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Sample MOU
Sample MOU
This Memorandum of Understanding (“MOU”) is made as of the date last indicated below,
by and between the WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY
(“WMATA”), an interstate compact agency with offices at 600 5th Street, N.W., Washington,
D.C. 20001, and THE COUNTY BOARD OF ARLINGTON COUNTY, VIRGINIA
(“Arlington”) with offices at 2100 Clarendon Blvd., Arlington, Virginia 22201 (collectively “the
Parties”).
RECITALS
1. WMATA owns and operates a facility for fueling passenger buses with Compressed
Natural Gas (CNG) at its Four Mile Run Facility (FMR) in Arlington, Virginia; and
2. Arlington and/or its contractors operate a fleet of passenger buses which run on
CNG and which can be fueled and serviced efficiently at FMR; and
3 WMATA and Arlington have previous experience sharing the CNG fueling facility at
FMR; and
4. WMATA and Arlington agree that it would be appropriate and prudent to terminate
any existing MOU between the Parties and establish terms, conditions and circumstances
under which WMATA will provide CNG fuel, Bus Exterior Wash, and Engine Wash services
to Arlington for Arlington Transit (ART) buses at FMR.
TERMS
In consideration of the mutual promises contained herein, WMATA and Arlington agree as
follows:
1. Fueling - Arlington shall have the right, subject to the limitations stated herein and in
Exhibit A, to have its CNG buses, contractors and employees enter upon WMATA’s
FMR facility and to have those buses fueled by WMATA personnel and in
accordance with such WMATA procedures as pertain to such fueling. WMATA
procedures may change from time to time without prior notice to Arlington. The
fueling of Arlington buses shall take place daily at such times as may be established
by WMATA in WMATA’s sole discretion. WMATA may suspend, delay, defer or
accelerate, as the case may be, the fueling of Arlington buses in WMATA’s sole
discretion.
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2. Cleaning - Exterior of buses will be washed by WMATA through the wash rack with
the backs being washed by hand as required.
3. Engine Wash – WMATA shall perform engine washing of Arlington County buses by
pressure washing the engine compartment which includes pressure washing the
engine (all sides), radiator, fan drive, throttle control, compressor and the turbo-
charger. This service will be performed on Saturday mornings on six (6) to ten (10)
ART buses as determined by the ART contractor on a rotating basis.
4. Compliance - This MOU and all operations pertinent thereto, shall, at all times, be
subject to applicable laws, rules, regulations and orders of competent legal
authorities. In addition, this MOU, and all operations pertinent thereto, shall at all
times be in compliance with applicable requirements, including tariffs, which have
been, or which may be, promulgated by Washington Gas Light Company (WG) as
well as with the terms and conditions of that certain Agreement by and between WG
and WMATA dated July 21, 2005, attached hereto as Exhibit D.
5. Operations - Arlington, its employees and contractors shall, at all times while on
WMATA property, comply with applicable laws, rules, regulations and orders of
competent legal authorities, comply with applicable tariff requirements, if any, as well
as with written and oral notices, instructions, and other directives of WMATA FMR
supervisory and safety employees.
6. Billing - Every month, WMATA shall submit an invoice to Arlington stating the total
costs incurred and charged against the Arlington funds on account under this MOU.
That invoice shall include costs broken down by 1) quantity of CNG delivered to
Arlington buses; and 2) personnel/labor costs associated with the services herein.
The total cost shall be inclusive of actual fuel costs, actual fluids cost, the amount of
time expended by WMATA Mechanics at one and one-half times the Mechanic rate
of pay at the time of servicing, taxes, if applicable, as well as WMATA’s indirect
costs, which shall be accounted for by including a 10% general/overhead expense
on each bill. It is the intent of the Parties that WMATA shall be reimbursed for such
out-of-pocket costs as are reasonably attributable to the goods and services
provided to Arlington pursuant to this MOU. Invoices will be mailed to the following
address: Transit Services Manager, 2100 Clarendon Boulevard, S-900, Arlington,
VA 22201. Copies of invoices may be submitted via email from WMATA to an email
address provided by Arlington. At the time of entering this MOU, the email contacts
for Arlington are: Steve Yaffe: syaffe@arlingtonva.us; and Joseph Licaros:
jlicaros@arlingtonva.us.
7. Payment –
a. The Parties anticipate that the services provided under this MOU shall cost
approximately $300,000 per year (based on WMATA’s FY2015 operating budget).
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Arlington shall provide advance funding in the amount of $150,000. WMATA shall
hold that funding as a separate line item in its Reimbursable Projects budget and
shall deduct each month the expenses incurred for the services contemplated herein
from that account. It is the intent of the Parties that Arlington will reimburse this
account within thirty (30) days of receipt of each monthly invoice from WMATA.
WMATA will provide no services in the event that funding is not available in this
reimbursable project account.
c. The WMATA Board of Directors will be notified if a payment is ninety (90) days
past due. This MOU will be terminated if payment is more than one hundred twenty
(120) days past due or if there is no funding in the Reimbursable Project Account to
support the services requested herein.
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The Contractor shall procure, at its sole cost and expense the insurance outlined in
this Section as follows:
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i. Commercial General Liability (CGL) coverage form shall be ISO Occurrence Form
CG0001 (12/04) or its equivalent. Equivalency determination shall be made in
WMATA’s sole and unreviewable discretion.
ii. Required minimum limits of coverage may be achieved through a combination of
the aforementioned CGL coverage form and umbrella excess liability coverage
form(s), provided that the umbrella excess liability coverage form(s) provide the
same or broader coverage than the prescribed CGL coverage form.
iii. Policy shall be endorsed with Additional Insured Endorsement(s) in compliance
with the “Additional Insured” provision of this Section 9. Commercial General
Liability and Umbrella Excess Liability forms must provide defense coverage for
additional insureds.
iv. Policy shall be endorsed with a Waiver of Subrogation Endorsement(s) in
compliance with the “Waiver of Subrogation” provision of this Section 9.
v. Defense Costs (Allocated Loss Adjustment Expense) must be included and in
excess of the policy limits for all primary and Umbrella Excess Policies.
vi. Policy shall be endorsed with ISO endorsement CG 25 04 03 97; “Designated
Location General Aggregate Limit”, and designate “Any and all locations” as the
designated location.
vii. The Additional Insured Endorsement shall include Products and Completed
Operations Coverage with no limitation on when claims can be made. The
coverage provided by the additional insured endorsement shall be at least as broad
as the Insurance Service Office, Inc.’s Additional Insured Form CG 2 10 11 85 or
CG 2 26 11 85 as determined by WMATA.
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i. Business Auto Liability shall be written on ISO Business Auto Coverage Form CA
00 01 03 06, or its equivalent. Equivalency determination shall be made in
WMATA’s sole and unreviewable discretion.
ii. Policy shall be endorsed with Additional Insured Endorsement(s) in compliance with
the “Additional Insured” provision of this Section 9.
iii. Policy shall be endorsed with a Waiver of Subrogation Endorsement(s) in
compliance with the “Waiver of Subrogation” provision in this Section 9.
iv. Business Auto Liability minimum Combined Single Limit requirements may be
obtained through the combination of a Primary Business Auto Liability policy and an
Umbrella Excess Liability policy provided that the Umbrella Excess Liability policy
complies with Sections 9(D)(2)(i) through 9(D)(2)(iii) above.
F. Additional Insured(s)
1) Contractor and sub-contractors of every tier are required to add WMATA, its
independent contractors, and the WMATA Board of Directors as additional
insured(s) on all insurance policies purchased by Contractor and sub-contractors of
every tier, with the exceptions of Workers’ Compensation and Professional Liability.
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G. Waiver of Subrogation
1) Contractor and sub-contractors of every tier are required to have all insurance
policies purchased by Contractor and sub-contractors of every tier, endorsed to
waive the insurance company’s rights of recovery against WMATA, its independent
contractors and the WMATA Board of Directors.
3) Additionally;
i. Satisfactory COI delineating all required insurance coverage requirements
under this Section shall be delivered before the execution of this Contract by
WMATA.
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ii. Failure to provide satisfactory evidence of all required insurance may result in
Contractor and/or subcontractors of every tier being denied access to work
locations, including, but not limited to WMATA properties.
iii. COI reflect total limits of insurance purchased by Contractor for the types of
insurance required under this MOU.
iv. Cancellation of insurance required under this Section must be noticed to
WMATA at least 30 days prior to the effective date of the proposed
cancellation to such insurance.
v. WMATA’s receipt of copies of any COI, policy endorsements or policies does
not relieve Contractor of the obligation to remain in compliance with the
requirements of this Section at all times. Contractor's failure to so comply,
and to continuously comply with these insurance requirements shall
constitute a material breach of this MOU.
vi. The ACORD COI shall specifically delineate the following:
a. Who is an Additional Insured under the policies delineated in this
Section.
b. That each additional insured(s) as required under this Section is an
additional insured on a primary and non-contributory basis.
c. That each additional insured(s) is an additional insured for ongoing
operations of the Contractor in addition to the products and completed
operations coverage.
d. That coverage providing a waiver of subrogation to each Additional
Insured is compliant with the Waiver of Subrogation provision of this
Section.
e. That the issuing insurance company will mail written notice of
cancellation of any of the required insurance policies to WMATA within 30
days of Cancellation. Use of “will endeavor to” as respects this
requirement is not acceptable and must be deleted. Such notice shall be
sent to:
10. Assumption of Risk - In furtherance, but not in limitation, of the Indemnity and
Insurance provisions of this MOU, Arlington stipulates that it has read the “Service
Agreement For Special Facilities To Permit Delivery Of Natural Gas To Be Used As
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11. Tax-Exempt Fleet. Arlington shall make a monthly certification, substantially in the
form attached hereto as Exhibit C, that the vehicles being fueled or serviced are
“automobile buses” engaged in furnishing for compensation passenger land travel to
the general public or are otherwise exempt from all federal fuel excise taxes.
Arlington further agrees that it will not claim any tax credit for any such fuel received.
To the extent that Arlington wishes to change the buses shown on Exhibit C, without
increasing the total number of buses serviced by WMATA, Arlington shall do so, in
writing, seven (7) business days in advance of presenting such bus for service.
WMATA will accept or reject the proposed change in buses within five (5) business
days. WMATA shall have no obligation to service any bus not included on a current,
approved Exhibit C.
12. Effective Date – This MOU shall be effective when all parties hereto have affixed
their signatures.
13. Term/Termination
a. That MOU, as amended, between the parties dated August 5, 2008 and
regarding fueling at the FMR facility is hereby terminated and any deficiency in
notice regarding that termination is waived.
b. This MOU shall remain in effect until terminated by either party. Either Party may
terminate this MOU, for any reason, by giving thirty (30) days written notice
thereof to the other Party. Upon such termination, WMATA shall submit a final
invoice to Arlington, which shall be promptly paid. However, if upon termination
there remains a balance for this project in the Reimbursable Project budget, then
WMATA shall submit a final accounting of the budget and promptly return any
unused funds to Arlington.
14. Notice:
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To WMATA:
To Arlington:
Arlington County
Attn: Steven Yaffe
Transportation Division
Department of Environmental Services
2100 Clarendon Blvd. Suite 900
Arlington, VA 22201
14. Board Approval – Execution of this MOU has been approved by the WMATA Board
of Directors.
15. Entire Agreement – This MOU contains the entire agreement of the Parties, all prior
agreements, representations, understandings and statements are reflected herein.
16. Choice of Law – This MOU shall be construed according to the laws of the
Commonwealth of Virginia.
17. Amendment – This MOU may not be altered or amended except by written
agreement signed by both Parties.
18. Authority – The persons executing this MOU, and each of them, represent that they
have full authority to enter into this agreement on behalf of their respective
organizations.
IN WITNESS WHEREOF, the Parties hereto have signed the MOU as of the day and
year written below:
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Approved as to form:_____________
Office of General Counsel
______________________________ Date_____________________________
Name:
Title: _______________________________
Arlington County, Virginia
Approved as to form:_____________
County Attorney
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Exhibit A
The information found herein may be changed at any time by WMATA and in WMATA’s
sole discretion.
A. Hours of fueling/exterior cleaning every day of the year are 4:00 a.m. - 7:00 a.m.
B. Hours of Engine Wash will be Saturdays only 3:00 a.m. – 11:00 a.m.
D. The WMATA point of contact is the day shift supervisor for bus maintenance at
Four Mile Run Division or Anthony Johnson, Superintendent of Bus Maintenance.
The points of contact can be reached at (703) 667-8156.
E. All Services provided under this MOU must be done by WMATA personnel.
F. Services shall be provided for no more than 51 vehicles per day unless approval
is received from WMATA in advance.
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Exhibit B
Form National Express Transit, Inc. Indemnification Letter
[Insert Date]
Re: Use of Fueling Services at WMATA Four Mile Run Bus Division
Dear :
This letter will serve as an Insured Contract and Letter of Agreement allowing work to be
performed on WMATA property. This Agreement also confirms that National Express
Transit, Inc. will, and will require its sub-contractors to, indemnify and insure WMATA as
further indicated below.
Indemnification
a. National Express Transit, Inc. and its subcontractors shall indemnify and save
harmless WMATA, its directors, officers, employees and agents from all liabilities,
obligations, damages, penalties, claims, costs, charges and expenses (including
reasonable attorney’s fees), of whatsoever kind and nature for injury, including
personal injury or death of any person or persons, including employees of National
Express Transit, Inc. or its subcontractors and for loss or damage to any property,
occurring in connection with, or in any way arising out of the use, occupancy and
performance of the work permitted at WMATA’s Four Mile Run Bus Division and/or
any acts in connection with activities to be performed at WMATA’s Four Mile Run
Bus Division (collectively “damages”) resulting in whole or in part from the acts,
errors or omissions of any employee, agent or representative of National Express
Transit, Inc. or its subcontractors. Nothing in the preceding sentence shall be
deemed to relieve National Express Transit, Inc. from ultimate liability for any
obligation of National Express Transit, Inc. for its work performed at WMATA’s
Four Mile Run Bus Division. Notwithstanding the foregoing, however, National
Express Transit, Inc. shall not be required to indemnify and hold WMATA harmless
for damages to WMATA’s property or employees caused solely by WMATA.
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b. National Express Transit, Inc. shall indemnify, defend and hold harmless WMATA
its directors, officers, employees and agents against any and all claims, liabilities, losses,
demands, damages, penalties, costs, charges, remedial costs, environmental claims, fees
or other expenses including attorneys fees, related to, arising from or attributable to any
effluent or other hazardous waste, residue, contaminated soil or other similar material
discharged from, removed from, or introduced on, about or under the WMATA’s Four Mile
Run Bus Division resulting in whole or in part from the acts, errors or omissions of any
employee, agent or representative of National Express Transit, Inc. or its subcontractors.
Insurance
National Express Transit, Inc. or its subcontractors, as appropriate, shall carry insurance
anticipated to provide a funding source for the indemnification undertaken in this
Agreement, however, insurance is provided in addition to any indemnification requirements
and the failure of any insurance provider to fully fund any indemnified event shall not relieve
National Express Transit, Inc. or its subcontractors of any obligation assumed under this
indemnification. It is the responsibility of National Express Transit, Inc. or its
subcontractors to ensure adequate and complete insurance coverage as contemplated in
this Agreement. This responsibility is not waived, nor is any requirement to indemnify
waived by WMATA’s review and approval of any insurance policy. National Express
Transit, Inc. shall carry at least those types and levels of insurance required by and
pursuant to the terms of that Memorandum of Understanding entered into between
WMATA and Arlington County dated .
By Signature Below, National Express Transit, Inc. Agrees to undertake the above
indemnification of the Washington Metropolitan Area Transit Authority:
_____________________________ ________________________
Name (print) Telephone No.
___________________________________________________________________
Organization
_____________________________ ________________________
Signature Date
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Exhibit C
Arlington County certifies that the Arlington Transit (ART) buses fueled or serviced pursuant
to that Memorandum of Understanding between the Washington Metropolitan Area Transit
Authority and Arlington County are “automobile buses” engaged in furnishing for
compensation passenger land travel to the general public or are otherwise exempt from all
federal fuel excise taxes. Arlington further agrees that it will not claim any tax credit for any
such fuel received.
The vehicles fueled during each month include and are limited to:
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