2004-177O INANCE NO. o&P¥- / 7'-/
AN ORDINANCE APPROVING AN AMENDMENT TO AN AGREEMENT BETWEEN THE
CiTY OF DENTON AND MCDONALD TRANSIT ASSOCIATES, INC. DATED APRIL 16,
2002, AS AMENDED, TO PROVIDE FOR MOTOR CARRIER PASSENGER SERVICE AND
TO EXTEND SUCH AGREEMENT THROUGH SEPTEMBER 30, 2005; AUTHORIZING THE
EXPENDITURE OF FUNDS; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, on April 16, 2002 the City and McDonald Transit Associates, Inc.
("Company") entered into that certain Agreement to Provide Services for Passenger Motor
Carrier Transit System which was amended in part, providing for the operation of a Passenger
Motor Carrier Transit System for the City of Denton, Texas which agreement has been
subsequently amended several times (the "Agreement"); and
WHEREAS, the City and the Company desire to further amend the Agreement to provide
for vehicle maintenance responsibilities for the Company and to extend the Agreement through
September 30, 2005 (the "Amendment"); and
WHEREAS, the City Council hereby finds that the Amendment is in the public interest;
NOW, THEREFORE;
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings and recitations contained in the preamble of this ordinance are
incorporated herein by reference.
SECTION 2. The City Manager or his designee, is hereby authorized to execute the
Amendment on behalf of the City and to carry out the City's fights and duties under the
Amendment including the expenditure of funds as provided for therein.
SECTION 3. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the ~ day of ~d/-/~t~ , 2004
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
BY: -
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AMENDMENT AND EXTENSION OF AGREEMENT TO PROVIDE
SERVICES FOR PASSENGER MOTOR CARRIER TRANSIT SYSTEM WITH
MCDONALD TRANSIT ASSOCIATES, INC.
THIS AGREEMENT is made as of the Effective Date set forth below by and between the
City of Denton (the "City") and McDonald Transit Associates, Inc. a Texas Corporation
(hereinafter referred to as "Company").
WHEREAS, on April 16, 2002 the City and the Company entered into that certain
Agreement to Provide Services for Passenger Motor Carrier Transit System which has been
amended in part several times, provid'mg for the operation of a Passenger Motor Carrier Transit
System for the City of Denton, Texas (the "Agreement"); and
WHEREAS, the initial term of the Agreement is due to expire on September 30, 2004
and the Agreement authorizes three annual extensions; and
WHEREAS, the City and the Company desire to further amend the Agreement and
extend the Agreement for an additional year and to provide that the Company will assume the
maintenance of the vehicles under the Agreement and to provide for additional expenditures; and
NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, the parties hereby agree as follows:
1. The Agreement is hereby extended through September 30, 2005.
2. Article VII of the Agreement is hereby amended in part to read as follows:
"Effective June 15, 2004 the Company shall provide all vehicle maintenance that
is necessary for the operation of the Transit System."
3. Article VI of the Agreement is hereby amended in part to read as follows:
The Fixed Sums shall be increased to compensate the Company as follows:
a. For the remainder of this fiscal year through September 30, 2004 the Fixed
Sum will not be increased for vehicle maintenance. However, during that
time period the City will pay for the Company's facility lease at the City's
Solid Waste Facility.
b. For October 1, 2004 through September 30, 2005 the Fixed Sum shall be
increased for vehicle maintenance by $26,655 per month, or $319,860 per
year.
c. For October 1, 2004 through September 30, 2005 the Fixed Sum shall be
increased by $9,116 per month, or $109,392 per year for costs of a transit
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planner, administrative assistant, account clerk, two supervisor vehicles, and a
downward adjustment for TML insurance.
For October 1, 2004 through September 30, 2005 the variable costs in Exhibit B
shall increase by $79,400 per year for costs of covering remaining medical
portion and the cost of increasing operator compensation.
The vehicle fuel provided by the City for operation of L1NK services will be a
cost of the transit system.
4. The Company and City have entered into an Interlocal Agreement with the
University of North Texas ("UNT") dated November 5, 2002, which was subsequently
amended several times with the most recent amendment being contemporaneous with this
Agreement (the "UNT Agreement"). Under the UNT Agreement the City and Company
are compensated by UNT based on an amount per revenue hour of service provided to
UNT. The UNT revenue hour compensation is $32.17 per revenue hoar for an annual
total of $1,239,505.00. Effective June 15, 2004 the entire UNT revenue hour
compensation shall be paid to the Company.
5. The extension of this Agreement as of October 1, 2004, except for the services
provided to UNT, is contingent upon the City receiving full local match funding from the
Denton County Transportation Authority ("DCTA"). The City may terminate this
Agreement or amend the Agreement to provide for UNT service only, upon 30 days
written notice to the Company should the City not receive such funding from DCTA.
6. All other terms and conditions contained in the Agreement that are not expressly
amended or changed by this instrument shall remain in full force and effect.
SIGNED effective as of the /ff~ day of (~/Z///fJ ,2004
(the "Effective Date"). ~/
CITY OF DENTON, TEXAS
'Michael A. conduff, Cjl~_~ager
ATTEST:
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APPROVED AS TO LEGAL FORM:
HERBERT~/~ORNEY
BY: - ' "' '
MCDONALD TRANSIT
A SSOCIAT/~,~ '
By: ,/'"7 // ? ///"'
8OBER~ T. B~BI~I"I'T
PRESIDENT
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