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t s:Fr BILL NO. 99-33
SPONSORED BY COUNCILMAN Rick Nilges '
7 . ORDINANCE NO.
AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, AUTHORIZING THE {
MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH GOODYEAR TIRE & r7
RUBBER COMPANY FOR TIRE LEASING. °t
BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON, MISSOURI, AS
3 FOLLOWS:
fi rr e,
Section 1. The Mayor and City Clerk are hereby authorized and directed to execute`
r: an agreement with Goodyear Tire & Rubber Company for Tire Leasing.
Section 2. The agreement shall be substantially the same in form and content ash
that agreement attached hereto as Exhibit A. r
Section 3. This Ordinance shall be in full force and effect from and after the date of
its passage and approval.
I mf�-
Passed: 7119Z'12!l Approved: -71?,IJ9 �7 � f
k Presiding Officer Mayor }�
ATTEST: APPROVED AS TO FORM:
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114,EAST MARKET STREET :.
AKRON,OHIO 44316-0001
tk7y z't��
MILEAGE SALES A MARKETING;D1710 PHONE 1-800-MILEAGE
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August 27, 1999 __.._..�._... . ....__
NIS ay. i F
3 1999
Donna White, Associate City Counselor
r>i<: JEFFERSON CITY TRANSIT
•L 320 East McCarty Street
Jefferson City, Missouri 65101
,
Dear Ms. White: `•'z, '
''r!5
F Enclosed is your fully-executed copy of the recently negotiated tire lease contract, effective .
August 1, 1999 for three (S)Y ears with additional one-year renewal options,by either
party.
QUESTIONS OR CONCERNS REGARIDING CON'T'RACT LANGUAGE
V.
CONTACT: Chuck Swihart r }`
-t The Goodyear Tire &Rubber Company ;
1144 East Market Street-Dept 710 .
�.. '
fV" Akron, OH 44316-0001 (44305 overnight mail) 'yg
� > Phone: 1-800-MILEAGE or direct 330/796-9137
Fax: 330/796-5708 .
F,.•
}" 01 .
QUESTIONS OR CONCERNS REGARDING TIRE ORDERING/SHIPPING DATES
CONTACT: Laura Rush-Order Desk r.
' The Goodyear Tire&Rubber Company
P O Box 81326-Airport Mail Facility
AMF Cleveland, OH 44181 ;
Phone: 1-800-MILEAGE or direct 216/265-1903
f Fax: 216/265-1973
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710-1
nj 4 MEMORANDUM OF AGREEMENT ��"`���' '" :
MY;+?
MEMORAN.DUM OF AGREEMENT made and entered into at Akron, Ohio this day `ft9 a
k
rt day of k
k ;+ : , 1999, by and between JEFFERSON CITY TRANSIT, of Jefferson
r. �47r•
city,hi ouri ("Operator") and THE GOODYEAR TIRE & RUBBER COMPANY, a corporation
of Akron, ("Goodyear").
i�,
on, Ohio (
This Agreement cancels and supersedes Agreement dated November 8 1994 b and between ,1- j
Operator and Goodyear. A�jA¢ iF +.,5s.
Goodyear will furnish Operator tires for use on vehicles under the terms and conditions set
•'2,,` forth below;however, Operator may use tires in its possession, not furnished by Goodyear
:tilt' t.s�tr^'�<•
under any similar mileage contract previously in effect, until such tires are unfit for further
service.
, it�ry�5
.•�,`y1,},; A tire means a casing,tube and flap for a tube type
J tire) and a casing only for a tubeless tire;and a vehicle means any vehicle of seven or more passenger carrying capacity, desi gned for
r
;
operation on pneumatic tires and used publicly for the transportation of passengers.
is�•�:;
, S r f}hi+r
,e ; Tires furnished shall be in sufficient quantity to keep all vehicles fully equipped and to provide
areserve supply, at a maximum level determined by Goodyear, as spare stock inventory to bez '�� 'sr.
. ,r mounted on rims and kept in Operator's garage for use in case of emergency. To assure its
effective use, existing spare stock shall be applied prior to application of new inventory.
strength
Vehicles shall be equipped with the sizes and types of rims of sufficient to permit i
inflation necessary for the load c P
�,. Y carrying capacity required and spaced to conform to the
approved standards of The Tire & Rim Association of America, Inc.
. 11rgt7,:
Operator agrees to use exclusively tires furnished by Goodyear; however, Operator may use u u,3 ro� 1A
o P y
N r4• to 5/o of its fleet for test purposes, on tires of other manufacturers. Operator will not transfer,
sublet, or lend the tires famished by Goodyear, or permit the tires to be used by anyone other
than Operator, without the prior written consent of Goodyear.
` `� 2. REPORTS AND TIRE RECORDS
•4.T l MILEAGE REPO
i,
1f
For vehicles covered under this Agreement, Operator shall keep an accurate record of the total ':
1j,
number of miles run during the term and submit a report of such total mileage on each vehicle
r �M
P prior to the 10th day of the month following the month the miles were run.
Vehicle mileage shall be determined either by means of an instrument which will accurately �'+
SFa 5Y ,;ci9 >.
record mileage being run on each vehicle, or by multiplying the number of trips of each vehicle
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f{:
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by the number of miles over the route it is driven and adding all miscellaneous mileage that
may be run to and from the routes, such as in testing vehicles and instructing drivers.
If the latter method is used, Operator shall furnish Goodyear a schedule of the established t;r,4()bb,rtr,
;1 routes covered by its vehicles and shall advise Goodyear of any changes, additions, or
deletions in such routes. Goodyear shall have access to such recording instruments and/or `y#
,
}; mileage records at all times. On a weekly basis, Operator will provide to Goodyear alltr;�;,.t. <
T. t
information on receipt of tires, tire changes, and vehicle and/or spare stock tire inventory to f :
enable Goodyear to maintain a record of individual tire mileage and tire location.
r !v,� l,�f�����j� Qll• �f
3. PAYMENT
Operator shall
a Goodyear ',`,
pay y for mileage run on tires furnished during the month immediately rt'•"' "
preceding, or for tires invoiced in accordance with Articles 11 and 16, at the effective rate per
r r` tire mile for vehicles as shown in the attached Exhibit"A", Billing terms on invoices shall be
}- Net Thirty (30) Days. A separate rate and bonus point shall apply to any other make/model
kn.:t
vehicles not shown on Exhibit"A"placed in operation during the term of this Agreement or r.
I.M- r~ '
1 }A
r ii' ° ''�
one requiring a different size and/or construction type of tire. Operator agrees to supply a � .,;;:.;,,,;.,.
financial statement to Goodyear on an annual basis at Operator's fiscal year end.
4. ADDITIONAL VEHICLES
V c i Yr,s•�'�•
Operator
If
acquires new vehicles, Operator agrees to: (1) acquire such vehicles less tires, (2)
>. give Goodyear ample notice of such acquisition, and (3) have such vehicles equipped with rt; .i
Goodyear tires of sufficient carrying capacity to confoim to the approved standards of The Tire
3c Rim Association of America Inc. Upon Goodyear's delivery of the tires to the OE +i
Manufacturer, refurbisher, or other outside source designated by Operator, the Operator agrees
to assume responsibility for such consigned tires in accordance with all terms of this
'I a y:7. c•
Agreement. If such vehicles equipped with Goodyear's tires are driven overland during ;
`:fl'
delivery, Goodyear shall receive payment at the usage rate specified in accordance with
Articles 3, 11 and 12. C:
5. TITLE TO TIRES AND LIENS ON VEHICLES
1 Title to all tires and/or equipment fiunished shall remain in Goodyear or its assignees and, } ,�
'h ; '
upon purchase by Operator in accordance with Article 16, shall continue to remain in ���� ' t
u
s,,• ,�
Goodyear until Goodyear has received full payment of all sums owed by Operator under the 1•` ', <+a;l.
terms of this Agreement. Operator will hold Goodyear harmless against any claim on � w
r Goodyear's tires made by any holder of a lien on any vehicles on which Operator uses such
tires. Operator y:
��,;,•`�Y p rator will keep Goodyear advised of such liens, giving Goodyear any and all trbk,:
information which Goodyear may request. $.}
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6. POSSESSION AND CANCELLATION `
Should Operator breach the terrns of this Agreement through non-payment, non-payment on ,�,�
total amount due at termination, impaired credit standing, assignment for the benefit of
;uyyl,ryry11 creditors failure to report miles operated in accordance with Article 2, or erroneous reporting
of miles run, or is placed in receivership or adjudicated bankrupt, then, under any of the above
conditions, Goodyear shall have the right, at its option, without prejudice to any other rights ;' x"'t
and remedies, to stop shipping tires, take possession of inventory whether or not the inventory
is applied on vehicles without being deemed guilty of trespass, and bill Operator for all costsn ;,','},
of removing tires and/or terminate this Agreement in
„t accordance with Article 16.
r Should Goodyear exercise an of these options, Goodyear shall be relieved from an further
+ Y Y P Y Y
obligation under this Agreement; however,this shall not relieve Operator from its obligation to
pay for the use of the tires furnished or from its liability for all damages caused by such breach. Lr• a,
Operator specifically agrees to be responsible for and pay any and all attorney fees court costs
and other expenses incurred by Goodyear in collecting amounts owed by Operator or in
is
enforcing any other right under this Agreement.
�,:'•
i
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'
Goodyear's failure to exercise any or all of these options upon Operator's default shall not .� 3(7,�b
.' constitute a waiver by Goodyear of its right to exercise any or all of these options upon such
subsequent default. j.f' �
.ySSi.
• .� ;n��r
7. TAXESr.
7 4� In addition to the effective mileage rate the Operator shall a Goodyear an amount tox+i'�` "r
{`•{' g � P pay Y
compensate for the current Manufacturers' Excise Tax under the U.S. Revenue Act of 1932 as
=, amended and.for any business sales excise use `'`
,•, , processing or similar tax imposed upon the
goods leased or sold, or service rendered, or upon the manufacture, sale, delivery or disposal, ;
or whenever any tax excise levy, law, or governmental regulation shall have the effect `a`
directly or indirectly of increasing the cost of manufacture, sale, delivery or disposal of such
;.a goods or service. Operator will furnish tax exemption certificates and will be exempt from all
taxes covered. Operator will be responsible for all property taxes on the tires, malting any
required listing for taxation in its own name as Bailee.
' `r
j,
8. DAMAGE TO PERSONS OR PROPERTY
_ Operator will indemnify and hold Goodyear harmless against all claims action or causes of
;1! ` action for damage or injury arising out of the use of or possession of any tires furnished, except '};'.
• rw for any claims, action, or causes of action arising solely out of a defect in material or
workmanship of any tire manufactured and furnished by Goodyear under this Agreement. In wi
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710-1 Ile,
no event shall Goodyear be liable to Operator for any incidental or consequential damages. r� ,, '
Operator will hold Goodyear harmless and indemnify Goodyear from lawsuits, claims, or
..
damages by Operator, its employees or third parties arising out of the use by Operator or its
employees of service equipment supplied by Goodyear. Operator is required to evidences ,n+
workers compensation, general liability and automobile liability insurance. Liability insurance .,
will have minimum limits of$3 million Combined Single Limits (CSL). Operator will provide
p. L4
Goodyear with a certificate of insurance evidencing the coverage naming Goodyear as an
additional insured, and providing thirty 30 days' written notice to Goodyear of material ' F
C or cancellation.
9. CONTINGENCIES �```; '`
' Goodyear shall be excused from deliveries or delay in deliveries if such failure to deliver or �'7�':`t
tv
s.� delay shall be caused by war, strikes, lockouts, fires, interruptions of transportation facilities,
accidents, inability to obtain merchandise, shortage of energy source or raw material,or other
similar causes beyond Goodyear's control. This Agreement is subject to applicable restrictions
`• imposed by any Federal agency or by any other governmental authority.
10. SERVICE
' r,• Operator agrees to apply to, remove from, and remount on rims or wheels tires furnished ande �
to perform all other tire service including regrooving and repair of flat tires, as required by
Goodyear to keep them in proper operating condition. Goodyear will provide necessary repair ;",�, 1 ;','
materials and valve hardware. Operator will install and maintain in its garage suitable facilities
.t for the inflation of tires and will keep aid tires inflated to conform to the approved standards
!£`'r of The Tire &Rim p PP " ' tr„';,'i
Association of America, Inc.
Operator will determine at all times when tires are to be removed from vehicles. Goodyear
shall make the determination as to the f tress for return to service of a particular tare or tires
however, Operator shall not be obliged to use tires which because of their condition interfere �/ atr •�:,r
unreasonably with the use and operation of vehicles. All tires determined by Goodyear to be ,�.�.;.
permanently unfit for further service shall be returned to Goodyear promptly by the Operator.
, N 11. USE, CARE AND STORAGE OF TIRES
Operator agrees to provide a safe and suitable place in an enclosed building for storage of spare ui
-4 ,J tires and tires unfit for further service so that such tires are not subject to damage by the {
r1 elements; to either keep each vehicle equipped with at least one properly inflated spare tire or
Y provide adequate road service for its fleet; and to pay Goodyear for any damage or loss
Y•�
resulting from accident Lire, adverse mechanical conditions, improper or negligent use, loss, f;.
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710-1
theft, or fraudulent conversion of said tires, or from the operation of a vehicle with an
underinflated or flat tire,
For the purpose of determining the amount of any damage or loss under this Article 11! the
value of tires shall be determined by subtracting from the higher amount of either(a)the net ;'
4�J', average mileage secured from similar tires (nonretreaded or retreaded, as the case may be) c
7` normally and permanently removed from service during the past twelve months, or (b) the1 s Y
t. applicable current minimum mileage for bonus qualification for nonretreaded or retreaded
tires, the mileage run b the articular tire prior to such damage or loss and multiplying the
..f� g Y P p g
difference, representing unused mileage on the tire, by the tire rate in effect.
12. VEHICLES,<� ;,. SALE OR DISPOSITION OF V
iF�h;4t`A'a`, 1;
If Operator sells or in any manner disposes of any vehicles which shall have been equipped ,t;;r;
t-;•;ti's fisat.".�?ti%",r',,c1,
PP g p P g
with tires supplied under this Agreement, or if Operator laces tires in storage or renders a
vehicle inactive through discontinuance of its business or discontinuance of the use of any such
tires or vehicles for a period exceeding ninety (90) days, Goodyear shall have the option to:
� y. .
(a) require Operator to remove tires from inactive vehicles or spare stock inventory and reapply
,, � +1„�.., I.itf Wit•.
on active,wheel positions, or(b) require Operator to purchase the unused mileage in each such �'"1• �`'
tire, including spares and/or obsolete spare stock, at prices to be computed as set forth int
:: , , Hri'�Y•a Article 11, plus any applicable taxes.
13. LEASED VEHICLES
Operator represents and warrants that it owns outright or has legal possession of all vehicles
comprising the fleet operated by it. If Operator acquires the right to operate any vehicles notaa, ',' f<'
owned by it ("Leased Vehicles"), Operator agrees (a) to notify Goodyear of the details of such
arrangement, (b) that all Leased Vehicles will be furnished to Operator by the owner without
tires so that they may be equipped with tires furnished by Goodyear under this Agreement, arid
(c) to obtain an agreement acceptable to and for the benefit of Goodyear whereby the owner
T
acknowledges Goodyear's ownership and right to possession of all tires supplied b it and
� g Y P ' g 1 pp Y
20
` waives all rights b virtue of their use on Leased Vehicles or otherwise, Should Operator
� Y
fr�f surrender or otherwise lose possession of any of the Leased Vehicles egi.zipped with tires
supplied by Goodyear, Operator shall purchase each tire (including spares) in accordance with
Article 12. The term Leased Vehicles shall not apply to any vehicle rented or borrowed for akLt;
temporary use for a period not to exceed 120 days.
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%f S"ITO
`'rti i ta.
14. RATES AND ADJUSTMENT '''
On all mileage run on and after August 1, 1999, and prior to August 1,2000, the rates per
tire mile shall be as follows:
Fi��jA F d +5.�• t
' 5.007500 A '� r•
5.009700 Bt � x,•,
•; 5.005200 C w
''t P rte t��•�r rtd':
Such tire rates shall be referred to as the Effective Rate(s). FJrj�F ` ':: .
RZ
On August 1, 2000, and on the first day of each August thereafter during the term of this
Agreement, the effective mileage rate shall be increased 4.0% to determine the new effective
s mileage rate during the next ensuing twelve-month period.
15. BONUS ACCOUNTING
On February 1,2000, and at the end of each succeeding six-month period, provided Operator
fY is not in breach of this Agreement, bonus accounting on Goodyear tires shall be made as
}` follows:
r Pik •., �"iy''.y '
2L,tYA ��;tipit�l;:` t' �',J'4jJ,y�••�w;i
Should the average mileage delivered by all tires furnished, which have been permanently
!xr• removed from service during the six-month period immediately preceding accounting date,
exceed 30,000 miles Group A, 40,000 miles Group B and 30,000 miles Group C for
nonrecapped tires, or 18,000 miles Group A and 20,000 miles Group B for recapped tires,
then, on tires permanently removed from service, Goodyear shall issue a credit memorandum
Y!i'�tYC
1 to Operator in an amount equal to 50%of the current rate per tire mile, less service (on a per � f ',a
+t<. `• wheel basis), for all miles run in excess of the above mileage requirements. Tires removed a
from service under Articles 6 11 or 12 shall not be included in such or
accountings _ ' -
ys '= computations. g
x 16. TERM OF AGREEMENT AND DISPOSITION OF TIRES AT TERMINATION
This Agreement shall become effective on the 1" day of August 1999 and terminate on thef
31st day of July, 2004; subject, however, to automatic renewal for additional one 1 year
y' periods, unless thirty (30) days prior to commencement of any such one (1) year period either Sa '
' party notifies the other of their intention to terminate this Agreement.
At such termination date, unless the parties enter into a new mileage Agreement to become
' immediately effective, Operator will, within 30 days after submission of statement by I
6
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1
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r
' 710-1
Goodyear, pay for the unused mileage in each remaining consigned fire and tube at prices to be
computed as set forth in Article 1 I plus any applicable taxes.
Title to all tires and tubes shall remain with Goodyear until all such statements and billings
have been paid
p 'd in full, at which time Operator will acquire each such used tire as is, and g Y„ {
Goodyear makes no warranes as to the condition or
ti fitness for continued use of such tires. jr�`
MODIFICATION OF AGREEMENT ' i��••..��„,},� `='3{s
This Agreement cannot be altered, modified or assigned in any respect unless by written
4
- consent of both parties or by special written document signed in like manner.
I{(bt•L.
18. UNIFORM COMMERCIAL
CODE FINANCING STATEMENTS
'}{A Operator will, upon request, sign such financing statements or continuation statements
4.
necessary to protect Goodyear's interest in the tires leased under this Agreement. , g �7�w1. Y,:;1
The undersigned parties have caused this A
greement to be signed in duplicate.
f;
JEI6 E i'RSON'C'ITY TRANSIT
V
' A Ove Pnnted Name ,,
1 ppr as to
TITLE
C1 Counselor ``
g ' THE GOODYEAR
AR TIRE & RUBBER COIi'IPANY
ATTEST
BY
cret '
i afketing Manager '?y'
Mileage Sales, Lease & Service ,
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•;,5 710-1
-4, OPTION
This Option shall constitute
and become a part of the Memorandum of Agreement dated
T "NSI 1999, by and between JEFFERSON CITY'gof Jefferson City, Missouri ("Operator") and THE GOODYEAR TIRE &
RUBBER COMPANY ("Goodyear"), as such Memorandum of Agreement may have been
h '1 further amended or extended from time to time.
s {'
Notwithstanding
.;,;. g an y provision to the contrary set forth in said Memorandum of ;_ R t
Agreement, as extended and amended, Goodyear hereby f Y following
option. y grants to Operator the
t{rvytr. �r wh�,j�� t;• �4;
{'f (a) Upon the expiration of the term o
f the Memorandum of Agreement, as
extended and amended, and only in the event Operator wishes to change
supplier,
' , Operator has the right to further extend said Memorandum of ;',,;,n
a'
U Agreement and continue to use all tires furnished by Goodyear under such
Agreements in Operator's possession on the expiration date fora period
months fr p od of 36
•'rz' om said expiration date.
s (b) All terms, conditions and provisions of said Memorandum of Agreement, as
t' previously amended and extended, shall remain in full force and effect during
said 36-month period, except that Goodyear shall be relieved of any
requirement to furnish Operator with tires, tubes, flaps,repair material, t
5• r ��`
,{ equipment, or tire service during said 36-month period unless requested by . }r:`�;
' ;u+p�A t
Operator and agreed to by �'4' i;
Goodyear.
Y' (c) The rate or rates per tire mile in effect during such 36-month period shall be
{}'r. the rate or rates in effect for the twelve-month period immediately proceeding
the commencement date of such 36-month period. x, ty,4
(d) It is understood that Operator shall continuously use such tires insofar as g:..
' practicable on its highest mileage runs until such tires are rendered '{
permanently unfit for service during said 36-month period,
(e) Upon the expiration of said 36-month period, Operator shall pay for any then r`1{
unused mileage remaining in such tires at the rate set f a'
orth in Paragraph 1 (c)
above. Operator will acquire each such used tire as is, and Goodyear makesLr
f, no warranties as to the condition or fitness for continued use of such tires.
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�-)t
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�GS
710-1 a brit
.r ;
The amount of the unused mileage shall be determined by subtracting from
! the average mileage secured from similar tires (nonrecapped or recapped, as ul+rs
the case may be) normally and permanently removed from service during the
twelve-month period immediately preceding the expiration of the 36-month
r period, the mileage run by the particular tire prior to the expiration date of the <:+
yea
36-month period. a
2.
1y�y The option granted herein is exercisable by Operator upon thi rt Y (30) days' notice prior to
the expiration date of the term of the Memorandum of Agreement, as extended and
` amended. ;t • '
The Option does not apply if termination occurs prior to date(s) set forth in Article 16 of
this Memorandum of Agreement. Such notice of Operator's exercise of this option must ' `<,a
be in writing and sent certified mail to: -
tr The Goodyear Tire & Rubber Company
a 1144 East Market Street '
'k'vr6 Akron, Ohio 44316-0001y;F;;
Attn: Manager, Mileage Sales "�L`•
IN WITNESS WHERE,� P `:tk:
§�x WHEREOF, Goodyear has caused these presents to be signed by its duly
�.._.;� authorized representatives on the, day of ) , 1999, although it is mutually agreed
,f} that this option shall be effective as of the effec ive ate of an current supplement, amendment
'4_k p Y pP >
; tt or extension between these parties. r
,
}
' THE GOODYEAR TIRE & RUBBER COMPANY
?}�
BY ..'' sties G•'I ^�� �
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ar M ager t;
". Mileage Sales, Lease & Serviceir'u`' '
t ATTEST
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LETTER OF AGREEMENT
�= Reference is made to the Memorandum of Agreement, dated extended and amended, hereinafter called the Agreement, by and between JEFF hi-olvas
ON CITY TRANSIT of
2? Jefferson City, Missouri ("Operator"), and THE GOODYEAR TIRE& RUBBER COMPANY
("Goodyear"). Goodyear understands that it is the desire of the Operator to use "No Value Tires"
for the sole and exclusive equipping Operator's `�
purpose of obsolete or out-of-service vehicles. 5�+;; �:,;'.
Therefore, the parties agree to the following terms and conditions: f;t1r""'�' $;` '
:1
1. Goodyear will furnish
Y unish "No-Value Tires"to Operator for the sole and exclusive ose of
'.` equipping Operator's obsolete or out-of-service vehicles. It is understood that a"No-Value
Tire" means any fire furnished wider the Agreement which has been determined by Goodyear r;�,:-i•r.�{,��',.xt,:,
to be permanently wlfit for further service wider the Agreement. Each"No-Value Tire"
furnished under this Agreement shall be listed on the document entitled 710-15 Mileage Tire
yDisposition and shall reflect the tire as "uncut-60", under casing disposition. It is also
understood that obsolete or out-of-service vehicle means any vehicle furnished with tires
h 'Y 1 4 yr
under the Agreement which has been determined by Operator to be unfit for further serviceF 'f s ?
r' under the Agreement.
2. `trxA b �.
In consideration of the accommodation and benefit given Operator, Operator agrees to use }/
the "No-Value Tires" furnished for the sole and exclusive ur ose of equipping ''�
P P Operator's
obsolete or out-of-service vehicles,
Mq tit iyy F �
a. Operator will acquire each "No-Value Tire" as is, and Goodyear makes no warranties
as to the condition or fitness for continued use of such tire. Operator further agrees to N , rAt
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assume all liability for use at; possession of, or disposal of any"No-Value Tires” .:`rt.;r
: ,<{ furnished hereunder.
b. Operator agrees not to file or assert against Goodyear an claim action or cause of
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action for loss, liability or damage arising out of Operator's use of,possession of, or '`` ;rfc l
disposal of"No-Value Tires" furnished under this Agreement.
r.� ..l(i•;C.
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C. Operator agrees to indernnil'y, defend and hold Goodyear harmless against all claims of '7J
x any party far loss, liability or dama a including injury,g , g ' I ry, resulting from Goodyear's
furnishing of"No-Value 'fires" to Operator hereunder, including any and all costs, �` !
rA ,, legal fees, expense~ and attorneys' fees resulting from such claims. t
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710-5,
1
' d. Operator agrees to dispose of each"No-Value Tire" in full compliance with applicable ?
Federal, State and local laws, rules and regulations. Operator agrees to indemnify, save
harmless and defend Goodyear from and a. ainst any and all liabilities claims
penalties, forfeitures, suits and the costs and expenses incident thereto, (including costs•
,... of defense, settlement and reasonable attorneys' fees), which Goodyear may hereafter
incur, become responsible for or pay out as a result of death or bodily in cries to an
person, destruction or damage to any property, contamination of or adverse effects on
�M
the environment, or any violation of governmental laws,regulations or orders, caused,
,; in whole or in part, by the disposal by Operator of"No-Value Tires" furnished to
Operator hereunder. :=Mf4". >
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C. Title and all other incidents of ownership to the No-Value Tire shall be transferredL��}y�tr 'j_x
from Goodyear and vested in Operator at the time Goodyear delivers to Operator a 1ifw++srf`.�3
copy of the 710-15 Mileage Tire Disposition designating the tires as "uncut-60.11
3. It is further agreed that Goodyear and Operator shall have the right, at their option, without
prejudice to any other rights and remedies, to decline to further provide/utilize "No-Value 1''''
Tires".
4. This Agreement, unless sooner terminated as provided herein, shall terminate upon r TMs}t,"A
''b;}t•, «`,; cancellation or termination of the Agreement. a ''
This Agreement shall become effective when signed b the duly authorized representatives of ,���'
g Y Y p n.f .,
11 Goodyear and the Operator,
•%>'(i 'THE GOODYEAR TIRE & RUBBER COMPANYG1;F'
fly
Mileage Contract Administrator
4,; Mileage Sales, Lease & Service
.
r Attest
Agreed t
o and � r�,:
pt d this •���i1M
.-�ty day of , 1999.
i OPERATOR: = a4
By
Title�f
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lFINANCE D �� � ��4r.��
]PURCHASING DIVISI®N
SUBJECT: Sole Source Procurement - Tire Lease, Public works' rya
BIDS RECEIVED: !
�.�J
Goodyear Tire & Rubber Company, Akron OH Approx. Annual $ 11 000.000
4 FISCAL NOTE:
7100-7100-2015-0010 Vehicle Maintenance
Budgeted 1998-1999 $ 256,660.00
Expended 167,975.09 t'
Encumbered -0_
This
Request �`$ 5.500,00 •fi�r.,'��;,
r# Balance - $ 83,184.91
*The annual total is estimated to be $11,000.00. This amount represents the estimated
total for the remaining six months of this fiscal year.
PAST PERFORMANCE: Goodyear Tire and Leasing was the only bidder to respond to a `±
,'fir
request for proposals in August of 1994. The vendor has successfully supplied lease tires under
contract for the past five years. �'• f."',.�`,Nr'
k ,
RECOMMENDATION: It is the recommendation of staff to award a tire lease contract to the
Goodyear Tire and Rubber Company based on the mileage rates listed in the contract proposal for
' a one year period, August 1, 1999 through July 31, 2000 with u to four additional one year
renewal periods.
p y
ATTACHMENTS - SUPPORTING DOCUMENTATION
Contract proposal
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S-
i 1144 EAST MARKET STREET
AKRON, OHIO 44316-0001
MILEAGE SALES MARKETING
PHONE:1.900-MILEAGE
b 41710
May 28, 1999
JEFFERSON CITY TRANSIT.
320 East McCarty Street
Jefferson City, Missouri 65101 ` "
k�t? r
Attention: Darrell Ranabargar
"x SUBJECT: TIRE LEASE CONTRACT PROPOSALf "'
Per your request we are enclosing a new mileage Agreement with Letter of Agreement
for the use of scrap tires on inactive vehicles.
Enclosed are two copies of Memorandum of Agreement and two copies of Letter of
Agreement covering lease of tires for a five (5) Y ear period beginning August 1, 1999.
t•,
If acceptable, please have both copies of each Agreement properly signed, have the
signatures witnessed, and return both copies of each Agreement for Goodyear's
signatures to:
THE GOODYEAR TIRE & RUBBER COMPANY
Attn: Chuck Swihart, Mileage Sales & Marketing D/710 ti
1144 East Market Street
Akron Ohio 44316-0001 (regular mail) 1 i
44305 (overnight delivery) ���Y $;.$'
If you have questions about this proposal, please call me on 1-800-645-3243 or directs '
330/796-9137.
"
A,
ur truly
i eage ontrac Administrator
C W Swihart 1{�;
w� csf
cc: J D Notolini, Region Manager
Fred Clevenger - Akron '
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