A Commercial Vehicle Lease Agreement is a formal contract that outlines the terms and conditions under which one party (the lessor) agrees to rent a commercial vehicle to another party (the lessee). This comprehensive agreement covers various aspects including the lease duration, payment terms, responsibilities for maintenance and operations, insurance requirements, and adherence to federal and state laws. Designed to ensure clarity and protect the interests of both parties, this legal document is crucial for entities involved in leasing commercial vehicles for transportation and business purposes.
In the complex landscape of commercial transportation, the Commercial Vehicle Lease Agreement form emerges as a pivotal document, encapsulating the nuances of legal and operational responsibilities between lessors and lessees. This agreement, as revised on April 2011, facilitates the lease of vehicles in a structured manner, underscoring a collaborative engagement between entities and the North Carolina Department of Transportation (NCDoT), supplemented by overarching agreements with federal guidelines from the Federal Transit Administration (FTA). It intricately outlines the leased vehicles, the terms of the lease, financial considerations, and operational mandates -- including maintenance, liability and insurance requirements, and further adherence to vital state and federal stipulations. Notably, this form emphasizes the necessity for compliance with a myriad of regulations, including those pertaining to driver licensing, vehicle registration, and maintenance protocols. Moreover, it delves into the realms of training for vehicle operation, restrictions on subleasing, and insurance coverage, ensuring that each leased vehicle's utilization aligns with both parties' best interests and statutory requirements. Additionally, the agreement casts a spotlight on adherence to civil rights, equal employment opportunity laws, and the prohibition of discriminatory practices, thereby upholding ethical standards in leasing transactions. Through its comprehensive scope, the Commercial Vehicle Lease Agreement form serves as an essential tool for navigating the contractual and operational intricacies inherent in leasing commercial vehicles, ensuring that such arrangements are executed with legal rigor and mutual accountability.
Rev. 4/11
VEHICLE LEASE AGREEMENT
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 Exhibit 1 attached herewith and made a part hereof (hereinafter referred to as vehicle(s) upon the conditions and covenants set forth below). 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
months/years, commencing on
, 20___, the date that the vehicle(s) are
placed in service by the Lessee, and continuing until
, 20___, 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. The Lessee agrees to hold Lessor harmless for any damages arising out of the use, maintenance, or operations of the leased vehicle by the Lessee or any third party for any purpose whatsoever, with the Lessee’s responsibilities more fully described hereinafter.
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. The Lessee agrees to pay all charges for gasoline, oil, parts, services used or supplied for the vehicle during the term of this Lease and shall indemnify the Lessor against all liability on such account. Lessor shall not be required to furnish any services, parts/materials, facilities or personnel to make any repairs to or maintain the vehicle(s); this is clearly and entirely the responsibility of the Lessee. The Lessee shall have a Preventive Maintenance Program/Schedule that, at a minimum, meets manufacturer guidelines and recommendations for maintaining vehicles. The Lessee must document and track all vehicle maintenance activities in a Preventive Maintenance Record format. The Preventive Maintenance Guidelines published by the Public Transportation Division or any subsequent Maintenance Program/Record issued by the division is available electronically upon request. The Lessor may require periodic reports on operation or maintenance activities.
The Lessor, the Public Transportation Division, the Federal Transit Administration, or any agent thereof, shall have the right to conduct periodic maintenance inspections for the purpose of confirming the existence, condition, and the proper maintenance of the leased equipment.
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. On an annual basis, proof of adequate insurance shall be provided to the Lessor, the Public Transportation Division or any agent thereof.
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. The insurance must be provided by a company that is licensed to do business in the state of North Carolina. The law is designed to compensate accident victims for property losses and personal injuries and is designed for the Lessee’s protection.
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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.” The coverage shall be sufficient to create and assure a fund to be used to replace or repair the vehicle(s) in the event that damage or destruction necessitates the same. The Lessee shall be responsible for protecting the vehicle(s), based on the current market value, by maintaining adequate insurance throughout the lease period for the equipment. Failure of the Lessee to provide adequate insurance shall be considered a breach of this agreement and, after notification by the Lessor, may result in termination of this agreement.
The Lessee agrees to notify the Lessor immediately when any vehicle is withdrawn from service due to casualty loss. Fair market value shall be deemed to be equal to the damages paid by the Lessee's insurance carrier or from a self-insured reserve account. Lessor has no obligation for any loss in regard to the vehicle(s).
In no event shall salvage value be considered as fair market value for project equipment.
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. The Lessor will provide proof of such training upon request.
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. The monetary consideration, indicated in Article III, may be waived.
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. The Lessee is responsible under federal law to comply with these requirements including, but not limited to, the following:
Federal Changes - The Lessee understands that any State or Federal laws, regulations, policies, and related administrative practices applicable to this lease agreement may be modified, amended or promulgated from time to time during the term of this agreement. The Lessee agrees and shall comply with the most recent of such Federal requirements that will govern this agreement at any particular time, unless the Federal Government determines otherwise. Likewise, new Federal laws, regulations, policies and administrative practices may be established after this agreement is executed and may apply to this agreement. The Lessee's failure to so comply shall constitute a material breach of this agreement. The following identifies, but is not limited to, the federal requirements that shall apply to this agreement.
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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. Such a conflict would arise when the employee, officer, board member, or agent, any member of his or her immediate family, his or her partner, or an organization that employs, or is about to employ any of the above, has a financial or other interest in the firm selected for award.
Lobbying - Byrd Anti-Lobbying Amendment, 31 U.S.C. 1352, as amended by the Lobbying Disclosure Act of 1995, PL 104-65 (2 U.S.C. §1601,et seq.). Lessee agrees that it will not use any funds for Lobbying, 49 CFR part 20, “New Restrictions on Lobbying.” Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S. C. 1352. Each tier shall comply with Federal statutory provisions or the extent applicable prohibiting the use of Federal assistance funds for activities designed to influence congress to a State legislature on legislation or appropriations, except through proper official channels. Each tier shall also disclose the name of any registrant under the Lobbying Disclosure Act of 1995 who has made lobbying contacts on its behalf with non-Federal funds with respect to that Federal contract, grant or award covered by 31 U.S.C. 1352. Such disclosures are forwarded from tier to tier up to the recipient.
Debarment and Suspensions - This agreement is a covered transaction for purposes of 2 CFR Part 1200, which adopts and supplements the provisions of U.S. Office of Management and Budget (U.S. OMB) “Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement),” 2 CFR Part 180. As such, the Lessor is required to verify that none of the third party contractors, (Lessee), its principals, as defined at 2 CFR 180.995, or affiliates, as defined at 2 CFR 180.905, are excluded or disqualified as defined at 2 CFR 180.940, 180.935 and 180.945.
The Lessee is required to comply with 2 CFR 180, Subpart C and must include the requirement to comply with 2 CFR 180, Subpart C in any lower tier covered transaction it enters into.
By signing and submitting this agreement, the Lessee certifies as follows:
The certification in this clause is a material representation of fact relied upon by the Lessor. If it is later determined that the Lessee knowingly rendered an erroneous certification, in addition to remedies available to the Lessor, the Federal Government may pursue available remedies, including but not limited to suspension and/or debarment. The Lessee agrees to comply with the requirements of 2 CFR 180, Subpart C while this agreement is valid and throughout the period of this agreement. The Lessee further agrees to include a provision requiring such compliance in its lower tier covered transactions.
The Lessor will be reviewing all third party contractors (Lessees) under the Excluded Parties Listing System at http://epls.gov/ before entering into any contracts.
No Federal Government Obligations to Third Parties - The Lessee acknowledges and agrees that, notwithstanding any concurrence by Federal and/or State Government in or approval of the solicitation or award of the underlying agreement, absent the express written consent by Federal and/or State Government, Federal and State Governments are not parties to this agreement and shall not be subject to any obligations or liabilities to the Lessee, or any other party (whether or not a party to that agreement) pertaining to any matter resulting from the underlying agreement.
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Civil Rights:
(1)Nondiscrimination - In accordance with Title VI of the Civil Rights Act, as amended,
42 U.S.C. § 2000d, section 303 of the Age Discrimination Act of 1975, as amended, 42 U.S.C. § 6101 et seq., section 202 of the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101, and Federal transit law at 49 U.S.C. § 5332, 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. In addition, the Lessee agrees to comply with applicable Federal implementing regulations and other implementing requirements FTA may issue.
(a)The third party Lessee and all lower tiers shall comply with all provisions of FTA Circular 4701.1A, “Title VI and Title VI Dependent Guidelines for Federal Transit Administration recipients”, May 13, 2007.
(2)Equal Employment Opportunity - The following equal employment opportunity requirements apply to the underlying contract:
(a)Race, Color, Creed, National Origin, Sex - In accordance with Title VII of the Civil Rights Act, as amended, 42 U.S.C. § 2000e, and Federal transit laws at 49 U.S.C. § 5332, the Lessee agrees to comply with all applicable equal employment opportunity requirements of U.S. Department of Labor (U.S. DOL) regulations, "Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor," 41 C.F.R. Parts 60 et seq., (which implement Executive Order No. 11246, "Equal Employment Opportunity," as amended by Executive Order No. 11375, "Amending Executive Order 11246 Relating to Equal Employment Opportunity," 42 U.S.C. § 2000e note), and with any applicable Federal statutes, executive orders, regulations, and Federal policies that may in the future affect construction activities undertaken in the course of the Project. The Lessee agrees to take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, creed, national origin, sex, or age. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. In addition, the Lessee agrees to comply with any implementing requirements FTA may issue.
(b)Equal Employment Opportunity Requirements for Construction Activities. For activities determined by the U.S. Department of Labor (U.S. DOL) to qualify as “construction,” the Lessee agrees to comply and assures the compliance of each sub- lessee at any tier of the Project, with all applicable equal employment opportunity requirements of U.S. DOL regulations, "Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor," 41 C.F.R. Parts 60 et seq., which implement Executive Order No. 11246, "Equal Employment Opportunity," as amended by Executive Order No. 11375, "Amending Executive Order No. 11246 Relating to Equal Employment Opportunity," 42 U.S.C. § 2000(e) note, and also with any Federal laws, regulations, and directives affecting construction undertaken as part of the Project.
(3)Nondiscrimination on the Basis of Age – The Lessee agrees to comply with all applicable requirements of the Age Discrimination Act of 1975, as amended, 42 U.S.C. §§ 6101 et seq., and with implementing U.S. Health and Human Services regulations, “Nondiscrimination on the Basis of Age in Programs or Activities Receiving Federal Financial Assistance, 45 C.F.R. Part 90, which prohibit discrimination against individuals on the basis of age.
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The Age Discrimination in Employment Act (ADEA) 29 U.S.C. §§ 621 through 634 and with implementing U.S. Equal Employment Opportunity Commission (U.S. EEOC) regulations, “Age Discrimination in Employment Act,” 29 C.F.R. Part 1625.
(4)Access for Individuals with Disabilities - The Lessee agrees to comply with 49 U.S.C. § 5301(d), which states the Federal policy that elderly individuals and individuals with disabilities have the same right as other individuals to use public transportation services and facilities, and that special efforts shall be made in planning and designing those services and facilities to implement transportation accessibility rights for elderly individuals and individuals with disabilities. The Lessee also agrees to comply with all applicable provisions of section 504 of the Rehabilitation Act of 1973, as amended, with 29 U.S.C. § 794, which prohibits discrimination on the basis of disability;
with the Americans with Disabilities Act of 1990 (ADA), as amended, 42 U.S.C.
§§12101 et seq., which requires that accessible facilities and services be made available to individuals with disabilities; and with the Architectural Barriers Act of 1968, as amended, 42 U.S.C. §§ 4151 et seq., which requires that buildings and public accommodations be accessible to individuals with disabilities. In addition, the Lessee agrees to comply with applicable Federal regulations and directives and any subsequent amendments thereto, except to the extent the Federal Government determines otherwise in writing, as follows:
(1)U.S. DOT regulations “Transportation Services for Individuals with Disabilities (ADA)” 49 C.F.R. Part 37;
(2)U.S. DOT regulations “Nondiscrimination on the Basis of Handicap in Programs and Activities Receiving or Benefiting from Federal Financial Assistance,” 49 C.F.R. Part 27;
(3)Joint U.S. Architectural and Transportation Barriers Compliance Board (U.S. ATBCB) U.S. DOT regulations, “Americans with Disabilities (ADA) Accessibility Specifications for Transportation Vehicles,” 36 C.F.R. Part 1192 and 49 C.F. R. Part 38;
(4)U.S. DOJ regulations “Nondiscrimination on the Basis of Disability in State and Local Government Services,”28 C.F.R. Part 35;
(5)U.S. DOJ regulations “Nondiscrimination on the Basis of Disability by Public Accommodations and in Commercial Facilities.” 28 C.F.R. Part 36;
(6)U.S. GSA regulations “Accommodations for the Physically Handicapped,” 41 C.F.R. Subpart 101-19;
(7)U.S. Equal Employment Opportunity Commission, “Regulations to Implement the Equal Employment Provisions of the Americans with Disabilities Act,” 29 C.F.R. Part 1630;
(8)U.S. Federal Communications Commission regulations “Telecommunications Relay Services and Related Customer Premises Equipment for the Hearing and Speech Disabled,” 49 C.F.R. Part 64, Subpart F;
(9)U.S. Architectural and Transportation Barriers Compliance Board regulations, “Electronic and Information Technology Accessibility Standards.” 36 C.F.R. Part 1194;
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(10)FTA regulations, "Transportation of Elderly and Handicapped Persons," 49 C.F.R. part 609; and
(11)Federal civil rights and nondiscrimination directives implementing the foregoing regulations.
(5)Access to Services for Persons with Limited English Proficiency. The Lessee agrees to comply with Executive Order No. 13166,"Improving Access to Services for Persons with Limited English Proficiency," 42 U.S.C. § 2000d-1 note, and U.S. DOT Notice, "DOT Policy Guidance Concerning Recipients’ Responsibilities to Limited English Proficiency (LEP) Persons," 70 Fed. Reg. 74087, December 14, 2005.
(6)Environmental Justice. The Lessee agrees to comply with the policies of Executive Order No. 12898, "Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations," 42 U.S.C. § 4321 note.
(7)Drug or Alcohol Abuse-Confidentiality and Other Civil Rights Protections. To the extent applicable, the Lessee agrees to comply with the confidentiality and other civil rights protections of the Drug Abuse Office and Treatment Act of 1972, as amended, 21 U.S.C. §§ 1101 et seq., with the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970, as amended, 42 U.S.C. §§ 4541 et seq., and with the Public Health Service Act of 1912, as amended, 42 U.S.C. §§ 201 et seq., and any amendments to these laws.
(8)Other Nondiscrimination Statutes. The Lessee agrees to comply with all applicable requirements of any other nondiscrimination statute(s) that may apply to this Contract.
(9)The Lessee also agrees to include these requirements in each subcontract financed in whole or in part with Federal assistance provided by FTA, modified only if necessary to identify the affected parties.
Clean Air Act –
(a)The Lessee agrees to comply with all applicable standards, orders, or regulations issued pursuant to Section 306 of the Clean Air Act as amended, 42 U.S.C. § 7414 as amended and other applicable provisions of the Clean Air Act, as amended, 42 U.S.C. §§ 7401 through 7671q. The Lessee agrees to report each violation to the Lessor and understands and agrees that the Lessor will, in turn, report each violation as required to assure notification to FTA and the appropriate EPA Regional Office.
(b)The Lessee also agrees to comply with the applicable requirements of section 176(c) of the Clean Air Act, 42 U.S.C. § 7506(c), consistent with the joint FHWA/FTA document, “Interim Guidance for Implementing Key SAFETEA-LU Provisions on Planning, Environment, and Air Quality for Joint FHWA/FTA Authorities,” dated September 2, 2005, and any subsequent applicable Federal directives that may be issued; with
U.S. EPA regulations, "Conformity to State or Federal Implementation Plans of Transportation Plans, Programs, and Projects Developed, Funded or Approved Under Title 23 US.C. or the Federal Transit Act," 40 C.F.R. Part 51, Subpart T; and "Determining Conformity of Federal Actions to State or Federal Implementation Plans," 40 C.F.R. Part 93, and any subsequent Federal conformity regulations that may be promulgated. To support the requisite air quality conformity finding for the Project, the Lessee agrees to implement each air quality mitigation or control measure incorporated in the Project. The Lessee further agrees that any Project identified in an applicable State Implementation Plan (SIP) as a Transportation Control Measure will be wholly consistent with the design concept and scope of the Project described in the SIP.
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(c)The Lessee also agrees to include these requirements in each subcontract exceeding $100,000 financed in whole or in part with Federal Assistance provided by FTA.
Clean Water –
(a)The Lessee agrees to comply with all applicable standards, orders, or regulations issued pursuant to Section 508 of the Clean Water Act, as amended, 33 U.S.C. § 1368,
and other applicable requirements of the Clean Water Act, as amended, 33 U.S.C.
§§1251 through 1377, The Lessee agrees to report each violation as required to assure notification to FTA and the appropriate EPA Regional Office.
(b)The Lessee also agrees to include these requirements in each subcontract exceeding $100,000 financed in whole or in part with Federal assistance provided by FTA.
Environmental Protection - The Lessee agrees to comply with all applicable requirements of the National Environmental Policy Act of 1969, as amended 42 U.S.C. subsection 4321 et seq. in accordance with Executive Order No. 12898, “Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations,” 59 Fed. Reg. 7629, Feb. 16, 1994, FTA statutory requirements on environmental matters at 49 U.S.C. section 5324(b); Council on Environmental Quality regulations on compliance with the National Environmental Policy Act of 1969, as amended, 40 C.F.R. Part 1500 et seq. and joint FHWA FTA regulations, “environmental Impact and Related procedures,” 23 C.F.R. Part 771 and 49 C.F.R. Part 622; and when promulgated, FHWA/FTA joint regulations, "NEPA and Related Procedures for Transportation Decision-making, Protection of Public Parks, Wildlife and Waterfowl Refuges, and Historic Sites," 23 C.F.R. Part 1420 and 49 C.F.R. Part 623. As a result of enactment of 23 U.S.C. §§ 139 and 326 as well as amendments to 23 U.S.C. § 138, environmental decision- making requirements imposed on FTA projects to be implemented consistent with the joint FHWA/FTA final guidance, “SAFETEA-LU Environmental Review Process (Public Law 109-59), “71 Fed. Reg. 66576 et seq. November 15, 2006 and any subsequent applicable Federal directives that may be issued, except to the extent that FTA determines otherwise in writing.
Energy Conservation - The Lessee agrees to comply with mandatory standards and policies relating to energy efficiency that are contained in the state energy conservation plans issued in compliance with the Energy Policy and Conservation Act, 42 U.S.C. Sect. 6321 et seq.
Recycled Products - To the extent possible the contractor agrees to comply with U. S. Environmental Protection Agency (U.S. EPA), “Comprehensive Procurement Guidelines for Products Containing Recovered Materials,” 40 CFR Part 247, which implements section 6002 of the Resource Conservation and Recovery Act (RCRA), as amended, 42 U.S.C. 6962. The contractor agrees to provide competitive preference for products and services that conserve natural resources, protect the environment and are energy efficient, except to the extent that the Federal Government determines otherwise in writing.
These items include, but may not be limited too:
Paper and paper products, excluding building and construction paper grades.
Vehicular products:
(a)Lubricating oils containing re-refined oil, including engine lubricating oils, hydraulic fluids, and gear oils, excluding marine and aviation oils.
(b)Tires, excluding airplane tires.
(c)Reclaimed engine coolants, excluding coolants used in non- vehicular applications.
(d)Rebuilt vehicular parts.
Transportation products:
(a)Traffic barricades and traffic cones used in controlling or restricting vehicular traffic.
(b)Parking stops made from concrete or containing recovered plastic or rubber.
(c)Channelizers containing recovered plastic or rubber.
(d)Delineators containing recovered plastic, rubber, or steel.
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(e)Flexible delineators containing recovered plastic.
Miscellaneous products:
(a)Pallets containing recovered wood, plastic, or paperboard.
(b)Sorbents containing recovered materials for use in oil and solvent clean-ups and as animal bedding.
(c)Industrial drums containing recovered steel, plastic, or paper.
(d)Awards and plaques containing recovered glass, wood, paper, or plastic.
(e)Mats containing recovered rubber and/or plastic.
(f)(1) Non-road signs containing recovered plastic or aluminum and road signs containing recovered aluminum.
(2) Sign supports and posts containing recovered plastic or steel.
(g)Manual-grade strapping containing recovered steel or plastic.
(h)Bike racks containing recovered steel or plastic.
(i)Blasting grit containing recovered steel, coal and metal slag, bottom ash, glass, plastic, fused alumina oxide, or walnut shells.
Park and recreation products:
(a)Playground surfaces and running tracks containing recovered rubber or plastic.
(b)Plastic fencing containing recovered plastic for use in controlling snow or sand drifting and as a warning/safety barrier in construction or other applications.
(c)Park benches and picnic tables containing recovered steel, aluminum, plastic, or concrete.
(d)Playground equipment containing recovered plastic, steel, or aluminum.
Landscaping products:
(a)Hydraulic mulch products containing recovered paper or recovered wood used for hydroseeding and as an over-spray for straw mulch in landscaping, erosion control, and soil reclamation.
(b)Compost made from yard trimmings, leaves, grass clippings, and/ or food waste for use in landscaping, seeding of grass or other plants on roadsides and embankments, as a nutritious mulch under trees and shrubs, and in erosion control and soil reclamation.
(c)Garden and soaker hoses containing recovered plastic or rubber.
(d)Lawn and garden edging containing recovered plastic or rubber.
(e)Plastic lumber landscaping timbers and posts containing recovered materials.
Non-paper office products:
(a)Office recycling containers and office waste receptacles.
(b)Plastic desktop accessories.
(c)Toner cartridges.
(d)Plastic-covered binders containing recovered plastic; chipboard and pressboard binders containing recovered paper; and solid plastic binders containing recovered plastic.
(e)Plastic trash bags.
(f)Printer ribbons.
(g)Plastic envelopes.
(h)Plastic clipboards containing recovered plastic.
(i)Plastic file folders containing recovered plastic.
(j)Plastic clip portfolios containing recovered plastic.
(k)Plastic presentation folders containing recovered plastic.
(l)Office furniture containing recovered steel, aluminum, wood, agricultural fiber, or plastic.
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. A notice of termination shall be delivered to the Lessee or Lessor, specifying the extent to which performance of work under this agreement is terminated, and the date upon which such termination becomes effective. A 30-day notice of termination shall be required. If this agreement is terminated, the Lessor shall be liable only for payments under the payment provisions of the contract for services rendered before the effective date of termination.
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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. A written notice of default or breach of agreement shall be presented to the Lessee within three (3) working days of such failure, advising the Lessee that this agreement may be terminated in thirty (30) days.
If it is determined that the Lessee had an excusable reason for not providing service, such as a strike, fire, or flood, events which are not the fault of or are beyond the control of the Lessee, the Lessor may allow the Lessee to continue the service, or treat the termination as a termination for convenience.
The Lessor may allow the Lessee a specified period of time in which to correct the deficiency; the notice of termination will state the time period in which the correction is permitted and other appropriate conditions. If the Lessee fails to remedy to the Lessor's satisfaction the breach or default or any of the terms, covenants, or conditions of this agreement within the specified time period, the Lessor shall have the right to terminate this agreement without any further obligation to Lessee. Any such termination for default shall not in any way operate to preclude the Lessor from also pursuing all available remedies against Lessee and its sureties for said breach or default.
Resolution of Disputes -
Disputes - Disputes arising in the performance of this agreement which are not resolved through discussions by the parties shall be decided in writing by the authorized representative of the Lessor. This decision shall be final and conclusive unless within ten (10) days from the date of receipt of its copy, the Lessee mails or otherwise furnishes a written appeal to the authorized representative of the Lessor. In connection with any such appeal, the Lessee shall be afforded an opportunity to be heard and to offer evidence in support of its position. The decision of the authorized representative of the Lessor shall be binding upon the Lessee and the Lessee shall abide by the decision.
Performance during Dispute - Unless otherwise directed by the Lessor, the Lessee shall continue performance under this agreement while matters in dispute are being resolved.
Claims for Damages - Any claim resulting from injury or damage to person or property
because of any act or omission of the Lessee or of any of his employees, agents or others for whose acts he is legally liable, should be made in writing to the Lessee. The Lessee is responsible for settlement of all such claims.
Remedies - Unless this agreement provides otherwise, all claims, counterclaims, disputes and other matters in question between the Lessor and the Lessee arising out of or relating to this agreement or its breach will be decided by arbitration if the parties mutually agree, or in a court of competent jurisdiction within the County in which the Lessor is located.
Rights and Remedies - The duties and obligations imposed by this agreement and the rights and remedies available thereunder shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law. No action or failure to act by the Lessor or Lessee shall constitute a waiver of any right or duty afforded any of them under this agreement, nor shall any such action or failure to act constitute an approval of or acquiescence in any breach thereunder, except as may be specifically agreed in writing.
Nonconstruction Employee Protection Requirements - Section 102 of the Contract Work Hours and Safety Standards Act, as amended, 40 U.S.C Sections 327 through 333 are mandated under DOL regulation 29 C.F.R. Section 5.5.
(1) Overtime requirements - No Lessee contracting for any part of the contract work which may
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Filling out a Commercial Vehicle Lease Agreement form requires meticulous attention to detail to ensure that all the terms and conditions of the lease are accurately captured, protecting both the lessor and the lessee throughout the lease term. This form outlines key components, including vehicle details, lease duration, payment terms, maintenance obligations, liability, insurance requirements, and compliance with federal and state laws. Following the steps below will help in accurately completing the agreement, thereby avoiding any potential disputes or misunderstandings during the lease period.
Once the Commercial Vehicle Lease Agreement form is filled out comprehensively, the next steps involve ensuring both parties understand their rights and responsibilities as stipulated in the agreement. It may include the lessor providing the lessee with the vehicle(s), and the lessee making preparations for insurance, vehicle registration, and any necessary operational arrangements. Careful completion of this form plays a crucial role in fostering a successful lease arrangement by clearly outlining expectations and minimizing the risk of disputes.
What vehicles are covered under the Commercial Vehicle Lease Agreement?
The Commercial Vehicle Lease Agreement specifies the leasing of vehicle(s) as detailed in Exhibit 1 of the document. These vehicles are provided by the Lessor for the Lessee's use under certain conditions and covenants outlined in the agreement. The types of vehicles can vary but are defined and agreed upon in Exhibit 1, which is attached to and forms a part of the lease agreement.
What are the insurance requirements for leased vehicles?
Lessee must provide and maintain insurance sufficient to protect against any loss or damage to the leased vehicles. This includes continuous liability coverage in line with North Carolina law, comprehensive and collision coverage sufficient to replace or repair vehicles in the event of damage or destruction, and any additional insurance to adequately cover the vehicle's current market value. Proof of insurance must be annually provided to the Lessor, the Public Transportation Division, or any agent thereof. Failure to maintain adequate insurance is considered a breach of the agreement and may lead to its termination.
How does the lease agreement address maintenance and operating expenses?
The agreement places the full responsibility for maintaining the leased vehicle(s) in terms of cleanliness, safety, and mechanical soundness on the Lessee. This includes paying all charges for gasoline, oil, parts, services used or supplied for the vehicle during the lease term. The Lessee also agrees to indemnify the Lessor against all liabilities on such accounts. Lessor is not obligated to provide services, parts/materials, facilities, or personnel for any repairs or maintenance, establishing that vehicle upkeep is entirely the Lessee’s responsibility.
What is the procedure if there is a need to sublease the Lessor’s equipment?
The agreement explicitly prohibits the Lessee from subleasing the Lessor's equipment to another entity without the expressed written consent of both the Lessor and the North Carolina Department of Transportation/Public Transportation Division (NCDOT/PTD). This ensures that all leased vehicles are used in accordance with the original terms set forth in the lease agreement, safeguarding the interests of the Lessor and ensuring compliance with broader transportation policies and agreements.
What are the federal requirements that the Lessee must comply with?
The Lessee is required to comply with all applicable State and Federal laws, regulations, policies, and administrative practices. This includes changes to Federal requirements that may occur during the term of the lease agreement. Notable compliance areas include conflict of interest standards, lobbying restrictions, adherence to guidelines against debarment and suspension, civil rights, and non-discrimination commitments. Failure to adhere to these requirements constitutes a material breach of the agreement and can lead to termination or further legal action.
One common mistake made during the filling out of a Commercial Vehicle Lease Agreement form is not thoroughly reviewing and incorporating the related agreements and amendments referenced within the document. These references, such as the Federal Transit Administration (FTA) Master Agreement and State Management Plan for Federal and State Transportation Programs, are crucial because they contain additional terms, conditions, and federal and state requirements that are binding on both parties. Overlooking these documents can lead to compliance issues and misunderstandings about the responsibilities and obligations under the lease.
Another frequent oversight is the failure to accurately detail and describe the vehicle(s) being leased in Exhibit 1. This attachment is critical as it identifies the leased assets and ties them to the terms and conditions set forth in the agreement. Specific details such as the make, model, year, and condition of the vehicle(s) should be meticulously documented. Inaccurate or vague descriptions can lead to disputes related to the condition and maintenance responsibilities of the leased vehicle(s).
Lessee responsibilities are outlined within the agreement, including maintenance, operation, and insurance requirements. A common mistake is underestimating the extent of these responsibilities or failing to adhere to them precisely. For instance, the agreement requires lessees to ensure vehicles are maintained according to the manufacturer guidelines and covered by comprehensive and collision insurance. Neglecting these duties can not only breach the lease agreement but also expose the lessee to significant financial liability in the case of vehicle damage or third-party claims.
Insurance requirements are another area prone to errors. The agreement mandates that lessees maintain continuous liability coverage adequate to compensate for property losses and personal injuries. Additionally, lessees must keep the vehicle(s) insured against loss or damage by fire or other risks, known as comprehensive and collision coverage. Not securing the appropriate amount and type of insurance can be a significant oversight, leading to the risk of non-compliance and the potential for financial ruin following an accident or vehicle damage.
The provision regarding training for vehicle operators is often overlooked. According to the agreement, the lessee assures that vehicle operators are properly trained, especially in operating specialty equipment like wheelchair lift mechanisms. Failing to provide evidence of such training upon request can result in non-compliance issues, compromising the safety of passengers and potentially leading to legal liabilities for the lessee. Properly addressing training ensures operations are conducted safely and in accordance with federal and state regulations.
When engaging in a Commercial Vehicle Lease Agreement, it's vital to have a thorough understanding of the additional forms and documents that may need to accompany the main agreement. These supporting documents not only provide clarity and legal compliance but also protect all parties involved in the lease. The six key forms and documents often used alongside the Commercial Vehicle Lease Agreement are:
Gathering these documents in conjunction with the Commercial Vehicle Lease Agreement ensures a well-documented, legally compliant, and mutually understood arrangement between the lessor and lessee. This thorough approach contributes to a smoother leasing experience and helps in avoiding potential disputes or misunderstandings during the lease term.
A Residential Lease Agreement shares similarities with a Commercial Vehicle Lease Agreement in the structure of the terms and conditions for leasing property, albeit the property in question differs (real estate vs. vehicles). Both documents outline the responsibilities of the lessor and lessee, lease term, maintenance obligations, and termination conditions, providing a legally binding framework that protects both parties' interests throughout the lease duration.
An Equipment Lease Agreement, much like the Commercial Vehicle Lease Agreement, is designed for the leasing of equipment rather than vehicles. However, both agreements cover similar ground regarding the lessee's responsibilities for maintenance, operation, and insurance, as well as outlining the terms, conditions, and duration of the lease. The objective is to ensure the equipment is used appropriately and returned in good condition.
The Car Rental Agreement parallels the Commercial Vehicle Lease Agreement in its focus on vehicles, specifically outlining the terms under which a vehicle is rented for short-term use. Both agreements include provisions for insurance, liability, and the condition of the vehicle, ensuring it is maintained properly during the rental period and detailing the fees and costs associated with the rental.
The Sublease Agreement, while typically associated with real estate, shares the principle of subletting with the clause in the Commercial Vehicle Lease Agreement that prohibits subleasing without permission. Both emphasize the need for consent from the original lessor before any subleasing arrangement can occur, aiming to protect the original lessor's interests and ensure the property or vehicle remains in good condition.
A Master Lease Agreement, often used in commercial leasing scenarios including fleet leasing, details the overarching terms under which multiple assets or vehicles can be leased under the same agreement. It parallels the Commercial Vehicle Lease Agreement in offering a structured approach to leasing but on a potentially larger scale, often involving multiple vehicles or equipment pieces.
An Operating Lease Agreement, relevant for businesses looking to keep assets off the balance sheet, is closely related to the Commercial Vehicle Lease Agreement in terms of the setup for leasing vehicles or equipment. Both are typically used for shorter periods and don't result in lessee ownership at the end, focusing on the use of the asset rather than its purchase.
A Finance Lease Agreement, unlike the Commercial Vehicle Lease Agreement, is structured so that the lessee can ultimately own the leased asset. However, both involve periodic payments, maintenance responsibilities, and other terms and conditions that govern the use of the leased asset throughout the term of the lease.
A Service Level Agreement (SLA) within the context of a Commercial Vehicle Lease might not directly correlate but shares the premise of establishing expectations and responsibilities. It outlines specific service standards the provider must meet, akin to the vehicle maintenance and operation standards set in a vehicle lease agreement, ensuring that each party understands their duties and the performance criteria.
A Franchise Agreement, while distinct in its function of granting a business relationship and rights, can include clauses similar to those in a Commercial Vehicle Lease Agreement concerning the use of company vehicles. Both types of agreements contain detailed descriptions of the parties' responsibilities and conditions under which the franchisee or lessee operates within the established framework.
The License Agreement shares a resemblance in its allowance for a party to use another's property (intellectual property vs. commercial vehicles). While its primary focus differs, the core concept of granting rights and outlining the terms under which those rights are exercised mirrors the structure of a lease agreement, highlighting usage limitations, responsibilities, and term length.
When filling out a Commercial Vehicle Lease Agreement form, it is crucial to approach the task with care and thoroughness to ensure all parties are well-protected throughout the lease term. Here is a list of do's and don'ts to consider:
By following these guidelines, parties can create a solid foundation for a successful and legally compliant commercial vehicle leasing relationship. It protects both the lessor and lessee by clearly outlining expectations and responsibilities, thereby reducing the potential for disputes.
Commercial Vehicle Lease Agreements are vital tools in business operations, especially for companies relying on transportation and deliveries. However, misconceptions often surround the content and function of these agreements. Understanding the truth behind these misconceptions is key to ensuring that all parties involved in a commercial vehicle lease are well-informed and their interests are protected.
Here are eight common misconceptions about the Commercial Vehicle Lease Agreement form:
Understanding these aspects of the Commercial Vehicle Lease Agreement ensures that businesses can make informed decisions when entering into these contracts. It's crucial for both lessors and lessees to thoroughly review and comprehend the agreement terms, ensuring a beneficial and compliant partnership.
Filling out and using a Commercial Vehicle Lease Agreement form requires a clear understanding of the terms and responsibilities involved. Here are 10 key takeaways to guide you through the process:
Understanding these key points ensures that all parties are aware of their rights and responsibilities, contributing to a successful and legally compliant commercial vehicle leasing arrangement.
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