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HomeMy WebLinkAboutResolution - 2008-R0426 - Cooperative Endeavor Agreement - Mcdonald Transit Associates, Inc. - 11_06_2008Resolution No. 2008-RO426 November 6, 2008 Item No. 5.11 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock or his designee BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock, a Cooperative Endeavor Agreement by and between the City of Lubbock and McDonald Transit Associates, Inc., and related documents, for the lease of certain vehicles. Said Agreement is attached hereto, and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council this ATTEST: Rebec a Garza, City Secretary (ED AS TO CONTENT: 6th day of November 2008. Loomis, Assistant City Manager/ and Public Works APPROVED AS TO FORM: City Attorney Ms/ccdocs/res-McDonaldtransit.08 10/20/08 TOM MARTIN, MAYOR Resolution No. 2008-RO426 COOPERATIVE ENDEAVOR AGREEMENT BETWEEN THE CITY OF LUBBOCK AND MCDONALD TRANSIT ASSOCIATES, INC. , THIS COOPERATIVE NDEAVOR AGREEMENT is made effective as of this, the 6th day of November, 20 , by and between the City of Lubbock ("Lubbock"), a political subdivision of the State of exas, appearing herein through Tom Martin, Mayor, by the authority of Resolution N pted on Nov. 6th , 2008, and McDonald Transit Associates, Inc., ("McDonald Transit") a corporation in the.State of Yexas, appearing hereip tkrough Robert T. Babbitt, its President, by authority of Resolution Now V1-,!yadopted on %/ 11 OP , and upon the following terms and conditions: WHEREAS, the City of Lubbock has vehicles in its fleet of transit buses that are in excess of the current service level; and WHEREAS, McDonald Transit Associates, Inc. is a transit entity which has a need for additional buses to be used in transit service; and WHEREAS, the vehicles will be placed in transit service that is open to the general public and operates on specific and published time schedules and routes; and WHEREAS, the vehicles comply with provisions of the Americans with Disability Act; and WHEREAS, Lubbock will enjoy a benefit from this agreement, and the activities hereunder, generating revenue for Lubbock, constitute a valid public purpose. NOW, THEREFORE, the parties hereby agree as follows: 1. LEASE. Contingent upon Lubbock's receipt of written authorization from FTA to Lubbock and McDonald Transit to undertake cooperatively the activities contemplated by this instrument, Lubbock hereby agrees to lease to McDonald Transit two (2) Transit Buses as listed in the Vehicle Profile, hereby referenced as the "Buses." All moving and/or shipping expenses and associated activities shall be the sole responsibility of McDonald Transit. Lubbock will transfer possession of these buses to McDonald Transit, at a place determined by Lubbock, immediately upon approval by the respective governing authorities and execution of this Agreement. It is understood by signing this Agreement that McDonald Transit will accept responsibility for the satisfactory maintenance, care, and control of the federally funded buses. The term of this lease shall be from the date of final execution through March 1, 2009, unless earlier terminated. Page 1 of 9 Upon the expiration of the lease, the buses shall be surrendered to a designated agent of Lubbock, at the place further designated by Lubbock, in the same condition as they were at the start of the lease, normal wear and tear excepted. McDonald Transit shall perform all required repair and maintenance on the buses at its sole expense. In the event McDonald Transit cannot return any bus to Lubbock as provided herein, McDonald Transit shall in lieu of said bus, agree to bid an amount equal to the actual cash value of the unreturned bus, or $4,999, whichever is greater, in accordance with Federal Transit Administration's guidelines. 2. LEASE PRICE AND PAYMENT. Rent for the buses shall be $4,091.30 per bus, for a total of $8,182.60. McDonald Transit will, in a form acceptable to Lubbock, make a payment of all amounts due before taking possession of the buses. 3. Omitted. 4. MASTER AGREEMENT. All leased vehicles will remain subject to all applicable legal and program requirements in the FTA Master Agreement. The undersigned representative of McDonald Transit hereby represents and warrants to Lubbock that performance of this Agreement by the parties hereto shall not constitute a violation of any agreement, covenant, promise, or obligation that exists between the FTA and either or both of the parties. 5. DISCLAIMER OF WARRANTIES. McDonald Transit acknowledges that the lease is made without warranty of any kind or type, and further SPECIFICALLY WAIVES ALL IMPLIED OR EXPRESS WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE of the buses, as well as any warranty with respect to the design, condition, or operability of the buses, the quality or capacity of the buses with the requirement of any law, rule, specification or contract pertaining thereto, patent infringement, or latent defects. McDonald Transit further acknowledges that it accepts the buses in their present condition, "as is," "where is." 6. LUBBOCK REPRESENTATIVE. McDonald Transit's Vice President and Lawton Transit Management, Inc. subsidiary General Manager, Steven Sherrer is designated as the Lubbock Representative for purposes of facilitating delivery of buses to McDonald Transit, but for no other purpose inconsistent with previously delegated or appointed authority. 7. ASSIGNMENT: Neither party to this Agreement shall assign any right or obligation hereunder in whole or in part, without the prior written consent of the other party hereto. The purpose of this lease is to provide transit buses to McDonald Transit's service in Lawton, OK. 8. APPROVAL: By executing this Agreement, McDonald Transit agrees to accept responsibility for the satisfactory maintenance and control of the federally funded buses and acknowledges that the transfer contemplated herein may not be completed unless and until there is express, written permission and consent of FTA. Page 2 of 9 9. INSURANCE: McDonald Transit's subsidiary, Lawton Transit Management, Inc. shall secure and maintain at its sole expense such insurance that is acceptable to Lubbock, and from a company authorized to do business in the State of Texas, that will protect it, and Lubbock, from claims under the Workmen's Compensation Acts and from claims for bodily injury, death or property damage which may arise from the performance of services under this agreement. All certificates of insurance shall be furnished to Lubbock in advance, and shall provide that insurance shall not be canceled without thirty (30) days prior notice of cancellation given to Lubbock, in writing, on all of the required coverages provided to Lubbock. Lubbock shall examine the policies to insure compliance with the insurance provisions. A. ALL POLICIES AND CERTIFICATES OF INSURANCE SHALL CONTAIN THE FOLLOWING CLAUSES: 1. McDonald Transit's insurers will have no right of recovery or subrogation against Lubbock, it being the intention of the parties that the insurance policy so affected shall protect both parties and be the primary coverage for any and all losses covered by the below described insurance. 2. Lubbock and any party to whom McDonald Transit shall lease the buses that are the subject of this Agreement shall both be named as primary and non-contributory additional insureds as regards to automobile and general liability with respect to negligence. 3. The insurance companies issuing the policy or policies shall have no recourse against Lubbock for payment of any premiums or for assessments under any form of policy. 4. Any and all deductibles in the below described insurance policies shall be assumed by and be at the sole risk of McDonald Transit. B. Prior to the execution of this agreement, McDonald Transit shall provide at its own expense, proof of the following insurance coverage required by the contract to Lubbock by insurance companies authorized to do business in the State of Texas. Insurance is to be placed with insurers with an A.M. Best rating of no less than A: VI. Worker's Compensation Insurance: Employer's liability shall be at least $1,000,000 per occurrence when work is to be over water and involves maritime exposures, otherwise this limit shall be no less than $500,000 per occurrence. 2. Commercial General Liability Insurance with a Combined Single Limit of at least $1,000,000.00 per Occurrence for bodily injury and property damage. This insurance shall include coverage for bodily injury and property damage, and indicate on the certificate of insurance the following: Page 3 of 9 a) Broad form contractual liability; b) Personal Injury; c) Broad form property damage; 3. A commercial automobile liability insurance policy, with a combined single limit of at least $1,000,000.00 per occurrence for bodily injury and property damage. This insurance shall not exclude coverage for operation -for -hire. 4. An umbrella policy or excess may be used to meet minimum requirements. All policies of insurance shall meet the requirements of Lubbock prior to the commencing of any activities under this Agreement. Lubbock has the right but not the duty to approve all insurance policies prior to commencing of any activities under this Agreement. If at any time any of the said policies shall be or becomes unsatisfactory to Lubbock as to form or substance; or if a company issuing any such policy shall be or become unsatisfactory to Lubbock, McDonald Transit shall promptly obtain a new policy, submit the same to the Lubbock administration for approval and submit a certificate thereof as provided above. Upon failure of McDonald Transit to furnish, to deliver and maintain such insurance as above provided, this contract, at the election of Lubbock, may be forthwith declared suspended, discontinued or terminated. Failure of McDonald Transit to take out and/or to maintain insurance shall not relieve McDonald Transit from any liability under the contract, nor shall the insurance requirements be construed to conflict with the obligation of McDonald Transit concerning indemnification. 9. INDEMNITY: MCDONALD TRANSIT SHALL, TO THE FULLEST EXTENT PERMITTED BY LAW PROTECT, DEFEND, INDEMNIFY, AND SAVE LUBBOCK ITS AGENTS, ELECTED OFFICIALS, REPRESENTATIVES, EMPLOYEES, SERVANTS, INCLUDING VOLUNTEERS, OR ANY FIRM, COMPANY, ORGANIZATION, OR INDIVIDUAL, OR THEIR CONTRACTORS, OR SUBCONTRACTORS FOR WHOM LUBBOCK MAY BE CONTRACTED, HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, ACTIONS, AND CAUSES OF ACTION OF EVERY KIND AND CHARACTER, INCLUDING BUT NOT LIMITED TO CLAIMS BASED ON NEGLIGENCE, STRICT LIABILITY, AND ABSOLUTE LIABILITY, INCLUDING BUT NOT LIMITED TO WORKERS COMPENSATION CLAIMS BY CITY OF LUBBOCK EMPLOYEES, WHICH MAY ARISE IN FAVOR OF ANY PERSON OR PERSONS ON ACCOUNT OF ILLNESS, DISEASE, SERVICES, WAGES, LOSS OF PROPERTY, LOSS OF LIFE, INJURY OR DAMAGES TO PERSONS OR PROPERTY, GROWING OUT OF, RESULTING FROM, OR BY ANY REASON OF ANY ACT BY MCDONALD TRANSIT, ITS AGENTS, REPRESENTATIVES, SERVANTS, OR EMPLOYEES WHILE ENGAGED UPON OR IN CONNECTION WITH THE SERVICES OR OBLIGATIONS REQUIRED OR PERFORMED BY MCDONALD TRANSIT HEREUNDER OR FROM OPERATIONS CONTEMPLATED BY THIS Page 4 of 9 AGREEMENT, REGARDLESS WHETHER OTHERS MAY BE WHOLLY, CONCURRENTLY, PARTIALLY, OR SOLELY NEGLIGENT, OR STRICTLY LIABLE, OR ABSOLUTELY LIABLE OR OTHERWISE AT FAULT, AND REGARDLESS OF ANY DEFECT IN THE . PREMISES, EQUIPMENT, OR MATERIALS, IRRESPECTIVE OF WHETHER SAME PREEXISTED THIS AGREEMENT, EXCEPT DAMAGES ARISING OUT OF INJURIES OR PROPERTY CLAIMS TO THIRD PARTIES CAUSED BY THE NEGLIGENCE OF LUBBOCK , ITS EMPLOYEES OR AGENTS. FURTHER, MCDONALD TRANSIT HEREBY AGREES TO INDEMNIFY LUBBOCK FOR ALL REASONABLE EXPENSES AND ATTORNEYS' FEES INCURRED BY OR IMPOSED UPON LUBBOCK IN CONNECTION THEREWITH FOR ANY LOSS, DAMAGE, INJURY OR OTHER CASUALTY. MCDONALD TRANSIT FURTHER AGREES TO PAY ALL REASONABLE EXPENSES AND ATTORNEYS' FEES INCURRED BY LUBBOCK IN ESTABLISHING THE RIGHT TO INDEMNITY PURSUANT TO THE PROVISIONS OF THIS SECTION. 10. NOTICE. Any notice required to be given under this Agreement shall be deemed delivered three (3) days after deposit in the U.S. mails, or immediately upon hand -delivery or delivery by electronic transmission by facsimile to the following addresses, respectively, as applicable: To McDonald Transit Associates Inc. Attn: Mr. Robert T. Babbitt 4500 Mercantile Plaza Drive, Suite 307 Fort Worth, Texas 76137 817.232.9560 (fax) To Lubbock: Attn: City Manager P.O. Box 2000 Lubbock, Texas 79457 806.775.2051 (fax) With copy to: Attn: City Attorney P.O. Box 2000 Lubbock, Texas 79457 806.775.3307 (fax) Page 5 of 9 10. MISCELLANEOUS: (a) This Agreement (and all exhibits hereto) constitutes the entire understanding and agreement between the parties hereto with respect to the subject matter hereof. No modification or amendment of this Agreement shall be valid and binding upon the parties unless in writing and executed by the parties to be bound thereby. (b) This Agreement shall be construed under and in accordance with the laws of the State of Texas. Any lawsuit filed in state court relating to this Agreement shall be filed in the County of Lubbock, State of Texas. (c) If any provision in this Agreement shall be deemed invalid or otherwise unenforceable, the Agreement shall be construed without said invalid or unenforceable provision, as though it had not. been included in the Agreement, with the remaining provisions retaining full force and effect. (d) All remedies enumerated herein are cumulative, and the exercise of any one or more of them shall not preclude the subsequent exercise of any other. (e) McDonald Transit agrees that in no case shall the buses the subject of this Agreement be leased to, or used by, any entity that is not the United States government, the government of one of the United States, or a department or subdivision of either. City reserves the unrestricted right to terminate this Agreement in the event the buses the subject of this Agreement are used for any purpose other than providing "public transportation," as that term is used and understood in all applicable federal rules, regulations, and law. [THE REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY] Page 6 of 9 IN WITNESS WHEREOF, the parties hereunto executed this Agreement as of the day and year first written above. CITY OF LUBBOCK Tom Martin, Mayor ATTEST: 'Q '� , 9:s'� Rebec a Garza, City Secretary AS TO CONTENT: r Loomis, Assistant City Nm N' FRI, A I I Page 7 of 9 McDonald Transit A ciate In By: Its: President Approved by Counsel AAW State of Texas Lubbock County Before me personally appeared a well known and known to me to be the person described in and who exe ted the foregoing instrument, and acknowledged to and before me that:,� ? A2!9�ed said instrument for the purposes therein expressed. Witness my hand an official seal, this -&— day of�' 2008 Notary Public State of Texas Page 8 of 9 Resolution No. 2008-RO426 Vehicle Profile All buses to be leased have the following characteristics. Year Make Model VIN Mileage 1996 Nova RTS 1996 Nova RTS 4RKPDTGA7TR831748 4RKPDTGA8TR831760 428,986 397,672 Page 9 of 9 CITY OF LUBBOCK AGENDA ITEM SUMMARY II. CONSENT AGENDA ITEM #/SUBJECT: # Consider a resolution authorizing the Mayor to execute a Cooperative Endeavor Agreement between the City of Lubbock and McDonald Transit Associates, Inc. for the lease of two 1996 RTS Nova Buses. (Citibus) BACKGROUND DISCUSSION: McDonald Transit Associates, Inc. would like to lease two 1996 RTS Nova Buses to be used at Lawton Transit Management, Inc., in Lawton, Oklahoma. The term of this lease shall be from the date of final execution through March 1, 2009. McDonald Transit Associates will pay $4,091.30 per bus, for a total of $8,182.60. McDonald Transit Associates will be responsible for the insurance on the vehicles during the term of the agreement. In the FY 2009 budget Citibus said they would sell ten buses in order to maintain the Federal Transit Administration mandated 20% spare ratio; this contract is for two of the ten buses. As stated in the contract, the buses will be sold by the City at the end of the lease. McDonald Transit Associates, Inc. will either return the buses to Lubbock or they will bid a minimum of $4,999 on each bus. The buses that are to be used for this lease agreement will be 12 years old at the end of October 2008, and would be put up for auction at the end of the lease. FISCAL IMPACT: Funds from this agreement will go towards Citibus' operation costs. Currently, these funds are needed for this fiscal years' budget. SUMMARY/RECOMMENDATION: Citibus recommends the approval of the Cooperative Endeavor Agreement between the City of Lubbock and McDonald Transit Associates, Inc. for the lease of two RTS Nova Buses. Resolution No. 2008-RO426 No. McDT08001 The undersigned, being the President -CEO and the Secretary -Treasurer of McDonald Transit Associates, Inc., do hereby acknowledge the unanimous consent given by the Board and adopted in the following resolution: RESOLVED, that McDT will lease two 1996 Nova, 30-foot transit buses from CMBUS at Lubbock, Texas for $8,182.60, or $4,091.30 per bus, and that McDT will take possession of the buses when amount is paid in full. RESOLVED, that the lease term shall start from the execution date on the "Cooperative Endeavor Agreement" between the City of Lubbock and McDT and go through March 1, 2009. RESOLVED, that all actions of the Board of Directors and Officers of the Corporation prior to and including the date of this meeting be ratified and confirmed. E ut a 1lt'' of November 2008. Robert T. Babbitt President & CEO " V4 ren L. Heil Secretary-Teeas er CERTIFICATE OF INSURANCE Date of Issue: 06/09/2008 PROt�t ' It sertffieate provider InrernWon only, and confers no rights upon the BB&T - JOHN BURNHAM INSURANCE SERVICES certilkwte holder. tt does not cbsuM amend, extend, or elrer the 750 B STREET, SUITE 2400 coverage offordtd by the polleles that are listed below P.O. BOX 129077 SAN DIEGO, CA 92112-9077 COMPANY Contact: A National Interstate insurance Company - 32620 INSURED MCDONALD TRANSIT ASSOCIATES, INC DBA 45M Mercar181e PLUS Drive Suite 307 Fart Worth, TX 7613T- THIS CERTIFIES THAT THE POLICIES OF INSURANCE THAT ARE USYEt166LOW HAVE BEEN ISSUED TO 1HE INSURED NAMED ABOVE FOR THE MDIcATED POLICY PERIOD. THE INSURANCE PROVIDED BY THE POLICIES LISTED BELOW IS SUBJECT TO ALL OF TM 1"MS. EXCl SMNB, AND CONDITIONS OF MICH POLICIES. LWyS SHOWN MAY NAVE BEET! RaCUCeo BY PAID CLAMS. NO REQMMIENT. TERM, OR CONDITION OF ANY CONTRACT OR OTHER DOCUME0 WITH RESPECT TO WHICH TITS CERT19CAYI MAY BE ISSUED OR MAY PERTAIN SHALL EXTEND THE POLICY PERIOD OR CHANGE T41 COVERAGE OR CONDITIONS PROVIDED BY nr, TWf"fttf/V unre cc POLICY POLICY TYPE OF INSUR"C COMMERCIAL GENERAL LIABILITY1 rr AGGA $5,000 000 A Ocourmnes Form It GLR ID24197MI OW04/2008 OB/0412009 PRODUCTS-COMPAOP AGO $5.000,000 1 i 1 { PSRSONALAADVINJURY t EACH OCCO REN_CE $s 000 000 t t AMA ana i MED EXPENSE (nay one person) AUTOMOBILE LABILITY j CAR 0241978-01 OW02008 ! 06l0412009 i coNIaINIm SINGLE LIMIT $5,000,000 AAy Aura A AM Owned Autos } BODILY INJURY (W Person) H, ScheduletfAutos t ! BODILY INJURY (W sceldoo HfntdAUtos i r ✓, Notsownsd Aulos t i t ,PROPERTY DAMAGE AUTOMOBILE PHYSICAL DAMAGE; ✓1 CoII I " AclwJ cashvtt4r A r7i CAR 0241978.01 OW412008 j 06/04/2009 YS OAarTlan Coltleion : tr Ststad Amount f1, Dednettbb-Coipeloa 1 I P01.3dadiAndVahlelseOnly �Dsd wws-00WTt" Comslon t EXCESS LIABILITY ! EACH ocCURRENCE: UMtbralla F'otm AGGREGATE: t 'Other Man Umbrella Form t ; SELF POURED RETENTION: WORKERS COMPENSATION : , STATVMY L9N M i AND EMPLOYERS' LIABILITY : 'EACH Cct�1 DENT- Dt8 8E-P0LICYUMn: I i DISEASE- EACH EMPLOYEE: OTHER '• UWUIM 81 I CAR 024197MI 06/04=8 06MI2009 1$25,000 / $b0,000 A UWUIM PD CAR 0241978-01 I '$10,D00 Description: THE CERTFICIATE HOLDER IS AN ADDITIONAL INSURED PURSUANTTO THE TERMS AND CONDITIONS OF THE POLiCY(IE$) REFERENCED ABDVE..AWoh+ar ol subrogellan appnes If named insured Is found io be 10D%nagli9" CERTIFICATE HOLDER CITY OF tUBHOCK ATT'N CITY MANAGER P.O. BOX 200D LU88GCK, TEXAS 79457 CANCELLATION Should any of the ponces haled above be canceled before the expiration date, the company will endeavor to mall 30 days Written notice to the certificate holder named on the tail, but failure to mall such notice shaft Impose nD obligation or liability upon the company. its ag,anls or representatives. AUTHORIZED REPRESENTATIVE CERTIFICATE OF INSURANCE PRODUCER JOHN BURNHAM AND COMPANY 750 B STREET SUITE 2400 SAN DIEGO„ CA 92101-2476 INSURED LAWTON TRANSIT MANAGEMENT, INC. P. O. BOX 286 LAWTON.OK 73502-0000 Date of Issue: 10/28/2008 mrtifl ate provides information osfy, and cosfera no rights upon the 7cate holder. It does not change, amend, extend, or alter the rage afforded by the policies that are listed bdow COMPANY A National Interstate Insurance Company - 32620 THIS CERTIFIES THAT THE POLICIES OF INSURANCE THAT ARE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE INDICATED POLICY PERM. THE INSURANCE PROVIDED BY THE POLICIES LISTED BELOW IN SUBJECT TO ALL OF THE TERMS, EXCLUS1ON8, AND CONDITIONS OF SUCH POLICIES, LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAD CLAMS. NO REQUIREMENT, TERM, OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN SHALL EXTEND THE POLICY PERIOD OR CHANGE THE COVERAGE OR'CONDMONS PROVIDED BY TUN t TQTCT DAM Y'cs cc I POLICY PC*.ICY E OF INSURANrE COMMERCIAL GENERAL LIABIL ITI I $5 000 A Occurrence Form !!{ GLR 0241812-06 12/29/2007 i2/29/2008 PRODUCTS - COMPIOP AGO $510001000 1! PERSONAL, & ADV INJURY $5 000 000 EACH OCCML41CIE i FIRE DAMAGE IwW orua fln MED EXPENSE (any ores paws AUTOMOBILE LIABILITY J Any AutoCAR 0241812-06 12/29/2007 12129l2008 COMBINED SINQU LIMIT $5.000,000 A _f AS Owned Aulos BODILY INJURY (per parson) BW?LY NUURY (par aeeidam) LEI $00duied Autos Id Hired Aides Id Noutowrued Autos PROPERTY DAMAGE AUTOMOBILE PHYSICAL DAMAGE C Actual Cash Value A d dwTh CAR0241812-06 12/29/2007 IZ2912DOS aanCowslow y_l Sfalad Arsast S1, Dedueftim.Coulsion i1, Osdu cwjly - Odw Than Collision t/ Schsduhud VahMisu�OnN EXCESS LIABILITY EACH OCCUBRENCE, AGGREGATE: J umbrrllls Foaa SELF INSURED RETENTION: J Ww than Umbrots Form WORKERS COMPENSATION r-i STATUTORY Lulus AND EMPLOYERS' LIABILITY CH A .I NT D - POLICY LIMIT: DISEASE -EACH EMPLOYEE: } I OTHER Desixip0m: CERTIFICATE HOLDER IS NAMED AS AN ADDITIONAL INSURED AND LOSS PAYEE NTH RESPECT TO THE FOLLOWING VEHH::LE 19W NOVA VIN #4RKPDTGA7TR831748 STATED AMOUNTS4,999 AND 1968 NOVA MN t4R1(PDTGAATR831780 STATED AMOUNT S 4,999. CERTIFICATE HOLDER CANCELLATION CITY OF LUBBOCK Should any of the policies fisted above be Canceled before the expiration date, the company will endeavor to mail 30 days written notice to the certificate hoide, P.O.13OX20W named on the left, bud failure to mall such notice shall impose no obligation or LUBBOCK, TX 7W1 liability upon the company, Re agents or representatives. AUTHORIZED e A a slotosAo REPRESENTATNE `1 McDonALD TRAnSITASSOCIATES, inn. 4500 MERCANTILE PLAZA DRIVE SUITE 307 FORT WORTH, TEXAS 76137 (817) 232.9551 • (317) 232-95M FAX November 5, 2008 Mr. John Wilson City Transit Management, Inc. P.O. Box 2000 Lubbock, Texas 79457 Mr. Wilson: In regards to the Cooperative Endeavor Agreement Between the City of Lubbock and McDonald Transit Associates, Inc., McDonald Transit Associates, Inc. chose not to have the Agreement approved and/or notarized by its legal counsel. McDonald Transit Associates, Inc. does not employ in-house counsel. The Agreement was approved by the McDonald Transit Associates, Inc. Board of Directors. If you have questions or need additional information, please contact me at your convenience. Sincerely Ro ert Babbitt President