Fort Walton Beach Council agenda — 10-27-2009 - regular — reading text

lease. If any vehicle is damaged in any manner due to overloading, Lessee shall immediately pay to Lessor the amount of any and. all damages and losses it may sustain. The Vehicle is subject to this lease shall not be used in violation of any federal, state or municipal statutes, laves, ordinances, rules, or regulations applicable to the operation of such vehicle. As to the use or operation of any such Vehicle, Lessee will hold Lessor harmless from any and all fines, forfeitures, or penalties for traffic violations or for the violation of any statute, law, ordinance, rule, or regulation of any duly constituted public authority. Lessee shall not use nor allow any vehicle to be used for any unlawful purpose or for the transportation of any property or material deemed extra -hazardous by reason of being explosive, flammable, or fissionable. SECTION NINE DRIVERS OF VEHICLES All Vehicles leased to Lessee under this lease shall be operated only by safe, careful, legally All drivers must have a Class A or Class B qualified, and properly trained and licensed drivers. Commercial Driver' s License with a Passenger Endorsement. Lessee shall provide to Lessor proof ofthe required driver' s licenses for each ofits employees who will be authorized to drive the Vehicle prior to the day on which any Vehicle subject to this lease shall enter Lessee' s service. It shall be the Lessee' s duty to keep such documentation updated with Lessor. Such drivers shall be selected, employed, controlled, and paid by Lessee. The Lessee shall implement the provisions of School Board Policy Ch. 7 -7, and any subsequent School Board policies, as requirements for all of its bus drivers and shall enforce those provisions as employment standards for the drivers. ( A copy of said policy is attached hereto and made a part hereof as Exhibit " A ") Such drivers are conclusively presumed to be the employees of Lessee only. Lessee shall provide workers compensation coverage for all drivers in accordance with the requirements of Florida law. Such workers compensation shall be provided by an insurance company properly licensed to do business in the State of Florida. Lessee shall cause the insurer to furnish to Lessor prior to the day on which any Vehicle subject to this lease shall enter Lessee' s service, a certificate of workers compensation insurance, and a certificate of any renewal or replacement, evidencing coverage as outlined in this Section. Such certificate shall provide that the insurance shall not be canceled or materially modified except on thirty ( 30) days advance written notice to Lessor. Lessee shall cause the Vehicle subject to this lease to be used and operated with reasonable care and precaution to prevent loss and damage to such Vehicle due to negligent or reckless use, 32- abuse, fire, theft, collision, or injury to persons or property. Lessee' s drivers shall comply with all reasonable regulations now or hereafter made by Lessor insofar as such regulations shall relate to the proper use, care, and operation of the vehicle provided pursuant to this lease. SECTION TEN REPORTS BY LESSEE' S DRIVERS Lessee shall cause each of it's drivers, at the close of each day, or each time Vehicle is returned to Lessor's garage, to note on forms provided by Lessor, any and all faulty operation or other trouble that the driver had with that Vehicle. Except as so reported, it shall be conclusively presumed that the Vehicle operated satisfactorily. SECTION ELEVEN MAINTENANCE AND REPAIRS Except as otherwise provided in this agreement, all labor, materials and repairs in connection with the proper mechanical operation of the Vehicle during the lease term, including but not limited to batteries, repairs, maintenance, tires and towing necessary for its proper use and operation, shall be at Lessor's expense. Lessee shall take the Vehicle to the Lessor's designated bus maintenance facility for all service and repairs. Lessee shall be liable for all repairs or replacement of equipment due to damage caused by Lessee' s passengers or the negligence of Lessee' s employees. The Lessee shall be solely responsible for routine costs of operation, including fuel and oil. If any Vehicle shall be disabled, for any cause, Lessor shall promptly repair, or cause such Vehicle to be repaired, after receipt from Lessee or its agents of notice of such disability, specifying where the Vehicle is located, the nature of the disability, and its cause. Lessee' s drivers shall not make any repairs or adjustments to any Vehicle, but in all cases of trouble shall give prompt notice to Lessor by the most efficient means available describing the nature of the trouble and the location of the Vehicle. Lessee' s drivers shall abide by Lessor's directions concerning emergency repairs. Lessor shall have no liability for any repair or service to a Vehicle unless authorized by Lessor and supported by a receipted bill for the repair or service itemizing the cost of labor_and materials. 33-  SECTION TWELVE AFTER HOURS STORAGE It shall be the responsibility of Lessee to provide a safe and secured storage location for the Vehicle after hours of daily use. Any damage to the Vehicle due to vandalism shall be repaired or replaced at the sole expense ofLessee by Lessor's personnel or other assigned garage /repair facility. SECTION THIRTEEN OBLIGATION TO INSURE Lessee, at its sole cost, shall provide and maintain during any period of time during the term of this lease, when Lessee is in actual possession of the Vehicle hereunder, a policy of automobile liability insurance containing the coverages, exceptions, and exclusions that are ordinarily contained in automobile liability insurance policies written in the State of Florida. Such policy shall insure Lessor and Lessee and. their respective agents and employees with respect to liability as a result of the ownership, maintenance, use or operation of Vehicle furnished by Lessor to Lessee pursuant to this lease. Such insurance shall be primary, and not excess or contributory, with respect to any accident involving the Vehicle, and shall afford bodily injury and property damages liability limits of not less than One Million ($1, 000,000. 00) Dollars for injury or death of any person or persons or damage, destruction, or loss of use of property per occurrence with medical pay coverage consistent with the provisions of Florida Statute 234.03. The Lessee shall also provide full collision coverage for Lessor' s Vehicle based upon actual cash value. Such insurance shall be in a form acceptable to Lessor and shall be provided by an insurance company properly licensed to do business in the State of Florida and approved by Lessor. Lessee shall cause the insurer to furnish to Lessor's Risk Management Office, prior to delivery of any Vehicle subject to this lease to Lessee, a certificate of insurance, and a certificate of any renewal or replacement, evidencing coverage as outlined in this Section. Such certificate shall provide that the insurance shall not be canceled or materially modified except on thirty ( 30) days advance written notice to Lessor. Lessor shall be a named insured on the required insurance coverages. SECTION FOURTEEN REPORTS OF ACCIDENTS If a vehicle furnished by Lessor to Lessee pursuant to this agreement is involved in any accident, Lessee shall cause its agents and employees to notify Lessor immediately by telephone. Thereafter, as soon as practicable, Lessee shall report to Lessor in writing, giving all information relative to the accident, including, but not limited to, the date, time, place, and circumstance of the accident, the names and addresses of persons injured, the owners of property damaged, and names 34- and addresses of witnesses. Lessee, its agents and employees, shall cooperate fully with Lessor and the insurer in the investigation and defense of any claim or suit, and shall do nothing to impair or invalidate any applicable insurance coverage. Lessee shall promptly deliver to Lessor, or to such other person or company as Lessor shall have designated in writing, any and all papers, notices, summonses, processes, and documents whatsoever served upon or delivered to Lessee or Lessee' s agents or employees in connection with any claim, suit, action or proceeding at law or in equity commenced or threatened against Lessee or Lessor arising out of the ownership, maintenance, use, or operation of any vehicle subject to this lease. SECTION FIFTEEN OBLIGATION TO PAY MISCELLANEOUS CHARGES Lessee agrees to pay all storage charges, parking charges, and fines incurred in connection with the Vehicle. Lessee will pay any fees or taxes that may be imposed with respect to the Vehicle by any constituted governmental authority as the result ofLessee's use or intended use ofthe Vehicle. SECTION SIXTEEN LIABILITY FOR CONTENTS Lessor shall not be liable for loss of or damage to any property left, stored, loaded or transported in or upon any vehicle furnished by Lessor to Lessee pursuant to this lease, whether or not due to the negligence of Lessor, its agents, or employees. Lessee shall hold Lessor, its agents, and its employees, harmless from and indemnify them from and against all claims based on or arising out of such loss or damage. SECTION SEVENTEEN RISK OF LOSS AND DAMAGE Lessee shall bear all risks of damage or loss ofthe Vehicle or any portions ofthe Vehicle not covered by insurance. All replacements, repairs or substitutions of parts or equipment due to any such damage shall be at the cost and expense of Lessee and shall be accessions to the Vehicle. The lease payments on the Vehicle shall not be prorated or abated while it is being serviced or repaired. 35-