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HomeMy WebLinkAboutItem 06.lSeptember 12, 2013 Item No. MEMORANDUM OF UNDERSTANDING WITH AUGUSTANA REGENTS FOR THE SHARED USE OF A SECTION 5310 PROGRAM BUS Proposed Action Staff recommends adoption of the following motion: Move to approve a Memorandum of Understanding with Augustana Regents for the shared use of a Section 5310 Program Bus. Overview Staff from the City and Augustana Regents have discussed the shared use of a Section 5310 Program Bus should they be successful in their grant application with MnDot. Section 5310, Elderly and Persons with Disabilities Program, is a capital assistance grant program, administered by MnDOT, providing 80 percent funding for the purchase of wheelchair - accessible vans and buses. Applicants for these grants are private non - profit organizations that serve elderly and /or disabled people, public bodies that coordinate services for the elderly and disabled, or any public body that certifies to the State that non - profits in the area are not readily available to carry out the services. The Memorandum of Understanding (MOU) is intended to demonstrate the review committee the willingness of the City and Augustana Regents to enter into a formal agreement for shared use of a 5310 Van should the application be approved. The MOU is a legally non - binding agreement. Primary Issues to Consider • The Senior Center currently does not have access to a van for small group outings or for the transport older and disabled residents. • Augustana Regents would finance the 20 percent not covered by the grant. • The City would pay $35 per hour plus fuel or a minimum of $175 per month as a partner agency. • The City has $46,434 available for "Senior Transportation" in CDBG Funds that could be used to finance City expenses. Supporting Information • Memorandum of Understanding • State Management Plan Guidelines —Section 5310 Elderly and People with Disabilities Capital Assistance Program Brett Altergott Parks & Recreation Di or Financial Impact: $ 175 per month plus fuel Budgeted: Y/N Yes Source: CDBG Funds MEMORANDUM, OF UNDERSTANDING AUGUSTANA REGENT and CITY OF LAKEVILLE This Memorandum of Understanding (MOU) shall serve to coordinate and set forth the agreed upon "Bus Partnership" program arrangements between Augustana Regent at Burnsville, LLC, a Minnesota nonprofit corporation, having its principal place of business at 14500 Regent Lane, Burnsville, Minnesota 55306 ( "REGENT "), and City of Lakeville having its principal place of business at 20195 Holyoke Avenue, Lakeville, MN 55044 ( "CITY ") for the shared use and operation of a Section 5310 Program Bus should the agencies be successful in receiving. REGENT intends to use the 5310 vehicle for the regularly scheduled and special outings and other transit requirements for older adults and disabled individuals who are clients at the REGENT. CITY intends to use the 5310 vehicle for special outings and other transit requirements for older adults and disabled individuals that are members of the Senior Center. A. Operational Costs: 1. Maintenance: REGENT will arrange for all maintenance on the 5310 vehicle and will be at REGENT expense. The CITY will follow the approved pre -trip inspection and will complete the maintenance log (including recording the mileage and time) on days the 5310 vehicle is used by the Senior Center. 2. Gas: On all days and /or outings whereby the bus is being used by CITY scheduled transportation and special outings CITY shall be responsible for refueling the bus. In order to ensure an equitable method for bus refueling (should the fuel level of the bus be less than full when used on the CITY outing) the bus shall be fueled on a formula of taking the total miles operated (per the bus trip log) and dividing by seven (7). This formula represents the average miles per gallon used by the bus under normal driving conditions divided into the total miles on a given day or outing. 3. Insurance: REGENT will be the listed owner of the 5310 vehicle. REGENT and CITY will enter into a lease /rental agreement for the bus whereby CITY will maintain insurance coverage of the vehicle during its use when driven by a CITY driver in the amounts satisfactory to REGENT. The policies obtained and maintained to provide the specific insurance must provide the required coverage's and limits will not be altered, cancelled or allowed to expire without at least 30 days prior written notice to REGENT. The CITY will be required to present a Certificate of Insurance with at least a 10 day cancellation notice to REGENT. A current version of such Certificate of Insurance must be either on file with REGENT, or be presented to REGENT prior to the execution of a formal lease or use of the vehicle. REGENT must be listed on such Certificate of Insurance as an additional insured. REGENT is the primary insured on the 5310 vehicle while CITY is listed as additional insured. All claims (including bodily injury, property damage, or vehicle damage) are to be reported immediately to REGENT and their insurance company. 4. Driver's Salary and Benefits: CITY will utilize their own driving staff for outings and other scheduled transportation whenever using the 5310 vehicle. They will provide a trained and certified driver at all times. Driver wages, benefits and insurance coverage shall be the responsibility of the entity employing the driver. CITY shall permit only properly licensed drivers to operate the 5310 vehicle and shall require them to operate such vehicle with reasonable care and diligence. The CITY shall be required to pay all costs associated with the required Drivers training. All drivers of the 5310 vehicle will be provided by the CITY. Drivers are not to be considered employees of REGENT or agents of REGENT and therefore shall not be covered by any additional benefits, insurances or other support provided by REGENT. Claims against the CITY brought by a driver or rider will be the sole responsibility of the CITY and CITY shall hold REGENT harmless from any and all claims stemming from the operation of the vehicle and equipment. REGENT sole responsibility is for the provision of the vehicles and equipment provided. All CITY drivers (prior to operating REGENT bus) will be required to show proof of insurance for a private auto, a current Minnesota drivers license, a current motor vehicle license check clear of any DWI or DUI violations and a record of no more than two moving violations within the last three years. An annual review of licenses will be required and provided by REGENT. REGENT will be immediately notified by the CITY when driver(s) discontinue driving, have known additional violations, or are no longer insurable for vehicle operations. Drivers are not to provide rides to passengers using wheelchairs or scooters nor use the vehicle hydraulic lift unless fully trained in the use of the lift and tie downs. 5. Pickup and Return of Rental Vehicle: The CITY is responsible for picking the vehicle up at Augustana Regent, 14500 Regent Lane, Burnsville, MN. All drivers will perform a mandatory pre -trip inspection before using the vehicle and shall return the vehicle in as good condition and order as when received by CITY, ordinary wear and tear expected. If the vehicle is returned in an unsatisfactory condition, CITY shall be subject to any additional charge by REGENT of incurred costs for cleaning, repairing, and/or replacing any damage to the vehicle occurring while in CITY possession. Drivers will be required to submit the signed pre -trip inspection and drivers operation report form to the office upon returning the vehicle to Augustana Regent after each use. The driver will be required to record the necessary information on these forms and provide an explanation of any problems or incidents related to the vehicle use or the service provided that day. 6. Storage of 5310 Vehicle: Both REGENT and CITY shall be designated parking locations for the bus based on scheduling and other requirements While at the CITY location they will provide for storage space within the CITY property and will provide this space as an in kind donation to this agreement. The parking location for the bus (when not in use) must be in a well lit area of the parking lot, have access to 110 electrical service for engine tank heater plug -in during the Winter months and the bus must be located in an area that is visible to staff working within the building. 7. Operation of Vehicles: CITY shall not permit any vehicle to be used in violation of any federal, state or municipal statutes, laws, ordinances, rules or regulations or contrary to the provision of any applicable insurance policy, and CITY shall indemnify and hold REGENT harmless from any and all fines, forfeitures, damages, or penalties resulting from violation of such laws, ordinances, rules or regulations. REGENT shall forward to CITY any notices received by REGENT of fines or other penalties levied in connection with the use of the vehicles. If User does not pay any such amount within 10 days of the date of REGENT'S notice, REGENT may pay such amount and bill CITY. CITY shall notify immediately of any and all accidents (including bodily injury, property damage, or vehicle damage) involving 5310 vehicle. Such notice shall be by telephone and in writing and shall include full details of the accident and the names and addresses of all parties and witnessed. CITY shall keep REGENT and the insurer fully informed of all claims, suits or proceedings arising out of any accident involving 5310 vehicle. CITY shall forward to insurer and REGENT a copy of every demand, notice, summons, or other process received in connection with any and all claims, suits or other legal proceedings resulting from an accident involving 5310 vehicle. 8. Promotion: The CITY will be required to place graphics for the full sponsorship and support of the partnership bus program. Sponsorship graphics will be allowed on both sides and rear of the bus, with graphics to be approved by the REGENT. Each party will be responsible for the cost of their logos to be placed on the bus. B. Vehicle Rental: REGENT and the CITY shall create a vehicle rental agreement for the reservation and use of the bus by the CITY. The vehicle will be available for use by the CITY at such times as indicated below. The CITY shall pay a rental fee of $35 per hour. It shall be understood the CITY may not require the bus on certain days of the month (i.e. low or no rider sign up, poor weather, etc.) and may elect to forgo the usage and/or reserved ability of the bus on select days. This being the case, the CITY shall only be required to pay for the actual usage each month, provided the CITY agrees it will be responsible for a minimum payment of $175 per month or the equivalent of 5 usage hours per month. The CITY can set the fare on days is uses the 5310 vehicle and may keep all fares collected on those days. The CITY shall be invoiced for total hours driven on a monthly basis by REGENT. Full payment shall be due net 30 days. C. Indemnification: The CITY shall defend, indemnify and hold harmless REGENT, and its officers and employees, from and against all losses, liabilities, damages, injuries, claims, demands, costs and expenses of every kind and nature, including legal fees and disbursements arising out of and in connection with the use, condition, operation or possession of 5310 vehicle by CITY under this MOU. D. General Provisions: This MOU constitutes a desire to enter into a vehicle rental agreement between the parties should the 5310 grant be successfully awarded. REGENT and the CITY will apply for a "Class 400" bus (a vehicle designate to carry 15 or less people — including the driver). Preferred specification is a vehicle designed to carry 12 passengers and 2 wheelchairs — with 2 flip seats to allow one additional wheelchair. The bus will be reserved for the exclusive use by the CITY per the attached monthly calendar. The CITY may cancel the use of the bus with a minimum of 24 hours advance notice to REGENT. Use of the 5310 vehicle on any other day or time should be agreed upon by REGENT with one week prior notice. REGENT reserves the right to use the 5310 vehicle for any appropriate trips when it is not in use by the CITY. When the vehicle has reached the end of its useful life as determined by REGENT, REGENT will give highest priority to the continued partnership with the CITY if a replacement vehicle is applied for through the 5310 grant process. It is understood that this is a legally non - binding agreement. In the event the grant is approved for the purchase of a 5310 vehicle, REGENT and CITY will enter into a formal vehicle lease /rental agreement. AUGUSTANA REGENT AT BURNSVILLE CITY OF LAKEVELLE, a Minnesota municipal corporation By: By: Matt Little, Mayor Its: And: Charlene Friedges, Clerk Date: Date: