereby authorized and directed to execute an agreement with Clallam Transit System for the purpose mentioned above, a copy of which agreement, entitled "Interlocal Agreement for Leasing of Buses," is attached hereto and by reference made a part hereof. ADOPTED BY THE CITY COUNCIL this day of , 2012. Micah Cawley, Mayor ATTEST: Deborah J. Moore, City Clerk INTERLOCAL AGREEMENT FOR LEASING OF BUSES This Agreement is executed this day of , 2012, by and between CLALLAM TRANSIT SYSTEM, a municipal corporation of the State of Washington ( "Lessor") and YAKIMA TRANSIT, a municipal corporation of the State of Washington ( "Lessee "). RECITALS A. Lessee operates a public transportation bus system in the City of Yakima, Washington, and surrounding areas, and requires two additional buses, on a temporary basis, with the intent to procure, for use beginning on the date of delivery. B. Lessor has two buses available to lease to Lessee and the parties now wish to agree upon the terms of the lease of the two buses as described herein. AGREEMENT The parties hereby agree as follows: 1. Lessor hereby leases to Lessee, and Lessee leases from Lessor, the following two buses: Year Make Model VIN Number 1986 MCI 96A3 (CTS #904) 1TUDCH6A0GR005633 1986 MCI 96A3 (CTS #905) 1TUDCH6A2GR005634 2. Term of Lease. This lease shall commence on the delivery date of the vehicle and shall expire on or before March 15, 2012. 3. Rent. Lessee hereby agrees to pay the sum of $1.00 for the each bus, due and payable no later than fifteen (15) days from the pickup date, that payment being a one -time rental fee that will pay the recital for each bus for the entire term of the lease. 4. Delivery of Bus. Lessee will pick up the bus from Lessor's premises at a time of Lessee's choice any time after February 7, 2012, or the execution of this Agreement, whichever first occurs. 5. Return of Bus. Lessee intends to procure the buses prior to the end of the lease term. Should buses be returned to Lessor without purchase, the Lessee shall deliver buses back to the Lessor by no later than March 15, 2012, unless a later date and location is agreed upon by both parties in writing. 6. Condition of Bus. Lessor and Lessee shall inspect the bus prior to delivery and return to establish the bus' condition. Lessor warrants that the bus will be in safe, operating condition when delivered to Lessee. Except for the foregoing, Lessor 1 makes no warranty regarding the condition of the bus. Lessee shall be responsible for repairs and maintenance of the bus during the term of the Lease. 7. Indemnification. Lessor and Lessee each agree to hold the other harmless from any liability for property damage or personal injury arising from the use of the bus pursuant to this Lease. WHEREFORE, the parties have executed this Lease on the dates indicated below. CLALLAM TRANSIT SYSTEM By: Date: Terry G. Weed, General Manager YAKIMA TRANSIT By Date: Michael A. Morales, Interim City Manager 2