Created : September 07, 2013 at 05:25 AM
July 23, 2013
Status:
Open Agenda
To approve the Settlement Agreement with Penske Truck Leasing Co., L.P., concerning a Vehicle Lease Service Agreement dated May 8, 2012 and to authorize the Superintendent of Schools or his designee to execute any related settlement documents.
On May 8, 2012, a Vehicle Lease Service Agreement with Penske Truck Leasing Co., L.P. ("Penske") was executed by the school district's former Chief of Transportation for a 6-year lease of three vehicles. The vehicles were modified (e.g. lift-gates, hinges, shelves,, etc.) for the specific purpose of transporting parts and equipment from the centralized parts depot to other terminals in the district. These vehicles benefit the district by supporting the centralized parts costs-saving initiative implemented during the 2012-13 school year. The vehicles were not competitively procured as required by Section 6A-6-1.012, F.A.C., and School Board Policy 3320. In addition, the lease agreement exceeded the period of time permitted for district agreements under Section 1011.14, Florida Statutes, was not submitted to the Office of General Counsel for review as to legal form and content, or submitted to The School Board for approval prior to its execution. After execution of the lease agreement, Penske obtained the subject vehicles for delivery to the school district and claims to be damaged by reliance upon the lease agreement executed by the former Chief of Transportation. Representatives from Penske and the school district have negotiated a settlement of the disputes between the parties concerning the lease agreement whereby the school district would pay $162,447.90 to Penske to pay for the cost of the vehicles under the lease agreements in exchange for delivery of the three vehicles to The School Board along with bills of sale and transfers of vehicle titles. This matter was handled by the Office of the General Counsel without referral to outside counsel and both parties will bear their own respective attorney's fees and costs regarding the dispute as part of the settlement. The funding source is through the District?s Self-Insurance Retention Fund.
The Settlement Agreement has been approved as to form and legal content by the Office of the General Counsel.
If approved, the Settlement Agreement would result in an expense to the school district in the amount of $162,447.90 paid from the District?s Self-Insurance Retention Fund.
Requested Action
To approve the Settlement Agreement with Penske Truck Leasing Co., L.P. concerning a Vehicle Lease Service Agreement dated May 8, 2012 and to authorize the Superintendent of Schools or his designee to execute any related settlement documents.
Summary
On May 8, 2012, a Vehicle Lease Service Agreement with Penske Truck Leasing Co., L.P., ("Penske") was executed by the school district's former Chief of Transportation for a 6-year lease of three vehicles. The vehicles were modified (e.g. liftgates, hinges, shelves,, etc.) for the specific purpose of transporting parts and equipment from the centralized parts depot to other terminals in the district. These vehicles benefit the district by supporting the centralized parts costs-saving initiative implemented during the 2012-13 school year. The vehicles were not competitively procured as required by Section 6A-6-1.012, F.A.C., and School Board Policy 3320. In addition, the lease agreement exceeded the period of time permitted for district agreements under Section 1011.14, Florida Statutes, was not submitted to the Office of General Counsel for review as to legal form and content, or submitted to The School Board for approval prior to its execution. After execution of the lease agreement, Penske obtained the subject vehicles for delivery to the school district and claims to be damaged by reliance upon the lease agreement executed by the former Chief of Transportation. Representatives from Penske and the school district have negotiated a settlement of the disputes between the parties concerning the lease agreement whereby the school district would pay $162,447.90 to Penske to pay for the cost of the vehicles under the lease agreements in exchange for delivery of the three vehicles to The School Board along with bills of sale and transfers of vehicle titles. This matter was handled by the Office of the General Counsel without referral to outside counsel and both parties will bear their own respective attorney's fees and costs regarding the dispute as part of the settlement. The funding source is through the District?s Self-Insurance Retention Fund.
The Settlement Agreement has been approved as to form and legal content by the Office of the General Counsel.
School Board Goals
| Goal 2: Continuous Improvement |
Financial Impact
If approved, the Settlement Agreement would result in an expense to the school district in the amount of $162,447.90 paid from the District?s Self-Insurance Retention Fund.
Source of Additional Information
Robert Paul Vignola, Esq. 754-321-2050 Robert Paul Vignola, Esq. 754-321-2050
Associated File Attachments
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agreement (Files) | |
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ExecutedCompleteCopy (Files) |