Commercial Lease Agreement for Truck

Vehicle Lease Agreement

Rev. 4/11

This lease, made and entered into this day of , 20 , between , hereinafter referred to as “Lessor”, and , hereinafter referred to as “Lessee.”

This agreement is a subcontract of the agreement(s) between the North Carolina Department of Transportation (NCDoT) and the Lessor. All other provisions contained in the agreement(s) between the North Carolina Department of Transportation and the Lessor, the Federal Transit Administration (FTA) Master Agreement (16) dated October 1, 2009, the State Management Plan for Federal and State Transportation Programs, and any subsequent amendments or revisions thereto, are herein incorporated by reference.

WITNESSTH:

Article I

Leased Vehicles: The Lessor hereby leases to the Lessee the vehicle(s) described in attached herewith and made a part hereof.

The vehicles shall be operated by the Lessee to serve the best interest and welfare of the Lessor and the public.

The vehicles shall be maintained and operated in a manner that will provide the maximum amount of safety and protection to the Lessee's employees and passengers. The Lessee shall adhere to all drivers' license requirements set forth by the State and Federal governments. (Commercial Driver's License is required for all vehicles with a capacity of 16 or more passengers, including the driver).

The Lessee will be responsible for all fees incurred for the registration (license tag) of the vehicle; form MVR 330, Transfer of Registration, will need to be completed and filed with the N.C. Division of Motor Vehicles (NCDMV).

The Lessee shall utilize the Lessor's equipment in accordance with the procedures and guidelines set forth in FTA Circulars 5010.1D, dated November 1, 2008 and 9040.1F, dated April 1, 2007, or any subsequent revisions or amendments thereto, the Lessor description set forth in the Lessor's application and the Transportation Development Plan (TDP), Community Transportation Service Plan (CTSP) or Community Transportation Improvement Plan (CTIP) for County.

The Lessee shall not sublease the Lessor's equipment to another entity without the expressed written consent of the Lessor and the NCDOT/Public Transportation Division (PTD).

Article II

Terms of Lease and Commencement Date: The term of this lease shall be for commencing on , the date that the vehicle(s) are placed in service by the Lessee, and continuing until , or until this agreement is canceled or terminated in writing by either the Lessor or Lessee, or by mutual consent, with 30 days advance notice.

If the Lessor is leasing vehicles to a private operator (the lessee), the term of this lease shall run concurrent with the service agreement. The maximum term of any lease agreement shall not exceed five (5) years.

In the event of breach or noncompliance with this agreement, the Lessor may terminate this agreement by giving the Lessee advance written notice. (See Article VII - Federal Requirements)

Article III

Consideration: In consideration for leasing the vehicle(s), the Lessee agrees to pay the Lessor per vehicle for the term of the lease, and the Lessee further agrees to bear all costs of maintenance, operation, and repair of leased vehicle(s) described in Exhibit 1.

Article IV

Routine Maintenance and Operation Expenses: The Lessee assumes the full and sole responsibility for maintaining the Lessor's equipment at a high level of cleanliness, safety, and mechanical soundness.

Article V

Liability and Insurance: The Lessee assumes all liability regarding the provision of passenger service while utilizing the leased vehicle(s) and agrees to indemnify the Lessor for any losses incurred by the Lessee, or its management, or Board of Directors because of tortuous conduct occurring in the course of the operation of leased vehicle(s).

The Lessee will cover its activities and vehicle(s) with insurance sufficient to protect the Lessee, their management and Board of Directors, the Lessor, the Public Transportation Division, and the Federal Transit Administration from any loss whatsoever, in regard to vehicle(s).

The Lessee shall provide a copy of the insurance policy to the Lessor.

Liability Insurance: North Carolina law requires continuous liability coverage to be in effect on the vehicle(s) during the entire time it is registered and the license plate is in your possession.

Fire and Other Casualty Insurance: The Lessee, at its own cost and expense, shall keep the vehicle(s) insured against loss or damage by fire or other risk now or hereinafter embraced by the term “comprehensive and collision coverage.”

Article VI

Training: The Lessee assures that its vehicle operators are properly trained on vehicle operation and the correct use of special equipment, such as, but not limited to, wheelchair lift equipment and wheelchair tie-down mechanisms and restraints.

Article VII

Leasing to a Private Operator: If the Lessee is a private operator under contract by a service agreement with the Lessor, all references in the service agreement, dated , are hereby incorporated by reference as is this lease agreement incorporated by reference into the service agreement.

Article VIII

FEDERAL/STATE REQUIREMENTS AND SPECIAL CONDITIONS

Because the project activities performed by grant recipients, subrecipients, or extended through to a lower tier contract or agreement must be carried out in accordance with the Master Agreement, the applicable Federal and State requirements and conditions must be included in this agreement.

Conflict of Interest - No employee, officer, board member, or agent of the Lessee shall participate in the selection, award, or administration of a contract supported by State and/or Federal Transit Administration (FTA) funds if a conflict of interest, real or apparent, would be involved.

Lobbying - Lessee agrees that it will not use any funds for Lobbying.

Debarment and Suspensions - The Lessee is required to comply with 2 CFR 180, Subpart C.

No Federal Government Obligations to Third Parties - The Lessee acknowledges and agrees that Federal and State Governments are not parties to this agreement.

Civil Rights - The Lessee agrees that it will not discriminate against any employee or applicant for employment because of race, color, creed, national origin, sex, age, or disability.

Access for Individuals with Disabilities - The Lessee agrees to comply with applicable disability access requirements.

Clean Air Act - The Lessee agrees to comply with all applicable standards, orders, or regulations issued pursuant to the Clean Air Act.

Clean Water - The Lessee agrees to comply with all applicable standards, orders, or regulations issued pursuant to the Clean Water Act.

Termination or Cancellation of Agreement - Termination or cancellation of this agreement, in whole or in part, may be initiated by either the Lessor or the Lessee if it is in the best interest of that party.

Breach of Contract - If the Lessee fails to provide the services within the specified terms of this agreement, or fails to perform within the provisions of this agreement, this agreement may be terminated by reason of default or breach.

Reporting, Record Retention, and Access - The Lessee agrees to provide access to books, documents, papers and records directly pertinent to this agreement.

Drug and Alcohol Testing - The Lessee shall have a drug and alcohol testing program for safety sensitive employees.

North Carolina State Ethic’s Requirement

Pursuant to Governor Perdue’s Executive Order # 24, this section should be included in the terms and conditions of all contracts let by the Governor’s Cabinet Agencies and the Office of the Governor.

Incorporation of Federal Transit Administration (FTA) Terms - All FTA mandated terms shall be deemed to control in the event of a conflict with other provisions contained in this Agreement.

EXHIBIT I

Description of Vehicles

The vehicle(s) referred to in the preceding lease agreement to which this exhibit is attached are described as follows:

THE VEHICLE(S) CANNOT BE LEASED TO A SUB-LESSEE WITHOUT WRITTEN AUTHORIZATION FROM THE LESSOR AND THE PUBLIC TRANSPORTATION DIVISION.

IN WITNESS WHEREOF, the parties have caused this agreement to be executed in its respective names, by it's duly authorized officers:

North Carolina Department of Transportation
Public Transportation Division Review