HomeMy WebLinkAboutResolution - 2008-R0234 - Contract Agreement - Greyhound Lines, Inc. - 06_26_2008Resolution No. 2008-RO234
June 26, 2008
Item No. 5.14
RESOLUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
.-cted to execute for and on behalf of the City of Lubbock an Agreement, by and
ween the City of Lubbock and Greyhound Lines, Inc., of Dallas, Texas, for certain
ilities to be furnished and services to be rendered by City, and related documents. Said
reement is attached hereto and incorporated in this resolution as if fully set forth herein
i shall be included in the minutes of the City Council
assed by the City Council this 26th day of JuIIe , 2008.
TOM MARTIN, MAYOR
TTEST:
City
JVED AS TO CONTENT:
Loomis, Assistant City Manager/
ortation and Public Works
AS TO FORM:
City Attorney
1ccdocs/Agrmnt-Greyhound Lines.res
11 /08
Resolution No. 2008—RO234
INDEPENDENT CONTRACTOR AGREEMENT
THIS AGREEMENT, entered into and made effective as of this 1st day of August, 2008, by
and between GREYHOUND LINES, INC., P.O. Box 660362, Dallas, Texas 75266-0362, (the
"Company") and THE CITY OF LUBBOCK, A POLITICAL SUBDIVISION OF THE STATE OF
TEXAS ("Contractor').
WITNESSETH
That for and in consideration of the facilities to be furnished and services to be rendered by
Contractor and the compensation paid therefor by Company, as hereinafter set forth, the parties
hereto covenant and agree as follows:
I. COMPANY AGREES:
A. To pay Contractor the following commissions:
On transportation fees collected by Contractor from the sale
of tickets, except as hereinafter provided:
Ten Percent (10%)
2. On transportation fees collected by Contractor from the sale
of commutation tickets or books or other multiple ride tickets:
Ten Percent (10%)
3. On transportation fees for express shipments, whether prepaid,
collect, or C.O.D., received from the consignor at the Facility:
Thirteen Percent (13%)
4. On transportation fees for express shipments, whether prepaid,
collect, or C.O.D., delivered to the consignee at the Facility:
Twenty Percent (20%)
5. On fees collected by Contractor from the sale of Ameripass tickets:
Ten Percent (10%)
6. On excess baggage fees collected by Contractor:
Ten Percent (10%)
7. On PTO Tickets honored:
Three Dollars ($3.00)
8. On GLI Phone Card
Twenty Percent (20%)
9. On Student Advantage Cards
Two Dollars ($2.00)
(a) As used in this section, the term "fees" does not include any taxes collected in
addition to the tariff charges or selling price.
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Greyhound - City of Lubbock Page 1 of 8
(b) The commission, if any, payable to Contractor with respect to tickets sold for the
movement of unusually large groups or under other unusual or extraordinary circumstances,
shall be determined according to bulletins and letters issued by the Company.
B. To permit Contractor to deduct commissions to which it is entitled under (A) of
this section from the Company funds in its possession when making remittances as provided in
paragraph (E) of Section II.
C. Company agrees to pay to Contractor, on a periodic basis, forty percent (40%) of
the commission stated in the Agreement on transportation charges collected by the Company
arising from sales by internet ticketing and tickets by mail for schedules originating at
Contractor's facility. The parties hereto agree that Greyhound's records will be used for
determining compensation to the Contractor under this provision. To be eligible for this
percentage commission, Contractor must be in good standing with respect to all funds due
Company and be the contractor of record for the subject period. The percentage commission
established by this provision shall not apply to sales or collections made prior to September 1,
2000.
D. Company agrees to pay to Contractor, eighty percent (80%) of the commission
stated in the Agreement on transportation charges collected by the Company arising from
printing of "Will Call Tickets". "Will Call Tickets" is defined as sales by the Company on the
internet or by its Telephone Information Centers for schedules originating from Contractor's
facility with the tickets to be issued by Contractor. The parties hereto agree that Company's
records will be used for determining compensation to the Contractor under this provision. The
percentage commission established by this provision is in lieu of any commission for internet
sales set forth in the Agreement, for 'Will Call Tickets", as heretofore amended, and shall not
apply to any sales made prior to June 11, 2002.
E. COMPANY SHALL INDEMNIFY AND HOLD CONTRACTOR, ITS ELECTED
OFFICIALS, OFFICERS, AGENTS, EMPLOYEES, AND INDEPENDENT CONSULTANTS.
(COLLECTIVELY, THE "INDEMNITEES") HARMLESS, TO THE FULLEST EXTENT
PERMITTED BY LAW, FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS,
DAMAGES, COSTS, LIABILITIES AND EXPENSES, INCLUDING WITHOUT LIMITATION,
CLAIMS, DEMANDS, DAMAGES, COSTS, LIABILITIES AND EXPENSES, CAUSED, IN
WHOLE OR IN PART, BY THE NEGLIGENCE, OF ANY KIND, TYPE OR DEGREE, OF THE
CONTRACTOR, AND INCLUDING REASONABLE ATTORNEY'S FEES, AS A RESULT OF,
RELATED TO, ARISING FROM, OR RELATED TO ANY MATTER RELATED TO
COMPANY'S ACTIVITIES, PERFORMANCES, OPERATIONS, OR OMISSIONS UNDER THIS
AGREEMENT.
F. Company agrees to maintain insurance as follows:
(a) Business Automobile Liability:
Company's insurance shall contain a combined single limit of at least $1,000,000
per occurrence, and include coverage for but not limited to the following:
• Bodily injury and property damage
• Any and all vehicles owned, used or hired
(b) Workers' Compensation and Employers Liability Insurance:
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Greyhound — City of Lubbock Page 2 of 8
Company shall elect to obtain workers' compensation coverage pursuant to
Section 406.002 of the Texas Labor Code. Further, Company shall maintain said coverage
throughout the term of this Agreement and shall comply with all provisions of Title 5 of the
Texas Labor Code to ensure that the Company maintains said coverage. Any termination of
workers' compensation insurance coverage by Company, or any cancellation or non -renewal of
workers' compensation insurance coverage for the Company shall be a material breach of this
contract. Company may maintain Occupational Accident and Disability Insurance in lieu of
Worker' Compensation. In either event, the policy must be endorsed to include a waiver of
subrogation in favor of the City of Lubbock.
(c) Employer's Liability with limits of at least $500,000 each accident, $500,000 by
disease policy limit, and $500,000 by disease each employee shall also be obtained and
maintained throughout the term of this Agreement.
(d) Other Insurance Requirements:
Company shall provide a Certificate of Insurance to the City of Lubbock as
evidence of the required insurance coverage. The Certificate will provide 30 days notice of
cancellation. A copy of the required endorsements and waivers of subrogation shall be included
in the certificate.
Company's auto liability insurance policy through policy endorsement must
include wording, which states that the policy shall be primary and non-contributory with respect
to any insurance carried by City of Lubbock. The certificate of insurance described must reflect
that the above wording is included in evidenced policies. All policies must be endorsed to
include a waiver of subrogation in favor of the City of Lubbock.
11. CONTRACTOR AGREES:
A. To sell such tickets as Company may supply, for Company and its affiliated and
connecting carriers, at lawfully published tariff rates, and to furnish the public any information
contained in tariffs, bulletins, circulars and literature insofar as the same is applicable to
transportation of passengers or handling of baggage, express or United States Mail by
Company and its affiliated and connecting carriers.
B. In the sole and exclusive judgment of the Contractor, to furnish at 801
Broadway, Lubbock, Texas, 79401 the transaction of Company business and the
accommodation and comfort of its patrons, suitable waiting room or space, and adequate
sanitary toilet facilities, together with convenient facilities for the sale of tickets and the handling
of baggage or express; to maintain the said waiting room or space and facilities, together with
all driveways, walks, approaches and premises appurtenant thereto, in a clean, sanitary and
safe condition at all times; and to reimburse and hold harmless Company from any and all
expenses incurred and/or claims arising directly or indirectly from any neglect or failure to so
maintain the said waiting room, space, facilities or appurtenant premises.
C. To reasonably protect baggage, express and United States Mail under
Contractor's care or supervision.
D. The title to all tickets and busbills and proceeds thereof and of all other monies
collected for the Company shall be at all times in the Company, it being the intention of this
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Greyhound — City of Lubbock Page 3 of 8
Agreement that the Contractor shall at all times be in the position of trustee and fiduciary of the
same for the Company.
E. To render reports of Company business on the last day of each month, and to
remit to Company or deposit to account of Company on the last day of each month, or at such
other times and in the manner as may hereafter be mutually agreed to by the parties hereto, all
monies belonging to the Company or collected for the account of Company.
F. That Contractor will without charge: (1) Handle newspapers and express
shipments made under regular contracts; (2) Issue tickets in exchange for tickets or ticket
orders issued by another contractor, connecting carriers contractor, or the Company; (3) Make
collections in connection with returned express shipments; (4) Sell express script books; (5) Sell
tickets under employee reduced rate orders; (6) Handle U.S. Mail.
Shall provide or arrange package pickup and delivery services at rates prevailing in the
Contractor's local market. Contractor hereby warrants that any owned vehicles or sub-
contracted delivery service used for this purpose maintain, at the time of pickup or delivery, the
minimum required limits of automobile liability insurance of the state of domicile of the
Contractor. Contractor will receive a fee of $6.00 standard and $12.00 priority per shipment.
G. To permit authorized representatives of Company during reasonable hours to
inspect and check all property of Company, and inspect and audit, at Company's sole expense,
all records and accounts pertaining to the business of Company, kept or supervised by
Contractor and to permit such authorized representatives, at their discretion, to collect all
monies belonging to Company in the possession of the Contractor.
H. To properly file and maintain all tariffs, time schedules, circulars and bulletins
furnished by Company, and to furnish to the public complete and accurate information in
accordance therewith.
I. To permit Company to conduct periodic audits, at Company's sole expense, of its
activities and records with respect to performance under this Agreement.
J. To keep and maintain on site records of its activities pursuant to this Agreement,
including all Company reports, payment and deposit records, and all other records necessary
and appropriate to permit Company to conduct audits of Contractor in accordance with
Generally Accepted Auditing Standards.
K. To place and maintain a suitable sign or signs designating the aforesaid
premises as a ticket agency for the Company and affiliated carriers, subject to final approval by
Contractor.
L. That the title to all station equipment and, signs furnished to the Contractor shall
remain the property of the Company at all times, and Contractor will return said property upon
the termination of this Agreement. Upon the termination of this Agreement, the Contractor will
permit a representative of the Company to remove all signs, decalcomanias and any and all
other evidence of the sale of tickets and any other services which might lead the public to
believe that Contractor is still the contractor for the Company.
M. At Company's expense, to permit Company upon request, to install its own
telephone number(s) and to have its own listing in all telephone directories; it being always
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Greyhound — City of Lubbock Page 4 of 8
clearly understood and agreed by Contractor that said telephone number(s) shall be the
Company's and the Company shall have the exclusive right, privilege, possession and use
thereof. Upon termination of this Agreement, for any reason, Company shall have the absolute
right to transfer said telephone number(s) to any other facility. Company is responsible for
payment of the base charges and charges directly incurred to conduct Company business. Any
and all unauthorized charges shall be Contractor's obligation; all such charges shall be due and
payable upon receipt of invoice from Company; this payment obligation shall survive the
transfer, assignment, termination and/or expiration of this Agreement.
N. To remove from the telephone directory or any other advertising medium any
listing or reference to the fact that it is Contractor for the Company as soon as possible upon
notice of termination of this Agreement.
O. Omitted.
P. Contractor specifically authorizes Company to deduct from any money that may
be due Contractor hereunder the compensation previously allowed Contractor on tickets or
transportation charges subsequently refunded to patrons and also the full amount of any
payment or payments made or expense incurred by Company by reason of loss of or damage to
baggage and/or express chargeable to Contractor; and Contractor hereby agrees to pay to
Company on demand any deficiency that may accrue with respect to such adjustments, refunds,
losses or damages.
Q. When applicable, to pay its covered employees in compliance with all applicable
laws, and further to maintain adequate and accurate records of their hours, rates of pay and
other conditions of employment as required by law.
R. Not to use the word "Greyhound" as part of Contractor's business name for any
purpose. Contractor acknowledges that the word "Greyhound", together with the various
symbols, slogans, logos, and the like ("Marks") owned or licensed by Company are valuable,
special and unique assets of Company. The use of Marks under this Agreement is for the
purpose of distinguishing the services of Greyhound Lines, Inc. and its subsidiaries only.
Contractor may use Marks only as an aid in informing the public where Greyhound Lines, Inc.'s
services may be purchased and that Contractor is authorized to sell Greyhound Lines, Inc.'s
services. Contractor shall not use Marks to identify Contractor's services or in any way except
as specifically authorized herein.
Contractor's internet (worldwide web) sites are strictly prohibited from using the name
"Greyhound", the image of the running dog and any other trademarks or service marks
associated with Company's transportation business.
S. That the Contractor is responsible for safeguarding and accounting for all tickets
and busbills assigned and entrusted to it for sale to customers. In the event that any tickets and
busbills cannot be accounted for at the time that Contractor is required to make one of its
regularly scheduled reports to Company, Company, if duly informed of any such missing tickets
or busbills, agrees to cooperate with Contractor with a view to ascertaining whether or not such
missing tickets or busbills were in fact sold; PROVIDED, HOWEVER, that such cooperation
shall not embrace any out-of-pocket expenses to, and/or the expenditure of undue time and
effort by Company. In the event that any such missing tickets and/or busbills assigned and
entrusted to Contractor cannot be successfully located and discovered as having been sold,
then it is agreed that the account shall be settled by Contractor's paying to Company an amount
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Greyhound - City of Lubbock Page 5 of 8
for each missing ticket or busbill equal to the average sales price for that ticket form or busbill
actually sold by Contractor during the month the missing ticket or busbill would have been sold.
In the case of forms of tickets infrequently sold by the Contractor, the average sales price will be
determined by using the last two months sales of that particular form.
T. To act as Contractor for Company upon such terms and conditions as Contractor
and Company shall agree.
U. Contractor represents and warrants that its facilities are and will be operated in
compliance with all laws applicable to it. Contractor agrees to assist Company personnel with
boarding or deboarding of customers with disabilities at Contractor's facility and will provide
such other assistance or accommodations to Company's customers to the extent required under
the ADA.
III. IT IS MUTUALLY AGREED:
A. That payment as aforesaid shall constitute full and complete compensation to
Contractor for all facilities furnished and services rendered by Contractor.
B. That Contractor is an "Independent Contractor" and the Company reserves no
control over the Contractor or any of its employees, subordinates, or associates, as to how the
facilities involved in this Agreement should be furnished or the services here involved should be
performed. Contractor shall limit its activities for the Company to the consummation of the
results herein specified. Contractor shall have no power to bind the Company by contract or
otherwise except as herein provided as to the sale of transportation for property. The Company
reserves no control whatsoever over the employment, discharge, compensation of or services
rendered by an employee, subordinate or associate of Contractor. It is further expressly
understood that nothing contained herein shall be deemed to require the Contractor to perform
in person any of the services hereby contracted for and that if the Contractor so elects, all of its
obligations hereunder may be performed by persons in its employ or otherwise under its control.
The Company shall not be responsible for the acts or omissions of said employees,
subordinates or associates.
C. The term of this Agreement shall be from the date hereof to December 31, 2008
continue thereafter until terminated by at least thirty (30) days prior written notice from either
party to the other party, at either party's sole discretion for any reason whatsoever, or as
otherwise provided herein. Provided, however, that any default of any monetary provisions,
including the payment of accounts or remittances of Contractor under this Agreement or any
other existing or future agreement between Company and/or its affiliates and Contractor and/or
its affiliates, which shall not be cured within ten (10) days after notice thereof, shall be sufficient
cause for the Company to immediately terminate this Agreement without any notice whatsoever
and Contractor hereby authorizes Company to do so in such event; and provided further, that
any violations, breach or default of any other provision of this Agreement, which is not remedied
within ten (10) days after notice thereof or any default under any other existing or future
agreement between Company and/or its affiliated and Contractor and/or its affiliates which is not
remedied as required thereby, shall also be sufficient cause to immediately terminate this
Agreement without further notice. All notices may be either written or given orally by or to an
officer or supervisory employee of the Company (Greyhound to provide names and contact
information for Area Sales Manager and District Manager).
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D. It is a condition of this Agreement that the Company shall have the right to load
and unload passengers and their baggage in its usual bus operations at the Contractor's
location, and in the event that at any time during the term of this Agreement the Company's
privilege in this respect, including the privilege to park vehicles used in common carrier service
to the extent necessary to conduct operations to or from said location, is restricted, denied, or
prevented, whether by municipal, state or federal law, ordinance, or decree, or otherwise, the
Company shall have the right to forthwith terminate this agreement.
Company also reserves the sole right to determine the volume of service to be
operated by it to or from the city in which Contractor's facility described in Paragraph B of
Section II is located or to otherwise terminate service forthwith. Accordingly, it is understood
and agreed that nothing in this Agreement shall constitute a representation, or an agreement of
the Company with the Contractor that it will schedule or designate any specific number of buses
or any buses to make a stop in said city for the purpose of taking on or discharging passengers,
baggage and express, but the Company does agree that those buses which it may from time to
time designate to make a stop at said City for the purposes of taking on or discharging
passengers thereat will, during the term or any extension hereof, utilize the station of the
Contractor for said purpose.
E. This Agreement cancels any and all previous contracts and agreements
pertaining to the subject of commission agency between Contractor and Company and/or its
predecessors in interest, except as to unfulfilled obligations heretofore incurred, and this
Agreement constitutes the entire Independent Contractor Agreement between the parties.
F. This Agreement may not be assigned by one party without the prior written
consent of the other.
G. If the Company shall, after default made by the Contractor in any payment to be
made by it, or in the performance of any covenant or agreement to be by it performed under this
agreement, accept from the Contractor and payment to be made by it, or the performance or
any covenant or agreement to be by the Contractor performed under this agreement, or if the
Company after such default shall do any act or exercise any right, remedy, option or election
permitted by this Agreement, neither the acceptance of such payment nor the acceptance of
such performance, nor the doing of such act, nor the exercise of any such right, remedy, option
or election, shall be construed or deemed a waiver of such prior default, except only to the
extent that such prior default shall be extinguished by the payment or performance so accepted
by the Company.
H. Omitted.
I. THIS AGREEMENT IS TO BE CONSTRUED UNDER TEXAS LAW WITHOUT
REGARD TO CONFLICT OF LAW RULES THAT WOULD DIRECT APPLICATION OF THE
LAWS OF ANY OTHER JURISDICTION. THE OBLIGATIONS OF THE PARTIES CREATED
BY THIS AGREEMENT ARE PERFORMABLE, AT LEAST IN PART, IN LUBBOCK COUNTY,
TEXAS. VENUE FOR ANY ACTION BROUGHT PURSUANT TO THIS AGREEMENT, OR
ACTIVITY CONTEMPLATED HEREBY, SHALL EXCLUSIVELY BE IN LUBBOCK COUNTY,
TEXAS.
J. If any provision of this Agreement shall be held to be invalid or unenforceable,
such provision shall be construed and enforced to the extent possible as if it had been more
Independent Contractor Agreement
Greyhound — City of Lubbock Page 7 of 8
narrowly drawn so as not to be invalid or unenforceable, and such invalidity or unenforceability
shall not affect or render invalid or unenforceable any other provision of this Agreement.
IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed
in duplicate the day and year first herein above written.
CITY OF LUBBOCK:
TOM MARTIN, MAYOR
ATTEST:
lARebecca Garza, City 8 e e
APPROVED AS TO CONTENT:
Oams Loomis, Assistant City Manager/
Tra sportation and Public Works
®r
MEN . . a -
GREYHOUND LINES, INC.
By: -:_-
Title: A r,'C f
Independent Contractor Agreement
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