A Commercial Vehicle Lease Agreement form is a legally binding contract that stipulates the terms and conditions under which a commercial vehicle is leased from the lessor to the lessee. It covers various aspects, such as vehicle operation, maintenance responsibilities, insurance requirements, and adherence to federal and state laws, ensuring all parties understand their obligations and rights. To get started with leasing a commercial vehicle and to ensure a smooth and compliant process, click the button below to fill out the form.
In today’s fast-paced world, where commercial operations are continuously expanding, the Commercial Vehicle Lease Agreement form plays a pivotal role in bridging the needs between vehicle lessors and lessees for business purposes. Crafted under the auspices of the North Carolina Department of Transportation, this document outlines the symbiotic relationship between the two parties involved, ensuring that commercial vehicles are leased and operated under stringent guidelines that protect the interests of both the lessor and the lessee, as well as the public's welfare. With a comprehensive structure, the agreement covers various crucial aspects, including vehicle descriptions, lease terms, financial considerations, maintenance responsibilities, liability, and insurance requirements, while emphasizing adherence to federal and state laws. Furthermore, the form delves into routine maintenance and operational expenses, ensuring leased vehicles maintain a standard of cleanliness, safety, and mechanical soundness. It underscores the lessee’s accountability for all associated costs and stresses the importance of adequate insurance to safeguard against potential liabilities. Moreover, the agreement is conscious of the important federal and state requirements, incorporating clauses related to civil rights, equal employment opportunities, and conflict of interest, ensuring that all operations under the lease abide by legal standards and ethical conduct. Through a careful balance of detailed stipulations, the Commercial Vehicle Lease Agreement form serves as a cornerstone for transparent, fair, and legally sound commercial vehicle leasing transactions.
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 requires careful attention to detail and accuracy to ensure that all terms and conditions are clearly understood and agreed upon by both parties. The following steps will guide you through the process of completing this document, ensuring that all necessary information is provided, and the agreement is ready to be executed.
Ensure that all exhibits and attachments referenced throughout the agreement, such as Exhibit 1 for vehicle descriptions, are completed and included with the agreement when it is executed. By following these steps, both the lessor and lessee can confidently enter into the Commercial Vehicle Lease Agreement with a clear understanding of their rights, responsibilities, and obligations under the lease.
What entities are involved in a Commercial Vehicle Lease Agreement?
This agreement involves two primary parties: the 'Lessor' who owns the commercial vehicle(s), and the 'Lessee' who is leasing the vehicle(s). In instances where the North Carolina Department of Transportation (NCDoT) is involved, this agreement acts as a subcontract under their broader agreements with the Lessor.
What types of vehicles does this lease agreement cover?
The lease agreement covers any vehicle(s) described in Exhibit 1 of the agreement, which are to be operated by the Lessee for the benefit of the Lessor and the public. The agreement specifies that a Commercial Driver's License is required for all vehicles capable of carrying 16 or more passengers, including the driver.
Who is responsible for the vehicle's maintenance and operational costs?
The Lessee is fully responsible for maintaining the leased vehicle(s) in a condition of high cleanliness, safety, and mechanical soundness. Additionally, the Lessee must cover all operational expenses such as gasoline, oil, parts, and service costs during the lease term.
What insurance requirements must be met under this lease agreement?
The Lessee must obtain sufficient insurance to cover liability, fire, and other casualties, ensuring protection for themselves, the Lessor, and relevant government departments from any losses incurred during the operation of the vehicle(s). Proof of insurance must be furnished to the Lessor annually.
What are the lease term limitations?
The term of the lease agreement cannot exceed five years, with the commencement date specified in the agreement. The lease term may run concurrently with a service agreement if the Lessee is a private operator. The agreement can be terminated by either party with 30 days' advance notice.
Can the Lessee sublease the vehicle to another party?
No, the Lessee is not permitted to sublease the Lessor's equipment to any other entity without the expressed written consent of both the Lessor and the North Carolina Department of Transportation/Public Transportation Division.
How does the agreement address liability and damages?
The Lessee assumes all liability for damages arising from the use, maintenance, or operation of the leased vehicle(s) and agrees to indemnify the Lessor against all such liabilities. This includes any tortuous conduct occurring during the operation of the vehicle(s).
What happens if there are changes to Federal or State requirements?
The Lessee is required to comply with any changes, amendments, or new laws set forth by Federal or State governments that affect the agreement. Failure to comply constitutes a material breach of the agreement and could result in termination of the lease.
Filling out a Commercial Vehicle Lease Agreement form can seem straightforward, but misunderstandings and oversights often occur. One common mistake is neglecting to specify the exact start and end dates of the lease in Article II. Such omissions can lead to confusion or legal disputes about the lease term's duration.
Another mistake involves inadequately describing the leased vehicles in Exhibit 1. Being vague or imprecise about the vehicle details, such as make, model, year, and VIN, can lead to ambiguities in the agreement, potentially causing conflicts regarding which vehicles are actually covered under the lease.
Often, lessees overlook the importance of the insurance requirements delineated in Article V. Failing to secure adequate liability and comprehensive and collision coverages can be a costly oversight. It's crucial that lessees provide proof of insurance that meets the agreement's standards, not just for the lease's initiation but continuously throughout its duration.
Lessee responsibilities regarding maintenance, as detailed in Article IV, are frequently underestimated. Ignoring the necessity for a Preventive Maintenance Program/Schedule or not keeping meticulous maintenance records can lead to disputes or even termination of the lease agreement. Maintenance isn't just a recommendation; it's a contractual obligation aimed at keeping the vehicles in top condition.
The agreement contains important clauses tied to federal and state regulations, yet these are often glossed over. For instance, failing to adhere to the federal changes clause in Article VIII can cause the lessee to inadvertently breach the agreement if they don't comply with updated laws and regulations.
Another often-overlooked section is the vehicle usage stipulation. Lessees may not realize that using the leased vehicles outside the agreed purposes or subleasing without permission, as stated in the initial articles, constitutes a breach. This oversight can lead to legal and financial repercussions.
The indemnification clause, within Article III and Article V, is crucial yet sometimes misunderstood. Lessees sometimes fail to grasp their responsibility to hold the Lessor harmless for damages or losses arising from the vehicle's use. Understanding the full extent of this liability is crucial to managing risk effectively.
Finally, the consequences of non-compliance with training requirements for vehicle operation and special equipment use, as outlined in Article VI, are often underestimated. Overlooking the need for documented proof of operator training can lead to safety risks and breaches of the lease agreement.
Being mindful of these common mistakes when completing the Commercial Vehicle Lease Agreement can help lessees and lessors alike avoid potential conflicts, ensuring a smoother leasing experience.
When entering into a commercial vehicle lease agreement, it's crucial for both lessors and lessees to be aware of and understand several additional documents that commonly accompany the lease agreement. These documents are integral to ensuring clarity, legal compliance, and protection for both parties involved in the leasing transaction. Below is a brief overview of eight such essential forms and documents.
Collectively, these additional forms and documents play a crucial role in the commercial vehicle leasing process. They not only enhance the legal and operational framework of the lease agreement but also provide both parties with the necessary tools to navigate the leasing relationship successfully, manage risk effectively, and foster transparency and trust.
A Commercial Vehicle Lease Agreement shares similarities with a Residential Lease Agreement, which is a contract where a landlord leases residential property to a tenant for a specified period. Both documents outline terms regarding the use of property, payment details, maintenance responsibilities, and conditions for termination. However, the key difference lies in the type of property being leased—commercial vehicles versus residential property. Nevertheless, both agreements ensure the lessee adheres to specific terms during the lease period and outlines the liabilities of each party.
Similar to a Commercial Vehicle Lease Agreement, an Equipment Lease Agreement allows one party, the lessor, to rent equipment to another party, the lessee. This type of agreement covers similar ground: lease terms, payment arrangements, maintenance obligations, and liability issues. Both agreements require the lessee to maintain the leased items in good condition and return them at the lease's end, although the specific items being leased—vehicles in one case, general equipment in the other—differ.
An Employment Agreement, while primarily focused on the terms of employment between an employer and employee, shares common features with a Commercial Vehicle Lease Agreement in terms of clauses related to responsibilities, adherence to policies, and potential termination conditions. Although one is focused on vehicle use and the other on employment, both incorporate federal and state regulations and outline specific conditions that could lead to termination of the agreement.
Likewise, a Service Level Agreement (SLA) bears resemblance to a Commercial Vehicle Lease Agreement as it stipulates the level of service expected from a service provider, including terms, responsibilities, and protocol for addressing failures in service. Both documents include detailed terms for the commencement and termination of the agreement and set forth penalties for non-compliance, ensuring that both parties are clear on the expectations and repercussions of the arrangement.
A Franchise Agreement, which grants a franchisee the rights to operate a business under the franchisor's trademark, parallels the vehicle lease agreement in its detailed delineation of terms, operational guidelines, and adherence to specified standards. Both agreements incorporate by reference other foundational documents and agreements, thus binding the parties to a comprehensive set of rules and expectations designed to govern their relationship.
A Vehicle Purchase Agreement outlines the terms of sale between a buyer and seller of a vehicle, bearing similarities to a lease in its specification of details such as pricing, payment plans, and description of the property (vehicle) involved. However, unlike leasing, purchasing involves transfer of ownership. Both documents serve to formalize the arrangement and protect both parties' interests by clearly stating the terms of the agreement.
The Shareholders' Agreement among business owners shares the foundation of outlining terms for a partnership, similar to how a Commercial Vehicle Lease Agreement outlines the lease terms. These agreements detail the relationship dynamics, such as operational responsibilities, financial arrangements, and dispute resolution methods. Both are essential for providing a legal framework that governs the parties' relationship.
A Licensing Agreement, which permits one party to use another's intellectual property, is akin to a vehicle lease agreement in its structure of granting usage rights under specific conditions, detailing payment terms, and outlining the scope of use. Although the subject matter differs—intellectual property versus commercial vehicles—both agreements specify terms under which one party can use the other's property.
A Commercial Property Lease Agreement, much like its vehicle-focused counterpart, deals with leasing property for business use, delineating terms regarding payment, maintenance, and use of the property. Both types of leases impose obligations on the lessee to maintain the property in good condition and follow the lessor’s rules, ensuring that the property serves the interests of both parties during the lease period.
Last but not least, a Subscription Agreement for services or software shares similarities in laying out the terms under which services are provided, including payment, term length, and termination clauses. While focusing on services or software access rather than physical assets, this type of agreement, like a Commercial Vehicle Lease Agreement, legally binds the subscriber (or lessee) to abide by the provider's (or lessor's) terms and conditions.
When filling out a Commercial Vehicle Lease Agreement form, it’s essential to approach the task with attention to detail and legal requirements. Here are ten key do’s and don’ts to guide you through the process:
Many people have misconceptions about Commercial Vehicle Lease Agreements, often leading to confusion or incorrect assumptions about the terms, responsibilities, and legal implications involved. Here are nine common misconceptions and the truths behind them:
All leases are the same. Commercial vehicle leases can vary significantly based on the lessor, the type of vehicle, and specific state and federal requirements. The agreement may be subject to different terms, including maintenance responsibilities, insurance requirements, and duration.
You can sublease the vehicles anytime. The lease explicitly states that the lessee cannot sublease the vehicle to another entity without the expressed written consent of the lessor and the North Carolina Department of Transportation/Public Transportation Division (NCDOT/PTD).
Maintenance is the lessor's responsibility. The lessee is fully responsible for maintaining the vehicle in a safe and high-quality condition, including all costs associated with maintenance, operation, and repair of the leased vehicle(s).
The lease terms are fixed and non-negotiable. The duration of the lease is negotiable up to a maximum of five years, and both parties must agree to the terms, which can be renegotiated or terminated under certain conditions with proper notice.
Insurance is optional. Adequate insurance coverage is mandatory under the lease agreement. The lessee must insure the vehicle against loss, damage, and liability, and proof of insurance must be provided regularly to the lessor.
Any driver can operate the leased vehicles. Drivers must meet specific licensing requirements, such as holding a Commercial Driver's License for vehicles with a capacity of 16 or more passengers, including the driver.
Lessor is liable for accidents and damages. The lessee assumes all liability for the use, maintenance, or operation of the leased vehicle(s) and agrees to indemnify the lessor against any damages or losses.
The agreement only applies to state laws. The lease must comply with both state and federal laws, including specifics outlined in the Federal Transit Administration (FTA) Master Agreement and other applicable regulations and amendments.
Violating the agreement has no serious consequences. Noncompliance or breaches of the agreement terms can result in the immediate termination of the lease, among other potential legal and financial repercussions for the lessee.
Understanding these realities helps both lessors and lessees navigate the complexities of Commercial Vehicle Lease Agreements with greater clarity and confidence, ensuring legal and operational adherence throughout the duration of the lease.
When drafting or reviewing a Commercial Vehicle Lease Agreement, especially one that involves the North Carolina Department of Transportation (NCDOT) and the Federal Transit Administration (FTA), it's crucial to pay attention to the detailed requirements and stipulations to ensure full compliance. Here are six key takeaways to bear in mind:
Given the detailed and interconnected nature of federal and state requirements, lessees and lessors alike must carefully review and adhere to the provisions outlined in the Commercial Vehicle Lease Agreement. Ensuring compliance not only prevents legal issues but also fosters a responsible and inclusive operational ethos.
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