3459 RESOLUTION NO. , '
A RESOLUTION AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE FOR AND ON BEHALF OF THE
CITY OF LITTLE ROCK A CONTRACT AGREEMENT WITH
TWIN CITY TRANSIT, INC. FOR THE LEASE AND CON-
VEYANCE OF FORTY-TWO (42) NEW GMC DIESEL MOTOR
PASSENGER BUSES; AND FOR OTHER PURPOSES.
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
LITTLE ROCK, ARKANSAS:
SECTION 1. The Mayor and City Clerk are hereby
authorized and directed to execute for and on behalf of
the City of Little Rock a Contract Agreement with Twin
City Transit, Inc. for the leasing and conveying by the
City of Little Rock to Twin City Transit, Inc. forty-
two (42) new GMC diesel motor passenger buses, which Con-
tract is in form and substance as follows:
CONTRACT AGREEMENT
This Agreement, made and entered into this
day of , 1965, by and between the City of
Little Rock, Arkansas, First Party, by authority of Reso-
lution No. of the Board of Directors of the City
of Little Rock, and Twin City Transit, Inc. , Second Party,
witnesseth:
WHEREAS, First Party owns and has legal title to
forty-two (42) new diesel passenger motor buses which were
purchased to be used for the purpose of transporting the
general public in the urban area of Greater Little Rock
(which includes only the incorporated areas of the City of
Little Rock, Arkansas, and the City of North Little Rock,
Arkansas); and
WHEREAS, First Party has heretofore granted Sec-
ond Party a franchise to maintain and operate motor passen-
ger buses constituting a unified transportation system in
the urban area of Greater Little Rock; and
WHEREAS, the heretofore mentioned buses were pur-
chased by First Party partially with federal funds made
available under the federal Urban Mass Transportation Act
of 1964, partially with funds of Second Party, and partially
with an appropriation of general funds of the City of Little
Rock, Arkansas; and
WHEREAS, it is the desire of the City of Little
Rock to deliver possession and right of use of the afore-
mentioned buses to Second Party with the understanding and
mutual agreement that said buses and/or replacements will
be devoted to the use of transporting the general public in
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the urban area of Greater Little Rock for a period of not
less than fifteen (15) years from the date of delivery; and
WHEREAS, this Agreement is entered into solely for
the purpose of retaining title to said buses in the City of
Little Rock as herein provided to insure that Second Party
will continue to use said buses in the City of Little Rock
for the period herein specified;
NOW, THEREFORE, the parties hereto, for the consid-
eration and purposes herein stated, which each agrees to be
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valuable and for public purposes, agree as follows:
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r 1) First Party hereby grants and delivers to Sec-
and Party the possession and right to possession and use of
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the following-identified new GMC diesel motor passenger buses
__ to be used in the urban area of Greater Little Rock, as here-
r: inabove defined, for the purpose of public passenger trans-
t-
' portation for a period of not less than fifteen (15 years:
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2) It is mutually understood and agreed that
First Party will, without additional consideration, convey •
title to said buses to said Second Party five (5) years
from the date of this Agreement, or at the time that cer-
tain Promissory Promisso Note executed by Second Party in favor of
Urban Progress Association, Inc. of Little Rock, Arkansas,
and assigned to Worthen Bank & Trust Company of Little
Rock, Arkansas, agent without recourse, bearing date of
, in the original principal sum of
Dollars ($ ),
is satisfied and paid in full, whichever occurs first.
3) It is further mutually agreed that, as part
consideration for this Agreement, Second Party will not
cause or permit any of said bus equipment to be used for any
other purpose than public transportation in the Greater Lit-
tle Rock urban area (as above defined) for a period of at
least fifteen (15) years from the receipt thereof by Second
Party; provided, however, Second Party may -at any time after
title to bus equipment is vested in Second Party, with the
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prior approval of First Party, lease or trade or exchange
any or all of said equipment for the lease or delivery to
Second Party of like equipment having an equal or greater
value.
4) For so long as title to said equipment shall
remain in First Party, Second Party agrees to maintain lia-
bility insurance coverage in the amount of not less than
One Hundred Thousand and No/100 Dollars ($100,000.00) for
injury or death to one person, and not less than the sum of
Three Hundred Thousand and No/100 Dollars ($300,000.00) for
the death or injury to all persons affected by any one acci-
dent, and not less than Twenty Five Thousand and No/100 Dol-
lars ($25,000.00) damage to property in any one accident,
such coverage to be for all motor buses covered by this in-
strument, and further agrees to maintain full comprehensive
coverage on all said equipment. Second Party further agrees
to hold First Party harmless from any and all damages or ex-
penses based on claims of third parties as a result of the
use and operation of any of the forty-two (42) new buses
which are the subject matter of this Agreement.
5) Second Party further agrees to immediately es-
tablish and maintain a funded depreciation account for the
replacement of the transportation equipment covered by this
contract and all other transportation equipment owned and/or
controlled by Second Party and devoted to the use of public
transportation in the urban area of Greater Little Rock (as
hereinabove defined) on the basis of a ten (10) year useful
life for such equipment, and make cash payments annually to
such account in an amount equal to one-tenth (1/10th) of the
1 original cost of the forty-two (42) new motor buses identi-
fied by this Agreement, and in an amount equal to one-tenth
%
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(1/10th) of the now book value of all other bus equipment
(except thirty-five (35) buses which have a salvage value
of Five Hundred and No/100 Dollars ($500.00) each, estab-
lished by Second Party and proper officials of the Housing
and Home Finance Agency of the United States of America,
and except five (5) buses which will be scrapped) owned
and/or controlled by Second Party and devoted to the use
of transporting the general public in the urban area of
Greater Little Rock; provided, however, funds of the Sec-
ond Party are available for such purpose after necessary
expenditures for operation and maintenance and other fixed
indebtednesses of Second Party.
6) Second Party further agrees to utilize the
funds in said depreciation account for the purpose of re-
placing the forty-two (42) new buses, which are the subject
matter of this Agreement, and all other motor buses owned
and/or controlled by Second Party and devoted to the use of
transporting the general public in the urban area of Greater
Little Rock at the end of the useful life of any of said
equipment.
7) It is further mutually agreed that Second Party
will not use or permit replacement equipment herein referred
to to be used for any purpose except for the transportation
of the public generally in the urban area of Greater Little
Rock, as hereinabove defined, for a period of fifteen (15)
years from the date of acquisition or its useful life, or
expiration of franchise or renewal or extension thereof,
whichever occurs sooner.
8) It is further mutually agreed that Second Par-
.
' ty will pay all lawful taxes, if any, of whatever nature im-
posed upon said equipment by agencies of government.
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9) Second Party further agrees to maintain or
cause said equipment to be maintained and kept in a good
state of repair and operating condition at all times, all
at its expense.
IN WITNESS WHEREOF, the parties hereto have here-
unto set their hands in triplicate, each for all purposes
being considered an original, the day and date first above
written.
CITY OF LITTLE ROCK
First Party
By
Mayor
ATTEST:
City Clerk
TWIN CITY TRANSIT, INC.
Second Party
Authorized Officer
ATTEST:
Secretary
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SECTION 2. This resolution shall be in full
force and effect from and after its adoption.
ADOPTED: December 1, 1965
ATTEST-/I ae1 APPROVED: I
City Clerk Mayor