HomeMy Public PortalAboutORD12172 c ! �•)kAAyy,4tWy y))f r4
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BILL NO. 94-110
SPONSORED BY COUNCILMAN HAAKE
r
ORDINANCE NO. 12172
AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, AUTHORIZING THE
t MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT. WITH THE GOODYEAR
TIRE & RUBBER COMPANY FOR LEASING OF TIRES.
BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON, MISSOURI, AS
'E FOLLOWS:
Section 1. The Mayor and Clerk of the City of Jefferson, Missouri, are hereby
authorized and directed to execute a contract with The Goodyear Tire & Rubber
Company for leasing tires for Transit buses and school buses.
Section 2. The agreement shall be substantially the same in form and content
as the contract attached hereto as Exhibit A.
Section 3. This ordinance shall be in full force and effect from and after the date
r of its passage and approval.
Passed:--- /0/;11- Approved:
Presidin?*er
Ma
ATTEST:
City Clerk
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710-5
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LETTER OF AGREEMENT
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Reference is made to the Memorandum of Agreement, dated November 8, 1999,
as extended and amended, hereinafter called the Agreement, by and between
JEFFERSON CITY TRANSIT, of 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
purpose.of equipping Operator's obsolete or out-of-service vehicles. ,
Therefore, the parties agree to the following terms and conditions:
< e 1. Goodyear will furnish "No-Value Tires" to Operator for the sole and =+r
exclusive purpose of equipping Operator's obsolete or out-of-service
vehicles. It is understood that a "No-Value Tire" means any tire
tt furnished under the Agreement which has been determined by Goodyear to be " 1
"No-
Value. , permanently unfit for further service under the Agreement. Each
Tire" furnished under this Agreement shall be listed on the "
document entitled 710-15 Milegg Tire Disposition and shall reflect the
}' tire as "uncut-6011„ under casing disposition. It is also understood that r
obsolete or out-of-service vehicle means any vehicle furnished with tires
under the Agreement which has been determined by Operator to be unfit for
further service under the Agreement.
i
2 . In consideration of the accommodation and benefit given Operator, �a
Operator agrees to use the "No-Value Tires" furnished for the sole and
exclusive purpose of equipping Operator's obsolete or out-of-service
:nt
vehicles.
ya�
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 assume all liability for use
of, possession of, or disposal of any "No-Value Tires" furnished
,r hereunder.
b. Operator agrees not to file or assert against Goodyear any claim,
action or cause of action for loss, liability or damage arising out
of Operator's use of, possession of, or disposal of "No-Value Tires" j
t" furnished under this Agreement.
'
C. Operator agrees to indemnify, defend and hold Goodyear harmless
against all claims of any party for loss, liability or damage,
including injury, resulting from Goodyear's furnishing of "No-Value
Tires" to Operator hereunder, including any and all costs, legal
fees, expenses and attorneys' fees resulting from such claims.
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 against 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 injuries
to any person, destruction or damage to any property, contamination
of or adverse effects on 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.
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710-5
Page 2
e. Title and all other incidents of ownership to the "No-Value Tire"
shall be transferred from Goodyear and vested in Operator at the
time Goodyear delivers to Operator a copy of the 710-15 Mileaq Tire
Disposition designating the tires as "uncut-b0.1'
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 Tires".
` 4. ' This Agreement, unless sooner terminated as provided herein, shall
.� terminate upon cancellation or termination of the Agreement.
This Agreement shall become effective when signed by the duly auth6rized
representatives of Goodyear and the Operator.
THE GOODYEAR TIRE & RUBBER COMPANY
By
rketi
-r an ger
Mileag ales, Lease & Service
Attest
Assistant Se r ary
Agreed to and accepted this
day of
OPERAT LEFFERSON CITY TRANSIT
c
BY
Title� T�!!/
App as t
fty Co s or
2
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710-1 (7/92) WA
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VnV607/1
,r Y' br 55 MENdORANIYJM OF AC,Ft�'Q�1WT
,; NDUM OF Ate ' made and entered into at Akron, Ohio this
day of 2 1994, by and between JEFFERSON CITY TRANSIT, of
y
Jefferson City, Missouri, ("Operator, ") and THE GOODYEAR TIRE & RUBBER
C aMPANY, a corporation of .Alcorn, Ohio, (,'Goodyear") .
1. Goodyear will furnish Operator tires for use on vehicles under the
terms and conditions set forth below; however, Operator may use tires
in its possession, not furnished by Goodyear under any similar
,. mileage contract previously in effect, until such tires are unfit for
further service.
A tire means a casing, tube and flap for tube type ype tire, and a
r casing only for a tubeless tire; and a vehicle means any vehicle of
seven or more passenger carrying capacity, designed for operation on
Pneumatic tires and used publicly, for the transportation ranspo of
passengers.
Tires furnished shall be in sufficient quantity to keep all vehicles "
fully equipped and to provide a reserve supply, at a maximLun level
determined by Goodyear, as spare stack inventory to be mounted on
rims and kept in P Operator's garage for use in case of emergency. To
Y, assure its effective use, existing spare stock shall be applied prior
,Y to application of new inventory. Vehicles shall be equipped with the
sizes and types of rims of sufficient strength to permit inflation necessary for the load c arrying capacity re quired
and spaced to
conform to the approved standards of The Tire & Rim Association of
i America, Inc. n'
Operator agrees to Luse exclusively tires furnished by Goodyear;
however, Operator may use up to 50 of its fleet, for test purposes,
on tires of other manufacturers.
Operator will not transfer, sublet, or lend the tires furnished by
Goodyear, or permit the tires to be used by anyone other than
Operator, without the prior written consent of r .
Goodyear. v
2. MIT FAC,'F! REPORTS AND TIRE P,EOJRD;S }
Operator shall keep an accurate record of the total number of miles `
run by each vehicle during the term of this Agreement and submit a f
report of such total mileage on each vehicle prior to the 10th day of
the month following the month the miles were run,
l
Vehicle mileage shall be deLermined either by means of an instrument
' which will accurately record mileage being run on each vehicle, or by
multiplying the number of trips of each vehicle 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 routes _
covered by its vehicles and shall advise Goodyear of any changes,
additions, or deletions in such routes.
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710-1 (7/92)
vrm/607/3
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6. Should AND Cb breach terms �
' the of this Agreement through non-
payment, non--payment on total amount due at termination impaire d
credit standing, assignment for the benefit of 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 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 costs of removing tires and/or
terminate this Agreement in accordance with Article 16.
Should Goodyear exercise any of these options, Goodyear shall be
relieved from any further 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. 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 enforcing any
other right under this Agreement.
l i Failuie on tY ' "
the part of Goodyear to exercise any or all of the above
Y�:.hA....
s ;F, options n k
- upon Operator's default shall not constitute a waiver by n
Goodyear of its right to exercise any or all of the above options upon
1..y, any subsequent default by Operator.
7. TAXES
In addition to the effective mileage rate, the Operator shall pay R,
Goodyear an amount to compensate for the current Manufacturers' Excise r
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 .2
governmental regulation shall have the effect directly or indirectly of
increasing the cost of manufacture, sale, delivery or disposal of such
goods or service. Operator will furnish tax exemption certificates and
will be exempt from all taxes covered. The Operator will be {
responsible for all property taxes on the tires, making any required f
listing for taxation in its own name as Bailee.
8. DAMAGE TO PERSONS OR PROPERTY
Operator will indemnify and hold Goodyear harmless against all claims,
action or causes of action for damage or injury arising out of the use
of or
possession of any tires furnished, except 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 no event shall Goodyear be.liable to Operator for
any incidental or consequential damages. 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 evidence workers compensation, general
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710-1 (7/92)
vrm/607/4
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liability and automobile liability insurance. Liability insurance
will have minimum limits of 3 million Combined single Limits CSL
operator will provide Goodyear with a certificate of insurance
evidencing the coverage, naming Goodyear as an additional insured, and
r.: providing thiz-ty (30) days' written notice to Goodyear of material
change or cancellation.
9. CONTENGMCIES
Goodyear shall be excused from deliveries or delay in deliveries if
such failure to deliver or delay shall be caused by war, strikes,
lockouts, fires, interruptions of transportation facilities,
4 accidents, inability to obtain merchandise, shortage of enemy 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 �
' Operator agrees to apply to, remove from, and remount on rims or
wheels tires furnished and to perform all other tire service,
r including regrooving and repair of flat tires, as required by Goodyear
to keep them in proper operating condition. Goodyear will provide £ '
necessary repair materials, valve hardware, and regroover. Operator
fh
will install and maintain in its garage suitable facilities for the
inflation of tires and will keep said tires inflated to conform to the 4`
approved standards of The Tire & Rim 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 fitness for '
return to service of a particular tire or tires; however, Operator
shall not be obliged to use tires which, because of their condition,
interfere 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.
11. USE, CARE AND STORAGE OF TIRES
Operator agrees to provide a safe and suitable place in an enclosed
building for storage of spare tires and tires unfit for further
service so that such tires are not subject to damage by the elements;
to either keep each bus equipped with at least one properly inflated
spare tine or provide adequate road service for its fleet; and to pay
Goodyear for any damage or loss resulting from accident, fire, adverse
mechanical conditions, improper or negligent use, loss, 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) net average mileage secured from similar tires
(nonretreaded or .retreaded;--aa•the case- may-be) normally and
permanently removed from service during the past twelve months or (b)
' the applicable current minimum mileage for bonus qualification for
nonretreaded or retreaded tires, the mileage run by the particular
tire ,prior to such damage or loss and multiplying the difference,
representing unused mileage on ,the tire, by the tire rate in effect.
-4-
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`A�' .S ..4 „ . +,X'•y.1, .!.� s�c �� � �'# ��>;'.''" �,� v i d(� �.��,f� �Sf ,�4,j.r Ar. Y'`'�', i E � .,h .. � ,�
i� -�'�',,,�sry t, yy.�}... {�� u r. . JI.L�:�+ t4.?�,'4.,.n'�•n 1i r f r•.>k`� iy'.li,� n .�.dc�5}�}}n„'i'en�+�t��S '�k„r�'`x 3`3 f 1•`�!��� +r.• I•I +,
x 710-1 (7/92) }
VIM/607/5
>,u Payment for extra tubes and flaps shall be made at p Goodyear's currnnt
j:.
0_3 printed list price, less 50%.
12. SALE OR DISPOSITION OF VEHICLFS
If Operator sells or in any manner disposes of any vehicles which shall
have been equipped with tires supplied under this Agreement, o if
l places tires in storage or renders a vehicle inactive through operator
discontinuance of its business, or discontinuance of the use of any such tires or vehicles fora period exceeding ninety (90) days,
Goodyear shall
have the option to: (a) require Operator to remove tires from inactive
vehicles or spare stock inventory and reapply on active wheel positions, or
''. (b) require rator to
including purchase the unused mileage in each such tire,
: g spars and/or obsolete spare stock, at prices to be computed as
set forth in Article 11, Pius any applicable taxes.
13. LFASED VEHICLES �)
Operator represents and warrants that it owns outright or has legal
possession of all vehicles comprising the fleet operated
: Operator acquires the right to owned it. If A
g operate any vehicles not owned �� .
("Leased Vehicles") , Operator agrees (a) to notify ' it
of such arrangement, �ye�' of the details
gement (b) that all Leased Vehicles will be furnished to
Operator by the owner without tires so that they may be equipped s
furnished peed with tires
"k?: by Goodyear under this t
acceptable to and Agreement, and (c) to obtain an agreement
P" for the benefit of Goodyear, whereby the owner '
acknowledges Goodyear's ownership and right to
supplied by it and waives all rights Possession of all tires t
Vehicles or otherwise. Should g �' virtue of their use on Leased
�3 Operator surrender or otherwise lose ,kr
11111 possession of any of the Leased Vehicles equipped with tires res 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 to
120 days. rY use for a period not to exceed
14. RATES AND ADJ[7SINIF�VI'
On all mileage run on and after November 1, 1994, and prior to May 1,
1995, the rate(s) per tire mile shall be as follows:
$.006620-A (11822.5, 9.00R20) ;d
$.009300-B (12.5-22.5)
$.003600-C (LT215/85R16)
Such tire rate(s) shall be referred to as Basic Rate(s) , x
On May 1, 1995, and on the first day of each November and May thereafter
during the term of this Agreement, the mileage rate effective during the
next ensuing six-month period shall be determined by the following
computation:
a• The average daily closing spot market rice `
ribbed. rubber sheets on the P �r pond for #1 smoked
Cmnodi.ty Exchange, Inc. , New York City,
shall be determined for the six calendar months imnediatel
the computation date. To determine the percentage of increase or
decrease to the Basic Rate(s) , compute the difference between such
average and $.4425 per pound, then multiply this difference by a
factor of .21.
-5-
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i r Y I
710-1 (8/90) 4t,,
viim/607/6
b. The average market price per pound of high tenacity nylon tire yart i
shall be determined for the six calendar months immediately preceding
the computation date. 'Ib determine the percentage of increase or
pfi•;v decrease to the Basic Rate(s) , compute the difference between such
u - average and $2.2550 per pound, then multiply this difference
� � by a
factor of .05-B.
C. The average market price per pound of tire cord wire shall be
determined for the six calendar months immediately preceding the
computation date. To determine the percentage of increase or decrease
E== ' to the Basic Rate(s) , compute the difference between such average and
$1.3693 per pound, then multiply this difference by a factor of .08-A
$T and C.
ti d. With respect to any period during which the price for such rubber,
wire or nylon tire yarn shall be fixed under order of any governmental
..�4 agency, such fixed price shall be substituted in the computation or
w' k computations for the above prices. ar
e. If the average hourly wage rate at time of adjustment shall be more or k
less than $27.2562 per hour, the Basic Rate(s) shall be increased or :.
W.
decreased by adding to or subtracting from the Basic Rate(s) the per
tire mile factor, multiplied by the change in the average hourly wage
rate. The per tire mile factor shall be determined by dividing the
following�r g by the preceding six-month average mileage of tires .
permanently removed from service from those vehicles.
10.00-A 15.00-B 5.50=C q
In the event insufficient tires are permanently removed fran service
to establish such actual average, the
per tire mile factor shall be
determined by dividing by the following:
` 40,000-A 40,000-B 40,000-C `f
s}�
' The average hourly wage rate shall be the annual average hourly rate
$t of factory employees in the Tire & Tube Division of Goodyear's
factories, including all applicable public or private employee
benefits.
15. BONUS ACOOT.JN:I'INGS i
On May 1, 1995, and at the end of each succeeding six-month period, i
" provided Operator is not in breach of this Agreement, bonus accountings on
Goodyear tires shall be made as follows:
Should the average mileage delivered by all tires furnished, which have
been permanently removed from service during the six-month period
immediately preceding accounting date, exceed 40,000 miles Group A or
40,000 miles Group B or 40,000 miles Group C for nonrecapped tires or
28,000 miles Group A or 22,000 miles Group B for recapped tires, then, on
tires permanently removed from service, Goodyear shall issue a credit
memorandum to Operator in an amount equal to 500 of the current rate per
i tire mile, less service (on a per wheel basis) , for all mules run in excess
of the above mileage requirements.
-6-
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710-1 (7/52)
/607/10 )
tr`I
This Option shall constitute and become a
Agreement dated Pmt of the Memorandum of
by and between JEFFERSON CITY
TRANSIT, of Jefferson City, Missouri, ("operator") and THE GOODYEAR, TIRE
& RUBBER COMPANY ("Goodyear") , as such Memorandum of Agreement may have
been further amended or extended from time to time.
1. Notwithstanding any provision to the contrary set forth in said
rid
Memorandum of Agreement, as extended and amended, Goodyear hereby '!
grants to Operator the following option.
j,o w •,a
. . 1
(a) Upon the expiration of the term of the Memorandum of
Agreement, as extended and amended, and only in the event
Operator wishes to change PP lier,
Operator has the right to
further extend said Memorandum of Agreement and continue to
use all tires furnished by Goodyear under such Agreements in
Operator's possession on the expiration date for a period of
36 months from said expiration date.
(b) All terms, conditions and provisions of said Memorandum of t4i
stn Agreement, as previously amended and extended, shall remain in 1
full force and e ffect during said 36-month
period, except that
Goodyear shall be relieved of any requirement to furnish t
Operator with tires, tubes, flaps, repair ,
material equipment,
or tire service during said 36-month period unless requested
by Operator and agreed to by Goodyear, ;
(c) The rate or rates per tire mile in effect during such 36-month
Period shall be the rate or rates in effect for the six-month
period immediately preceding the commencement date of such '
36-month period.
S
(d) It is understood that Operator shall continuously use such
tires insofar as practicable on its highest mileage runs until
such tires are rendered permanently unfit for service during
said 36-month pericy.. u
(e) Upon the expiration of said 36-month period, Operator shall
Pay for any then unused mileage remaining in such tires at the �
rate set forth in Paragraph 1 (c) above, Operator will
acquire each such used tire as is, and Goodyear makes no
warranties as to the condition or fitness for continued use of '
such tires, The amount of the unused mileage shall be
determined by subtracting from the average mileage secured
from similar tires (nonrecapped or recapped, as the case may
be) normally and permanently removed,.from service during the
six-month period immediately preceding the expiration of the a
36-month period, the mileage Y,un by the particular tire prior
to the expiration date of the 36-month period.
'i
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' •;Y, •.t •�'�x�.y'�^?. °� � ��.5t'8f�° �#}�j� t t r4t;�+,'���y�.k�yil'S��vr+�rX�t 3' 'A�+�'`,�' .' ,t
�� ' :+ f' f't `9 �S. r ;,r �? jA:i "i:'W+r2;;:. y�t er.�'• Fl vl j `14`� .ri nS' p�' �{i1�`•: �° �.
._ __.... ... r..._ .� .-r,T_. A. Y._. M _ 5p _ �,.. ` "tif:.'v ��• •-t.�bjv'� ,i
-f t r 4 ��tYlwitSt,�i� SWl.Y-��♦ "§ r� t yj(,{ )�qt
b����1''y"rkrF11��
710-1 (7/92)
"5
vrm/607/11
2. The option granted herein is exercisable by Operator upon thirty
(30) days' notice prior to the expiration date of the term of the
Memorandum of Agreement, as extended and amended. The Option does
not apply if termination occurs prior to date(s) set forth in
Y' Article 16 of this Memorandum of Agreement. Such notice of
Operator's exercise of this option must be in writing and sent,
certified mail, to:
The Goodyear Tire & Rubber Conpany
1144 East Market Street
Akron, Ohio 44316-0001
Attn: Manager, Mileage Sales
f ' IN WITNESS WHEREOF, Goodyear has caused thes presents t be signed
by its duly authorized representatives on the iday of ,
1994, although it is mutually agreed that this option shall effective
as of the effective date of any current supplement, amendment, or
extension between these parties.
THE GOODYEAR TIRE & RUBBER COMPANY
BY
"etinTl4afiag6r
Mileage Sales, Tease & Service
x
" ATTEST
Ass'st t Secretary
r r;
1 ,
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� 'NFy'K Fes.
1 1 �'